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Construction Sector Corruption in Ethiopia 245
independence and integrity to enforce them fairly. Any indication of
weak enforcement of professional standards makes it more likely that
corrupt practices may occur.
• High multiplier between public sector and private sector salaries. If a
government official is poorly paid relative to the private sector yet is
responsible for administering major construction contracts, he or she
will have powerful incentives to engage in rent seeking. These
incentives may, to some extent, be offset by other benefits attached
to public office, including job security, prestige, and valuable work
experience. However, a high multiplier between private sector and
public sector salaries can be an indirect warning sign and can lead to
moonlighting at best and rent seeking at worst. This issue is typically
addressed by managing major contracts through quasi-governmental
authorities or agencies, in which the normal limitations of civil service
pay do not apply.
• Discretionary powers and barriers to entry to market. If government
officials have discretionary powers that permit them in an unaccountable
manner to overrule or unduly influence normal contractual
processes—or if other factors unduly favor one player in the
market over another—considerable scope will exist for corrupt, or
seemingly corrupt, practices. These can either be personally motivated,
politically motivated, or a combination of the two.
Framework for Mapping Perceptions
The value chain. In mapping the perceptions of corruption, reference is
made to the entire construction sector value chain:
1. Policy making and regulation
2. Planning and budgeting
3. Management and performance monitoring
4. Tendering and procurement
5. Construction and operations
6. Payment and settlement of certificates.
Corrupt practices are commonly encountered in each stage of this
chain. A standard list of such corrupt practices, as developed by the
Global Infrastructure Anti-Corruption Centre, 5 was used in the initial
stakeholder workshop as part of the general mapping exercise.