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250 Diagnosing Corruption in Ethiopia
Table 6.1
(continued)
Underlying factors affecting this risk in Ethiopia
The government’s dominant role in Ethiopia’s construction sector is a natural result of its
political history. Many functions in controlling the sector are conducted in a committed
manner that is focused on serving the national interest. But such powers are open to
abuse, particularly in a market where the government is a major client and where there is
a reluctance to express dissent. Many stakeholders are concerned about the possibility of
a connection between the dominant role of Chinese contractors in the road sector and
high-level links between the Ethiopian and Chinese governments.
Corrective measures recommended by stakeholders in Ethiopia
• Government should communicate and consistently enforce existing regulations while
raising awareness of the damaging effects on society of construction-related corruption.
• Government should strengthen procurement policy and related regulations to improve
transparency, reduce its own discretionary powers, allow more investigative reporting
and challenges by civil society and the media, favor domestic firms, take more account of
past performance, allow a sample of bid evaluations to be subjected to independent
external scrutiny, and give specific powers to independent bodies to define and maintain
professional standards.
• There should be more open debate about the role of Chinese contractors in the road sector.
• Consultants and contractors’ associations should actively combat corruption among members.
Source: Author’s compilation.
a. Though accepted by other stakeholders as being plausible, these examples are neither backed by hard
evidence nor necessarily widespread in the sector.
Table 6.2 Corruption Risks in Planning and Budgeting in
the Construction Sector in Ethiopia
Value chain stages
Corruption risks at
each stage of the
construction value chain
1. Policy making and regulation Now (international
comparison)
2. Planning and budgeting
3. Management and performance
monitoring
4. Tendering and procurement
5. Construction and operations
6. Payment and settlement of
certificates
Typical risks as experienced internationally
Perceived corruption risk at this stage
of the value chain
High
Med
Low
High
Likely trend (without
corrective measures)
High
Med
Low
Tendency toward top-down planning
combined with a perceived conflict of
interest for some officials
High
The risk of downstream corruption through collusive alliances is introduced whenever planning,
budgeting, and project preparation procedures deviate from the use of a rational, objective
basis for prioritizing the allocation of limited resources on the basis of need, anticipated rates of
return, or other objective criteria. Such risks are typically greatest when there is evidence of
• lack of separation between policy making, budget allocation, and implementation functions;
• top-down planning by decree;
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