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252 Diagnosing Corruption in Ethiopia
Table 6.3 Corruption Risks in Management and Performance Monitoring
in the Construction Sector in Ethiopia
Value chain stages
Corruption risks at
each stage of the
construction 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
Perceived corruption risk at this stage
of the value chain
Now (international
comparison)
High
Med
Low
Medium
Trend (without
corrective measures)
High
Med
Low
Inconsistent quality of governance and
performance management leading to
unjustified shortlistings
Medium
Typical risks as experienced internationally
Management weaknesses can lead to corruption in three main ways: (a) Without basic
good management controls, individuals (whether working for the client, the consultant,
or the contractor) can find themselves free to take shortcuts that may cross the line into
corruption. (b) Without good data management and reporting systems, the management
information needed to identify and address corruption does not exist. (c) If the management
is so incompetent that it gives rise to administrative or technical obstacles that are
otherwise impossible to address, corrupt activities may be seen as the only realistic way
for otherwise professionally minded individuals to deliver results. Such risks are typically
greatest when there is evidence of
• low remuneration of managers and procurement staff;
• poor record keeping, data management, and reporting;
• lack of independent oversight of professional standards;
• contract awards to companies with a reputation for poor performance; and
• lack of clearly specified debarment procedures, including a related transparent procedure
for reinstatement following a period of debarment.
Indicators of such risks as perceived in Ethiopia
Specific
General
• Low remuneration of some managers and
procurement staff
• Companies performing poorly yet shortlisted for
new work
• Companies shortlisted despite lack of relevant
capability
• Difficulty of obtaining public information about
contracts
• Corruption seen as being easy to hide
• Lack of independent professional bodies
• Concerns over quality
• Increasing unit costs
• Delays in project execution
• Weak enforcement of professional
standards
• Lack of transparency
Examples reported by stakeholders as having recently occurred in Ethiopia a
• Lack of transparency and clarity in systems used by some (weaker) procuring entities for
performance monitoring and debarment
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