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Construction Sector Corruption in Ethiopia 253
Table 6.3
(continued)
• Client rejection, without explanation, of candidacy of suitably qualified professionals
• Reluctance by construction sector professionals to voice concern about apparently corrupt
practices, for fear of being victimized
Underlying factors affecting this risk in Ethiopia
This stage of the value chain is particularly prone to the effects of capacity constraints.
ERA is relatively strong in this regard, with some highly experienced senior staff and
well-considered procedures enjoying strong support and some oversight from donors.
ERA’s management system serves as a model to which the RRAs and some other parts
of the construction sector aspire. But as a result of high staff turnover, ERA itself remains
fragile, and cases are believed to occur where due procedures are either bypassed or
manipulated. Without corrective action, the corruption risks within ERA are likely to
increase, but within the sector as a whole, such deterioration may be offset by improvements
elsewhere.
Corrective measures recommended by stakeholders in Ethiopia
• Focus anticorruption efforts on improvement of management capacity in the sector
• When management information exists, make it available to the public where this does
not undermine commercial confidentiality
• Share management information more freely between construction-related ministries, the
PPA, and the FEACC to build capacity in understanding and addressing corruption risks
• Create an independent body for contractor registration (possibly including transparent
computerized screening of qualifications)
• Create independent bodies for setting and maintaining professional standards
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 6.4 Corruption Risks in Tendering and Procurement 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
Medium
Suggestions of possible collusion between
contactors, including for federal road contracts
Typical risks as experienced internationally
Although contributory factors are likely to exist in upstream stages of the value chain,
corrupt arrangements tend to be agreed-on in principle during the tendering and
procurement stage. Commonly encountered risks, which can be interrelated, include
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