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256 Diagnosing Corruption in Ethiopia
Table 6.5
(continued)
By contrast, there are cases in which the construction operations are characterized by a high
degree of transparency, high professional standards, and effective controls where corrupt
practices may occur but are the exception rather than the norm. The relative absence of
corruption in such cases does not necessarily mean that the overall project is unaffected, as
corrupt deals may have been completed at an earlier stage and effectively built into the
unit rates.
Indicators of such risks as perceived in Ethiopia
Specific
General
• Contracts rarely completed on budget
• Many contracts typically delayed significantly
• Some contractors submit exaggerated claims
• Often a problem with poor-quality construction
• Some contractors knowingly underbid then
recoup costs through variations
• Weak enforcement of professional
standards
• Difficult for public to obtain
information
Examples reported by stakeholders as having recently occurred in Ethiopia a
• Consultant overdesigns, contractor builds to standard, and savings are shared out.
• Contractor fails to notify client of the identity and involvement of a subcontractor.
• Client instructs contractor to include additional works without first consulting the consultant.
• Member of consultant’s staff is engaged by the contractor as subcontractor.
• Contractor fails to notify client of the involvement of a subcontractor, thus avoiding checks.
• Member of consultant’s soils laboratory staff is paid by contractor to falsify test results.
• Contractor’s and consultant’s staffs exaggerate quantities to take advantage of high unit
rates entered for ghost items at the tendering stage.
• Contractor submits exaggerated claim for variations.
• Contractor conceals construction defects or improperly influences client or consultant to
accept substandard materials
• Consultant or contractor submits falsified documentation.
• Plant hire company receives exaggerated payments as result of falsified utilization records.
Underlying factors affecting this risk in Ethiopia
Despite the wide range of specific examples provided by stakeholders, such instances
were in most cases reported as being the exception rather than the norm and considered
to be rare in those high-spending agencies (such as ERA) where relatively strong controls
are in place. This is in keeping with the perception that, at earlier stages, it is rare for contractors
or consultants to agree to a specific percentage payment to a client official. In
stakeholder consultations, the relatively blatant forms of corruption described here were
generally considered to be more corrupt than those at earlier stages, thus tended to be
frowned upon and resisted.
Corrective measures recommended by stakeholders in Ethiopia
• Build capacity to manage and supervise construction using all available tools.
• Increase transparency so that projects are more accountable to the public.
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.