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Construction Sector Corruption in Ethiopia 259
significant delays after approval for mobilization.” This response suggests
weaknesses in the underlying procedures for shortlisting, awarding contracts
to, monitoring the performance of, and paying contractors.
• Neglected maintenance. This was referred to as a general issue in the sector,
but this study does not specifically explore the reasons for and
nature of such neglect. The road sector benefits from about US$100
million per year of funding for maintenance through a dedicated road
fund established under the RSDP.
Indirect Warning Signs
• Unequal relationships between parties to the contract. For many private
sector companies in Ethiopia’s construction sector, the government is
their primary or only client. In the less-well-managed parts of the sector
such as with RRAs, there are reports of this unequal relationship being
abused through the imposition of unreasonable contractual provisions.
In extreme cases, it has been made clear to contractors that, no matter
what the contract says, they will not be allowed to submit claims regardless
of the merits of any case that may arise.
• Poor enforcement of professional standards. The bulk of stakeholders disagreed
with the statement, “High professional standards are maintained
in the sector.” Though various industry associations define the professional
standards to which they expect member companies to adhere,
there are no professional institutions in Ethiopia to provide guidance
and oversight to individuals. Unusually, the government retains control
of the process of individual registration. Whether or not this process is
ever abused, the arrangement itself serves to further reinforce the
unequal relationship mentioned above.
• High multiplier between public sector and private sector salaries. This issue
falls outside the immediate scope of this study but remains of fundamental
importance. In broad terms, private sector salaries in Ethiopia’s
construction sector are about eight times higher than the equivalent
salaries in the public sector. Sometimes other benefits associated with
public service can offset this disparity, but the fundamental challenge
remains one of retaining competent and committed staff within the
various government client entities. Some officials report that they have
joined public service to gain the experience needed to move into the
private sector. Others carry out their public duties in a committed manner
while supplementing their income with private engineering