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Complete Book PDF (4.12MB) - World Bank eLibrary

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300 Diagnosing Corruption in Ethiopia<br />

land is allocated and expropriated based on political and other considerations.<br />

Information about land is closely held and not transparent. In rural<br />

areas, people distrust the government, and a key strategy to build community<br />

trust in the regions that have implemented registration programs<br />

is the use of voluntary land administration committees whose members<br />

are elected by the kebele community.<br />

Corruption in the land sector in Ethiopia is frequently reported in the<br />

media and on the Internet. The 2005 election in Ethiopia resulted in a<br />

temporary power vacuum in the city of Addis Ababa. A substantial<br />

amount of land was allocated based on political allegiances. City officials<br />

in Addis Ababa used the transition to conspire with land speculators.<br />

Using records on housing cooperatives that had approval for land allocation<br />

but had not been formed, these officials transformed the 24–36<br />

approved housing cooperatives into about 300 housing cooperatives,<br />

many fictitious, and applied to the municipal courts for legal recognition.<br />

3 These housing cooperatives have been the vehicles for a massive<br />

land grab. It is estimated that about 15,000 forged titles have been issued<br />

in Addis Ababa in the past five years. 4<br />

The land sector has been a considerable focus of FEACC investigations<br />

in recent years. A household survey commissioned by the FEACC<br />

indicated that the customs service is the most corrupt sector, followed<br />

by land allocation, national housing, judges and the court system, and the<br />

tax system. 5 In the 2007/08 FEACC Annual Report, 28 of the 63 cases<br />

investigated during the year were in the land administration and development<br />

sector, and these cases involved about Br 476.5 million of the<br />

Br 2.18 billion in undue advantage or lost revenue during the year. 6<br />

Eleven of the 55 work procedures and practices reviewed by the commission<br />

during the year were in the land sector (eight concerned with<br />

land administration and three concerned with plots of land and construction).<br />

7<br />

A key area where corruption occurs is in the allocation of land. In rural<br />

areas, officials have distorted the definition of “public land” to mean “government<br />

land.” Some officials also define “public purpose” in applying<br />

expropriation, and some commentators are suggesting that this is leading<br />

to landlessness. Some officials have engaged in land grabbing to grant land<br />

to functionaries, which is not in accord with tradition. This is happening<br />

at the woreda level and is being copied by the elected committee members<br />

at kebele level. There are no readily available mechanisms or rules<br />

for accessing rural land, and investors have to apply through the Ethiopian<br />

or regional investment agencies.

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