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Corruption in the Telecommunications Sector in Ethiopia: A Preliminary Overview 329
industry up to international standards; sector performance; the institutional
landscape; and the general regulatory, policy, and legal framework
within which ETC operates.
• “Corruption in the Ethiopian Telecoms Sector” includes the corruption
risk map to depict the various types of corruption that take place in any
country’s telecoms sector. The section also explores the risk of these
practices occurring in Ethiopia and maps the high and low points in the
functional areas of the sector, highlighting areas for further study. Using
information obtained from document analysis, stakeholder interviews,
and consensus building workshops, it unpacks perceived corrupt practices
in each of seven value chain areas.
• “Procurement of Equipment Suppliers: The 2006 Vendor Financing
and Supply Agreement” focuses on one area of risk frequently referred
to during the study, presenting the findings of the primary area of risk—
that of equipment supply. The section details a specific, controversial
procurement involving both equipment supply and related financing.
• “Current Anticorruption Mechanisms for Ethiopia’s Telecoms Sector”
provides an overview of existing anticorruption controls and their
implementation in telecommunications in Ethiopia.
• The chapter concludes with a set of concrete recommendations for the
consideration of the government of Ethiopia and the principal telecoms
stakeholders. Although not comprehensive, these recommendations
represent the minimum that the telecoms sector must take on if corruption
risks are to be quickly and effectively curbed in the face of
rapid sector growth.
Corruption in the International Telecommunications Sector
Internationally, the telecoms sector is considered particularly susceptible
to corruption. Transparency International’s Bribe Payers’ Index ranks telecoms
as perceived to be the 11th most corrupt sector out of 19 sectors
surveyed in terms of bribes paid, and the 10th most corrupt in terms of
state capture (TI 2008).
To understand the sector, it is useful to consider who is involved and
how the sector’s unique characteristics make it prone to corruption. 1
Stakeholders in the Telecommunications Sector
Stakeholder roles and functions in the telecoms sector are generally similar
to those in other utilities such as urban water supply, electricity, and gas.