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340 Diagnosing Corruption in Ethiopia • Hesitating over market liberalization. Although the ETC has been unable to keep pace with demand, there are no firm plans to allow another operator to enter the market. Market Liberalization The slow rate of progress in liberalizing Ethiopia’s telecoms sector remains a source of considerable contention. In recent years, the hesitation has led the World Bank to reduce its Poverty Reduction Support Credit to Ethiopia (World Bank 2008) and may constitute an obstacle to Ethiopia’s entry into the World Trade Organization (WTO). No firm schedule has yet been set for liberalization. The ETC continues to control all telecommunications services in Ethiopia except for the sale of customer premises equipment, which is still subject to ETA authorization, even for private use. No licenses have been granted to private operators to sell or resell telecoms services. The authorities tolerate Internet cafés, although Internet telephony and call-back services are illegal. The government has, since 1996, been planning the partial privatization of the ETC as a means of bringing to bear new funding, management techniques, and skills into the sector. In 1998, the Investment Proclamation was amended, providing for the possibility of private companies, national or foreign, to invest in the telecoms sector in partnership with the government. In 2002, the Ethiopian Privatization Agency invited international investors to acquire a 30 percent stake plus management control in the ETC. The intention was that the company would be granted exclusivity periods of between 5 and 25 years for the provision of fixed, mobile, Internet, and data services. Though several companies expressed interest in acquiring a stake, no progress was made until mid-2005, when the government announced a new plan that entailed selling 49 percent of the ETC. This plan was taken off the agenda when the chief executive officer (CEO) was replaced in 2005. Although there are reports that the privatization of the ETC will take place after the current phase of infrastructure investment results in rural areas being fully connected, the ETC notes that this is not an official position of the government of Ethiopia (ETC 2010). Organizational Structure of the ETC Since its creation, ETC has been restructured many times, sometimes more than once in a single year. Following the latest, most definitive,
Corruption in the Telecommunications Sector in Ethiopia: A Preliminary Overview 341 reorganization in May 2006, the ETC been structured around operations, technical services, and internal supply services (figure 8.6). In the absence of a permanent post holder, there is an acting chief of internal audit. The Graduate School of Telecommunications and Information Technology in Ethiopia is closely associated with the ETC. It provides training, research, and education in the specialized fields of telecommunications and information technology, offering both graduate and master’s in business administration programs. The possibility has been raised that the name of this key Ethiopian facility may be changed to reflect the generosity of a major Chinese supplier in providing free equipment to be used for training purposes (Belay 2008). Policy, Regulatory, and Legal Frameworks Policy framework. Key milestones in the evolution of Ethiopia’s telecommunications policy include the 1996 separation of regulatory and operating functions and the 2003 establishment of the Ethiopian Information and Communication Technology Development Authority (EICTDA). In 2006, EICTDA developed and published an information and communication technology (ICT) policy and related 577-page ICT action plan for 2006–10. Figure 8.6 Organizational Chart of the Ethiopian Telecommunications Corporation board Graduate School of Telecommunications and Information Technology chief internal audit chief executive officer (CEO) chief financial officer business control chief technical officer planning services deputy CEO (operations) deputy CEO (technical services) deputy CEO (internal supply services) Source: The ETC’s Web-based organizational chart, effective May 2006.
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DIRECTIONS IN DEVELOPMENT Public Se
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Diagnosing Corruption in Ethiopia P
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Contents Foreword Preface About the
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Contents vii Chapter 6 Construction
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Contents ix Map 3.1 Ethiopian Regio
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Contents xi 3.6 Summary of Corrupti
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Foreword The government of the Fede
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Preface Although many would argue t
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Preface xvii Goldie-Scot, Piers Cro
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xx About the Editor and Authors bil
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xxii About the Editor and Authors g
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xxiv Abbreviations GAC Governance a
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CHAPTER 1 Overview Janelle Plummer
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Overview 3 Focusing on Ethiopia, th
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Overview 5 for their knowledge of c
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Overview 7 and group discussion wit
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Overview 9 analysis, Goldie-Scot ge
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Overview 11 Chapter 8: Telecommunic
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Overview 13 might be explained by t
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Overview 15 The perceptions of corr
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Overview 17 Given the Ethiopian gov
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20 Diagnosing Corruption in Ethiopi
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44 Figure 2.4 Corruption Vulnerabil
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100 Diagnosing Corruption in Ethiop
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154 Table 4.4 Value chain area Cons
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Annex 4.1 Ethiopian RWS Borehole St
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CHAPTER 5 Justice Sector Corruption
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Justice Sector Corruption in Ethiop
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Table 5.2 Disposition of Civil and
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CHAPTER 6 Construction Sector Corru
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Construction Sector Corruption in E
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Figure 6.5 Drivers of Corruption Ri
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