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Corruption in the Telecommunications Sector in Ethiopia: A Preliminary Overview 353
Box 8.1 (continued)
• Surplus or unnecessary materials and equipment were bought from suppliers.
In one reported case, materials were purchased in excess of the ETC’s requirements,
and in another case, it was reported that equipment was ordered when
suitable equipment was already contained in the ETC’s warehouse.
• Some international suppliers have offered unsuitable or overpriced products to
the ETC, taking advantage of unskilled ETC staff.
• Some international suppliers fraudulently and grossly overcharge in the case of
negotiations for a direct supply.
• In one case, it was claimed that a supplier requested US$12 million but then
reduced the price to US$9 million as a final price. The ETC did not purchase from
the supplier and instead put the contract out to tender. In that tender, the same
supplier allegedly offered the same scope for just US$2 million.
• Allegedly, functioning equipment is being disconnected and being replaced
by new equipment unnecessarily.
• Some suppliers have apparently invited ETC managers on overseas tours with
excessive per diems and hospitality.
• A recorded conversation, allegedly between a contractor and a public official
in which corrupt arrangements are discussed, has been reported in the press
and is currently being investigated by the authorities.
• The FEACC Annual Report of 2008 reports details of “another big corruption case
at ETC.” The details of this case are not yet public knowledge (FEACC 2008).
Current Anticorruption Mechanisms for Ethiopia’s
Telecoms Sector
Overview of Anticorruption Mechanisms
In most countries, corruption risks within the telecoms sector are, with
varying degrees of effectiveness, addressed through a range of mechanisms,
as listed below with the relevant Ethiopian application then shown
in parentheses:
• Adherence to defined internal processes and procedures of the procuring
entity (the ETC)
• Oversight by the regulating agency responsible for ensuring costeffective
service delivery (the ETA)
• Compliance with the national regulatory environment, typically a
Public Procurement Act as overseen by the relevant national body