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356 Diagnosing Corruption in Ethiopia
The ETC’s Internal Safeguards against Corruption
There are two aspects to the ETC’s control of corruption in Ethiopia’s
telecoms sector: (a) its de jure controls, which describe the theoretical
procedures and regulations, and (b) the de facto implementation of those
controls. These are examined in turn below, broken down into the seven
areas of risk previously identified in table 8.1. Some project management
provisions cut across more than one of these risk areas. These are
described in box 8.2.
Table 8.1
Corruption Risks in Ethiopia’s Telecommunications Sector
Risk Area 1: Issuance of Operating Licenses
International experience
Typical international risk: Very high
Internationally, this is one of the areas where the risk of corruption is greatest because the
receipt of such licenses can lead to lucrative long-term revenues for network operators.
Typical areas of such risk include the following:
1a. Misappropriation of license fee by senior government officers or license-issuing officials
The fee paid by the network operator may not be properly accounted for by the recipient body.
Instead, it may be diverted into personal or party accounts, with or without the
knowledge of the operator.
1b. Bribery of senior government officers or officials to issue license
A network operator may agree to give a government official’s relative a free share in the
telecoms project if it is granted a license on beneficial terms to the network operator;
an official may refuse to grant a license, or may delay the granting of a license, unless the
network operator pays him a bribe or facilitation payment. 19
1c. Senior government officers or officials issuing licenses to companies or joint ventures in
which they or their family have a commercial interest
A government official may require the network operator to make a large donation to a
charity. Although the charity may appear to be genuine, it may in fact be a front for a political
party or for the official’s personal or family gain.
When large sums are involved in such corruption, it generally entails a conspiracy orchestrated
by senior government or party officials rather than by junior public officials seeking
personal advantage.
In Ethiopia
Current risk in Ethiopia: None
The ETC, as a state-owned enterprise, has been awarded the exclusive license by the government
to be the network operator in Ethiopia. There is, therefore, currently no conventional
corruption risk specific to the actual license award process, though a lack of transparency is
noted over the accountability mechanisms, if any, associated with that license.
1a, 1b, 1c. The government has, over the years, prepared for the possible eventual partial privatization
of the ETC. If and when this occurs, and licenses are issued to private sector operators, this
is likely to become a very high risk area, in each of the three typical risk areas identified above.
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