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Corruption in the Telecommunications Sector in Ethiopia: A Preliminary Overview 361
Table 8.1
(continued)
Risk Area 5: Construction of Telecoms Facilities
International experience
Typical international risk: High
5e. Appointment of contractors in which senior government or party officials have an
interest
5f. Network operator withholding sums due to contractors to extort bribes
A network operator corruptly refuses to pay the contractor for the work undertaken by the
contractor and raises a false counterclaim against the contractor alleging defects in its work
as justification for nonpayment.
5g. Contractors not carrying out works to specification, making inflated claims, or carrying
out defective works
5h. Bribery of network operator employees by contractors to have fraudulent claims
approved.
In Ethiopia
Current risk in Ethiopia: High
This is an area of perceived high risk in Ethiopia. Examples were identified of the following:
5a. ETC procurement procedures being deliberately bypassed
The justification is based on urgency or because of previous good performance of specific
contractors.
5d. Failure to debar poorly performing contractors
Media reports refer to several cases of poor performance followed by further contracts.
5e. Appointment of contractors in which key decision makers have a commercial interest
Some interviewees reported that ETC staff have a commercial interest in some contractors.
5g. Contractors not carrying out works to specification
Some interviewees report that some regional ETC buildings have not been constructed to
specification.
The examples cited carry associated risks of 5b, 5c, 5f, and 5h. Stakeholders expressed particular
concern about the apparently favorable treatment accorded to some, apparently
well-connected, contractors.
Additional information on construction sector risks is provided and analyzed in chapter 6 of
this volume, titled “Construction Sector Corruption in Ethiopia.”
Risk Area 6: Theft of Equipment
International experience
Typical international risk: High
Internationally, this is an area of low risk in terms of the total value of stolen equipment.
Typical areas of such risk include the following:
6a. Theft of equipment from warehouse or other facility
A small, high-value product is hidden on the person of an employee who has access to the
warehouse; or equipment is stolen at night by truck, with the thieves bribing the security
guards not to stop them.
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