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364 Diagnosing Corruption in Ethiopia
Box 8.2 (continued)
will assess and agree on the technical necessity for the variation as well as the
resulting price and program changes.
• Where changes are to quantities and the contract has a specified schedule of
rates, modest changes can be calculated by measuring the new quantities, comparing
them against contract quantities, and amending the price accordingly.
• Major decisions in relation to a variation are made by the ETC’s management
committee, which includes among its members the ETC’s CEO, chief technical
officer, and relevant project manager.
Further general provisions applicable to all ETC projects include the following:
• The payment terms depend on the contract but would normally be based on
stage payments at key milestones, the final payment being upon expiry of warranty
period.
• The ETC’s internal audit department undertakes random audits on the project
execution process.
• Upon conclusion of every contract, the ETC undertakes a review of the performance
of suppliers, consultants, and contractors to identify poor performers
and, if necessary, debar them from future contracts until appropriate corrective
action has been taken.
1. ETC Safeguards in Relation to Licensing
As a state-owned enterprise, the ETC 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. There is, however, a clear risk associated
with the apparent lack of transparency over applicable accountability
mechanisms, if any, associated with that license.
2. ETC Safeguards in Relation to Design
Corruption in relation to slanting a design to favor a particular supplier
is addressed in considerable detail by the ETC’s Procurement Policy
Directives and Procurement Procedure Manual. This provides that technical
specifications should be defined in a manner that results in fair and
open competition.