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388 Diagnosing Corruption in Ethiopia Figure 9.1 The Licensing Process in the Ethiopian Mining Sector Ethiopian national Non-Ethiopian national discovers indication of minerals and satisfies conditions obtains discovery certificate obtains prospecting license discovers indication of minerals and satisfies conditions obtains exploration license shows that minerals can be mined on economically viable basis and satisfies other conditions will mine only by hand has necessary financial resources, technical competence, professional skill, and experience annual production more than quantity specified in regulations annual production less than quantity specified in regulations obtains artisanal mining license obtains large-scale mining license obtains small-scale mining license Note: Possession of a discovery certificate or prospecting license gives a preferential right to an exploration or mining license for the particular area. Similarly, possession of an exploration license gives a preferential right to a mining license. relevant technical and financial conditions). Alternatively, an Ethiopian national can skip the discovery certificate and exploration license and apply directly for a mining license. The type of mining license depends on the method of mining and size of the reserve. Non-Ethiopian nationals have the same rights and follow the same procedures as Ethiopian nationals except that they cannot search for minerals without a prospecting license and cannot apply for an artisanal license (the right to mine by hand). Figure 9.2 illustrates how an application for a large-scale mining license is processed at the federal level. This procedure tries to balance the potentially conflicting rights of the federal, regional, and city governments (because, for example, a regional license may already have been granted over an area sought by a mining company for a federal license).
Corruption in the Mining Sector: Preliminary Overview 389 Figure 9.2 Application Process for Large-Scale Federal Mining License in Ethiopia Mining company notifies Ministry of Mines (MOM) of intention to apply for mining license. Location is subject to another federal license. MOM inspects computer database to check that proposed location is not subject to another federal license. license application is rejected. Location is not subject to another federal license. MOM asks regional or city licensing authority to check whether area is subject to another regional or city license. MOM advertises proposed mining license in public press and gives public 30 days to object. Location is subject to another regional or city license. Location is not subject to another regional or city license. Objection by the public is not resolved. License application is rejected. Mining company is allocated priority at regional or city level. License application is rejected. No objection by the public or any objection is resolved. Mining company submits full license application to MOM. Application is not fully compliant. License application is rejected. Application is fully compliant. Application is resubmitted when compliant. License is issued. Note: The Ministry of Mines was previously the Ministry of Mines and Energy during 2005–09. The length of time this process takes will depend on many factors, such as whether or not there are any objections, the correctness of the mining company’s application, and the length of time the relevant licensing authorities take to review the applications.
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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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292 Table 7.1 Upstream Value Chain
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336 Figure 8.2 Current Institutiona
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