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390 Diagnosing Corruption in Ethiopia
The 2009 introduction of the BPR and a new consolidated computer
system aimed to speed up this process.
Corruption Risk in the Ethiopian Mining Sector
In view of the increased privatization of mining in Ethiopia, this analysis
of corruption in the sector focuses on the granting of licenses to, and
operation of licenses by, private sector mining companies.
The mapping of these corruption risks proceeds as follows: Each main
risk area is identified. The extent to which these risks occur in Ethiopia—
and the extent to which any risks are unique to Ethiopia—are then
assessed. As discussed previously in the introduction, the assessments are
based on examination of the Ethiopian mining process, relevant documents,
and the perceptions and experiences of corruption and preventive
mechanisms as shared through interviews and surveys of senior government
and private sector participants in the Ethiopian mining sector.
Summary of Corruption Risks
The analysis identifies seven areas of corruption risk. The three main risk
areas are license issuing, compliance with license conditions, and mining
revenues. Others are compensation and obligations to local inhabitants,
contracts with contractors and suppliers to the mining companies, falsification
by mining companies of product quality, and theft of mining products
and equipment.
The perceptions of corruption obtained from the survey, interviews,
and workshop supported this risk analysis. Most of those interviewed
or surveyed had not encountered corruption in the sector. However,
approximately one-third of people interviewed or surveyed had witnessed
or heard of actual corruption. All interviewees perceived a
significant risk of corruption throughout the mining cycle—at the
federal, regional, and city levels—and believed that effective anticorruption
controls are important.
The respondents expressed a range of perceptions about the size of
bribes paid in the issuing and operation of licenses. In the survey, 4 out
of 19 respondents were aware of the value of the bribes: two were aware
of bribes of above Br 500; one was aware of bribes of Br 5,000–Br 10,000;
and one was aware of bribes in excess of Br 100,000.
The respondents shared a general perception that the Ethiopian mining
sector was less corrupt than the mining sectors in other African countries.