Complete Book PDF (4.12MB) - World Bank eLibrary

406 Diagnosing Corruption in Ethiopia
• Officials demand or accept bribes to set low compensation and impose lessonerous
social conditions.
° Residents who are unwilling to move may have the site compulsorily
purchased from them. However, the compensation from the mining
company may be significantly below market value (particularly if the
company has bribed the relevant official to approve a price that is
below market value).
• Local inhabitants disrupt mine operations to extract more compensation.
° Local inhabitants may block the road to the mine, preventing the
minerals from being exported, and continue to do this until the mining
company pays them additional compensation.
• Local inhabitants wrongly claim that they occupy the land in order to claim
compensation.
° When local inhabitants hear that an area is to be mined, they may
immediately plant crops on the land to claim compensation. It may
be difficult for the mining company to prove that the land was previously
unoccupied.
• Local inhabitants steal the mining company’s property.
• Local gangs extort money by threatening personal injury or damage to
property.
• Corruption may occur in relation to the social conditions imposed on
the mining company that are designed to benefit or protect the local
community.
° In some cases, the mining company will need to lease some land outside
the license area (for example, for mine buildings). Where there
are several possible sites, an official may ensure that a site is chosen
that is owned by him or his family or where his own community may
benefit from the exploration or development (such as by the building
of roads or schools or by the provision of jobs).
° The manager responsible for providing facilities to the community
(for example, free health care) may corruptly require the community
to pay him for the use of these services even though they are meant
to be provided free of charge.
° The mining company may not provide the service or may provide a
subquality service and then bribe the relevant inspector to overlook
the breach. Alternatively, the inspector may have insufficient expertise
or time to detect the breach.
° The mining company may deliberately breach the license requirements
not to damage the surrounding area during mining operations
and therefore may damage the local inhabitants’ agricultural or grazing