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410 Diagnosing Corruption in Ethiopia
Risk rating: Low to medium
The actual risk in Ethiopia of corruption in relation to contracts with
contractors and suppliers at the federal license level is considered to be
low to medium.
Recommendations to mitigate risks
It is difficult for licensing authorities to exercise any direct control over
private-sector-to-private-sector corruption because no government interface
is involved. However, the licensing authorities could take several
indirect steps at the federal, regional, and city levels:
• Mining companies could be required, as a license condition, to implement
anticorruption controls.
• The FEACC could provide anticorruption training to mining companies.
• The remit of the FEACC and the regional ethics and anticorruption
commissions could be extended to include private-sector-to-privatesector
corruption.
Risk 6: Postextraction falsification of quality
Potential risks in sector
In the sixth key area of risk—postextraction falsification of quality—the
potential corruption risks identified in the Ethiopian mining sector
include the following:
• Mining companies make false declarations as to the identity of the
mineral.
• Mining companies make false declarations as to the quality of the
mineral.
° Gold bars may be sold that are not solid gold but instead are a cheaper
metal plated in gold. These bars may be accompanied by falsified
certificates of quality.
° A mineral may be sold accompanied by a certificate that exaggerates
its quality, therefore resulting in a higher sale price.
• Mining companies may bribe certifiers to certify false declarations.
The interviews and workshop revealed no personal knowledge of these
types of corruption. Purchasers of the product are in most cases likely to
exercise their own controls to ensure that they are buying products of the
correct quality.