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412 Diagnosing Corruption in Ethiopia
Risk 7: Theft of product and equipment
Potential risks in sector
In the seventh key area of risk—theft of product and equipment—the
potential corruption risks identified in the sector include the following:
• Workers, local inhabitants, or gangs steal mineral product and mining
equipment.
° A small, high-value product can be hidden on the worker’s person.
° A larger, low-value product may be shipped out at night by truck,
with the thieves having bribed the security guards not to stop
them.
° Local inhabitants may break into the mine and steal the mining
product or equipment.
• Artisanal miners dig illegally in a mining company’s license area.
The interviews and workshop revealed no personal knowledge of these
types of corruption.
Two out of the four people who completed this section of the survey
believed that this type of corruption was common or fairly common.
Risk rating: Medium
The actual risk in Ethiopia of corruption in relation to theft of the product
and equipment at federal license level is considered to be medium.
Recommendations to mitigate risks
Theft prevention is primarily a question of adequate resources: for example,
(a) security fences around the mine that prevent people from entering
or leaving the mine except through the main gate; (b) well-trained,
honest security guards; and (c) the searching of staff and vehicles that
leave the mine to check for stolen equipment or product.
General Recommendations
A number of recommendations apply to all corruption risk areas. Because
there are separate licensing authorities at the federal, regional, and city
levels, these recommendations are kept as broad as possible.
Recommendation 1: Increase the number and capacity of
high-caliber officials.
Efforts should increase to enhance the number and capacity of licensing
authority staff by appointing the best available people and giving them