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Complete Book PDF (4.12MB) - World Bank eLibrary

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Health Sector Corruption in Ethiopia 57<br />

oversight procedures seem adequate for an organization that already has<br />

a good track record, but to establish the PFSA’s credibility, the government<br />

might find it advisable, initially, to establish stronger external<br />

supervision.<br />

For example, it could create a group of rotating officials from other<br />

agencies to be included as observers on key PFSA committees who would<br />

report directly to the FMOH and the FEACC. Alternatively, an external<br />

commission—chaired by an FEACC representative—could be appointed<br />

to review quarterly reports on procurement during the PFSA’s first few<br />

years of operation.<br />

Whatever the specific mechanism chosen, some process for increasing<br />

the PFSA’s transparency to the public or external authorities is necessary<br />

if this new agency is to develop the credibility and reputation for integrity<br />

that it needs as one of Ethiopia’s largest and most prominent procurement<br />

entities.<br />

Recommendation 3: Improve inspections.<br />

Regulations, licensing, and inspections are not often viewed as high corruption<br />

risks because the amounts of money involved may be relatively<br />

small. However, in the health sector, these governance mechanisms are<br />

critical to ensuring the quality and integrity of health care provision, and<br />

progress on three fronts could significantly curb corruption among<br />

inspectors:<br />

• Reforming incentives by addressing inspectors’ pay, per diems, training,<br />

motivation, work programs, and supervision. Pay and per diems should<br />

be structured and monitored to meet inspectors’ real needs while also<br />

creating significant chances of detection and punishment for failing to<br />

abide by the laws.<br />

• Improving information by establishing random revisits by a core team of<br />

trusted inspectors.<br />

• Addressing social norms by rotating inspectors to prevent development<br />

of personal relationships with the people at facilities they are inspecting.<br />

Training should emphasize the importance of the inspector’s mission<br />

of protecting the public by upholding the law—one counterbalance<br />

to pressures to accept bribes or overlook noncompliance. Role-playing<br />

exercises could suggest tactful ways to resist unlawful approaches and<br />

subtle forms of influence. The government could implement these<br />

changes for inspectors at DACA and ERPA as well as for internal and<br />

external auditors in different ministries. 8

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