Ethiopia: Corruption remains high in 2016, report says

ESAT News (January 27, 2017)

Corruptions remains high in 2016 and the country ranked 108th out of 176 countries while the score is a sad 34/100, according to Transparency International’s 2016 corruption index.

The report said the country is plagued with corruption that permeates all sectors and indicates land as the major sector of corruption. “Land administration is seen to be rife with petty corruption as well as state capture. This is driven by an absence of clear policies, strong institutions, transparency and public participation, and resources,” Transparency said in the newly released report.

The report cited non-competitive procurement in major sectors of the economy and absence of oversight by civil society as the other causes of corruption in the country. “Non-competitive practices are still an issue, particularly in the telecommunications sector. The country suffers from a lack of opportunity for civil society oversight, meaning that there is still the possibility for procurement laws to be abused or circumvented, as enforcement remains inconsistent.”

Transparency International said threats specific to the energy sector include petty corruption and corrupt procurement processes, while risks arising from Ethiopia’s specific context include weak oversight and governance systems.  

Illicit financial flows continues in 2016 and money from corruption could make it even higher. According to Global financial Integrity, Ethiopia lost US$11.7 Billion in Illegal Capital Flight from 2000 through 2009.

“In the case of Ethiopia, the report published in 2015 by the High Level Panel on Illicit Financial Flows from Africa provides an estimate of illicit financial flows from Ethiopia related to trade mispricing. According to the report, Ethiopia has lost US$16.5 billion from 1970 to 2008, making it one of the top ten African countries by cumulative illicit financial flows. This estimate is likely to be much higher if money lost due to corruption and other criminal activities is also considered,” according to Transparency International.

The report also said data from the anti-corruption group’s research shows that Ethiopia’s citizens and institutions suffer from high levels of bribery. More than half of all those who deal with public service providers are forced to pay bribes, according to a forthcoming survey of eight East African countries by Transparency International and its East African chapters.

“Citizens reportedly pay bribes more often to the police than to other public services, followed by the judiciary.”

The report stressed that the country needs to stop corruption to stop poverty.