by Engidu Woldie
ESAT News (ESAT News March 1, 2018)
Corruption has continued to worsen in Ethiopia and the country still continues to be one of the ten African countries where illicit financial flows is rampant.
According to the annual corruption perceptions index of 2017 recently released by Transparency International, Ethiopia is still one of the countries at the bottom of the index with worsening illicit financial flows, bribery, money laundering, tax evasion and avoidance among others.
“Recent studies show that Ethiopia is among the top ten African countries by cumulative illicit financial flows related to trade mispricing. This amount may be much higher if funds from corruption and other criminal activities are considered,” the report said.
Ethiopia scores 35 out of 100, putting it one of the bottom ten countries.
Transparency International says the country could have benefited from a vibrant media and civil society in order to prevent corruption.
“Illicit financial flows have pervasive effects on developing countries’ social and economic development. In many countries, the volume of financial outflows exceeds the inflows of aid and foreign direct investment due to corruption, money laundering, tax evasion and avoidance.”
“Data from the anti-corruption group’s research shows that Ethiopia’s citizens and institutions suffer from high levels of bribery,” Transparency International said.
Data shows Ethiopia lost about USD 16.5 billion between 1970 and 2008. Global Financial Integrity says Ethiopia has lost US$11.7 Billion in illegal capital flight from 2000 through 2009. Since 2010, it is said that the country might have lost over USD 10 billion.