3 February 2013

Ethiopia: Corruption Inflates Compensation Cost

A study conducted by the Federal Ethics and Anti-Corruption Commission of Ethiopia (FEACC) reveals that the amount of money paid for the compensation and relocation of residents reached 15pc of the projected cost of the projects due to corruption.

The payment were for majour government projects underundertaken by the government agencies such as the Ethiopian Railway Corporation (ERC), the Ethiopian Roads Authority (ERA) and the Ethiopian Sugar Corporation (ESC)

The payment is increasing due to a lack of control, a clear compensation system, proper auditing and supervision at a regional and institution level, according to a study presented by Aklilu Mulugeta, corruption prevention director at FEACC, at Ras Hotel last week.

The ERC has budgeted three billion Birr only for the compensation and relocation of residents for the construction of a 210Km rail track from Sebeta to Meeso while ESA budgeted 53.6 million Br.

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