26 April 2014

Ethiopia: Audit Report Reveals 51 Percent of Giz-Funded Health Stations Awarded Without Construction Bid

The office of Auditor General in its report presented to the House of Peoples' Representatives (HPR) on Tuesday disclosed that 51 percent of health stations funded by

Germany's international development agency, GIZ, across the nation were awarded to contractors without fair competition and with no bids. The report also revealed that most of the construction that had been carried out by the German development agency were of poor standard despite huge amounts of budget being allocated.

According to the Auditor General, Gemechu Dambiso, out of the construction of 475 health stations, only 49 percent were carried out with proper procedure of bids. Nonetheless, 51 percent of the construction of these health stations were awarded to constructors without bids Gemecho told MPs.

The report also revealed that there was evidence of a contractor being awarded from two to seven contracts without any bid. "Each health station built by GIZ as per the agreement made with the Ministry of Health, particularly in Tigray, Somali, Amhara and SNNPR regional states could not be completed and took a maximum of 1,193 days even though they were supposed to be accomplished in one year," Gemechu said. In addition, out of the planned construction of 169 health stations in the Oromiya region, 113 projects were delayed, the report said.

Similarly, some of the GTZ-funded construction projects were not completed according to the agreed plan.

Worse still, according to the report, most of these construction projects had "serious" quality problems and built with low-standard materials.

"Because of project delays in all regions, the health projects demanded extra budget that cost over 105,270,698.97 birr," Gemechu added.

"Over 104 health stations built by GIZ have quality shortcomings while some cannot be renovated easily."

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