Bribery, Embezzlement, Fraud Flow Free In Irrigation Schemes: Anti-Corruption Report

Bribery, embezzlement, fraud, fake bids, favoritism, and more characterize the country’s many irrigation, dam, and lowland development projects, reveals a report from the Federal Anti-Corruption Commission (FEACC).

The ‘Irrigation and Lowland Areas Sectoral Irrigation Projects Contract Administration Accountability and Responsibility Study’ published recently discloses the scope of corruption and mismanagement plaguing projects that were meant to provide support to some of the country’s most impoverished communities.

It reveals that four large-scale irrigation budgets remain incomplete despite taking up a combined 30 billion Birr in supplementary budgets and being in progress for up to 10 times longer than originally planned.

The Megech irrigation project alone took up 18 billion Birr in supplementary funding, while Arjo Didesa, Kaled Djijo, and the Lower Rib Waste Outlet have required 6.7 billion, 3.3 billion, and 2.3 billion in additional spending, according to the report.

The study covers eight irrigation projects, seven of which have seen contractors awarded directly, while consultants were selected without bidding in all eight cases.

The report notes that prices escalated frequently and deadlines were extended, but project quality remains poor and progress is nascent. The average progress on these projects stood at just 17.4 percent, despite some of them being under construction for up to 13 years, according to the report.

It indicates that the Ministry of Lowlands and Irrigation, which is in charge of many of these projects, has 15 billion Birr in receivables, and two billion Birr in payables, and continues to allocate budgets for the projects year after year.

For instance, the Arjo Didesa irrigation project in Oromia was launched 15 years ago with a 755 million Birr project cost, to be finalized within 18 months. Thirteen years on, the project has consumed nearly seven billion Birr.

The Megech irrigation project in Amhara was started 17 years ago with a 2.4 billion estimated cost and scheduled to be finalized within 36 months. The project has consumed over 18 billion Birr and has yet to be completed.

The initial contractor was pushed out in 2023/24, and to finalize the remaining 34 percent of work, the Ministry selected Beaka General Trading without conducting a princess assessment to determine the capital needed to finance the remaining work.

The Ministry approved 14 billion Birr in payments to Beaka, according to the report.

Three project lots under the Weibo irrigation project in Southern Ethiopia also face long delays despite consuming billions of Birr.

“The irrigation and lowland development projects involve huge capital circulation. The projects are hardly supervised because the projects are located in remote areas. There is a lack of expertise in the sector, and all of these factors led to high corruption,” reads the report.

This includes bribery, embezzlement, fraud, document forgery, fake bids, and favoritism, according to the report.

Each of the 20 projects under the Ministry now receive up to 15 billion Birr in annual budget allocations, but end up using only two-thirds of the amount, according to the report.

As per government procurement law, price revision cannot exceed 25 percent of the initial price of the project. The report forwarded several recommendations to overhaul the corruption in the sector.

During a recent discussion with the officials of Ministry of Irrigation and Lowlands, Minister Abraham Belay (PhD), said budget deficit is the biggest challenge the sector is currently facing. The minister also stated the ministry will work with stakeholders to address all the recommendations forwarded by the FEACC study report.

Another report reveals similar problems in road construction projects. It notes that in 2023/24, 127 road projects required 267 billion Birr in supplementary budgets, while four projects had to change contractors, incurring 8.5 billion Birr in additional costs.