Transparency International

This Anti-Corruption Helpdesk brief was produced in response to a query from one of Transparency International’s national chapters. The Anti-Corruption Helpdesk is operated by Transparency International and funded by the European Union

Query

What steps can be taken to reduce the risks related to non-competitive procurement and preferential treatment of certain suppliers/builders in government infrastructure contracts?

Purpose

Inform dialogue with the Ethiopian government regarding procedures and practices of public procurement.

Content

  1. Overview of non-competition in public procurement
  2. Corruption risks in non-competitive public procurement
  3. Methods to reduce non-competitive procurement
  4. Non-competitive procurement in Ethiopia
  5. References

Summary

Competition in public procurement helps to increase value for money for the procuring entity, while at the same time offering fair opportunities for potential bidding organisations.

To prevent non-competitive practices in public procurement, principles of competition and transparency must be defined in legislation and regulations. To complement a strong legal framework there needs to be oversight from independent bodies, and civil society should be empowered to hold the government and procurement bodies to account.

In Ethiopia, a newly implemented procurement law has had some impact on corruption in public procurement generally, and has helped to reduce the amount of contracts that are tendered noncompetitively. However 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. 

Authors

Ben Wheatland, Transparency International, tihelpdesk@transparency.org

Date

03/12/2015

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