1. Introduction 

2. Major Activities Accomplished in 2008/2009

2.1. Public Education

2.2. Corruption Prevention

2.3.Coordination of Ethics Infrastructures

2.4.Corruption Investigation

2.5. Corruption Prosecution

2.6. Research and Studies

    3   National and International Engagements

3.1 Formation of National Anti-Corruption Coalition

3.2 Strengthening Global Anti-Corruption Network

    4   Miscellaneous Activities

    5.   Capacity Building

    6.   Budget Spending

    7.   Challenges Faced and Measures Taken to Overcome Them

    8.   Conculusion

    9.  Appendixes

      1.   Introduction           

Cognizant of the dangerous threat of corruption, the Ethiopian Government established the Federal Ethics and Anti-corruption Commission (FEACC) in May 2001. Since its establishment the FEACC has been taking preventive and curative measures to curb corruption at various levels.  

As a continuation of the previous efforts, the activities carried out in the 2008/2009 budget year were believed to have due contribution in checking and controlling corruption. This is the Annual Report on the Commission's performance in the budget year. The major purpose of preparing this report is to inform all stakeholders in general and the Ethiopian public in particular about the annual performance of the FEACC in the fiscal year. It could also be a stepping stone for researchers and students who may be engaged in conducting various researches and surveys in the areas of governance and anti-corruption.  

We prepared the report by compiling and organizing all the accomplishments made by the various departments, services and offices. The report has the following components: Message of the Commissioner, major accomplishments of the Commission, budget spending, problems encountered, solutions provided, conclusion and appendices.  

The accomplishments made have been adequately covered in the report. Peculiar instances like the formation of the National Anti-Corruption Coalition and the activities the FEACC embarked on as a pilot country of the Construction Sector Transparency Initiative are highlighted in the Annual Report.  

It is our hope that those who may get the opportunity to have a look at this report may present their feedbacks to us so that we can correct our mistakes, if there are any, and continue to work hard to make more achievements in our struggle against corruption.  

Have a pleasant reading!

2. Major Activities Accomplished in 2008/2009 

In the period under review top priority was given to refining the Business Process Reengineering (BPR), which has been under implementation for two years now.Work on refining the BPR was being carried out in close consultation with experts from the Ministry of Capacity Building. Some shortcomings identified in the previous BPR as well as the need to make the conduct of BPR in a more participatory and interactive manner necessitated the refining. Work on the refining was already on the verge of conclusion  

On the other hand, the FEACC undertook massive work within its domain during the period. Here is an overview of what it accomplished in the budget year.   

      2.1 Public Education

Public education is a key cornerstone of the prevention strategy. That is why ethics and anti-corruption education always lies at the heart of the FEACC’s activities. Following the implementation of the BPR, the FEACC predominantly engaged in the provision of Training of Trainers (TOT) on concepts of corruption and ethics, anti-corruption provisions as well as corruption prevention strategies. Since then it has been preparing its training modules and other education materials on the basis of real experience and research. In so doing the FEACC has been tailoring the training materials to the needs of the various cross-sections of the public. It also provides awareness raising education on ethics and anti-corruption as it deems necessary. For instance, the FEACC gave awareness raising education for 9,249 people in the reporting period.  

The FEACC offered TOT for 94 civil servants drawn from the ten sub-cities of the Addis Ababa City Administration on the very concept of ethics and corruption as well as anti-corruption provisions. It provided similar TOT for 43 participants representing 18 universities.  

The role of the media and civic associations in fighting corruption is significant. Taking into account their role, the FEACC has given various capacity building trainings. In the reported period, for instance, it provided TOT for 39 trainees drawn from various media outlets and civic associations.  

In a like manner, the FEACC gave TOT for 95 civil servants from ten public institutions that issue licenses.  

Schools generally form the bedrock of the FEACC’s support. Of course, schools have a central role to play in producing ethical and responsible citizens. It is with this perspective that the FEACC closely works with schools across the nation. The incorporation of ethics and civics education in school curriculum is regarded a step forward in the effort geared towards creating a society that does not condone corruption. In the period the FEACC gave TOT for 96 ethics and civics education teachers from 50 schools.

Some 86 civil servants drawn from financial institutions also received TOT organized by the FEACC.  

Furthermore, the FEACC provided TOT for 50 leaders of youth associations and another 50 leaders of women associations. Participants drawn from 42 service rendering institutions also took part in the TOT conducted by the FEACC.  

Employees of basic service rendering institutions, like the Ethiopian Electric Power Corporation, the Addis Ababa Water and Sewerage Authority, etc also participated in the TOT  organized by the FEACC during the period.  

Apart from face-to-face TOT, the FEACC employs print and electronic media outlets to disseminate ethics and anti-corruption education. In the period the FEACC published four times its quarterly magazine called ‘Ethics ‘.Each issue in 5000 copies. While it published and distributed four brochures and two fliers. The FEACC also had its awareness raising messages carried by the daily ‘Addis Zemen’ newspaper.  

In order to outsource TV and radio spots, specifications were developed for the production of six radio and six TV spots. The execution, however, was not satisfactory due to problems encountered in connection with procurement. Other seven TV and seven radio spots were aired in the period.  

Similarly, five narrative TV spots and five narrative radio spots that were produced by the FEACC staff were broadcast in the reported period.  

The attempts made to air five-episode radio drama and another five-episode TV drama were unsuccessful due to need to follow a different way of production as well as delay in the production.  

The FEACC, nevertheless, was able to broadcast two radio dramas and five TV dramas produced previously while it conducted a teleconference on the radio. It also organized TV quiz and a panel discussion on the national television.  

As far as the use of print media is concerned the 2000E.C. annual performance report of the FEACC was published in Amharic and English languages in 5000 copies. Improvements were made in some format of the FEACC’s webpage (www.feac.gov.et) and information posted on it was updated.  

Major accomplishments of the FEACC in the 2000 E.C. budget year were compiled and forwarded to the Ministry of Information for the latter to carry them in its annual book titled ‘ Ethiopia ’.  

The FEACC’s bimonthly English medium newsletter called ’INSIGHT’ was produced and distributed locally and internationally six times. Similarly, an in-house Amharic medium newsletter called ‘Guadachin’ was produced and distributed 12 times in the period.  

Various advocacy materials were produced and distributed .For example, the FEACC produced and distributed four different posters, two of them in 5000 copies each and the remaining two in 10,000 copies each. A sticker was also produced in 5000 copies.  

The FEACC maintained an active interaction with the media. The programs and activities of the FEACC were well profiled in the media during the reporting period. In a bid to meet the information needs of state-owned media and the private press, the FEACC gave information 70 times through press conferences, interviews and press releases. In the period 152 news stories (76 news stories in English and 76 in Amharic) were posted on the FEACC’s website.  

The World has been celebrating the International Anti-Corruption Day since 2004 as per the resolution passed by the UN General Assembly to observe December 9 as the International Anti-Corruption Day in honor of December 9, 2003, the day on which the United Nations Convention Against Corruption was presented for signature. Ethiopia has been celebrating it since December 2005.Accordingly, the 2008/2009 budget year saw the observance of the Day for the fourth time, during which a public discussion, cycle race and other proceedings were organized. The observance of the Day presented a good opportunity to foster the anti-corruption effort and boost public participation in the anti-corruption drive.

2.2 Corruption Prevention

The FEACC is vested with mandate to examine systems, procedures and practices in public offices and public enterprises with a view to identifying corruption loopholes and recommending measures for sealing such loopholes.  

The FEACC, through research and studies, identified subject offices and particular working procedures and practices that should undergo reviewing. Here follows details of activities examined:  

 The Ethiopian Sugar Development Agency:  The FEACC examined working procedures and practices of sugar tender and forwarded the report to the Agency. According to the report, the guideline on sugar tender was not comprehensive. There was no robust system in place to control those organized bidders who bent on creating instability of sugar price. In some cases, those systems put in place to control these bidders were proved counter productive.  

 The Ethiopian Press Agency:   The FEACC conducted examination of systems relating to revenues.The examination identified poor reporting and communication systems. It also pinpointed weak revenues collection system. A report detailing the aforementioned and other corruption loopholes as well as recommendation for sealing the loopholes was forwarded to the subject office.  

The Addis Ababa Water and Sewerage Authority: During the reporting period, an examination into procurement tender of spare parts valued at 25,000,000 birr was concluded. The examination brought out that the technical assessment was conducted inappropriately. As a result, the Authority had to rectify the problem and re-float the tender.  

The National Bank of Ethiopia : Systems study on issuance, renewal and supervision of licenses pertaining to foreign currency transaction was conducted in the period under review. The findings revealed that there was no exercise of monitoring  and follow-up mechanisms to make sure that those duty-free outlets that were entitled to transact with foreign currency had their licenses renewed annually. Furthermore, unauthorized outlets were not controlled. The Bank also did not verify the authenticity of foreign currency transaction reports submitted by investors.  

Tikur Anbesa Specialized Hospital : The system examination carried out on property administration of the Hospital indicated that properties were exposed to theft and improprieties. In general, the systems were virtually inefficient and ineffective.  

 The FEACC also reviewed systems regarding issuance of medical certificate for treatment abroad .The medical board at times issued certificate in the absence of complete documents. Relevant guidelines and code of conduct were nonexistent. The FEACC also examined the human resource management system of the Hospital.  

Privatization and Public Enterprises Supervising Agency: In the period, the Agency’s working procedures and practices in assigning and evaluating board members fell under the FEACC’S review. The review found out that, inter alia, terms of board members was not in compliance with the relevant proclamation. Board members were assigned by external bodies instead of committee established for this particular purpose. Lack of transparency in decision making, failure to take timely measures against incompetent board and audit committee members were some of the flaws mentioned in the report.

Institute of Biodiversity Conservation : The system study conducted on petroleum and spare parts utilization indicated that there were no systems to control handover and utilization of spare parts of vehicles. There were no working procedures and manuals relating to cannibalization. In addition, there were flaws, like unplanned procurement, inconsistent regulation regarding petroleum procurement and usage. Poor recording, property handling and management systems were pinpointed in the report forwarded to the Institute.  

The other activity of the Institute that fell under the FEACC’s review was human resource management. The examination showed that the employment procedures and practice were neither in line with the Federal Civil Service Agency nor impartial.  

The Addis Ababa University : In the period under review, the FEACC undertook system study on housing administration. Absence of guidelines ensuring transparency and accountability and failure of some AAU staff to comply with guideline on housing administration were among the irregularities mentioned in the report.  

The Addis Ababa Education Bureau: The FEACC reviewed working procedures and practice in distributing textbooks and forwarded the report to the Bureau. According to the report, handover and distribution of books donated by charity organizations were not made in line with relevant government guideline. Systems were nonexistent to ensure that revenues collected from sales of books to private schools go to the Finance and Economic Office of sub-cities.  

Ministry of Trade and Industry: System study conducted on renewal of trade licenses revealed inconsistency in tax clearance certificate issued by the Ethiopian Revenues and Customs Authority, Addis Ababa and other regional states. More, the tax clearance certificate issued by these bodies was found to be susceptible to forgery.  

Federal Police Commission: Property administration at the Federal Police Commission was another area of concern of the FEACC in the budget year. It was observed that internal audit inspection was lenient. There were repeated discrepancies in petroleum reserve between the recorded reserve and that of directly measured from the tanker. Failure to conduct surprise and annual inventory was another flaw observed.  

The FEACC also conducted system study relating to procurement and forwarded a draft report to the Commission.  

The Ethiopian Air Lines: The FEACC reviewed working procedures and practice of cargo inspection. Inspection of cargos before they are stored in a warehouse was found to be lenient. There was poor accountability system in the event registered goods disappear in the warehouse. Unorganized placement of goods, unclear working procedures and practice regarding care and inspection of cargos were also the drawbacks  identified.  

Commercial Bank of Ethiopia : The FEACC reviewed collateral estimation procedures and practice at the Bank. Failure to regularly update manual on collateral estimation in light of market price, tendency on the part of checkers to highly depend on information engineers collected from cites as well as poor filing and documentation systems were observed. An examination into procurement tender for the purchase of turnkey solution for card based payment was triggered by reports of alleged gaps. A report containing recommendation was forwarded to the Bank after investigating issues surrounding the tender   

Water Works Construction Enterprise : The FEACC carried out a review on working procedures and practice of rent of machinery. The final report was forwarded to the Enterprise . The study found out that there was no guideline on procurement of machinery. Details of machinery suppliers were not well profiled. Absence of clear criteria and leniency in supervision were some of the gaps identified.  

The Ministry of Works and Urban Development: The Ministry was implementing recommendation forwarded following an examination into issuance of work permit for contractors. Some contractors took advantage of poor information exchange at the Ministry in order to get work permit by submitting forged documents. According to the report, the Ministry did not put in place proper working procedures and practice to monitor and inspect performance of contractors.  

The National Theatre: The FEACC undertook review of the working procedures and practice relating to employment and firing of staff, script of plays, preparation of stage, selection of country music troupe for overseas show. A final report was sent to the National Theatre. The examination found out that establishment regulation, guideline ensuring transparency and accountability and comprehensive guideline on assessment of scripts were unavailable.  

Anbesa City Bus Enterprise : The FEACC conducted working procedures and practice pertaining to procurement with particular emphasis on tender floated for procurement of consultancy service to carry out feasibility study on purchasing buses. In fact, the investigation was triggered by reports of alleged corruption in the tender processes. After carefully reviewing the case, the FEACC forwarded a report containing recommendation to the subject office.  

Water Sanitation Project Office: An examination into tender process for procuring water tanker at the Water Sanitation Project Office with the Addis Ababa Water and Sewerage Authority was also triggered by reports of alleged irregularities. The probe into the tender process revealed that the criteria for evaluating tender documents were lacking in clarity .Technical assessment of the documents was not conducted in keeping with the standard. Despite these pitfalls, the procurement was given a green light taking into account the decisiveness of the procurement. However, the FEACC recommended the office pursue acceptable procurement procedures that would ensure transparency and accountability.

Merchandise Wholesale and Import Trade Enterprise : In the period the FEACC also examined systems of commodity stockpiling and sales. Failure to take appropriate measures when irregularities occurred, incomplete bin card bin tag registration system and sluggish elimination system of unnecessary goods were the problems identified in the working procedures and practice of the Enterprise .  

The other area of concern was human resource management. The FEACC found out that temporary staff members remained on job for a longer period than specified in relevant guideline while acting heads exercised extra responsibility. Sketchy guideline on payment of per diem was also observed. The FEACC was also developing a draft reporting after reviewing the working procedures and practice of cement sales.  

The National Intelligence and Security Service: The FEACC forwarded a draft report following review of the working procedures and practice of issuing boarding pass and collection of service charge.  

Anbesa Shoe Factory: The FEACC examined the human resource management system of the Factory and forwarded the final report to the subject office.

In a like manner, the FEACC undertook review of the working procedures and practice in Pharmaceutical Fund and Supply Agency, Walia Cross Country Bus Service Enterprise, St. Paul Specialized Hospital .  

The Department permanently reviews the working procedures and practices of strategic public offices and public enterprises that mobilize huge resources and are likely to be vulnerable to corruption. Among them are the Ethiopian Telecommunications Corporation, the Ethiopian Electric Power Corporation, Revenues and Customs Authority, the Ethiopian Roads Authority.  

The Roads Fund Office: The FEACC conducted examination of systems relating to procurement of asphalt following reports of alleged irregularities at Roads Fund Office with the Ethiopian Roads Authority (ERA).After looking into the case, the FEACC aborted the procurement tender (worth  about 117 million birr), which was to be awarded in contravention of the government procurement procedures.  

In the period the FEACC, after tips-off, reviewed working procedures and practice of a road construction project tender valued at over 815 million birr .The investigation into the procedures indicated that there was no wrongdoing in connection with the design work against which alleged irregularities reported. But ERA was told to rectify other minor faulty procedures.  

A similar examination was conducted on procurement of tyres and a draft examination report was forwarded to the subject office. A draft examination report was also forwarded to the Office after reviewing inspection and control systems of consulting firms in connection with projects financed by the Roads Fund Office.  

The Ethiopian Electric Power Corporation: Systems study conducted on preparation of electricity bills identified the absence of guideline on preparation of electricity bills, unclear job description and other corruption loopholes.  

 Revenues and Customs Authority: The FEACC examined procedures and practice of tax return. An examination report was forwarded to the subject office. The examination revealed that there was no system of checking the authenticity of documents submitted by tax return users. Failure to prepare standard input-output coefficient at the national level and poor documentation were among the loopholes identified.  

An examination report and a follow-up report on valuation and inspection was forwarded to the Addis Ababa Air Port Branch Office with the Authority. Inconsistency in taking prices from the internet resulted in subjectivity or personal judgment of individuals. Valuation or pricing system was not in compliance with relevant customs regulations, according to the examination report.  

 Recording and documentation of imported goods at the Nazareth branch office was another area that came under the FEACC’s review. A final examination report was forwarded to the subject office. According to the report, failure to update price data base and pricing same property differently were among the malpractices observed.  

In the period the FEACC also examined system relating to inspection of duty-free shops. Poor recording and documentation, failure to properly conduct inventory and give job description, absence of consistent and approved working guideline were identified during the examination. A work relation between customs transitors and the Authority was also reviewed in the period. The study pointed out weak inspection and control mechanism to ensure that customs transitors were complying with customs regulations and poor synergy between the Authority and other government departments to tackle illegal trading.  

Follow-up on the Implementation of Recommendations

Follow-up to find out the implementation of recommendations gives impetus to the examined institution to implement proposed corruption prevention programs. In addition, the follow-up enables the FEACC to appreciate the challenges the implementing institutions face and the emerging issues that require attention.  

In the period under review, the follow-up covered Batu Construction Share Company, Muger Cement Enterprise, Menelik II Hospital, Yekatit 12 Hospital, and the Ethiopian Air Lines, the Ethiopian Electric Power Corporation, Tourist Trading Enterprise, the Ministry of Works and Urban Development, the National Theatre, Authority for Research and Conservation of Cultural Heritages, Ras Desta Damitew Memorial Hospital, Roads Authority, the Ethiopian Telecommunication Corporation, Tikur Anbesa Specialized Hospital, the Addis Ababa Police Commission, Wenji Sugar Factory, the Ministry of Agriculture and Rural Development.  

There are also other institutions where follow-up activities are at various stages of execution.

2.3.Coordination of Ethics Infrastructures

Following the conduct of the BPR, the FEACC had established a department whose duty is to coordinate ethics infrastructures. One such ethics infrastructures is Ethics Liaison Units. As stipulated in the Establishment Proclamation of the FEACC, Ethics Liaison Units are charged with the task of coordinating ethical issues at every level of public offices and public enterprises as well as advising heads of same.  

 In the reporting period the FEACC caused the establishment of Ethics Liaison Units or replaced ethics liaison officers in 23 public offices and public enterprises. It also offered various training based on support needs assessment. Accordingly, it gave four-day training for 36 ethics liaison officers. Intensive six-day training was also offered for about 80 ethics liaison officers on prevention of corruption offenses and regulation providing for the Functioning of Ethics Liaison Units.  

The FEACC also organized an experience-sharing forum that brought together nearly 180 participants composed of heads of public offices and public enterprises as well as ethics liaison officers. It gave feedback on performance of 185 ethics liaison officers. The FEACC extended professional advices to 206 ethics liaison officers on preparation of code of ethics and other issues.  

To meet financial needs of regional ethics and anti-corruption institutions, the FEACC provided a total of 679,502 birr to finance awareness raising education, preparation of publications and organization of ethics infrastructure forums.  

The FEACC did its utmost to popularize the advantages of having anti-corruption institutions in those regional states that have not yet established same. In this regard, an agreement was reached to establish a joint committee comprising representatives from the FEACC, the Addis Ababa City Administration, the Dire Dawa City Administration and the Ministry of Federal Affairs. The FEACC was delegated to prepare a model draft proclamation for the ethics and anti-corruption commissions of the two city administrations mentioned and consequently the FEACC finalized the preparation of the draft proclamation.  

It is to be recalled that a Joint Forum of Anti-Corruption Authorities was formed between the FEACC and its regional counterparts back in 1998 E.C with the purpose of deliberating on the success of anti-corruption drive and evaluating their performance. The Forum meets biannually. In the reporting period the Form held its fifth and sixth meetings in the Axum town of the Tigray Regional State and in Jimma town of the Oromiya Regional State respectively.  

Schools are considered focal areas where groundwork is laid in an effort to create ethical and responsible citizens. In this regard, Ethics and Civics Education Clubs could play enormous roles. The FEACC found out that all schools at the federal level have established the club. Some 16 state-owned universities that did not set up the club have agreed to establish same in respective university following experience sharing form held among higher learning institutions. In a like manner, 35 private higher learning institutions that did not establish the club reached agreement to establish same at a consultative forum that brought together heads and instructors of ethics and civics education.  

In a related development, the FEACC organized two experience sharing meetings for ethics and civics education clubs while a TOT was organized under the auspices of the FEACC for leaders and members of the club.  

The FEACC recognizes the contribution civic associations, civil society organizations and faith-based organizations are making in preventing and controlling corruption. That is why it has taken the initiative to closely work with these institutions. There is a promising start among these institutions to support the anti-corruption drive spearheaded by the FEACC .For instance, the Ethiopian Teachers Association organized at the Addis Ababa level, the Addis Ababa Teachers Association, the Ethiopian Women Lawyers Association, the Addis Ababa Youth Association and the Confederation of Ethiopian Trade Union have each assigned a body that is responsible for the dissemination of ethics and anti-corruption education on permanent basis. Similarly, nine professional associations, seven commerce and sectoral associations and ten civic associations announced the assignment of such body.  

The FEACC prepared establishment statute and regulations for joint forums formed between the FEACC and mass associations, the FEACC  and professional associations, the FEACC and the media as well as the FEACC and commerce and sectoral associations.  

The budget year also saw the formation of the National Anti-Corruption Coalition that aims to intensify the fight against corruption. The FEACC played an integral role in the formation of the Coalition

2.4 Corruption Investigation

In the reporting period the FEACC received 2286 complaints, out of which 1212 were reports within the FEACC’s mandate.In comparison, the FEACC received 3073 complaints the previous budget year, of which 1272 fell under its jurisdiction.  

Although the number of reports during the reporting period dropped, the proportion that comprises corruption matter increased to 53% compared to 41% the previous budget year.This may be an indicator of increasing public awareness and understanding of the FEACC’s jurisdiction.  

Of the 1212 complaints that fell under the FEACC’s jurisdiction, 165 complaints were referred to the investigation teams of the FEACC .Some 446 complaints were lacking in clarity. The police were delegated to deal with 63 complaints while 20 complaints were referred to another department with in the FEACC.Some 124 complaints were referred to pertinent bodies for further substantiation while 231 complaints were referred to relevant public offices and public enterprises. Some 87 complaints that were short of concrete evidence were kept at the FEACC’s Information Center . Surveillance activity was being conducted in relation to 17 complaints. The fate of 29 complaints remained undecided. Some 14 complaints were found to fall outside the FEACC’s jurisdiction after careful review by the Director of the Investigation Department. The FEACC took appropriate measures against 16 complaints following investigation.  

All in all, the FEACC concluded the investigation of 311 files, including 143 files whose investigation had started the previous budget year. Of the 168 new files investigated in the reporting period, eight were filed in connection with retaliatory actions. The investigation into the retaliatory actions was finalized. Accordingly, the FEACC provided protection to three complainants by reinstating two complainants in their jobs while lifting a warning issued against one complainant. Investigation was in progress regarding other alleged retaliatory actions.  

During the period 177 files were delivered to the prosecution Department, of which 8 files were returned to the Investigation Department for further investigation. The Prosecution Department closed 12 files. The remaining 157 files were being dealt with by the Prosecution Department.  

The budget year witnessed the injunction of 348,970 square meters of land found in the Addis Ababa City Administration and the Oromiya Regional State . The estimated value of 259,005 square meters of land was reckoned at 596,449,718 birr. The value of 103,301 square meters of land was being estimated.  

In addition, the FEACC obtained the injunction of 14 vehicles, 20 residential houses, a brick factory and a share worth 173,000 birr. It also froze 413,331 birr deposited in a bank.  

The FEACC kept 389 suspects under constant surveillance while apprehended 288 suspects. Intelligence and surveillance operations were in progress to arrest additional 33 suspects.  

In an effort to have other judicial bodies investigate non-serious corruption offenses on behalf of the FEACC, 36 complaints lodged with the FEACC were referred to the Police. Some 66 files, including those referred earlier to various judicial bodies were returned.

2.5 Corruption Prosecution

In the reporting period the FEACC Prosecution Department had 502 files in hand, of which it opened 131 files whereas 61 files were found unworthy of prosecution. Some 169 files were returned for further investigation. Another 28 files were referred to other prosecutors as they were found to fall outside the FEACC’s jurisdiction. Some 11 files were sent for investigation by proxy. On the whole, decisions were passed on 408 files out of the 502 files.  

In the period under review, the FEACC presented statements for preparatory hearing for 75 files and notices on objection were prepared for 71 files. Rehearsals of 647 witnesses were carried out in the period. Witnesses and defense witnesses gave their testimonials in 108 and 51 files respectively. The FEACC cross-examined 236 defense witnesses.  

The Court ruled on 59 preparatory hearings. Verdicts on 44 cases were passed through trial proper, of which 42 cases were ruled in favor of the FEACC.In the period the Court rendered rulings on 45 files, out of which suspects in 39 files were found guilty. The trials of cases in six files resulted in acquittal while one file was closed due to absence of witnesses. Accordingly, the FEACC’s conviction rate for the budget year stood at 86.7%.  

In the period reported, the FEACC lodged 16 appeals and answered 80 appeals filed against it. It also lodged one cassation pleading against a ruling with basic legal mistake. Some 114 bailout requests were made, out of which 88 rejected.  

The FEACC submitted application for the confiscation of one villa, plot of land valued at over 25 million birr as well as 100 quintals of sugar and 473,000 birr.  

Some 260,861 birr, one villa, 480 square meters of plot as well as one condo house belonging to suspects were put to injunction as per the Court order.

2.6 Research and Studies 

A baseline survey launched the previous year with a view to assessing the effectiveness of the Civil Service Reform Program (CSRP) was concluded in the reporting period. A draft proposal was developed to conduct the third round baseline survey in order to assess the effectiveness of the CSRP in the year 2001 E.C.  

In order to identify focal areas of subsequent ethics and anti-corruption education, a grand proposal and action plan concerning studies to be conducted in the year 2001 E.C. were endorsed. Accordingly, the FEACC conducted three studies on media and two studies on face-to-face ethics and anti-corruption education. The findings of the studies were submitted to the Ethics Education and Public Relations Department so that the latter would make use of it.  

As part of various attempts to compile best practices of different departments of the FEACC, work on compiling best practices of finance was concluded. A draft report on best practice of human resource management was in the pipeline.  

The Studies and Research Department of the FEACC annually conducts studies on selected two topics. In the period studies titled” Resolving the case of plots of land put to injunction due to corruption” and “The roles and experience of  Ethics Liaison Units in tackling corruption” were well underway.  

Preparations were in the pipeline to conduct the second national corruption survey. To this end, work on evaluating bidders was finalized. Request for Proposal was readied for six consulting firms and a letter requesting them to present their proposal was forwarded.  

In a separate development, 41 proposals on the conduct of system studies in public offices and public enterprises were developed and delivered to the Corruption Prevention Department so that it would review systems based on the proposals put forward. Some 19 additional proposals were in the offing.  

In the period the FEACC commented on code of conducts developed by 22 public offices and public enterprises.  

In the effort to sustain the implementation of quick wins a report that discussed activities executed through quick wins and their impacts as well as further activities that need to be executed through quick wins was prepared and forwarded to all departments of the FEACC for implementation.

   3. National and International Engagements

In the reporting period the FEACC took part in a number of conferences, workshops and seminars. The occasions served as a vehicle to establish contacts with a wide range of institutions and individuals that assisted in forging closer working collaborations. The FEACC also showcased its achievements and challenges faced in the fight against corruption. The conferences and workshops include:  

1. Joint Forum  between the FEACC and regional anti-corruption authorities- Tigray Regional State , Ethiopia    August 2008  

2. The 3^rd Annual Conference and General Meeting of  the International Association of Anti-Corruption Authorities(IAACA)- Kiev , Ukraine   October 2008

3. Workshop on Advancing the Fight Against Fraud and Corruption in Africa: Progress and Prospective-Gaborone , Botswana Jnauary 2009.

4. FEACC meeting with delegation  led by the Chairman of the International Advisory Group  of Construction Sector Transparency Initiative (CoST)-Addis Ababa, Ethiopia   February 2009.

5. Meeting on “Assessing the Efficiency and Impact of National Anti-Corruption Institutions in Africa” Kigali , Rwanda    February 2009.

6. Workshop on enriching draft bills providing for the Registration and Declaration of Assets and Financial Interests as well as Whistleblowers and Witnesses Protection Act-Addis Ababa, Ethiopia March 2009.

7. CoST Multi Stakeholder Group (MSG) meet-Addis Ababa, Ethiopia    March 2009.

8. National Anti-Corruption Coalition Founding Conference-Addis Ababa, Ethiopia July 2009.

     3.1 Formation of National Anti-Corruption Coalition

 A National Anti-Corruption Coalition that aims to intensify the anti-corruption drive in the country was officially formed at the conclusion of a two-day founding conference held here in the capital from 2 July to 3 July 2009.  

The FEACC,  the vanguard anti-corruption institution in the country, has been harnessing the efforts of organizations active in the fight against corruption.  

One of such instances is the series of joint forums formed between the FEACC and regional anti-corruption institutions, the media, civic associations, professional associations, chamber of commerce and sectoral associations and law enforcement agencies.  

It is the conviction of the FEACC that such bilateral forums be elevated to the next level with one national vision in addressing corruption. This has called for the formation of a National Anti-Corruption Coalition.  

Formed in the presence of close to 300 stakeholders and partners, the Coalition comprised government departments, civil society organizations, the private sector and opposition political parties.  

The civil society organizations have taken the lion share of representation (48%) in the Coalition. The private sector also constituted a significant representation in the Coalition. The civil society organizations, the private sector and opposition political parties as a whole constituted 68.5 percent of the total number of seats in the Coalition.  

This is a clear illustration that these groups have influential roles to play in the overall activities of the Coalition.  

As provided in the Establishment Proclamation, the FEACC is duty-bound to lead and coordinate all anti-corruption efforts exerted by members of the Coalition. It, therefore, serves as a permanent secretariat of the Coalition.

  3.2  Strengthening Global Anti-Corruption Network  

Ethiopia is one of the seven pilot countries of the Construction Sector Transparency Initiative (CoST). CoST is a multi stakeholder initiative established to promote transparency and accountability in publicly-financed infrastructure projects across the world. The National Multi Stakeholder (MSG) approved work plan and budget for the pilot period in March 2009.The National Executive Committee has already launched operation. Ethiopia was selected to host the 4^rd international advisory group of CoST due to be held in April 2010.  

Ethiopia is also closely working with the Extractive Industry Transparency Initiative (EITI), which aims to strengthen governance by improving transparency and accountability in the extractive sector.   

As part of the on-going diagnostic study in eight sectors, the World Bank, in close consultation with the FEACC undertook water sector diagnostic study.The study was aimed at finding out whether or not existing boreholes and water wells were constructed in a transparent and accountable manner. The FEACC also shared experience with the Ombudsman of Rwanda during the visit of the latter to Ethiopia . Similarly, the FEACC shared its experience in corruption prevention and control with the Southern Sudan Anti-Corruption Commission.

 4 . Miscellaneous Activities 

The FEACC organized a two-day workshop with the aim of enriching draft bill providing for the Registration and Declaration of Assets and Financial Interests. A paper was presented on the occasion and inputs were gathered from stakeholders. The enriched draft, written in Amharic and English languages, was submitted to the Office of the Prime Minister for approval.  Similarly, the FEACC, in collaboration with the Ministry of Justice tabled for enrichment the draft bill of Whistleblowers and Witnesses Protection Act. The draft bill was then forwarded to the Office of the Prime Minister.  

Work on filling in the checklist of the United Nations Convention Against Corruption in line with the relevant domestic laws was carried out in the reporting period.  

During the period the FEACC reviewed the draft National Anti-Corruption Policy. A consultant that embarked on the project submitted a final document after revisiting the draft policy in light of the comments given by the FEACC.

   5.  Capacity Building  

In the budget year 15 employees joined the FEACC through vacancies while ten employees became members of the FEACC staff through transfer. At the end of the budget year the total number of staff reached 236(168 males and 68 females).The FEACC provided a number of trainings for staff members.Details are given in appendix

  6 . Budget Spending 

The FEACC spent 11,999,730 birr (62.48%) of the 19,206,000.00 birr allocated to it for the budget year. To look at the spending separately, it spent 8,117,465 birr (72.04%) in salary and per diem from 11,267,300 birr allocated for this purpose. It also utilized 3,882,264 birr (48.90%) of the 7,938,700 birr earmarked for operational activities.

 

In addition to the budget allocated to it by the Government, the FEACC utilized funds it secured from the United Nations Development Program (UNDP) and the Justice System Reform Program (JSRP).Accordingly, it spent 6,319,418 birr and 1,778,215 birr from the funding obtained from the UNDP and JSRP respectively.

  7 . Challenges Faced and Measures Taken to Overcome Them 

The reporting period has, nevertheless, not been without challenges. In the period the FEACC experienced some challenges in the course of discharging its mandate. The challenges are highlighted below:  

•     Outsourced TV and radio spots took too much time before use due to incompetence of the institutions to which the spots were outsourced

•      To deal with the challenge, the FEACC conducted a follow-up activity and expedited development of technical specifications.

•     Incompetence on the part of some Ethics Liaison Officers to examine systems in their respective institutions and seal corruption loopholes

•      The FEACC provided a series of training for the officers and closely coached activities.

•     A massive increase in number of  sponsorship requests created work load

•  To address the challenge the editorial committee had to deal with the sponsorship requests even out of normal work hours.

•     Poor preservation of exhibits and properties put to injunction. This problem had specially to do with vehicles. The vehicles were exposed to sunshine and rain.

•     The FEACC was experiencing shortage of vehicles as its scope is widening over time

•   Even though a lasting solution could not come about, attempts were made to somewhat resolve the problem.

•     Reluctance on the part of some public offices and public enterprises to quickly respond to requests of audit reports and other evidence.

• Apart from conducting a follow-up activity, the FEACC has begun meeting pertinent individuals in person in order to get access to information.

•     Failures to cooperate with the FEACC.For example, some sub-cities of the Addis Ababa City Administration were not responsive when asked to verify some issues. Investigation processes of some complaints were hampered as a result.

•     Some public offices and public enterprises were reluctant when asked to send relevant civil servants to participate in training and experience sharing forums.

•     The FEACC met and convinced   pertinent bodies about the need of getting their  employees participate in training and experience sharing forums organized by the FEACC. 

•     The FEACC had difficulty to get eligible firms that would organize the founding conference of the National Anti-Corruption Coalition.

  • The FEACC itself successfully organized the event.

8.  Conclusion

On the whole, the 2008/2009 budget year witnessed more remarkable achievements in the fight against corruption and impropriety. It is the Commission's strong conviction that the fight against corruption will pay off as the public actively embrace integrity and good governance practices. The efforts exerted in expanding ethics and anti-corruption education, examining corruption-prone working procedures in public offices and enterprises will, no doubt, bear fruits, at least in the long run.  

In the reporting period the FEACC provided intensive Training of Trainers (TOT) for representative cross section of the public. The shift of focus from awareness raising education to the provision of TOT will definitely help increase multiplier effect.  

The FEACC reviewed and examined the working procedures and practices of specific areas (that were believed to be more susceptible to corruption) in a number of public offices and enterprises. Following the implementation of the BPR, the FEACC has been pursuing a new approach to examine systems in public offices and public enterprises. According to the new approach, reviews and examinations of working procedures should be made on specific areas and practices that are believed to be more exposed to corruption than others. The successful implementation of the Commission's recommendations, which has been closely followed up and monitored, will hopefully help the respective public offices and enterprises curb corruption, at least in the areas streamlined.  

The budget year also saw the successful investigation of numerous cases and the prosecution of scores of corruptors.  

 The establishment of the National Anti-Corruption Coalition and the various forums established between the Commission and other bodies as well as the effective implementation of the civil service reform programme are worth mentioning.  

Thanks, mainly, to the above-mentioned encouraging achievements, the FEACC was able to garner popular support in its fight against corruption. The achievements have indeed helped the FEACC to make its presence felt much better than ever before. It succeeded in making the national anti-corruption endeavour a popular agenda. Though the Commission is the vanguard institution in the drive against corruption, the successes registered during the period were the sum total of the relentless efforts of all the stakeholders.  

In the years to come, the Commission will continue from where it left off in enhancing public participation in the fight against corruption. It has always been the Commission's conviction that the national anti-corruption campaign cannot be a success without the active participation of the general public in it.  

 There is an optimistic expectation on the part of the Commission that the Ethiopian public should be increasingly committed to collaborating with it in tackling corruption and impropriety at the national level. The FEACC urges the public in general and major stakeholders in particular to show maximum willingness and readiness to support the Commission's efforts and endeavours. Together, we become stronger!

 

9  Appendixes

Appendix 1 Training of Trainers Provided in Sector

No	Name of Institution	No. of Trainees
1	Addis Ababa City Administration	94
2	Higher Learning Institutions	43
3	Media Establishments & Civic Associations	39
4	License Issuing Institutions	95
5	Schools	96
6	Financial Institutions	86
7	Women’s Associations	50
8	Youth’s Association	50
9	Service Rendering Institutions	42
10	Basic Service Rendering Institutions	42
Total		637

Appendix 2 Public offices and public enterprises whose working procedures and  practices reviewed in the budget year

No	Government Departments	Number of offices	%
1	Offices under the Addis Ababa City Administration	4	12.5
2	Federal Public Offices	11	34.4
3	Federal Public Enterprises	12	37.5
4	Others	5	15.6
Total		32	100

 Note:

1. Anbesa City Bus, Merchandise Wholesale and Import Trade Enterprise and Waliya Cross-country Bus Service are included under the category of  “Federal Public Enterprises”
2. Hospitals, the Addis Ababa University , the National Bank of Ethiopia and the Ethiopian Press Agency  are included under the category  of  ‘Others’
3. Only those activities whose  performance reached 70% and above are included

 Appendix 3 Working procedures and practices reviewed

No	Working procedure & practice	In no.	%
1	Procurement	17	36.2
2	Property Administration	7	14.9
3	License Issuance & supervision	4	8.5
4	Service delivery	5	10.6
5	Sales	4	8.5
6	Finance & tax	6	12.8
7	Human resource management	4	8.5
11	Others	-	-
Total		47	100

Appendix 4 Review of working procedures and practices in sectors

No	Sectors	In no.	%
1	Infrastructure Institutions	9	19
2	Revenues & financial Institutions	5	10.6
3	Health Institutions	3	6.4
4	Education Institutions	2	4.3
5	Media Institutions	1	2.12
6	Manufacturing Enterprises	3	6.4
7	Trading Enterprises	3	6.4
8	Service Rendering Institutions	10	21.3
9	Law enforcement agencies	5	10.6
10	Others	6	12.8
Total		47	100

Note:

 Appendex 5 Files whose investigation concluded in the budget Year 

No	Kind of Crime	No. of Files	No. of Suspects	Undue advantage obtained/Losses Caused on Gov’t
				In Cash/Birr	In Kind
1	Abuse of Power	47	132	85,065,622	34,965
2	Bribery	7	13	273,500	-
3	Gaining  Undue Advantage	2	4	88,000	-
4	Maladministration	55	175	177,121,773	-121,308sq.m of      plot -15 Computers -18 Rooms -7 Vehicles
5	Concealment	9	32	6,856,428	4 Vehicles
6	Owning Asset Whose Source Unidentified	2	3	-	-
7	Exercising Others’ Power	1	8	-	-
8	Reprisal	4	1	-	-
9	Forgery	14	92	446,131,168	-182,551 sq.m of plots - One Vehicle
10	Betrayal of Trust	19	46	1,912,081	-
11	Fraud	3	32	114,556,742	-
	Total	163	538	832,005,316	-338,824 sq.m of plot -12 Vehicles -18 Rooms -15 Computers

Appendix 6 Rulings delivered in the budget year

No	File Name	Date of Charge Pressed (E.C.)	Kind of Crime	Date of Ruling (E.C.)	Verdict	Fine Imposed/Birr/
1	Kifle Eshete et al	07/12/99	Abuse of power	26/2/2001	2 years- 10 years rigorous imprisonment	500-2500
2	Colonel Kefelegn Debebe	16/3/2000	Gaining undue advantage	13/6/2001	2 years rigorous imprisonment	500
3	Chief Seregeant Jemal Ibrahim	30/1/2001	Abuse of power	01/5/2001	2 years rigorous imprisonment	3000
4	Melaku Gezahegn  et al	06/3/2000	Serious betrayal of trust	30/4/2001	2 years imprisonment each	-
5	Mersha Bogale	06/3/2000	Forgery	18/11/2000	6 years rigorous imprisonment	-
6	Markos G/Tsadek et al	/1/2000	Abuse of power	24/10/2001	3-15 years	1000-25000
7	Abiy Legesse	29/10/99	Serious fraud	13/2/2001	5 years rigorous imprisonment	500
8	Daniel Amare	15/2/2000	Bribery	30/7/2001	3 months	100
9	Solomon Hailu et al	28/9/99	Abuse of power	15/10/2001	6 years rigorous imprisonment	5000
10	Habtamu Petros et al	20/6/2000	Abuse of power	04/10/2001	8 years rigorous imprisonment each	50,000
11	Habtamu Malla	24/7/99	Abuse of power	21/1/2001	5 years imprisonment	5000
12	Tsegaye Mirchi	12/8/2001	Forgery	21/9/2001	2 years imprisonment	-
13	Tewodors	23/10/2000	Forgery	04/7/2001	2 years imprisonment	-
14	Biruck Negash	12/6/99	Serious fraud	21/3/2001	1 year imprisonment	-
15	Fasil Alemu		Abuse of power		1 year imprisonment	100
16	Shebru Zegeye	15/7/2001	Abuse of power	05/10/2001	4 years imprisonment	5000
17	Hailu Beyene et al	19/3/2000	Bribery	10/7/2001	3 years imprisonment	500
18	Getu Tefera	28/3/99	Bribery	25/7/2001	1 year imprisonment	-
19	Markos Shume et al	12/2/2000	Bribery	25/2/2001	1 year imprisonment	-
20	Sultan Redin	27/12/2000	Serious betrayal of trust	15/5/2001	5 years imprisonment	4000
21	Milion Belay	03/3/2000	Serious betrayal of trust	25/7/2001	6 years imprisonment	5000

 Appendix 7 Trainings provided to staff members

No.	Training Topic	No. of Trainees
1	Policy Analysis	2
2	Ethics	4
3	Risk Management	2
4	Communication skills	3
5	Human Resource Management	4
6	Training of Trainers	1
7	Advanced Office Operation Management	8
8	Record Management	6
9	Internal Auditing	5
10	Information System & Technology	4
11	Physical Resource Management	3
12	Total Maintenance Management	2
13	Project Planning, Implementation & Evaluation	7
14	Basics of Office Operation Management	1
15	Basic Managerial Skill	3
16	Banking & Insurance Policy Procedures	28
17	Training  on  Modules	133
18	Basic Computer Application	14
19	Auto Mechanics	12
20	Forensic	48
Total		290