Objective Four: Fighting Corruption and Money Laundering I. Summary of the CSAR 398 The CSAR acknowledges that corruption is a cause for concern in Ethiopia, notwithstanding the fact that in recent times, ratings have tended to diverge over the extent of corruption in the country. Public opinion surveys, focus group discussions, and results from international comparative analyses, reveal that many people and business entities are relatively aware of the problem of corruption in the country. Although formerly more pervasive in the public sector, recent cases of private-toprivate corruption are also becoming visible in Ethiopia. However, the Government of Ethiopia is fully aware of the seriousness of corruption and has therefore embarked on several efforts to combat corruption and money laundering. To this end, several institutional and legal frameworks have been established to combat corruption and money laundering. The CSAR also notes some of the international standards and codes that the government has ascribed to in this area. The CSAR further notes that one of the most important factors in combating corruption in Ethiopia is the political commitment of government. GoE continues to formally declare its determination to stamp out this scourge from public and private life. 399 However, Ethiopia faces significant implementation challenges in its efforts to fight corruption and money laundering. More specifically, it highlights capacity constraints for inspection and prosecutions on cases of corruption; limited judicial procedures; tolerance to corruption by the general public and therefore, underreporting of incidents. Further, the CSAR highlights some challenges in terms of the onerous fight against corruption in Ethiopia: absence of proper control systems and pre-audit procedures in making payments; improper handling of funds and maintenance of accounts; absence of a fully developed civil service code of ethics; absence of a mechanism for ensuring that the regulations and procedures issued by higher management are observed; weak monitoring on the part of executive bodies; shortage of manpower in supervisory and auditing agencies; and, weaknesses in looking into reports of supervisory and auditing agencies and implementing the recommended necessary measures. II. Findings of the CRM 400 The CRM is satisfied with GoE’s zero tolerance stance on corruption. Government recognises that the increased prevalence of corruption has negative effects on national socio-economic development efforts. (Box 4) As noted in the CSAR, corruption in Ethiopia, as elsewhere, is not a social phenomenon that can be explained by a simple cause/effect model. It is a complicated issue, often the result of many contingent circumstances that produce varied and wide-ranging effects. - 165 -