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Ethiopia’s Mining Sector “Corruption Central”

The Ethiopian government who said it has no independent way of verifying mining revenues last year reports the earning of over USD 400 million from gold supplied by mainly artisanal miners.
The Ethiopian government who said it has no independent way of verifying mining revenues last year reports the earning of over USD 400 million from gold supplied by mainly artisanal miners. Other than that, no one really knows the depth and breadth of corruption taking place in the sale of mineral licenses and siphoning of mining revenues.

By Alemayehu G. Mariam,

The mining sector in Ethiopia is a hotbed of corruption and hub for graft and fraud. The World Bank (WB) in its 2012 massive report “Diagnosing Corruption in Ethiopia” identified the mining sector as one of the most corrupt sectors of Ethiopia’s economy.

According the WB, there are “seven areas of corruption risk” in the Ethiopian mining sector” including the “three main risk areas” of “license issuing, compliance with license conditions, and mining revenues”. The other critical areas of corruption include fraudulent practices in “compensations and obligations to local inhabitants, contracts with contractors and suppliers to the mining companies, falsification by mining companies of product quality, and theft of mining products and equipment.”  Continue reading Ethiopia’s Mining Sector “Corruption Central”