How Big is Corruption in Ethiopia? $16.5 Billion Lost to Illegal Smuggling of Cash

Published by Tadias May 13th, 2013 

Global Financial Integrity says Ethiopia lost US$16.5 Billion to illicit financial outflows in the last decade.Tadias Magazine
By Tadias Staff

Published: Monday, May 13th, 2013

New York ((TADIAS) – Last week police in Ethiopia conducted a high-profile corruption sweep in Addis Ababa, the biggest of its type in the Capital in more than ten years, arresting 13 people, including a Minister and his deputy in charge of the Ethiopian Revenues and Customs Authority.

But how big is corruption in Ethiopia on the global scale? We placed a phone call to the Washington, D.C office of Global Financial Integrity (GFI), which tracks illicit financial flows out of developing countries worldwide.

According to Clark Gascoigne, a spokesperson for GFI, the organization’s latest available research data show that the amount of money that Ethiopia lost to illegal smuggling of cash out of the country, both by the government and the private sector between 2001 and 2010, totals 16.5 billion U.S. dollars.

Mr. Gascoigne pointed out GFI’s statistics are based on official data provided by the Ethiopian government, World Bank, and IMF.

“Our numbers indicate all funds that illicitly left the country in a ten year period including by individuals and private companies illegally funneling their money out of Ethiopia,” he said.

Ethiopia also ranks 113 out of 176 countries in the Corruption Perception Index of Transparency International, the global civil society coalition that encourages accountability initiatives by regular citizens.

Meanwhile, the Federal Anti-Corruption Commission in Ethiopia said that Melaku Fanta, a Minister and the Director General of the Ethiopian Revenues and Customs Authority, and his deputy, Gebrewahed Woldegiorgis, are two of the highest ranking officials apprehended so far on bribery, kickback and fraud accusations.

The other individuals currently in custody on similar indictment include Ketema Kebede, who is the proprietor of KK Trading, Simachew Kebede, owner of the Intercontinental Hotel, and investor Mihretab Abreha, as well as Nega Gebre Egziabeher of Netsa Trading PLC.

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Posted by on May 13, 2013. Filed under NEWS. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

One Response to How Big is Corruption in Ethiopia? $16.5 Billion Lost to Illegal Smuggling of Cash

  1. ኣዬር ብኣዬር

    May 20, 2013 at 8:03 AM

    Police seized millions of dollars and millions of birrs in cash from the private residence of Gebrewahid Woldegiorgis.

    The courts are not specifying the correct amount of cash that was seized because they are corrupt and want to steal some of it.

    The courts are corrupted through bribes , political manipulation, intimidation and domination.

    Gebrewahid is the latest fall-guy in the ongoing power struggle inside the ruling junta. He is no more corrupt than any of the other acting or retired TPLF officials who have been sucking the life blood of Ethiopia during the past 20 years.