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Ethiopia lost $3.3 billion to corrupiton

By William Davison

(Bloomberg) — Ethiopia, Africa’s second-most populous nation, lost $3.3 billion to {www:illicit} outflows such as bribery and corruption in 2009, Global Financial Integrity said.

Mispricing of trade transactions to facilitate money laundering accounted for $1.9 billion of the funds in the Horn of Africa nation in 2009. The total lost was more than double the amount in 2007, the Washington-based advocacy group said in an e-mailed report.

Ethiopia earns 6.4 percent of {www:gross domestic product} from donor grants, compared with an average of 0.9 percent for all sub-Saharan African nations, according to the International
Monetary Fund. Illicit outflows exceeded the $2.8 billion in aid and export revenue earned in 2009, GFI said.

“There is no excuse for this,” former U.S. Ambassador to Ethiopia, David Shinn, said in an e-mailed response to questions on Dec. 12. “If this trend has continued into 2010 and 2011, then Ethiopia has a real problem.”

The government hasn’t had a full explanation of the figures yet, Communications Minister Bereket Simon said.

“Overall Ethiopia is a country where you can find financial discipline,” Bereket said in a phone interview from the capital, Addis Ababa, yesterday.

Ethiopia scored 2.7 out of 10 on Transparency International’s Corruption Perceptions Index 2010, with zero being highly corrupt. The country ranked 66th out of 157 nations for losing the most in illicit flows in the past decade, averaging $1.2 billion a year, GFI said. China was the highest ranked with $273.7 billion. After adjusting for economy size, only Kenya, Tanzania and Sudan had a better average from over 50 African nations, Shinn said.

“The calculations are largely picking up measurement errors and differences in weak data collection methodologies between countries, even though they will also include smuggling, underreporting to avoid customs duties and capital flight,” Stefan Dercon, chief economist at the U.K.’s Department for International Development, a major Ethiopian donor, said in an e-mailed response to questions yesterday. “But it’s extremely naive to assume that this is just {www:capital flight}.”

19 thoughts on “Ethiopia lost $3.3 billion to corrupiton

  1. This article is not directly from Elias. It is rather from outsiders, who have nothing to gain or lose from Ethiopia. GFI or David Shinn have nothing to do with Elis. Bloomberg news is an independent news agency.I want to see what you weyane cadres will say. I know you will attempt, with your broken English, to disqualify the story.

    Hero replies:

    This is a known fact,how about the unknown.It will be triple (i:e for the last 20 Years)the amount stated by the journalist. As you said, Elias isn’t William Davison, soon, they will accuse him as terrorist and a member of Genbot-7, watch.

    yeab-sira replies:

    you love white men, don’t you?
    maferia

  2. Bereket Simon

    You must leave our country. It makes me puke when I see your name or hear what is coming out your filthy mouth. You are adding insult to injury.

    Anonymous replies:

    zuDamo,
    It is people like you who makes one feel to puke. You ugly terrorist. We will get you soon. we know when you are flying back here.

  3. In the country where there is no established financial regulations ,for me it will not be a surprise report.The federal system which is based on ethnicityy will creat a huge hall for the vast &quick loss of capital.There is no transparency &accountabipity among federal and regional governments.Anti curruption commission an institution which is purposelydesigned to attack anti government citizens,cos we donot see it acting against corrupted loyal federal&regional officials.Any way at this rate EPRDF government will be bancruptted in a couple of years.While Effort &other tplf affiliated companiess blooming at the expense of poor ethiopians.

  4. Not surprised at all. In fact, I predicted in the past that TPLF will loot Ethiopia blind, dismantle it and in the end, build Greater Tigrea. Isn’t this what thieves do? TPLF came to loot at any cost, including at the cost of human lives and they have been doing just that. The rest of the money is being used to bribe influential people around the world.

    abba tobia replies:

    only you make sense. eritrea and tigray might even join. afar too might go with tigray to eritrea.

  5. The government employees get paid next to nothing from the Ethiopian government. The only choice left for government employees to make a living is demand bribes for doing their jobs and the government permits it. Actually the figure above is very small compared to the number of families that depend on the money generated by bribes . Diasporas and investors give bribes for geting things done without any complain. Rather than just sending money to family members as a remittance diasporas find it more rewarding to invest and involve in the corruption process.

  6. Anybody in the position of the Ethiopian Government officials would involve themselves into corruption ,it is human nature.We can not look down at anybody because any human being would have
    donehe same if he/she was in the government officials shoes.
    We can not expect Ethiopian officials to be saints while investor class, the expats, those of us in the Diaspora, don’t have have virtues, moral or religious beliefs, principles, etc. against practicing corruption one bit.
    Whoever is saying bad things about the corruot government is simply practicing Hypocrisy..
    Hypocrisy is not simply failing to practice those virtues that one preaches but also and is thus a kind of lie.
    No Ethiopian currently have courage to undertake divesting or boycotts against the TPLF economy because all Ethiopians, found it easier to live by the Meles rule. Hypocrites recommend to the investor class, the expats, those of us in the Diaspora to live like poor
    while we got money enough to live good. These hypocrites do this because they are liers and insane .. This is life in a capitalist society get used to it and don’t get fooled by the hypocrites that preach one thing and practice somethingelse which are geting many in
    number more than one can imagine.

    Truth Shall Set You Free replies:

    Yoseph (Bekt Simeon),

    This is not Nazret where you can post all kinds of trash day and night. This is a forum for smart people and not for dedebit monkeys

    Anonymous replies:

    Yoseph,
    Either you’re one total moron or one of Meles’s thugs.

  7. My take on this is that SHEIKH MOHAMMED Al AMOUDI is at the heart of the money laundering scheme. He is largely responsible for laundering WOYANE’s money. He legitimizes the woyane loot from Ethiopia by bringing it into a legitimate international business transaction.

    We should follow the money Woyane is looting from the Ethiopian Treasury through an international investigation of the Sheikh’s wealth. It is time for Al Amoudi to come clean by disclosing all his financial transaction and business relation with the Woyane mafia and criminal organization.

    I wish Professor Al and other patriotic Ethiopians to guide us into the criminal investigation of Woyane and collaborants like Al Amoudi.

  8. I do think Ethiopia might have lost more than what is being aired. There is no law in the country. The law is Meles Zenawi. One man break and make rules. I believe much more resources are being looted…

  9. Elias,
    Please do not allow people like Yoseph above to post trash here. It is an insult to your readers intelligence. We cannot be expected to intelligently discuss important issues with Dedebit monkeys. They can go to Nazret.com to post their opinion where Meles Zenawi is a star poster and he posts tens of times under different nicks. Yoseph here could be Bekt Simeon for all we know.

    Anonymous replies:

    Truth Shall Set You Free,
    I agree with you totally, I hope Elias takes action to remove the soulless monkeys like Yoseph who are staunch supporters of the looter and the blood thirsty tyrant Meles.

  10. What is the big deal about it. Yesterday’s so called freedom fighter, who came with empty hand and some rug on their back and of course their AK 47 have become millionaires and owner of the choice real estates as well as, multiple villa in various countries of the world starting from melese in London and Washington DC just to name few. So, I do not see any surprising news, since it has been foretold

  11. Selam evryone:

    It is very clear that the tplf is collecting monthley in hard currency in millions:every ethiopian living aboard sends money to thier famillies through woyane established Hawala/money transfer offices/grocery store owned by ethiopias. for example:Hibret money transfer by adawa tigre and kiah money tranfer by somali ethiopians are all owned by the tplf. the chief collector of the money is a tigre from adwa in southeren Ca. the money in ethiopia is paid not by ethiopian commercial nor national bank of ethiopia but Hibret and wogagen banks. those banks are owned exclusivley by the tigre mekuanent of Meles, Bereket, Sibhat and tedros hagos. by the way the Americans are investigating the whole affair from the very begning even interviewd some regular money senders to ethiopia. all the hard currency collecting remain outside the country.

    Down the tplf

    Heroes replies:

    “it is very clear……………”
    What is new? Diaspora has been and/or is Meles’s and his crone’s cash cow ,as long as, Ethiopians in large remain poor and starving. Isn’t it the GOAL of tplf to maintain the people below poverty (starvation) to stay in power and transfer it to his wife and/or relatives (i:e North Korea).

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