Auditor General of Ethiopia Exposes Billions of Losses in Construction

The Auditor General of Ethiopia has shared significant financial losses and inefficiencies in the country’s construction projects. The Auditor General of Ethiopia revealed that 13 projects were started without completing the initial phases, resulting in an additional cost of over 16 billion birr. This is attributed to a lack of procedures to reduce financial losses and the absence of effective monitoring and control measures.

The Auditor General, Mrs. Damte, emphasized that the interruption of projects is a major issue caused by the failure to implement procedures that can mitigate financial losses. The report also highlights the need for transparency and accountability in project execution.

Moreover, the Auditor General of Ethiopia shared that a system has been put in place to prevent contractors from competing in other tenders without completing their projects. However, he points out that there are still issues with the implementation of this system. Furthermore he shared that 12 projects worth over 10.7 billion birr are held by just two contractors, and 38 projects worth 2.4 billion birr did not meet their performance guarantees.

Additionally, the Auditor General of Ethiopia revealed that out of 41 discontinued projects, 2.4 billion birr paid in advance for 25 projects were not used for other development works. He also highlights that contractors are not conducting adequate monitoring and supervision to ensure the health and safety of workers and the public.

Furthermore, the Auditor General indicates that 24 contractors were given ratings that did not meet the guidelines, and out of 261 foreign contractors operating in the country, only 11 are being supervised and monitored according to the criteria set in the registration guidelines. The Auditor General has also observed that 36 out of 40 sampled contractors have not renewed their time, and a reminder was given to strengthen control work.

Overall, the Auditor General of Ethiopia highlights the need for improved procedures and monitoring to reduce financial losses and ensure the efficient execution of construction projects in Ethiopia.

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