In yet another alarming report it presented to Parliament this week the Office of the Federal Auditor General revealed a troubling finding that requires urgent action. According to the Office, government agencies financed by budget allocated by the Federal Government routinely conduct special procurement, a modality that it said should be resorted to when it is determined that they are unable to undertake the procurement of goods and services through the methods stipulated under the Federal Public Procurement and Property Administration Proclamation issued in 2024. It underscored that the propensity to make use of a method that must be utilized under exceptional circumstances raised the specter of corruption tainting the procurement process. It recommended that federal government agencies thus carry out their procurements in accordance with the regular procedures stipulated under the law.
Government procurement is a critical function of any state, ensuring that public resources are used efficiently to deliver services, infrastructure, and goods to citizens. In Ethiopia, where development needs are immense and public funds are limited, adherence to legal procurement frameworks is not just a bureaucratic formality—it is a necessity for accountability, fairness, and economic stability. However, when procurement processes exploit loopholes in legally mandated procedures, the consequences are severe: corruption flourishes, public trust erodes, and development goals are thwarted.
Ethiopia’s procurement laws, particularly the proclamation Parliament enacted in 2024 and subsidiary regulations and directives, establish clear guidelines to ensure competitive bidding, transparency, and fairness. These laws are supposed to prevent favoritism, waste, and embezzlement. When government entities sidestep these regulations—namely through procedures that deviate from legally mandated arrangements without justification, or opaque negotiations—they create opportunities for corruption. A lack of transparency means that contracts may be awarded based on personal connections or political patronage rather than merit. This not only leads to inflated costs, but also results in substandard project execution because there is little incentive for the other contracting party to deliver quality products or work.
Questionable procurements also often lead to inflated contract prices. When there is no competitive bidding, suppliers or contractors can charge higher rates, knowing there is no alternative. This misallocation of funds drains Ethiopia’s already constrained budget, diverting money from essential services like healthcare, education, and social programs. Moreover, such practices distort the market. Legitimate businesses that follow the rules are sidelined in favor of those with insider access. This discourages investment from reputable firms, stifles competition, and weakens the private sector—key drivers of economic growth. Over time, a culture of cronyism replaces merit-based business practices, harming long-term economic development.
Aside from undermining transparency as well as leading to economic Inefficiency and waste of public resources special procurements” are liable to give rise to the erosion of public trust and good governance. Citizens’ trust in government depends on the fair and equitable use of public resources. When procurement processes are manipulated, it fuels public suspicion and disillusionment. In Ethiopia, where successive governments have faced allegations of grand corruption, maintaining trust is crucial for political stability. If procurement abuses go unchecked, they reinforce a perception that the system is rigged in favor of the powerful. This can lead to social unrest, as seen in other countries where corruption in public contracts has sparked protests. A government that fails to enforce its own procurement laws risks losing legitimacy, making it harder to implement policies and secure public cooperation in critical areas.
Government procurement is not merely an administrative task—it is one of the critical functions where the government’s commitment to good governance is tested. When government agencies habitually bypass or actively look for workarounds around procurement methods they are obligated by law to observe, they jeopardize economic stability, fuel corruption, and betray public trust. Upholding procurement laws is not optional; it is a fundamental duty to ensure that public resources serve the people, not private interests. Only through the demonstration on the part of the government to enforce strict adherence to transparency, competition, and accountability can the government restore confidence in public procurement processes and achieve sustainable development.
