Ethiopia lost $US 36 billion in illicit financial flows in the last 27 years

A report by Sheger Radio today says that Ethiopia lost as estimated $US 36 billion ( about 1 trillion and 80 billion Ethiopian Birr) in illicit financial inflows in the last 27 years.

Sheger spoke to Maco-Economist and Consultant, Eyob Tesfaye, who stated that studies have revealed that Ethiopia has lost the above mentioned amount of money. Before 2012, the annual rate of illicit financial inflows was about US$500 million a year. After 2012, the figure rose to US$1.5 billion.

Procurement processes (using wrong invoice some time at price 1000 % than the actual price), export-import process and financial borrowings were some of the areas from/through which illicit financial inflows has been possible.

Ethiopian government embarked on crackdown on those who were involved in the crime in the past few weeks but the process is causing political disenchantment in Tigray region, where most of the corrupt politicians are from.

Yet, Tigray People’s Liberation Front (TPLF) elites are giving their narratives a spin in order not to make it seem like an opposition against crackdown corruption. The name of the opposition is “respect the constitution.”