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The Federal Ethics and Anti-Corruption Commission (FEACC) stated that the water sector is at risk.

The Commission and stakeholders discussed a draft study that aims to combat corruption in the sector on Tuesday October 1, 2013.
The new FEACC study will identify water sector services that need support and follow up from the government and other stakeholders. The study’s objective is also to identify the kinds of corruption prevalent in water supply and sanitation projects in Ethiopia and to explore how corruption manifests in the water sector.
According to the study, the water sector is affected by corruption and a dysfunctional system. The corruption appears to be widespread in urban rather than rural areas.
It also found that the quality of potable water in some areas is poor and that no improvements have been made over time.
“The study found that progress in all water projects was weak; only about 1 to 5 percent of projects were completed on time,” the document revealed. ‘The major problems (corruption and a dysfunctional system) occurred during project design and bid document specifications,” the document read. The study recommends strengthening project follow ups and the structure of water supply services and that monitoring should continue at all levels of the regulatory body for water services. A 2012 World Bank study indicated that the water sector (clean water supply) is susceptible to corruption. The report stated that the problem varies from region to region.
A few months ago the commission held similar discussions with the stakeholders in the construction sector to eliminate corruption. The Construction sector is also considered vulnerable to corruption. Prime Minister Hailemariam Desalegn recently told journalists that the government will focus on corruption that occurs in the construction sector. Wedo Ato, Deputy Commissioner of FEACC, said that good results have been registered since these discussions were held. He said that the Commission also expects good results in the water sector as well.  
According to government estimates, about USD 297 million is needed every year to fund clean water supply projects until the end of the GTP period. In the past few months, measures have been taken against water-sector officials in Oromia and the Southern Nations, Nationalities and Peoples Regional state (SNNPR). Anti Corruption offices of the two regional states have arrested top officials at the Oromia Water Works and Construction Enterprise and the Water Resource Development Bureau of SNNPR on allegations of corruption.