Lack of audit leads to condo corruption

Billions of birr have been invested to purchase construction materials for the 20/80 condos over the last 10 years. However, lack of proper auditing has led to corruption and waste.

Steel bars, cement and bathroom products like toilets have been purchased from many suppliers but no clear auditing has been conducted to indicate which materials were used where, or how many of them were wasted or moved to other places.

According to a source in the Addis Ababa Housing Project Office (AAHPO) the office has been planning an audit but no tangible work has occurred as of yet.

The source added that because of the fragmented structure of the housing  projects no clear office has taken responsibility for the auditing work and the internal auditing office does not frequently audit the purchase of materials.

One issue that has been observed recently is that cement is often dropped carelessly leading to unnecessary expense.

The Addis Ababa City Administration spent a total of 17 billion Birr to construct the residential units furnished with necessary amenities. Currently 130,000 condominium houses are under construction in various parts of the city. Over the past ten years, the Addis Ababa City Administration was able to build and transfer more than 136,000 residential houses.

“It is a sad story that billions of birr is wasted in material loss but there has been no auditing, sometimes we know that sites are receiving an incorrect amount of materials, or that materials are not going to the sites listed on paper and good auditing can expose such scandals,” the source said.

Capital effort to interview AAHPO officials was unsuccessful as they said they were in a meeting.

Recently the government arrested many people constructing condos due to corruption. Condo construction has been consistently behind schedule.

Nearly one million people have registered for the 20/80 and 10/ 90 schemes. However, every year only 15,000 houses have been delivered to their beneficiaries. Recently it was announced that new condo program would not begin this fiscal year due to budget constraints.

  • mesbel1956

    Housing project is one of the largest projects in the country. There are always complaining of corruption in various kinds. I realized complaining of corruption when the project delay for long time and when tension rises due to imbalance between expenditure of the fund and level of the project that goes beyond the time set to project to be completed. Even the writers said ..cement is often dropped carelessly.. being polite instead of cement is wasted or abused. The sites are complaining … sites are receiving an incorrect amount of material for not enough material received or that materials are not going to the sites listed on the paper… In this presentation I see four major and immediate parties who can be responsible or accountable In case of cement abuse or wastage the on duty supervisor has to check every hour the activities of labourers that are engaged in the area of work where cement is main requirement. Before a droplet of cement, not waste, the supervisor can assure effective use of cement. In the handover and takeover of materials there are three persons one is Manager of main warehouse who discharge materials to the site, second is a person who carries materials from warehouse to the site and third is the on duty or site manager who takeover or collect the materials. Inventories at each end are important. The second person is a catalyst who carries the material to a given site with documents up on which the list of materials by number and type of item recorded are important to justify smooth delivery of materials. The site manager assures receiving of items in good condition with his signature and the catalyst must sign on the side deliverer before while materials are loaded on a given means of transportation and on receiver side while materials are offloaded and verified against the delivering document. Each activity has to be closed within a day with activity report. If these are followed there is no wastage and astray. .

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