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Eritrea’s Secretive Spending: A Web of Corruption and Mismanagement
A recent investigation has uncovered a web of corruption and mismanagement within Eritrea’s government, exposing a culture of secretive spending and financial irregularities.
Tenders with Inflated Budgets
According to sources, tenders for large-scale projects are often released with inflated budgets, provided by international donors. However, once the project is completed, the final cost is significantly lower than initially agreed upon, raising questions about where the missing funds have gone.
Off-the-Books Purchases
The investigation suggests that PFDJ-owned companies may be siphoning off the difference between the original tender amount and the actual cost of the project, using it to finance off-the-books purchases, such as weapons. This practice allows the government to circumvent official expenditures, which could be scrutinized by international organizations like the International Monetary Fund.
Lack of Transparency and Accountability
The lack of transparency and accountability in Eritrea’s financial dealings is further compounded by the absence of independent auditors or external oversight mechanisms. As a result, the government can reap unknown profits from its companies with little to no accountability.
Corruption Runs Deep
The October 2007 assassination attempt on Colonel Simon Ghebredenghil, the second-in-command at the Government of the State of Eritrea’s (GSE) National Security Agency (ANS), lifted the lid on widespread corruption in the country. The incident led to a series of investigations and revelations about the extent of corrupt activities within the government.
Eritreans have long boasted about their country being free from corruption, but the reality is far from it. Corruption has become so endemic that even government officials are now openly discussing the practice.
Immigration Office Rife with Abuse
The Eritrean Immigration Office has also been accused of widespread abuse and corruption. The office has strict exit restrictions on citizens, making it nearly impossible for those within a certain age range to obtain an exit visa.
- Individuals are required to deposit large sums of money or provide property deeds as an “insurance policy” that they will return.
- No one knows where the money goes or who is responsible for holding it.
- The practice has become so lucrative that immigration officers have significant leeway in determining who receives an exit visa.
Fraudulent Documents Common
The black market for fraudulent identity cards and National Service exemption documents is also thriving in Eritrea. These documents are faked and sold by government and military officials, allowing individuals to travel within the country without being arrested at checkpoints.
- Some permits sell for as much as 700 Nakfa (roughly $40), equivalent to half a monthly salary for a National Service-exempted civil servant.
- The demand for these documents is high.
A Culture of Corruption
Eritrea’s culture of corruption and mismanagement has become deeply ingrained. The government’s secretive spending and financial irregularities have allowed PFDJ-owned companies to reap unknown profits, while the lack of transparency and accountability has enabled widespread abuse within the Immigration Office.
It is clear that Eritrea’s reputation as a corruption-free state is nothing more than a myth. The reality is a country where the privileged few are getting rich with the blessing of the government, while the majority suffer in silence.