Corruption in Ethiopia Facilitates Illicit Trade Activity: Case of Hawassa Customs Commission Branch Office

Abstract

Corruption can protect criminals engaged in illicit trade from investigations and prosecution. Even if a consignment is seized, perpetrators might be released with a warning or fine rather than prosecuted to the full extent  (OECD,2017), In addition, OECD stated , Corruption facilitates various forms of illicit trade and may, for instance, allow sub-standard goods to reach consumers by evading quality controls. These were called corruption and illicit trade is “twin devils”. The aim of this study is to ascertain the relationship of the twin devils in Ethiopia customs commission law enforcement and to determine why people in Ethiopia trade illicit and Customs officials being corrupt. With a qualitative approach,both Explanatory and descriptive research methods was applied. The qualitative data was collected from 76 customs officials and other state security randomly selected samples in a conference held in Sidama region with total population of 300 and analyzed by SPSS. Besides, literatures were reviewed to determine its effects on nation.  The result indicates that corruption and illicit trade are positively related and goes together. Customs officials become corrupt due to customs officials receive any kind of gifts considering it as manifestation of gratitude and suit. However, some of officials receive the offer intentionally to accumulate improper wealth.People also involve in illicit trade than legal trade so as not to pay government taxes and thinking of getting rich quick by controlling (monopolize) the market. Customs commission is ineffective in controlling Corruption and illicit trade due to lack of committed leaders, increase employee demand to theft, law enforcement laxity and lack of corrective measures on offenders etc. And the public is not committed in fighting of corruption and illicit trade due to citizen’s lack enough awareness on the burden of corruption and illicit trade, and lack of harsh penalty to offenders of corruption and illicit trades. Thus, the author recommended that, government and customs commission should give due attention to corruption and illicit trade, modernize customs administration, create know how to the public and forward the responsibility to state governments.

Keywords: Corruption, illicit trade, Customs commission, revenue.

DOI: 10.7176/JESD/14-1-04

Publication date: January 31^st 2023