Ethiopia’s Auditor General Flags Over ETB 32.9 Billion in Uncollected Federal Receivables

The Federal Auditor General’s Office has flagged a troubling buildup ETB of 32.9 billion  in uncollected receivables across federal government institutions, raising serious questions about financial discipline and accountability in public spending. The report, covering the 2024 Ethiopian budget year, was presented to the House of People’s Representatives by Auditor General Meseret Damte, who expressed concern over the growing delays in settling government advances and receivables.

According to the report, the arrears span 137 federal institutions and 20 revenue and customs branches, with large sums remaining unpaid for years. While some of the receivables have been pending for just under a year, a significant portion dates back between one to five years, and even over a decade in some cases. The accumulation reflects systemic weaknesses in financial tracking and enforcement across several sectors.

Institutions such as the Ministries of Health, Education, and Irrigation and Lowland Areas, along with Wachemo University, were identified as among those holding the largest share of unsettled accounts. The Auditor General noted that failure to clear these balances promptly not only risks waste of public funds but also undermines transparency and effective budget execution.

She emphasized that under existing financial regulations, including Council of Ministers Regulation No. 190/2000, federal institutions are required to settle advances related to operational expenses, travel, and transport within seven days of task completion. The current pattern of delayed settlements, she warned, violates these rules and erodes public confidence in government financial management.