Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 183 of 193 ASSESSING THE PREVALENCE, CAUSE AND CONSEQUENCES OF CORRUPTION IN DAGMAWI MINILIK SUB-CITY, BAHIR DAR, ETHIOPIA ABSTRACT The main purpose of this study was to assess the prevalence, cause, and consequences of corruption in Dagawi Minilk Sub City, Bahir Dar. The study employed a descriptive case study using mixed-method. For the primary data were gathered from 96 respondents consisting of Sub-city heads, sectoral directors, and employees using questionnaire, five key informants were also interviewed. For the secondary data, books and periodical reports related to the topic were assessed. Gathered data were analysed using frequency counts and percentages. The results of the study confirmed that employees of Dagmawi Minilk Sub-City have the perception that different forms of corruption (especially bribery, nepotism, and favouritism) are frequently occurring in the sub-city and has various negative consequences. As a result, this study has identified low payment scales, absence of exemplary leadership, lack of effective supervisions, weak implementation of ethical codes of conduct, ineffective institutional accountability, and lack of strict and fast punishment as significant causes of corruption in the study area. Moreover, embezzlement of public resource, service delivery delay, poor service quality, reduction of State revenue, economic inequality, and the collapse of government legitimacy were identified as consequences of corruption. Thus, this study recommends that improving institutional accountability, increasing salary for staffs, selecting exemplary leaders, and imposing strict and immediate punishments should be there. Keywords: Corruption, Causes, Consequences, Dagmawi Minilk Sub-City, Prevalence ABSTRAK Penelitian ini memiliki tujuan utama yaitu untuk menilai prevalensi, penyebab, dan konsekuensi dari korupsi di Kota Minilk Dagawi, Bahir Dar. Penelitian ini menggunakan studi kasus deskriptif dengan mix-method. Data primer dikumpulkan dari 96 responden yang terdiri dari Sub-city heads, Sectoral Directors, and Employees menggunakan kuesioner dan wawancara. Untuk data sekunder, buku dan laporan berkala yang terkait dengan topik penelitian. Data yang terkumpul dianalisis menggunakan jumlah dan persentase frekuensi. Hasil penelitian ini menjelaskan bahwa karyawan Dagmawi Minilk Sub-City memiliki persepsi bahwa berbagai bentuk korupsi (terutama suap, nepotisme, dan favoritisme) sering terjadi di sub-kota dan memiliki berbagai konsekuensi negatif. Oleh karena itu, penelitian ini telah mengidentifikasi adanya skala pembayaran yang rendah, tidak adanya kepemimpinan yang patut dicontoh, kurangnya pengawasan yang efektif, lemahnya penerapan kode etik, akuntabilitas kelembagaan yang tidak efektif, dan kurangnya hukuman yang ketat dan cepat sebagai penyebab korupsi yang signifikan. Selain itu, penggelapan sumber daya publik, keterlambatan pemberian layanan, kualitas layanan yang buruk, pengurangan pendapatan Negara, ketimpangan ekonomi, dan runtuhnya legitimasi pemerintah diidentifikasi sebagai konsekuensi dari korupsi. Dengan demikian, studi ini merekomendasikan bahwa meningkatkan akuntabilitas institusional, meningkatkan gaji untuk staf, memilih pemimpin yang patut dicontoh, dan menjatuhkan hukuman yang tegas dan segera dengan semestinya. Endalsasa Belay Abitew endalkachewbelay65@gmail.com Department of Governance and Development Studies Bahir Dar University Bahir Dar, Ethiopia History Received : Oct 10th, 2019 Revised : Oct 21st , 2019 Accepted : Oct 23th, 2019 To citate this article, please refer to: Abitew, E.B. 2019. Assessing The Prevalence, Cause And Consequences Of Corruption In Dagmawi Minilik Sub-City, Bahir Dar, Ethiopia. Jurnal Studi Pemerintahan. 10(3). 183- 193 https://doi.org/10.18196/jgp.103104 ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive mailto:endalkachewbelay65@gmail.com Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 184 of 193 INTRODUCTION Corruption exists in various forms involving different participants; because of this, it has no single comprehensive definition. Corruption is an act of malfeasance by government officials for personal enrichments while performing tasks entrusted to them by the general public (Bardhan, 1997). For Hammed (2018), corruption can be defined as dishonest or illegal behaviour of government officials. Misuse typically involves applying a legal standard. This type of corruption includes the selling of government property, bribery, and malversation of funds (Svensson, 2005). The most popular definition of corruption is the abuse of public office for personal gain or interest (Jain, 2001; World Bank, 1997). Corruption is not only occurring in developing nations but also in developed countries. Corruption affects almost all parts of society. Like cancer, as argued by Benon (2009), corruption “eats into the cultural, political and economic fabric of society, and destroys the functioning of vital organs”. Like terrorism, AIDS, and environmental degradation, corruption is one of those problems that have no respect for national boundaries (Manchin, 2000). According to Kaufmann (2003), corruption is recognized as a major obstacle to sustained development and the creation of an enabling environment for good governance in Africa. In almost all African countries, corruption has become a common and routine element of the functioning of the administrative machinery (Oliver & de Saradan, 1999). According to the World Bank study conducted in Ethiopia, corruption is the most challenging problem that all household face after poverty (World Bank, 2005). According to the Tesfaye (2007), during the previous regimes (Imperial and Dergue), corruption is said to have resulted in undermining the legitimacy of the governments and weakening their structures, reducing productivity, hindering development, marginalizing poor, worsening poverty, create social unrest, and speed up their downfall. Even though corruption is one of the burning issues and impediments to good governance and sustainable development worldwide, it is more common in developing countries than developed ones. Ethiopia is one of the developing countries where the prevalence of corruption has been uncontrolled (Selamu, 2010). After the current government, the Ethiopian People’s Revolutionary Democratic Front (EPRDF) came into different power measures have been taken to control the persistence and further escalation of corruption in the country. Federal Ethics and Anti-Corruption Commission (FEACC) was established in May 2001 as of the measures taken by the Ethiopian government to combat corruption through investigation, prosecution and prevention (FEACC, Proclamation 235/2001). Despite the establishments of FEACC and all other efforts exerted by the government, the problem of corruption remains in the country. Therefore, the purpose of this study is to assess the prevalence, cause, and consequences of corruption in Dagmawi Minilk Sub-City with the objectives of assessing the prevalence of corruption, identifying the major causes of corruption, and finding out the major consequences of corruption in the study area. This study is expected to make a substantial contribution to the research of the prevalence, cause, and consequences of corruption, and to recommend policy guidelines to curb corruption. Specifically, the findings of this study may serve as an input to Dagmawi Minilk Sub-City in fighting corruption. THEORETICAL FRAMEWORK Defining Corruption Various scholars agreed that corruption is a universal problem that needs urgent attention. However, like many other concepts in social sciences, corruption has no universally accepted definition. According to Heyneman (2004), corruption is defined as the abuse of authority for personal or material gain. All manifestations of corruption are motivated by the desire to use the public office for personal gains, (e.g. for the benefit of the official, his relations, ethnic group, or friends) at the expense of the public (Olopoenia, 1998). It involves bribery and other dishonest means for achieving particular disgraceful ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 185 of 193 ends, which is an indication of an ailing society (Milovanovic, 2001). Corruption is a kind of behaviour that deviates from the norm prevalent or behaved to prevail in a given context, such as politics. It is deviant behaviour associated with a particular motivation, namely that of private gain at public expense (Carl Fredrich, 1997). There have been several different attempts at defining corruption. However, no precise definition can be found which applies to all forms, types, and degrees of corruption. Kwame (2000) analyzed corruption from the sociological perspective, according to him; corruption is prevalent in societies where integration is low, and socialization is reduced such that recognition of the common national interest is not pervasive enough. According to Leslie Palmier (1983), corruption is defined as the use of public office for private advantage. This is one of the most popular definitions of corruption. It is evident from the preceding discussion that there is a wide range of definitions of corruption. For this study, the researcher takes the definition given by Leslie Palmier (1983), the use of public office for private gain. This definition is simple and sufficiently broad to cover most of the corruption that public sectors are facing, and it is also widely used in literature. Forms of Corruption in the Public Sector Public sectors consist of governments and all publicly controlled or publicly funded agencies, enterprises, and other entities that deliver public programs, goods, or services. Some of the following forms of corruption are found in public sectors. Bribery it involves the offering of something, often money but can also be goods or services in order to gain an unfair advantage. Common advantages can be to sway a person’s opinion, action, or decision, reduce amounts fees collected, speed up government grants, or change outcomes of legal processes. Nepotism is the practice or inclination to favour a person, or group of persons, related to the person in authority when giving promotions, jobs, raises, and other benefits to employees. This is often based on the concept of feminism, which a person must always respect and favour family in all situations, including those pertaining to politics and business. Embezzlement- is the illegal taking or appropriation of money or property that has been entrusted to a person but is owned by another. In political terms, this is called graft which is when a public office holder unlawfully uses public funds for personal purposes. Extortion is threatening or inflicting harm to a person, their reputation, or their property in order to unjustly obtain money, actions, services, or other goods from that person. For instance, blackmail is a form of extortion. Fraud is an act of misrepresentation or deception. Charging undelivered goods or services, tampering of product specification, and overpricing goods and services to cover the cost of bribes. Fraud results loss of state revenue. The public sector is involved in fraudulent activity by overlooking altered or missing documents or by receiving bribes to “ignore” illegal activity. Favouritism is a mechanism of abuse of power means “privatization” and highly biased distributions of common resources, no matter how the resources have been accumulated in the first place. Causes of Corruption in the Public Sectors Corruption is now widely recognized as one of the greatest enemies to prosperity, economic competitiveness, and social and political stability of a country. Although it differs from country to country based on political, socio-cultural and economic factors of a country, corruption is a common problem worldwide. Causes of corruption are many and depend on different contextual environments. The followings are the common causes of corruption identified by Chibwana (2008). Weak Rule of Law Corruption in public sector prevails where laws are applied selectively, and where the law is used as a tool for advancing private interests as opposed to protecting the public interest. A common feature of such a breakdown in the rule of law in highly corrupt countries is where the police act as lawbreaker rather than law enforcers. Low Payment Scales or Wages Most of the employees in the government sector are not monetarily compensated; hence, some employees corrupt to enhance their living condition. The lack of good infrastructures such as roads, ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 186 of 193 water supply services, permanent electricity, and other things related to public service entice an employee to commit corruption. Unclear, Complex and Frequently Changing Laws, Policies When laws are conflicting or demand intensive interpretation, the discretionary power of public officials is expanded, increasing the likelihood that they will make arbitrary or self-serving decisions when laws are unpredictable, quite often entrepreneurs do not know their rights and obligations. As a result, they cannot comply fully nor defend themselves against illegal inspections. An institution that has outdated policies and regulations is a fertile ground for corruption. Corruption, then, becomes a means to promote inefficiency and arbitrary official actions. Ineffective Institutional Accountability The State itself creates these institutions, such as the office of ombudsman, ethics and anti-corruption commission, and the legislative. Some of these institutions emerge from outside the formal State structures, and they include media organized civil society. However, in highly corrupt countries, there is an apparent weakness in these institutions of accountability, lack of accountability and dysfunctional internal checks and balance under which the self-evident legitimate rights of citizens will not be observed and enforced before any state institution. Lack of Strict and Fast Punishments Even if someone is found guilty or even caught red-handed by the anti-corruption officials or media, the convicts get less punishment. First, they will be suspended for a few months or weeks and then re-posted to another location with the same job grade and pay. Thus, an uncorrupt person is given a chance to continue his or her practice. Organizational Culture In some institutions, employees may believe that corruption is a way of life and that they cannot survive without it. People join the institutions to become part of the system Absence of Ethical Codes of Conduct Workers in an institution that has no codes of conduct that compels employees to act with integrity and accountability are prone to corruption. Thus, not guided on the best codes of conduct. Absence of Exemplary Leadership When leaders themselves are corrupt, and the authority vested upon them for personal interest, they will not be exemplary leaders; also, they will not let anti-corruption watchdogs, if there are any, in force the full length of security of the law against to suspect of corrupt behaviour. Bureaucratic Delays Delays in making decisions may impede access to services; hence, people may resort to bribery to speed up services. Lack of Effective Supervision If there is no supervision in an institution, employees may not follow work procedures, codes of conduct, or process. This will make the institution suffer from loose and dented. Consequences of Corruption Corruption poses a serious development challenge. Corruption arises from both political and bureaucratic offices can be petty or grand, organized or unorganized. Thus, the consequences of corruption have many dimensions related to economic, political, and social effects. Economic Consequences Since there is a debate on the effect of corruption on economic growth, many studies examine the relationship between these two variables. Some scholars like Huntington (1968) argue that corruption may improve efficiency and hence promote economic growth by allowing enterprises to circumvent cumbersome regulations with bribes, especially in developing nations. However, many pieces of literature insist that corruption lowers economic growth because it may reduce the incentives of private investment (Bradhan, 1997), distort public investment decisions (Tanzi and Davoodi, 1997). ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 187 of 193 Political Consequences Corruption hampers democracy and the rule of law. In the political sphere, corruption undermines democracy and good governance by subverting formal processes. Corruption in elections and legislative bodies reduces accountability and representation in policymaking; corruption in the judiciary suspends the rule of law; and corruption in public administration results in the unequal provision of services. In a democratic system, public institutions and offices may lose their legitimacy when they misuse their power for self-interest. Corruption may also result in encoring cynicism and reducing the interest of political participation, political instability, reducing political competition, reducing the transparency of political decision making, distorting political development, and sustaining political activity based on patronage, clientelism and money, among others. Generally, corruption erodes the institutional capacity of the government as procedures are disregarded, resources are siphoned off, and officials are hired or promoted without regards to performance. Social Consequences Corruption discourages people from working together for the common good. Frustration and general apathy among the public result in weak civil society. Demanding and paying bribes became a tradition. It also results in social inequality and the widened gap between the rich and the poor. Corruption demoralizes the population and leads to a lack of confidence in the State institutions. The most visible consequences are poor public services, increased social polarization, disinvestments, and exclusion. The adverse effects of corruption on the environment are also documented in the literature. Corruption aggravates pollution, especially in developing nations (Welsch, 2004). Pellegrini and Gerlagh (2006a,b) found that corruption has a substantial negative effect on the environment policy stringency, which may imply that corruption affects pollution, mainly through environmental policymaking. To conclude, corruption poses adverse effects on economic, political, social, and environmental spheres. RESEARCH METHODOLOGY The purpose of this study was to assess the prevalence, cause, and consequences of corruption in Dagwawi Minilk Sub-City, Bahir Dar. The study employed a descriptive case study with mixed research approach: both quantitative and qualitative research approaches. The target population for this study were the employees, the managers, and sectoral directors working in Dagwami Minilk Sub-City. In this sub-city, there are four sectoral directors, one manager and 139 other employees, a total of 144 units. Both probability and non-probability sampling techniques were employed in sample selection. The researcher purposely selected the key informants: the manager and four sectoral directors of the sub-city for the interview. Using Yamane (1967) formula of 95 per cent confidence level and 5 per cent desire level of precision or margin of error and simple random technique, 103 sample size was determined from the 139-employee population. The required data for this study were collected from primary and secondary sources. The primary data were gathered through questionnaires distributed to sample employees, and the interview was used to collect data from the sub-city manager and sectoral directors. For the secondary data, relevant books, references and periodical reports were obtained. Quantitative data were analyzed using simple descriptive analytical techniques such as frequencies and percentages, while qualitative data were analyzed and interpreted in the meaning full way through an explanation. In this analysis, reiteration and elaborations of key concepts and suggestions would be made on the findings that fit with the existing literature. RESULT AND DISCUSSION From the 103 distributed questionnaires, a total of 96 (93%) were returned. After collecting all the information needed, data were analysed and interpreted using the method mentioned above. Thus, this section presents the results and discussion simultaneously based on the themes derived from the objectives of the research. ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 188 of 193 Prevalence (Perceived) of Corruption in Dagmawi Minilk Sub-City Even if the perceptions on the prevalence or frequency of corruption may be different from the reality, an understanding of these perceptions is still indispensable since perceptions form the basis for decision making as to promote the development of an effective and well-informed strategy against corruption. Accordingly, respondents were asked to tell the prevalence or frequency of different forms of corruption they perceived in Dagmawi Minilk Sub-City, and their responses are presented in a figure. Figure 1. Views of respondents on prevalence of corruption in Dagmawi Minilk Sub-City As shown in Figure 1, bribery (47.92%), nepotism (45.83%) and favouritism (48.96%) are the most frequent forms of corruption occurring in Dagwami MinilkSub-City. Concerning the other option, respondents replied that embezzlement (46.88%), fraud (56.25 %), and theft (43.75%) are forms of corruption sometimes occurring in the study area, while extortion (40.63%) is rarely occurring. On the basis of these responses, one can say that extortion is not a serious form of corruption in the study area. However, bribery, nepotism, and favouritism are serious problems to the sub-city. This finding should serve as a warning signal to Dagmawi Minilk Sub-City to take measures and curb the widespread or rampant of corruption which will be a threat to the sub-city. In line with this, Lawal (2007) argued that the frequency or prevalence of corruption in the public sector hampers efficient and effective service delivery. Services delayed creates an avenue for corruption; hence, when services are intentionally delayed to attract a bribe, the availability and affordability can no longer be quarantined, and therefore, efficiency and effectiveness of the services will be compromised. Besides, as per interviews made with key informants, regarding the occurrences of corruption in the study area, their response indicated that there are occasional types of corruption in the study area and they had personal experiences of hearing about or dealing with an incident of corruption in the preceding years. According to the key informants, some employees use relationships (friends and relatives) when they are serving the clients. It is also noted that some employees receive bribes to provide kebele identification card (ID) by encrypting or communicating with a broker. Causes of Corruption Scholars such as Chibmana (2008) sated that corruption is a social phenomenon that cannot be explained by a single word or cause. It is a complicated social, institutional, and human issue often resulted from many contingent circumstances. Reducing corruption requires an understanding of its 47,92 45,83 27,08 48,96 34,375 23,96 31,2536,46 37,5 46,88 38,54 56,25 35,42 43,75 15,63 16,67 26,04 12,5 9,38 40,63 25 0,00 10,00 20,00 30,00 40,00 50,00 60,00 Always Sometimes Rarely ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 189 of 193 causes. The researcher has got respondents’ opinion about the factors that cause corruption in Dagwami Minilk Sub-City, and their responses are presented tables. Table 1: Views of Respondents on Causes of Corruption in the Study Area No. Items Responses SA A N DA SDA 1 Low payment scales 59 (61.5) 21 (21.9) 5 (5.2) 7 (7.3) 4 (4.1) 2 Weak implementation of ethical codes of conduct 27 (28) 42 (43.8) 8 (8.3) 6 (6.3) 13 (13.6) 3 Ineffective institutional accountability 45 (46.9) 33 (34.4) 6 (6.3) 9 (9.4) 3 (3) 4 Lack of strict and fast punishment 48 (50) 27 (28.1) 5 (5.2) 7 (7.3) 9 (9.4) 5 Unclear, complex and frequently changing laws 23 (24) 30 (31.3) 19 (19.8) 14 (14.5) 10 (10.4) 6 Lack of effective Supervisions 41 (42.7) 35 (36.4) 3 (3.1) 9 (9.4) 8 (8.4) 7 Bureaucratic delays 29 (30.2) 33 (34.4) 9 (9.4) 14 (14.5) 11 (11.5) 8 Absence of exemplary leadership 26 (27.1) 38 (39.6) 7 (7.3) 16 (16.6) 9 (9.4) Key: S= strongly agree, A= agree, N= no opinion, DA= disagree, SDA= strongly disagree NB: Figures in the bracket represents percentages In Table 1 item 1, 61.5 % and 21.9% respondents strongly agreed and agreed, respectively, that low payment scales trigger corruption while 11.4% (7.3% and 4.1%) of respondents think the otherwise. 5.2% of the respondents, however, mum about it. In item no.2 of the same table shows that 43.8 % of respondents agreed and 28% strongly agreed that weak implementation of ethical codes of conduct cause corruption. 13.6% and 6.3% respondents replied strongly disagreed and disagreed respectively on weak implementation of ethical codes of conduct cause corruption. The remaining respondents (8.3%) have no opinion regard to the scenario. Item 3 shows that 46.9 % and 34.4% respondents answered strongly agreed and agreed respectively that ineffective institutional accountability causes corruption. About 9.4% of respondents disagreed, and 3% strongly disagreed that corruption will be occurred due to ineffective institutional accountability. As regards to item no. 4 in table 1, which concerning strict and fast punishment mechanisms, 50% of respondents strongly agreed and 28.1% agreed that lack of strict and fast punishment cause corruption. About 9.4% and 7.3% of respondents answered strongly disagreed and disagreed respectively on the scenario. Others (5.2%) respondents have no opinion concerning the issue. Another contributing factor that aggravates corruption in Dagmawi Minilik sub-city is the existence of unclear, complex, and frequently changing laws. In item 5, in the same table shows 31.3% of respondents agreed, and 24% strongly agreed that unclear, complex and frequently changing laws cause corruption. In item no. 6 in the same table, majority, 36.4% of respondents agreed and 42.7% strongly agreed that lack of effective supervisions cause corruption because if there is no supervision in an organisation, employees do not follow work procedures, codes of conduct or process. In item 7, in the same table, majority, 34.4% and 30.2% respondents answered agreed and strongly agreed respectively that bureaucratic delays are the main causes of corruption; when officials and/or employees delays in making decisions this can impede access to services, and leads people to resort of paying bribes in response to speed up service. Item 8 shows that 39.6% of respondents agreed and 27.1% strongly agreed that corruption occurs due to the absence of exemplary (model) leadership. ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 190 of 193 Therefore, on the basis of these responses, we can argue that low payment scales, weak implementation of ethical codes of conduct, ineffective institutional accountability, lack of effective supervisions; lack of strict and fast punishment; and absence of exemplary leadership are factors causing corruption in the study area. These findings of the study are supported by different research. Corruption is strongly influenced by the low salaries of public administration employees (state officials), who are therefore trying to improve their financial position by receiving bribes. Allen and et al. (2015) in their study found that corruption arises because agencies, institutions and the government can no longer control corruption effectively due to underpaid officials, which is a problem especially in the developing countries, where they do not have the sufficient tax revenue to reward the local officials properly. Svenson (2005) also added that the salary level of civil servants affects the receipt of a bribe (the higher it is, the smaller the chance that the person will act corruptly). Corruption also caused by ineffective and unclear regulations. Dimant (2014) argued that the level of efficiency of public administration determines the extent to which corruption can find fertile soil and sprout. Such efficiency is determined by the quality of the regulations and permits, since ineffective and unclear regulations help to increase the level of corruption in at least two different ways: the artificially created monopoly of power that enables civil servants to obtain bribes is based on their superior position and embedded in the system; ineffective and unclear regulations cause inhibition and therefore encourage natural persons to pay bribes in order to speed up the bureaucratic procedure. Furthermore, Yemane (2004) confirmed that poorly defined, constantly changing and inadequate rules and regulations, lack of properly established laws and principles, or code of conduct applicable to public officials and lack of institutions to enforce them, lack of watch-dog agencies causes of corruption. The key informant interview results also revealed that low salaries or wages of employees, lack of discharging responsibilities in a proper manner and unethical behaviour of employees are the triggering factors that cause corruption. However, the interviewees said that low salaries are not the only cause for official and employees to act corruptly. Besides, the power of patronage networks; that is, by groups using informal patrimonial relationships, conducting corruption in a very secretive manner is common in the sub-city. Respondents’ Opinion about the Consequences of Corruption The consequences of corruption are broad, ranging from reduced economic growth to a distortion of public expenses; thus, hinders development. The consequences of corruption are felt in all sectors. An understanding of the consequences of corruption is useful for the development of a nation and the success of an organization. In this study, respondents were asked to indicate the different kinds through which the consequences of corruption are manifested in different factors specific to Dagmawi Minilk Sub-City. The next table highlights the opinion respondents about the consequences of corruption. Table 2: Views of respondents on consequences of corruption Consequences of Corruption Frequency Percentage (%) Results in delays of service deliver 17 17.7 Embezzlement of public resource 31 32.3 Human rights are violated 5 5.2 Reducing efficiency in service deliver 11 11.5 Results of poor quality of services 21 21.9 Weakens state capacity and subvert legitimacy 8 8.3 Others 3 3.1 Total 96 100 As depicted in Table 2, corruption aggravated (32.3%) embezzlement of public resources. It also results in poor service quality (21.9%), delays in service delivery (17.7 %), reduced efficiency in service ISSN:1907-8374 http://journal.umy.ac.id/index.php/jsp/issue/archive Jurnal Studi Pemerintahan Vol. 10 No 3 November 2019 ISSN:1907-8374 Online: 2337-8220 https://doi.org/10.18196/jgp.103104 http://journal.umy.ac.id/index.php/jsp/issue/archive Page 191 of 193 delivery (11.5%), weakens state capacity, and subvert legitimacy (8.3%), and violation of human rights (5.2%). On the basis of the data, respondents responded that officials embezzle or waste the public’s resource if there is less control over their daily activity. Furthermore, the researcher conducted interviews with key informant interviews who shared their opinions regarding the negative consequences of corruption. Accordingly, respondents were of the opinion that corruption leads to increased cost, lowering quality of services, reducing productivity, reducing the revenue of the state, worsening income inequality, undermines the legitimacy of the government, and weakening their structures and finally speeding up the downfall of the state. These findings of the study are supported by different research. For instance, according to Shleifer and Vishny (1993), corruption has adverse consequences on the provision of service offered within departments or organization where corruption is rampant. However, this is contrary to Kaufmann and Wei (1999) that payment of a bribe has no adverse consequence; but rather, it is an efficient solution for overcoming centralized, overly extended bureaucracy, red tape, and excessively long delays. However, many works of literature such as Gupta et al. (2000) and SODNET (2000) support the first argument, i.e. corruption has adverse consequences on the provision of services within an organization; this goes in line with the findings of this study. CONCLUSION & RECOMMENDATIONS Based on the findings under each specific objectives of this study, the following conclusions can be drawn. Regarding the prevalence of corruption, the results of the study depicted that different forms of corruption prevailed, particularly bribery, nepotism, and favouritism were seen the forms of corruption which frequently occur in the study area. Regarding the causes of corruption, the result of this study revealed that lack of effective supervision, ineffective institutional accountability, lack of strict and fast punishments, bureaucratic delays, lack of effective implementation of ethical codes of conduct, and absence of exemplary leadership were seen as the major causes of corruption in the sub-city. Regarding the third objective of the study, embezzlement of a public resource, poor quality of services, delays in service delivery, reduced efficiency in service delivery, and weakens the capacity and legitimacy of the State were found to be the major consequences of corruption that hinder the realization of the objectives of the sub-city. In order to reduce the prevalence and negative consequences of corruption and thereby to combat it, the researcher suggested some possible recommendations. Firstly, in order to detect and identify corrupt individuals, institutional accountability should be improved in the sub-city. Secondly, Dagmawi Minilk Sub-City should increase salary for its staffs; if it cannot to do this, it must find other ways to increase the income of staffs. Thirdly, since the result of the study indicated that the absence of exemplary leadership causes corruption, only those individuals who can be a role model must be selected as a leader for the sub-city. Fourthly, let the employees be aware of the negative consequences of corruption, and new rule and regulations have also its significance in combating corruption. Lastly, strict and fast punishments need to be applied in the cause institution to create an environment free from corruption. REFERENCES Allen F, Qian J, Shen L. (2015). Corruption and Competition Benon, C. B. (2009). Determinants of Public Procurement Corruption: A Study on Uganda. Bradhan, P., (1997). Corruption and Development: A Review of Issues. Journal of Economic Literature Chibwanna. (2008). Leadership enhancement on agriculture. USA, university of California. 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