May 9 , 2026
Federal prosecutors have filed corruption and money laundering charges against 11 defendants, including Nigstu Bogale, Coordinator of the Development Project for Response to the Impact of Refugees in the Horn of Africa at the Ministry of Agriculture, Biniyam Fantaye and Taye Habte, senior irrigation engineers involved in the Development Response to Displacement Impacts Project (DRDIP-II), as well as private individuals and construction company representatives. The case alleges losses and illicit gains exceeding 733.8 million Br linked to a World Bank-financed irrigation project under the Ministry. Prosecutors say the accused manipulated the procurement process for the Damale Bore flood irrigation construction project, enabling an unqualified contractor, Dawud Hamolo Gedo General Construction, to secure a contract worth more than 616.6 million Br. An additional 117 million Br in variation payments was also allegedly approved unlawfully. According to the prosecution, the three senior officials abused their authority by influencing technical evaluations, excluding competing bidders, and authorizing payments beyond World Bank procurement limits. Court documents further allege that several defendants laundered proceeds from the scheme by moving funds through personal and corporate accounts and acquiring property to conceal their origin. The defendants face three counts of charges, including abuse of power, corruption, and money laundering.
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