The Ministry of Irrigation and Lowlands alongside contractor Alemayehu Ketema General Contractor have pushed back against severe audit findings released by the Federal Auditor General regarding the Welmel and Chelchel irrigation projects. The auditor’s recent report cited significant procurement and contract irregularities, leading both the government institution and the main contractor to issue statements defending the execution of the multi-billion-birr infrastructure works.
The controversy follows a detailed report by the Federal Auditor General uncovering multiple financial and operational shortcomings in the irrigation projects. Key audit findings highlighted illegal procurement procedures, repeated contract modifications, and unapproved variations. Additionally, the report flagged 3.7 billion birr in price adjustments, 935 million birr in extra costs, uncontracted construction of 24 villas, and millions spent on vehicle purchases that reportedly remained under the contractor’s control.
In response, the Ministry of Irrigation and Lowlands issued a statement emphasizing that current national irrigation efforts are achieving historic milestones despite external efforts to derail progress. The ministry affirmed that project execution strictly followed legal frameworks and contractual provisions. It noted that price adjustments applied since 2021 adhered to official government decisions, adding that revised study and design standards are actively being developed to ensure project completion.
Alemayehu Ketema General Contractor also rejected the audit’s allegations, stating it had not received the full report and claiming media coverage misrepresented its operations. The contractor clarified that price adjustments for the Welmel project were authorized by the Ministry of Finance and the Public Procurement and Property Authority to combat rising inflation. Furthermore, it defended work variation orders as standard procedures driven by necessary design updates and site conditions.
Addressing vehicle procurement claims, the contractor denied receiving unlawful benefits or possessing unaccounted vehicles, asserting that field vehicles were legally purchased for supervision and will transfer to government ownership upon completion. Reaffirming its operational integrity, the contractor expressed full readiness to cooperate with any independent, evidence-based investigation.