Chapter One

Chapter Objectives

At the end of this unit you are able to:

 Discuss general introduction to administrative law
 Understandback ground on the development of administrative powers
 Knowdefinition and purpose of administrative law
 Identify administrative law in civil law and common law countries
1.1. General Introduction to Administrative Law
Administration is as old as the human civilization itself.But the activities of
administrators are not complex during that time. Because ancient administrators are:-
• Authoritarian, patriarchal and elitist in character
• Major concerns of the earlier administration have been the maintenance of law
and order, collection of revenue, while the welfare has been purely incidental or
optionally undertaken
• Administrators were small in numbers
• The administrators were selected at the discretion of the monarch or ruler or king.
• They were just personal servants of the king
• The officials had been hereditary.
 But now the day, administrative law has become very necessary in the developed
society, the relationship of the administrative authorities and the people have become
very complex. Because of :-
 The rise of capitalism
 The industrial revolution
 Spread of socialist ideas and democratic ideals
 Welfare state
 In order to regulate these complex relations, some law is necessary, which may bring
about regularity, certainty and may check at the same time the misuse of power vested
in the administration.
 In the ancient society the functions of the state were very few the prominent among
them being protection from foreign invasion, levying of Taxes and maintenance of
internal peace & order.
 The rapid growth of the administrative law in modern times is the direct result of the

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 growth of administrative powers.
 The theory of laissez faire in the 19th century envisages minimum government control,
maximum free enterprise and contractual freedom. The state was characterized as the
law and order state. Its role was limited to the traditional role of government i.e. as a
protector.
 The management of social and economic life was not regarded as government
responsibility. But laissez faire doctrine resulted in human misery.
 The unequal bargaining power between labor and management resulted in exploitation
of workers, dangerous conditions of work and child labor.
 This ultimately led to the spread of poverty and the concentration of wealth in a few
hands.
 It came to be realized that the bargaining position of every person was not equal and
uncontrolled contractual freedom led to the exploitation of weaker sections by the
stronger e.g. of the labor by the management in industries.
 On the one hand, slums, unhealthy and dangerous conditions of work, child labor wide
spread poverty and exploitation of masses, but on the other hand, concentration of
wealth in a few hands, became the order of the day.
 It came to be recognized that the state should take active interest in ameliorating the
conditions of poor.
 It has increasingly become important to control the administration, consistent with the
efficiency, in such a way that it does not interfere with impunity with the rights of the
individual.
 Between individual liberty and government, there is an age-old conflict the need for
constantly adjusting the relationship between the government and the governed so that
a proper balance may be evolved between private interest and public interest.
 Big government or what is referred to, as the welfare state, is the product of a response
to the economic, social and political reality of the 19th century.
 The political theory prevalent at the time, i.e. Laissez faire, failed to solve the
economic ills and social evils which resulted in poverty, ignorance, exploitation and
suffering of the mass.
 Due to the emphasis given to wider individual freedom, interference of government
was minimal, and its power was limited.
 Administrative law was almost non-existent at this time. When the power of the
government is less and limited, the degree of interaction with the individual is

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 minimal.
 Hence, the need for administrative law as a power controlling mechanism becomes
insignificant under these situations.
1.2. Back ground on the Development of Administrative powers
The evolution of administrative law goes in a parallel progressive stage with the
transformation of the police state to the welfare state.
The reason for the transformation was the reason that necessitated conferring more
power on the state.
The pitfalls, defects and shortcomings of the police state became clear at the end of
the 20th century, specifically after the Second World War.
The suffering, poverty and exploitation of the mass of the population were
sufficient to justify the need to confer more power on the government.
With more powers, the government also assumed new roles geared towards
alleviating the social and economic problems and social evils to bring about
development, social justice and equal distribution of wealth.
Administrative law is the response to the problem of power. It unequivocally
accepts the need or necessity of power, simultaneously stressing the need to ensure
the exercising of such power within proper bounds and legal limits.
Controlling the exercise and excesses of power is the essence and mission of the
administrative law.
1.3. Definition and Purpose of Administrative law
1.3.1. Definition of Administrative law
 Firstly, administrative law is primarily concerned with the manner of exercising
governmental power.
 Administrative Law is the rules, orders, and decisions of federal, state, and local
government agencies established to perform a specific function.
 Administrative law is the bye-product of the growing socio-economic functions of the
State and the increased powers of the government.
 Administrative Law is that branch of the law, which is concerned, with the
composition of powers, duties, rights and liabilities of the various organs of the
government.
Definition of administrative law by different scholars:-
 Austin has defined administrative law, as the law which determines the ends and
modes to which the sovereign power shall be exercised.

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  Schwartz has defined administrative law as the law applicable to those
administrative agencies, which possess delegated legislation and adjudicative
authority.
 Jennings has defined Administrative law as the law relating to the administration.
It determines the organization, powers and duties of administrative authorities.
1.3.2. Purpose of Administrative law
 It has a control function, acting in a negative sense as a brake or check in respect of the
unlawful exercise or abuse of governmental/ administrative power.
 It can have a command function by making public bodies perform their statutory
duties, including the exercise of discretion under a statute.
 It embodies positive principles to facilitate good administrative practice; for example,
in ensuring that the rules of natural justice or fairness are adhered to.
 It operates to provide accountability and transparency, including participation by
interested individuals and parties in the process of government.
 It may provide a remedy for grievances at the hands of public authorities.
 Generally, the main functions of a modern administrative law may broadly be placed
into five categories, via, the state as:-
 Protector,
 Provider,
 Entrepreneur,
 Economic controller and
 Arbiter.
1.3.3. Sources of Administration Law
o The Constitution:-The F.D.R.E constitution contains some provisions dealing
with the manner and principle of government administration and accountability
of public bodies and officials.
o Legislation:- Laws adopted by parliament, which may have the effect of
creating an administrative agency, or specify specific procedure
o Delegated Legislation:-Rules, directives and regulations issued by Council of
Ministers and each administrative agencies are also the main focus of
administrative law.
o Judicial Opinion:- Much, but not most, of the doctrine that envelops and
controls administrative power is found in judicial analysis of other sources

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1.4. Administrative Lawin Civil Law and Common Law Countries
1.4.1. Administrative law in civil law countries

Administrative law in civil law countries covers issues such as the organization, powers and
duties of administrative authorities, the legal requirements governing their operation, and the
remedies available to those adversely affected by administrative action.

In France, Italy, Germany and a number of other countries, there is a separate system of
administrative court that deals with administrative cases exclusively.

In France, droit administrative is a highly specialized science administered by the judicial

wing of the conseil de etat, which is staffed by judges of great professional expertise, and by
a network of local tribunals of first instance.

In Anglo- American countries, administrative law is limited to delegation of rule- making

powers, adjudication of administrative cases, manners and procedures of exercising these
powers, the mechanisms of controlling and the available remedies.

In Anglo- American countries, administrative actions which are a private law

naturemeaning relations arising out of contract by administrative authorities and their
extra- contractual liability falls outside the scope of administrative law.

It mainly focuses on control through the courts or judicial review of administrative action by
the ordinary courts.

It also includes subjects like the structure and composition of the various administrative
agencies, civil service law, the acquisition and management of property by the administrative
authorities, public works, and contractual and non- contractual liability of administrative
authorities and public officials.

1.4.2. Administrative Law in Common Law Countries

Most countries that follow the principles of common law have developed procedures for
judicial review that limit the reviewability of decisions made by administrative law bodies.

In Common Law Countries like Canadaadministrative decision-making bodies are often

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controlled by larger governmental units, their decisions could be reviewed by a court of
general jurisdiction under some principle of judicial review based upon due process.

The scope of judicial review may be limited to certain questions of fairness, or whether the
administrative action is ultra vires.

1.4.3. Theoretical perspectives of administrative law

A) Red Light Theory (Approach)
The red light approach advocates strong role for the courts to review
administrative decisions.
It considers that the function of law is to control the excesses of state power.
The red light view can be seen to originate from a political tradition of 19th
century laissez faire (minimal state) theory.
According to this theory of state, the best government is the one that governs least.
Wider power means danger to the rights and liberty of citizens.
Hence, the red- light theory serves the function of controlling excess and arbitrary
power, mainly by the courts.
Its descriptive feature is that, on the one hand, it gives much attention on control
of governmental power.
On the other hand, it is confident that the effective controlling instrument are the
courts through judicial review.
B) Green Light Theory (Approach)
 The green light approach considers that the function of administrative law is to
facilitate the operation of the state.
 It is based on the rationale that bureaucrats will function most efficiently in the
absence of intervention.
 Administrative law should aim to help simplifying the procedures and enhance
efficiency. It starts from the standpoint of a more positive, largely social and
democratic view of the state.
 The green light theory is originated from the utilitarian tradition, which proposes
promoting the greatest good for the greatest number.
 According to the utilitarian theory, the state is expected to provide the minimum
standards of provision, including housing, education, health, social security, and
local services.

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 To provide maximum satisfaction for most of its people, the state should assume a
broader role, hence, should possess wider powers.
 The green light theory broadly supports the introduction of policies aiming at
developing public service provisions.
 Law is perceived as a useful weapon and an enabling tool. It is something very
concrete and can provide in principle, at least, the proper authority and framework
with which to govern consensually.
 It regards law not as a controlling mechanism, rather as facilitative tool.
Consequently, it considers the court‘s intervention as an obstacle to efficiency.

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 Chapter Two
Chapter Objectives

At the end of this unit you are able to:

 Identify Distinction between Constitutional law and Administrative law

 Discuss Constitutional principles pertaining Administrative Law
 Explain rule of law
 Know separation of powers
 Understand due process of law

Constitutional Law versus Administrative Law

2.1 Similarities and Distinction between Constitutional law and Administrative law

With the exception of the English experience, it has never been difficult to make a clear
distinction between administrative law and constitutional law.

Administrative law is categorized as public law since it governs the relationship between the
government and the individual.

However, so many administrative lawyers agree that administrative law cannot be fully
comprehended without a basic knowledge of constitutional law.

2.1.1. Similarities between administrative law and constitutional law

 Both administrative law and constitutional law is the scope of judicial review.
 Both laws have debate over the scope of judicial review
 Both laws share a common ground, and supplement each other in their mission to
bring about administrative justice.

2.1.2. The difference between administrative law and constitutional law

Constitutional law deals, in general, whereas administrative law in its scope of

study is limited to the exercise of power by the executive branch of government.
Administrative law is a branch of constitutional law, whereas constitutional law is
over-all.
Constitutional law, being the supreme law of the land, provides fundamental
rights which are inviolable and inalienable. Hence, administrative law is
providing principles, rules and procedures and remedies to protect and

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 safeguard fundamental rights.
Administrative law is a tool for implementing the constitution, whereas
Constitutional law lays down principles like separation of power and the rule of
law.

2.2 . Constitutional principles affecting Administrative Law

Courts throughout the common law world have for some time given effect to international
legal obligations (especially human rights norms) by way of administrative law doctrines and
techniques.

When the source of the international obligations constraining executive discretion is a

convention ratified by the executive but not incorporated by parliament into legislation,
traditional alarm bells ring. Such ‘backdoor’ incorporation seems to amount to executive
usurpation of the legislature’s monopoly of law-making authority or to judicial usurpation of
the same, or a combination of both.

But the charge of executive usurpation is misleading not least because the executive without
exception argues to the reviewing court, and sometimes beyond, that ratification without
incorporation has no legal consequences.

Put differently, the principle of legality might be thought of as a constitutional principle, one
that will in a sense constitutionalize administrative law. And it would follow that the
concerns raised for the traditionalist by the role of conventions are then not properly cast as
concerns about internationalization alone.

2.2.1 Rule of Law

 The rule of law does not have a precise definition, and its meaning can vary between
different nations and legal traditions.
 Generally, however, it can be understood as a legal-political regime under which the
law restrains the government by promoting certain liberties and creating order and
predictability regarding how a country functions.
 Rule of law is a system that attempts to protect the rights of citizens from arbitrary
and abusive use of government power.
 Rule of law plays an important role in administrative law.
 It provides protection to the people against the arbitrary action of the administrative
authorities.
 Rule of law has been derived from the French phrase la principle de legalite‘,

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 meaning a government based on the principles of law.
 In simple words, the term rule of law, indicates the state of affairs in a country where,
in main, the law rules.
 Law may be taken to mean mainly a rule or principle which governs the external
actions of human beings, and which is recognized and applied by the state in the
administration of justice.
2.2.1.1. Elements of the Rule of Law

 American legal scholar Lon Fuller identified eight elements of law which have been
recognized as necessary for a society aspiring to institute the rule of law. Fuller stated the
following:
1. Laws must exist and those laws should be obeyed by all, including government officials.
2. Laws must be published.
3. Laws must be prospective in nature so that the effect of the law may only take place after
the law has been passed. For example, the court cannot convict a person of a crime
committed before a criminal statute prohibiting the conduct was passed.
4. Laws should be written with reasonable clarity to avoid unfair enforcement.
5. Law must avoid contradictions.
6. Law must not command the impossible.
7. Law must stay constant through time to allow the formalization of rules; however, law also
must allow for timely revision when the underlying social and political circumstances have
changed.
8. Official action should be consistent with the declared rule.
2.2.1.2. Procedural Elements of rule of law
A. Supremacy of Law (Principle of Legality)
The primary meaning of rule of law is supremacy of the ordinary laws of the land
over the actions of public officials and administrative agencies.
Simply stated, it means every administrative action that should be taken according to
law.
An administrative agency or public official is required to justify its action by clearly
establishing that it is expressly or impliedly empowered or authorized by act of the
parliament (i.e. proclamation issued by the House of People‘s Representatives).
The government should be conducted within the framework of the recognized rules
and principles that restrict discretionary power.

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B Principle of Equality
It means equality before the law, or the equal subjection of all classes to the ordinary law of
the land administered by the ordinary law courts.
As to the legality of acts of government, are to be decided by judges who are independent of
the executive.
This aspect of the rule of law, which is typical characteristics of administrative law, is largely
based on the principle of the separation of powers which prohibits interference among the
three government branches, Hence, not only civil cases, but also administrative disputes that
should be adjudicated by the ordinary courts; not by the separate administrative courts.
In France, the same principle of separation of powers resulted in a totally opposite conception
of the rule of law.
According to French administrative law ( droitadminstratif), disputes between the individual
and the government are settled by separate administrative courts, the conseil de etat being
the supreme administrative court.
What the rule of law requires is that the government should not enjoy unnecessary privileges,
or exemptions from the ordinary law.
C. Constitution is the a result of the Ordinary Law of the Land
 It means the constitution is the result of the ordinary law as developed by the courts
through the common law tradition and provides for the legal protection of the
individual not via a bill of rights, but through the development of the common law.
 The rule of law lastly means that the general principles of the constitution are the
result of judicial decisions of the courts in England.
 In many countries rights such as right to personal liberty, freedom from arrest,
freedom to hold public meetings are guaranteed by a written constitution.
 The constitution is not the source but the consequence of the rights of the individuals.
In general, the court, in reviewing an administrative action, is expected to see or examine the
legality of the action only.
 In judicial review, the judges do not substitute their own discretion and judgment for that
of the government.
 They simply rule whether the government or its officials have acted within the ambit of
their lawful authority.
 Thus, the judges do not govern the country, and do not displace the government when
government decisions are challenged in the courts.
 The principle of the rule of law, by limiting its scope only to legality, or in some cases to

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 fairness of the administrative action, simultaneously serves as a limitation to the scope of
the administrative law.
2.2.2. Separation of powers
Separation of powers:- means that none of the government, i.e., the legislative, executive and
judicial should ever exercise the powers of the other.
It means that the three departments of government are to be separated and distinct.
They are to be independent of one another, and each can exercise only one type of authority,
legislative, executive or judicial.
According to some writers on the topic, like Wade and Philips, this doctrine of separation of
powers means that the same person cannot compose more than one of the three departments
of the government.
One department should not control and interfere with the acts of the other two departments,
and one department should not discharge the functions of the other two departments.
Thus, according to them, the theory of separation of powers signifies three formulations of
structural classification of governmental powers.
A) The same person should not form part of more than one of the three organs of the
government; for example, ministers should not sit in parliament.
B) One organ of the government should not interfere with any other organs of the
government. For example, the executive should not interfere in the administration of justice
by the courts.
C) One organ of the government should not exercise the functions assigned to any other
organ. For example, the executive branch cannot legislate laws, and as well it cannot
adjudicate cases.
Given the division of powers, it should also be noted that the authorities of the three organs or
departments of the government are interrelated. They are to a large extent dependent upon
another. Ministers are politically responsible to parliament, and legally responsible to courts.
Complete separation is found to be not possible.
The division of governmental powers into legislative, executive and judicial is not an exact
classification. It is abstract and general and it is not true only theory, but it is also impossible
in actual practice to make complete separation.
2.2.2 The Principle of Separation of Powers as a Limitation on Administrative Law
 In order to ensure efficient and effective enforcement of laws, it has become a
compulsive necessity to delegate the executive and administrative agencies with

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 additional legislative and judicial powers (functions).
 Administrative agencies are given the power and function of writing regulations or
rules that have the force of law. For instance, the council of ministers, through a
power delegated to it by the house of people‘s representatives, may issue regulations.
 Similarly, specific administrate agencies can issue directives in accordance with the
power granted to them by the house of people‘s the representatives.
 Delegation of legislative powers by the legislature is clearly against the principle of
separation of powers. However, it is justified on practical grounds.
 The lack of time and expertise in the legislature to provide laws necessary to solve a
certain social or economic problem practically makes the legislature compelled to
transfer some of its legislative powers to the administrative agencies.
 Delegation is also justified on the ground that it makes the administration effective and
efficient. Agencies could not attain their purposes for which they are established
unless otherwise they have wider power, mainly rulemaking powers.
 Agencies can decide matters affecting individual rights and freedoms. Reversing a
license, imposing administrative penalty, with holding benefits (e.g. pension), etc. all
could properly be called as judicial functions.
 Giving judicial power to agencies clearly violates the principle of the separation of
powers.
o For example:- Some matters, by nature, are technical and require detail
expertise. This expertise is found in the specific administrative agencies, not
the courts.
2.2.3. Due process of Law
 Due process law:- is the legal requirement that the state must respect all legal rights
that are owed to a person.
 When a government harms a person without following the exact course of the law,
this constitutes a due process violation, which offends the rule of law.
 Due process is best defined in one word--fairness. Throughout U.S. history, its
constitution, statutes and case law have provided standards for fair treatment of
citizens by federal, state, and local governments.
 For Example:- the due process right is designed to protect citizens from actions taken
by state government, counties, towns, and cities.

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  Due process procedures do not guarantee that the result of a government action will
be to a citizen's liking. However, fair procedures do help prevent arbitrary,
unreasonable decisions.
Due process includes two things:
(1) Was adequate notice given?
 Adequate notice:- is the process by which a person is informed of a legal process
involving his or her rights, obligations, or duties.
 Adequate notice is notice that is sufficient to provide the individual with an
opportunity to respond to the government-proposed action.
(2) Did the person have an opportunity to be heard?
 Opportunity to be heard:- refers to a hearing, which is a chance to appear before a
court, a committee, a board, or a council to present evidence and argument before
being punished by the government.

An opportunity to be heard ordinarily includes the following rights:

o The right to receive fair notice of the hearing;
o The right to secure the assistance of counsel
o The right to cross examine witnesses
o A written decision, with reasons based on evidence introduced, and with an
opportunity to appeal the decision.

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 Chapter Three
Administrative Agencies
Chapter Objectives
At the end of this unit you are able to:

Defines administrative agencies

Understand purposes of establishment
Discuss modes of establishment
Identify forms of administrative agencies
Explain developments of administrative agencies in Ethiopia
3.1. Meaning and Classification of Administrative Agencies

3.1.1 Meaning of Administrative Agencies

 Defining an administrative agency is not an easy task. Agencies come in a huge array of
sizes and shape. This is coupled with their wide ranging and complex functions and
their power to legislate and adjudicate, in addition, to their normal executive powers,
makes it challenging and difficult to precisely provide a precise.
 An agency is any department, board, bureau, commission, division, office, council,
committee or officer of the state one of whose members is appointed by the governor
authorized.
 But shall not include the governor, agencies in the legislative and judicial branches,
agencies created by interest compact or international agreement, the division of the
military and naval affairs to the extent it exercise its responsibility for military and naval
affairs.
 The following parameters should be used to determine whether a certain government
entity is an agency or not.
 The nomenclature used to describe the entity is ministry, authority, agency, bureau,
office, commission, board, etc, or any other similar terms.
 The government entity should be empowered to legislate (through delegation), or
adjudicate individual cases, in addition to its merely executive functions.
 That it has legislative and/or adjudicative power granted by the legislature.
 That the head of the agency is appointed by the executive or by the house of people‘s
representatives.
3.1.3 Classification of Administrative Agencies

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A. Agencies are created with varying size, structure, functions and powers.
 Some of them may be established with broader powers; in charge of regulating a certain
sector of the economy. This is typically the case with ministries, which are headed by a
high-level government minister.
 Ministries not only enforce a government program or policy, but they also supervise and
overview other lower agencies that are accountable to them.
B.Others are comparatively small in structure and are charged with a very specific task of
implementing a certain portion of government policy or programme.
 With the exception of few, almost all agencies are under the direct control and
supervision, in their day to today implementation of government task law, or policy
assigned to them by the enabling act.
 The remaining very small agencies function independently outside the direct control of
the executive branch and they are accountable to the legislature.

3.2. Purposes of Administrative Agencies

A. Enforce a specific law

 When agencies are engage in different tasks the law changed from general to specific,
thus it helps the government to apply it easily.
B. Regulation
One of the key reasons for regulating economic activities by the government is the
inability of business to regulate itself.
Agencies offer several advantages over regulation through the legislature and courts
in the management of complex and technical regulatory problems.
C. To control monopoly power
 Agencies are often created to replace competition with regulation. In this case the
agency may determine rate (e.g. telecommunication, or electricity).
D. To control excess profit
 The agency regulates business to ensure that business is not collecting excess profit,
which may endanger the laws of free market and also may pose a danger to
consumers.
E. To compensate for externalities
Externalities occasionally referred to as spillovers that occur when the cost of
producing something does not reflect the true cost to society for producing the goods.

16
 One example is manufacturing process that creates air pollution for which society
pays the cleanup costs.
F. To compensate for inadequate information
 Compensating for inadequate information is a justification for a great deal of
legislation for consumer protection.
 Purchasers of food, for instance, cannot analyze the nutritional content or the health
hazards of various food products so that there has to be some organ that ensures these
tests are fulfilled.
G. To compensate for unequal bargaining of powers
o Contracts between banks & customers, insurers & the insured, employees &
employers are adhesive in their nature.
o Either the consumer has to take it or leave it. Hence, it becomes self-evident to
regulate and set minimum standards to minimize the effect of unequal bargaining of
power.
H. Government exactions
 In addition to regulation, administrative agencies may also engage in government
exactions.
 Government exactions are the traditional powers and responsibilities of agencies.
Such functions include collection of tax and military conscription.
I. Disbursement of money or other commodities
 This purpose of administrative agencies is also the prominent one which characterizes
the welfare state. In this regard, through the social security programme and other
government systems of insurance or compensation, agencies pay public money as
payment of pensions for veterans or assistance for the aged, the disabled, the
unemployed and generally the needy. The payments may be directly through cash or
food rations.
J. Provision of goods and services
 Nowadays, the government is in charge of building and maintaining roads, high ways
and dams, the provision of police force and other protective services.
 Funding public education and the health service may also be mentioned as additional
examples.
 More recent additions include mass transit communications, satellite systems,
government research and development programmes, public hospitals and public

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 housing.

3.3. Forms of Administrative Agencies.

In Ethiopia context they are two types of agencies exist at the federal level: namely, executive
and independent agencies.

i. The executive agencies

They are agencies which are directly accountable to the executive branch.
In Ethiopia, executive agencies are usually accountable to a certain ministry, or
council of ministries, or the prime minister.
This is true because the F.D.R.E constitution grants the highest executive authority to
the Prime Minister and the Council of Ministers (Article 72 sub 1 of F.D.R.E
constitution).
The executive impacts the work of agencies in so many ways.
The Prime minister may freely appoint the head of an agency, and dismiss him at any
time even without valid reasons. However, the appointment of ministers and other
commissioners is subject the approval of the house of people‘s representatives.
An executive agency has also a duty to submit report of its activities to the higher
executive organ.
The budget to be allocated to a certain executive agency is also greatly determined
and influenced by the decision of the executive branch.
Even though the budget has to be prepared and be submitted to the house of people‘s
representatives for approval, most of the time the demand of the executive is
affirmatively accepted by the house.
For example executive agencies are:-
 Ministry of Agriculture
 Ministry of Commerce
 Ministry of Defence
 Ministry of Education.
 Ministry of Energy
 Ministry of Health and Human Services
 Ministry of water and energy

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  Ministry of Housing and Urban Development

ii. The independent agencies

 They have a constitutional basis for their existence
 They are directly accountable to the house of people’s representatives.
 They are five in number and all of them have been formally established through an act
of parliament.
 These are the Human Rights Commission, the Ombudsman Office, the General
Auditor, the National Election Board and The Population Census Commission.
 Example:- InU.S. government, they prevent state economic policies from clashing
with federal laws.
 They reduce the cost of monitoring and regulating the economy, Food and Drug
Administration in the United Statesand the Medicines and Healthcare
Products Regulatory Agency 
 Example:- In United Kingdom; economic regulation, the Office of Gas and
Electricity Markets and the Telecom Regulatory Authority 

3.4. Modes of establishment of independent agencies

 At the Federal or state level, they are creatures of the legislature.

 They do not spring up on their own, and courts or the council of ministers cannot
create them.
 The F.D.R.E. constitution expressly requires the establishment of some independent
agencies.
 They do not have i.e. material and legal existence unless the house of people‘s
representatives enacts a specific law for their establishment.
 Hence, agencies that are in function so far those that a legislature has given them the
authority to function.
 The authority may be exceptionally broad or incredibly narrow.
Agencies are created in two ways:
A. Through the constitution:-
 It is that the independent agencies, which have a constitutional basis, still require an
enabling act of the parliament for their legal existence. The only difference between

19
 the two modes of creating an agency is that when the constitution requires the
establishment of some agencies the house of people‘s representatives has a duty to
promulgate the enabling act for that specific agency.
B. Through act of parliament.
When an agency is created only through the enabling act, in the absence of
constitutional duty from the parliament, its existence is totally dependent on the
will or option of the parliament.

3.4.1. Reasons for the Creation of Agencies

A. Providing Specificity

 The legislative branch of government cannot legislate in sufficient detail to cover all
aspects of many problems.
 The house of the people‘s representatives cannot possibly legislate in minute detail
and, as a consequence, it uses more and more general language in stating its
regulatory aims and purposes.
 For instance, the house of people‘s representatives cannot enact a tax law that covers
every possible issue that might arise. Therefore, it delegates to the council of
ministers and ministry of revenue the power to make rules and regulations to fill in
the gaps, and create the necessary detail to make tax laws workable.
 In many areas, the agency has to develop detailed rules and regulations to carry out
the legislative policy.
 It is also true that courts could not handle all disputes and controversies that may
arise. They simply do not have the time or the personnel to handle the multitude of
cases.
 For instance, the labor relations board entertains and resolves so many number of
collective labor disputes between employees and employers.

B. Providing Protection

 Many government agencies exist to protect the public, especially from the business
community.
 Business has often failed to regulate itself, and the lack of self- regulation has often
been contrary to the public interest.
 For instance, the Environmental Protection Agency is created to regulate
20
 environmental pollution. In the absence of such agency, business could not
voluntarily refrain from polluting the environment.
 The same can be said with respect to quality of private higher education and
unjustified and unreasonable increase in the price of essential goods. The Ministry
of Trade and Industry and Ministry of Education, regulate respectively both of these
cases to protect consumers and the public at large.
 An agency protects the public from the negative impacts of business through
regulation from monopoly power. Like the Ethiopian Electric and Light Corporation
and Ethiopian Telecommunication Corporation.
 Previously, there was no agency regulating such business. Currently, we have the
Electric Agency and Telecommunication Agency, which have the power to set the
rate for the utility.
 Agencies regulate transportation, banking and insurance because of the disparity in
bargaining power between the companies and consumers.
 The ministry of transport for instance determines the rate taxi and bus owners may
charge the customer for their service.

C. Providing Services

Many agencies are created simply out of necessity. If we are to have roads, the Ethiopian
Roads Authority is necessary. Welfare programs require government personnel to administer
them. Social security programs necessitate that there should be a federal agency to determine
eligibility and pay benefits. The Ethiopian Social Security Authority is established to process
pension payment and to determine entitlement to such benefit. The mere existence of most
government programs automatically creates new agencies or expands the function of the
existing ones.

3.5. Developments of Administrative Agencies in Ethiopia

 The outstanding feature of administrative agencies in the history of Ethiopian government

is their non-existence. For instance, a century back there were:-
• No regularly established royal councils,
• No clear cut system of local government,
• No established national army police force
• No civil service system.

21
 Agencies as a machinery of public administration is relatively a recent phenomenon in
Ethiopia.
 It was in the mid of the 19th century during the reign of Emperor Tewodros that a series
of reforms including elimination of slave trade, destruction of the custom of vendetta,
regulation of the power and lands of the church, and the civil service system were
introduced in Ethiopia for the first time.
 Foreseeing the need of a decentralized system of administration to implement these
reforms, Tewodros sought to turn the local chiefs into salaried officials responsible to the
imperial power. However, apart from the establishment of a territorial police force and a
regular army any specific agency charged with public administration was unknown and
non-existent.
 Despite this there were some traditional administrative personnel in the government.
Early historians identified four primary heads of department under the emperor:
i. YetorAbegaz(commander-in-chief of the army)
ii. Afe Negus(judge on all appeals in the name of the emperor save the death
sentence)
iii.TsehafeTezaz(keeper of the great seal of the Enperor and writer of all imperial
orders)
iv. Zigaba (communicator of all imperial orders, deputy yettorAbegaz, and sergeant-
at-arms to the Emperor.
 In 1907, Emperor Menelik created the first ministerial framework in Ethiopia, consisting
of the following ministries:
 Ministry of Justice
 Ministry of Interior
 Ministry of Foreign Affairs
 Ministry of Finance
 Ministry of Agriculture and Industry
 Ministry of Public Works
 Ministry of War
 Ministry of Pen
 Ministry of Palace
 To some extent, the process was simply of giving new titles to old officials.
 The Afenegus became Minister of Justice and the Tsehafetezaz became the Ministry of
Pen. Further, the ministers bore the status of personal servants to the crown.

22
 However, during this time, though autonomy was hardly realized and though delegation
of usable power existed more on paper than in reality, a permanent administrative body
was established as an integral organ of the central government.
 The 1931 constitution laid a foundation for the existence of the first administrative
agencies in the Ethiopian history of public administration.
 The constitution recognized the existence of the executive branch of the government.
Under Article 11 it was provided that the Emperor would lay down the organization and
the regulation of all administrative departments.
 In 1962, the most relevant government institution for the development of formal
administration, the Imperial Ethiopian Central Personnel Agency (CPA), was
established by order no. 23 of 1962.
 The agency was given the power to classify jobs, to recruit public servants, to establish
pay scales and to issue regulations necessary for the establishment of homogeneous
public service.
 Until the fall of the imperial regime in 1974, various administrative and chartered
agencies were established.
 Most of those administrative agencies bearing names of ministry, commission authority
or agency were made accountable to the prime minister.
 The 1987 constitution of The People’s Democratic Republic of Ethiopia under Article
89(1) gave all administrative powers to the council of ministers.
 The council was composed of the prime minister, deputy prime ministers, ministers and
other members including heads of the secretariat of state committees, authorities and
commissioners.
 Following the constitution, in the created the cabinet there were twenty ministries, seven
commissions, six authorities, two state committees, and two institutes.
 The 1995 F.D.R.E constitution introduced a federal structure sharing power between the
federal government and the regional states.
 The federal government comprises of the house of people’s representatives as the
supreme lawmaker, the executive (the prime minister and the council of ministers) and
the judicial branch (first instance, high court and supreme court) A similar division of
power also introduced at each regional state.
 Currently, administrative agencies are established at the federal and state level.
 The constitution does not directly or indirectly make a reference to administrative
agencies as parts of the system of government.

23
  It recognizes the separation of powers among the three branches of government. This
means, in effect, the source of legislative and judicial power of administrative agencies,
typically those at the federal level could not be easily justified on constitutional grounds.

Chapter Four

Nature of Power Administrative Agencies

 At federal and state levels, administrative agencies gain whatever power they have by
delegation-that is to say, that they don‘t have inherent, constitutionally mandated
power to act. Rather, a, higher level of government, normally the legislature, must
delegate some of its own power to the agency.
 The delegation may be quite broad, giving the agency virtually complete power
within an area (e.g., all taxation matters within a jurisdiction), or it may be quite
specific and restrict the agency's
authority to a very narrow range of activities, such as
operating a single toll road.
 They also establish procedures for efficient and fair decision making. Enabling acts
and administrative procedure acts often establish only minimum standard and
requirements for individual agencies.
Chapter Objectives
At the end of this unit you are able to:
 Identify types of Powers of Administrative Agencies
 Understand Legislative (Rule Making) Power
 Discuss Judicial (Decision – Making) Power
 Explain Executive (Administrative) Power
4.1. Classification of Powers of Administrative Agencies
Administrative agencies, in order to realize their purpose efficiently and effectively, need
wider power and discretion.
For this reason, they blend together three powers of government: executive, legislative and
judicial powers. Even though in principle the latter two powers belong to the legislature and
courts, granting such powers has become a compulsive necessity for an effective and efficient
administration.
4.1.1. Legislative (Rule Making) Power
 Legislative power of administrative agencies, usually known as rule- making power
and more formally delegated legislation, is the power of agencies to enact binding

24
 rules through the power delegated to them by the legislator.
 The complex nature of the modern state is that such elected representatives are not
capable of passing laws to govern every situation.
 Many of their lawmaking powers, as well as the power to administer and implement
the laws, are therefore delegated to administrative agencies.
 These agencies are involved in virtually every area of government activity and affect
ordinary citizens in many ways, whether these citizens are home owners needing a
building permit to erect a new room, or injured employees seeking workers'
compensation, or farmers selling their produce.
 Efficient and effective administration necessarily requires promulgation of laws,
flexible to the existing situation and dealing with detailed technical matters.
 These laws have to be provided in the required quantity and quality. However, due to
the limitation of the on parliament as regards to the availability of sufficient time and
expertise, the lawmaker will be compelled to delegate some of its powers to the
administrative agencies.
 When legislative power is delegated to administrative agency, it has to be exercised
fairly and only with a view to attain its purpose. The agency should also enact rules
within the limits of delegation set by the lawmaker.
 Practically, it is difficult to avoid instances in which power may corrupt. Thus the
lawmaker when delegating power should simultaneously introduce controlling
mechanisms to ensure that individual‘s liberty and freedom is not violated by the
administration.
 Most importantly, the lawmaker, when granting power, is expected to provide specific
procedure of rule-making.
 In most countries, an administrative agency exercising its legislative function is
required to give notice to the public of the proposed rule and incorporate comments
from the public. This ensures public participation in the administrative process.
 The rules issued by the agencies should also be published in a formal instrument,
which is easily accessible to the public, thus, encouraging openness in the public
administration.
4.1.2. Judicial (Decision – Making) Power
 Efficient and effective administration also requires that those entities in charge of
implementing the law be armored with judicial power, to some extent, similar to the
power of the ordinary courts.

25
  Enforcement of law demands imposition of sanction and taking administrative
measures and decisions. When agencies exercise their judicial powers, they are in
effect applying the facts to the law just like a court. Consequently, they determine
rights, entitlements and benefits of individuals.
 The decisions may greatly affect individual‘s rights and benefits, for example,
revocation of license, deportation of aliens, determining whether an applicant is
entitled to pension, imposition of administrative fines for non- compliance, dismissal
of a civil servant, dismissal of a university student, etc … are judicial decisions that
by nature that affect the rights of individuals.
 When an agency exercises its judicial function it is engaged in adjudication, a process
very much similar with a trial court.
 While adjudicating a case, it will conducts an oral hearing with direct and cross
examination, administers oath, decides on the admissibility of evidence and may
compel an individual or a company to produce evidence. Then by weighting
evidences of the applicant and respondent applies and interpreters the law to give a
reasoned decision.
 To ensure impartiality and fairness the person deciding the matter should be relatively
neutral from agency influence. Still there is likelihood that agencies may abuse their
decision- making power.
 As a result, the lawmaker, while granting such powers, is expected to provide
minimum procedures applicable in the adjudication process.
4.1.3. Executive (Administrative) Power
Administrative power is the residual power that is neither legislative nor judicial. It is
concerned with the treatment of a particular situation and is devoid of generality.
It has no procedural obligations of collecting evidence and weighing argument. It is
based on subjective satisfaction where decision is based on policy and expediency.
It does not decide on a right though it may affect a right. Advisory and investigative
power of agencies may be mentioned as two typical examples of administrative
power.
In its advisory function, an agency may submit a report to the president or the head of
executive and the legislature.
Cases falling under advisory function include proposing a new legislation to the
legislature, and informing the public prosecutor the need to take measure when there
is violation of law. Disclosing information to the general public that should be known

26
in the public interest and publishing advisory opinions are also regarded as advisory
(administrative) functions.
Investigation is one of the major functions of administrative agencies. While
exercising their investigative powers, agencies investigate activities and practices that
may be illegal. Because of this investigative power, agencies can gather and compile
information concerning the organization and business practices of any corporation or
industry engaged in commerce to determine whether there has been a violation of any
law.
In exercising their investigative functions, agencies may use the subpoena power. A
subpoena is a legal instrument that directs the person receiving it to appear at a
specified time and place either to testify or to produce document require reports,
examine witnesses under oath, examine and copy documents, or obtain information
from other governmental offices.
This power of investigation complements the exercise of the agency‘s powers,
especially the power to adjudicate.

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 Chapter Five

Unit objectives
At the end of this unit you are able to:
 Understand the statutory power
 Discuss the implied power
 Explain discretionary power

Scope of Administrative powers

5.1. Statutory power
Statute - Law passed by the legislature. Statutory Authority - The authority created by the
statute that implements the law passed by the legislature. So, the statutory authority can be
considered the executive. Statutory Powers - The powers assigned to the statutory authority
or body to implement the law.

A statutory power is simply a legal power given by statute law. That power may be given

to a government body or private organization. It might be given to a minister or local
government, in order to implement legislation and or make and
approve statutory instruments i.e. power to make bye laws or regulations.

Advantages of Statutory Power

1. Saves Time for the Parliament
there are lots of overwhelming activities that the government should be concerned about. In
order to resolve the complexity and volume that the legislature needs to deal with, the power
needs to be delegated to the executive branch. This is because of the lack of time or the
capacity thereof in making laws for regulation. Hence, the creation of delegated legislation
should be essential to avoid bogging down into the burden of details.
2. Enables Flexibility
Rigidity in administration has been created by statutes, but the administrative legislation can
be more adaptable to varying circumstances. Thus, it will be useful in the branches of
administration liable for occasional changes and where the technical developments are
happening on a day-to-day basis.

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3. Dealing with Emergencies
Clothing the administrative agencies with needed discretion should be better in dealing with
possible contingencies. Such contingencies might result from the application of laws as the
legislature has been unable to foresee or allocate for everyone.
4. Done in Consultation with Affected Interests
In order to make legislation effective, it is important to have prior consultation regarding
interests that should be affected. This is because drafting of rules might and oftentimes
doesn’t allow a conference between vested interests and the government. This can be affected
and would result in the agreement bound to voluntary compliance.
5. The Average Legislator
Since an average legislator is not so acquainted with the difficulties of the modern legislation,
it is important to note that this legislator passes the bill in basic form and leaves details to be
accomplished by the executive branch.
6. Influence of Science and Technology
The impact of science and technology has resulted to the multiplication of functions of the
modern state. Thus, the power of the legislature has been enhanced considerably. As it is not
capable of coping with powers on the rise, the delegation of power in law making has been
passed to the executive.
7. Sets Up New Standards
The increase in the delegated legislation can likewise be attributed to the requirement of
setting up new standards in social interest. Thus, expert minds are needed to make sure that
the national minimum regarding health education, housing, and sanitation has been due to
everybody.
8. The Administrative Legislation Provides for Expert Legislation
The rules are being drafted by the experts familiar with actual conditions in appropriate
departments. With this practice, they are able to work better compared to the lay members
comprising the legislature.
Statutory instruments are more suitable for specific areas, for example, the minister for
transport can create road traffic laws. Local people understand local needs
Disadvantages of Statutory Power
1. Undemocratic Procedures
Legislation comes as a result to undemocratic processes and procedures. In terms of by-laws,
it is arguable that those are democratic considering they are created by elected bodies. Thus,

29
they can only make by-laws in so far as they have been given authority to do so base on an
enabling Act of the local government.
2. Apparent Lack of Debate
The apparent lack of debate and publicity that should be associated with a form of secondary
legislation has also been noticeable. The enabling Act should have been subject for some
public debate as well as consultation delegated by the legislation with its very nature to be a
lot wordy and more complex meaning which will not be that easy to be understood or be
accessible by the people.
3. Problem of Sub-Delegation
The arousal of sub-delegation may come when the responsible body for the creation of
legislation has not been able to deal with it directly. Thus, the creation of sub-delegation will
give the job to other parties. As a result, this will cause problems as the other parties should
not be accountable at the same way as those who created the legislation.
4. The Wording of Delegated Legislation
Another problem when it comes to delegated legislation is the wording that can be obscure
and technical in nature that should make it hard to understand. This was the trait shared with
the Acts of Parliament.
5. Dependence on Individuals Making Claims to Review Legislation
one more limitation about delegated legislation is that it renders the courts unable to review
such legislation. Thus, it will become dependent to those who made the claim and brought the
matter to the courts’ attention. Since the courts don’t have any general authority to keep such
legislation to be reviewed, it poses a problem. This is because the process should be time-
consuming and costly. More so, reviewing the matter can only be conducted if the individual
claims do have the necessary funding. As a result, the effectiveness of the judicial review to
remedy this condition should be severely limited.
6. Influence of the High Courts
In comparison to the primary legislation, the term delegated legislation can be influenced by
the High Court. Hence, they can quash the said legislation as it has been made by people who
aren’t directly elected. Thus, it could limit the control of their power. Nevertheless, it can be
dependent on the people making those claims as they bring matters in consideration of the
courts.
The time of the Parliament has been limited and the government will have a legislative
program that should keep the Parliament busy. Thus, the Parliament will have no time to
scrutinize the debate complex and regulations and technical rules. Perhaps the advantages and

30
disadvantages presented here can provide a clear understanding regarding the significance or
insignificance of delegated legislation. It may or may not be a significant factor for some, but
it should be a concern for everyone.
5.2. Implied power
Implied powers are significant because they show how very important powers that are not
stated specifically but inferred and proven as necessary are very significant to our
government. This is very important, because it gives more power to the states, which in turn
gives more power to the people.
An example of implied power is when Congress passes legislation on national health care
based on the power granted to Congress by the Constitution to collect taxes and provide for
the common defence and general welfare of the United States.
Implied powers are political powers granted to the United States government that aren't
explicitly stated in the Constitution. They're implied to be granted because
similar powers have set a precedent. These implied powers are necessary for the function of
any given governing body.
Implied powers are significant because they show how very important powers that are not
stated specifically but inferred and proven as necessary are very significant to our
government. ... This is very important, because it gives more power to the states, which in
turn gives more power to the people.
5.3. Discretionary power
Discretionary Power it is the authority granted by the law to a head of state or government
or other high official to act on his own discretion under certain conditions, for instance, in an
emergency situation.
Discretionary powers explicit consist of those provisions of the Constitution under which
the governor takes decision independent of the advice of the council of ministers. These
include those provisions under which the governor may consult the council of ministers, but
he may or may not go by the advice of the latter.
Discretionary powers exercised by administrative and legal authorities are permissive, and
not binding. These powers are granted to these officials by statute or
delegation. Discretionary powers do not impose an obligation on a decision-maker to
exercise them or to exercise them in a particular manner.
Discretion is defined as the right of someone to make choices or the quality of someone who
is careful about what they do or say. An example of discretion is the ability of a juror to
determine a verdict. An example of discretion is not talking about politics at family dinners.

31
Discretion has the meaning of acting on one's own authority and judgement. In
law, discretion as to legal rulings, such as whether evidence is excluded at a trial, may be
exercised by a judge. ... Those in a position of power are most often able to
exercise discretion as to how they will apply or exercise that power.
Advantages of Discretionary power

 Administrative agencies are better than ordinary courts in disposing cases timely.
 Administrative adjudication is cheaper than court adjudication
 Administrative adjudication is more convenient and accessible to individuals compared to
ordinary courts.
 The process of adjudication in administrative agencies is flexible and informal compared
to the rigid, stringent and much elaborated ordinary court procedures.
 Due to justification is related to the special expertise knowledge administrative tribunals’
manifest as compared to ordinary court judges.
 It also gives power to those who have the wisdom and experience to make important
decisions.

Disadvantages of Discretionary power

 Lack of legal expertise: The argument here is that, as many of the members of the panel
are selected from different walks of life with no or little legal background, they may lack
the requisite legal expertise to adjudicate disputes.
 Partiality: The fear here is that, as many or all of the members of the administrative
tribunals are at the same time employees of the various offices or agencies, they might
not be free from bias and partiality towards the agency.
 Violation of the principle of separation of powers and rule of law: Adjudication is the
primary business of ordinary courts. So, transferring this power to administrative
agencies is argued by some authorities to be a violation to this principle.

32
 Chapter Six
Unit objectives
At the end of this unit you are able to:
o Discuss the principles of Transparency
o Explain the principle of accountability
 Identify the principle of good Administration
 Understand the principle of equal treatment
 Know the principle of legal security
 Define the principle of good faith
 Understand the duty to weight interests
 Discuss the duty to give reason for decisions

Principles that important in Administrative processes

Administrative systems and procedures are a set of rules and regulations that people who
run an organization must follow. These rules and regulations are put into place to help create
a greater level of organization, more efficiency and accountability of the organization.
According to Gulick, the elements of administrative processes are:

A. Planning:-The origin of the word “planning” can be traced to the Latin word ‘planum’
meaning a flat surface.
 Planning means looking ahead, planning is to peep deep into the future. Planning is
estimating, forecasting and prognosticating.
 Ithas assumed great importance in all types of organisations business or non-
business, private or public sector, small or large, in developed countries or
developing countries.
 In fact the difference between successful and unsuccessful organisations is because
of the nature of planning undertaken by them. The organisation which thinks much

33
 ahead about what it can do in future, is likely to succeed as compared to on which
fails to do so.
B. Organizing. Organizing is the function of management that involves developing an
organizational structure and allocating human resources to ensure the accomplishment of
objectives.
 Organising is a process of defining the essential relationships among people, tasks and
activities in such a way that all the organisation's resources are integrated and coordinated
to accomplish its objectives efficiently and effectively
 During the organizing process, managers coordinate employees, resources, policies, and
procedures to facilitate the goals identified in the plan.
Benefits of getting organized

 To reduce the feeling of being overwhelmed.

 To achieve more in less time.
 To gain a sense of control.
 To set a good example for your kids.
 To project a better image to your clients, colleagues, and friends.
 To reduce your stress level.
 To clear your head of all the clutter.
 To gain energy and calm from your space.
C. Staffing:- is the process of hiring eligible candidates in the organization or company for
specific positions. 
Staffing is an operation of recruiting the employees by evaluating their skills,
knowledge and then offering them specific job roles.
Staffing is an operation of recruiting the employees by evaluating their skills,
knowledge and then offering them specific job roles accordingly.
The staffing function includes recruitment, selection, training, development, transfer,
promotion and compensation of personnel.
Staffing process helps to improved organizational productivity. Therefore, through
proper selection of employees in the organization, it can increase the quality of the
employees, and through proper training, the performance level of the employees can
also be improved.

34
D. Directing:- is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. 

 Directing is said to be the heart of management process. Planning, organizing, staffing

has got no importance if direction function does not take place.
E. Co-ordinating:- is making different people or things work together for a goal or effect

 Is the regulation of diverse elements into an integrated and harmonious operation.

 Coordination also means integrating or linking together different parts of an
organization to accomplish a collective set of tasks.
 It is integrating or linking together different resources to accomplish a collective set
of tasks.
 The two primary types of coordination:- 
a. Internal coordination or establishing a relationship between all the employees,
departments, etc.
b. External coordination or establishing a relationship between the employees and
the outsiders.
 Benefit of coordination
 It helps to minimize the conflicts, rivalries, wastages, delays and other
organizational problems.
 It ensures smooth working of the organization.
 It help an organization can achieve its objectives easily and quickly.
Example of coordination is when two people work together to plan or coordinate a
party.
F. Reporting:-It is a document that presents information in an organized format for a
specific audience and purpose.

Characters of Reports

1. Are formally structured and outlined.

2. Are informative, educational, and fact-based.
3. Are written with a specific purpose and objective.
4. Are written in a style relevant to each section.
5. Always include main headings and subheadings.
6. Sometimes use bulleted points.

35
7. includes tables, charts, diagrams, and graphs
Types of reports include;-

 Memos  Progress reports  Policies and

 Minutes  Justification reports procedures
 Lab reports  Compliance reports
 Book reports  Annual reports

G. Budgeting.It is a quantitative expression of a plan for a defined period of time. It may

include planned sales volumes and revenues, resource quantities, costs and expenses,
assets, liabilities and cash flows.

There are four common types of budgets that companies use:

(1) Incremental,
(2) Activity-based,
(3) Value proposition, and
(4) Zero-based.
The purpose of budgeting 
To provide a model of how the business might perform, financially speaking, if certain
strategies, events, plans are carried out.
In constructing a Business Plan, the manager attempts to forecast Income and
Expenditure, and thereby profitability
A budget or spending plan will also keep you out of debt or help you work your way
out of debt if you are currently in debt.
Principles of Administrative Processes
6.1 The principles of Transparency
Transparency is the condition of being see-through. An example of transparency is the
fact that you can see through glass.
In order that officials may be held accountable, the principle of transparency requires
that the decisions and actions of those in government are open to public scrutiny and the
public has a right to anccess government information. Both concepts are central to the
very idea of democratic governance
Transparency fosters trust, and trust is important for the health of every relationship
under the sun. Building happiness and engagement through transparency means
updating the entire company, regularly, on strategies and current events

36
 Transparency is a powerful force that, when consistently applied, can help fight corruption,
improve governance and promote accountability.
6.2 The principle of accountability
The concept of accountability refers to the legal and reporting framework, organisational
structure, strategy, procedures and actions to help ensure that:
Accountability is an assurance that an individual or an organization will be evaluated on
their performance or behaviour related to something for which they are responsible. ...
Corporate accountability involves being answerable to all an organization's stakeholders
for all actions and results.
Accountability is a common principle for organisations across many disciplines;
the principle embodies that organisations live up to expectations for instance in the
delivery of their products and their behaviour towards those they interact with.
The definition of accountability is taking or being assigned responsibility for something
that you have done or something you are supposed to do. An example of
accountability is when an employee admits an error she made on a project.
Types of accountability
However, the internal structure of the concept of accountability in terms of its subtypes
(such as political, bureaucratic, legal, professional, financial, and societal accountability)
requires a typological theory where differences have important methodological
implications.
The benefits of accountability relations are many but I'll give five here:

 Accountability accelerates your performance.

 Accountability helps you measure your success and progress.
 Accountability keeps you engaged.
 Accountability will keep you responsible.
Advantages of Accountability
1. Accountability accelerates your performance When you connect with a coach (one-on-
one or in a program) you can work the kinks out of your plan, develop a sure-fire winning
strategy and execute with confidence, knowing you have been guided by the best to achieve
your goals.

37
2. Accountability helps you measure your success and progress a good coach will help
you define what success looks like and set milestones to measure your progress along the
way. You can easily track how close you are to reaching your goals.
3. Accountability keeps you engaged there are things that will come up that will distract you
from your goals and take you off course. Even when you’re bored, distracted or tired,
knowing that you have to answer for your progress will keep you going to the finish line.
4. Accountability will keep you responsible When you are working with someone who
pushes you to make massive changes in a short amount of time and give a report…you finally
realize that you are ultimately responsible for how much progress you make every day.
Accounting for your actions weekly will cause you to take a good look at yourself, start
eliminating the excuses and start making deliberate actions that bring about your intended
success.
5. Accountability will validate your thoughts and ideaswhen you have someone to be
accountable to you can silence your inner critic and bounce your ideas off someone else who
can help you make sound decisions and give you constructive advice.
The principle of good Administration
Administration is a process of systematically arranging and co-ordinating. The human and
material resources available to any organization for the, Main purpose of achieving
stipulated goals of that organization.
Administrative systems and procedures are a set of rules and regulations that people who
run an organization must follow. These rules and regulations are put into place to help create
a greater level of organization, more efficiency and accountability of the organization.
In order that officials may be held accountable, the principle of transparency requires that
the decisions and actions of those in government are open to public scrutiny and the public
has a right to access government information. Both concepts are central to the very idea of
democratic governance. There are various principles of good Administration. Such as:-
6.2.1 The principle of equal treatment
Equality is about ensuring that every individual has an equal opportunity to make the most of
their lives and talents. It is also the belief that no one should have poorer life chances because
of the way they were born, where they come from, what they believe, or whether they have a
disability.
The right to equality is the right of all human beings to be equal in dignity, to be treated with
respect and consideration and to participate on an equal basis with others in any area of
economic, social, political, cultural or civil life.

38
 Example:- When men and women are both viewed as being just as smart and capable as each
other, this is an example of equality of the sexes.
There are four principles of equity
 Formal Equality.
 Proportional Equality.
 Moral Equality.
 Presumption of Equality.
The following are the different types of equality
Civil Equality: There is civil equality in the State when persons are subject to the same law in
enjoyment of their various rights and liberties.

 Political Equality
 Social Equality
 Natural Equality
 Economic Equality
Advantages of Equity

1. Attract and retain the best quality employees

It is tough to attract top-notch people to come and work for your company: everyone
wants them and they can pick where they work.

2. Create more positive working relationships

A team with positive working relationships will be more productive, engaged and
focused. It’ll also make work a nicer place to be for everyone: if people are getting on,
there are less worries for you to manage.
3. Greater productivity within your team
Consider how YOU feel when you go into work. Some days are great, some days it feels
like you’re wading through treacle to achieve even the smallest of tasks.

4. Appeal to a wider audience (of customers)

The more diverse you are as an organisation; we get better with some rather than others.
Quite simply, the wider the range of people you have on your team, the wider the range
of people you’ll more naturally connect with.

5. A more innovative and creative approach

39
The more diverse a workforce, the wider the pool of experience and knowledge you’ll
have available for tackling problems or creating opportunities. 

6. Increased performance  

7. Reducing the risk (and cost) of possible legal action

6.2.2 The principle of legal security
Security means safety, as well as the measures taken to be safe or protected. ... Often this
word is used in compounds such as a security measure, security check or security guard. 
The concept of legal security in human right context consists of human security (security of
person) and social security and security of legal system.
Legal security is a philosophical concept of the modern thinking. ... The main thesis is
that legal security is a principle that generates systematisation and stability of legal order and
guarantee human rights in the sense of human and social security.
Legal security as a natural right of security and establishes a connection between human
rights and the idea of material justice.
6.2.2. The principle of goodfaith
Good faith is an abstract and comprehensive term that encompasses a sincere belief or
motive without any malice or the desire to defraud others. It derives from the translation of
the Latin term bona fide, and courts use the two terms interchangeably.
In contract law, the implied covenant of good faith and fair dealing is a general presumption
that the parties to a contract will deal with each other honestly, fairly, and in good faith, so as
to not destroy the right of the other party or parties to receive the benefits of the contract.
Important of good faith
Basically, a party cannot take any action that prevents the purpose of the contract from being
achieved. For business owners dealing with the sale of merchandise, good faith requires
honest behaviour and compliance with reasonable commercial standards of fair dealing in
trade.
Five principles of good faith
Through this principle, respect for fundamental rights and freedoms, justice, fairness,
order, good faith, reasonableness and other values set out in the Constitution and arising
from its substance can be introduced to economic relationships.
6.2.3 The duty to weight interests

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A duty or obligation to satisfactorily perform or complete a task (assigned by someone, or
created by one's own promise or circumstances) that one must fulfil and which has a
consequent penalty for failure.
In philosophy, moral responsibility is the status of morally deserving praise, blame, reward,
or punishment for an act or omission performed or neglected in accordance with one's moral
obligations. Deciding what (if anything) counts as "morally obligatory" is a principal
concern of ethics.

6.2.4 The duty to give reason for decisions

Administrative Law: The Duty to Give Reasons. 'While parties to administrative proceedings
have no absolute right to legal representation, administrative authorities should always
provide a statement of their reasoning in making their decisions.

Decision making is important to achieve the organizational goals/objectives within given

time and budget. It searches the best alternative, utilizes the resources properly and satisfies
the employees at the workplace. As a result, organizational goals or objectives can be
achieved as per the desired result.

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 Chapter seven
Mechanisms to Control Administrative Actions and Decisions
Introduction
The Need for Controlling the Powers of Government is regulating the powers of
administrative agencies lest abuse of powers may cause prejudice to public interest in general
and to individual interest in particular.
In addition to creating various administrative agencies and empowering them with necessary
power to carry on specific social, economic and political programs in the interest of the
public administrative law puts appropriate controlling mechanisms that restrain
administrative agencies within the scope of the powers entrusted to them.
Unit Objectives
At the end of this unit you are able to:
 Know legislative control and its means
 Identify executive control and its mechanisms
 Discuss judicial control and Judicial review
 ExplainPrinciples of good governance

7.1 Legislative control and its means

First and foremost, the parliament has to make sure that all necessary precautions are taken
that the enabling legislation/parent act does not devolve wide delegated powers which may be
difficult to control.
These include attaching riders to agency appropriation bills, conducting oversight hearings,
reducing agency budgets, and amending statutes.
Of course, if the legislature is extremely dissatisfied with the performance of a particular
agency, it may rewrite the statute that created the agency in the first instance.
By amending the appropriate statute, the legislature may enlarge or contract the agency‘s

42
power as well as the nature and scope of its rulemaking authority.
In Ethiopia, the Parliament of the FDRE also has the power to control the discretionary power
of the executive organ of the government including all the dependent agencies established
under the umbrella of the executive and those independent agencies that fall outside the
organizational structure of the executive organ of the government.
As clearly stipulated under Article 50(3) of the FDRE Constitution, the respective legislatures
of both of the Federal and the State governments are the highest authority of the respective
governments.
As clearly stated in Article 55(17) of the FDRE Constitution, the legislature has the power to
call and to question the Prime Minister and other Federal officials and to investigate the
Executive‘s conduct and discharge of its responsibilities.
Furthermore, in accordance with Article 74(11) of the FDRE Constitution, the Prime Minister
is required to submit periodic reports of the activities accomplished by the executive as well
as its plans and proposals to the House of Peoples Representatives.
The parliament can also exert control over the behavior of the government through the
budgetary processes. Usually the executive organ of the government and some of the other
administrative agencies prepare and defend their budget before the parliament. When the
parliament is not happy with the performance records of the past and /or the current fiscal
year, it may resort to cutting off the proposed budget of the concerned agency for the next
fiscal year.
All this clearly indicates that the parliament has the power to hold discussion at the floor
concerning the conduct of the executive and other federal officers and to take remedial
measure thereof.
7.2. Executive control and its mechanisms
The executive organ of the government also has the power to oversight the activities of the
various government offices in different modalities.
There are possibilities whereby some administrative agencies may be formed by executive
order without the blessing of the parliament.
Those agencies or bureaus formed under the executive hierarchy (referred to as executive
dependent agencies) are subject to the supervision of the executive organ of the government.
The concerned ministry of the government can put different modalities of control to ensure
whether or not the authorities formed under its hierarchy are acting within the bound of the
law.
In relation to this, Article 77 of the FDRE Constitution, which deals with the powers and

43
functions of the Council of Ministers, in its sub-Article 2 states that the Council of Ministers
shall decide on the organizational structure of ministries and other organs of government
responsible to it; it shall coordinate their activities and provide leadership.
The executive organ of the government may also exercise some indirect control over the so-
called independent agencies that are accountable to the Legislative organ of the government.
In this regard Article 74(7) of the FDRE Constitution is worth mentioning.
It says He [the Prime Minister]‖ as the chief executive has the power to select and submit for
approval to the House of Peoples‘ Representatives nominations for posts of Commissioners
…and Auditor General.
This indicates that the executive organ of the government can have a sort of loose control
over the independent agencies as well.
In many cases, there are also dual accountability systems. For example, as it can be inferred
from Article 76(2) & (3) of the FDRE Constitution, the Council of Ministers are made jointly
accountable to the Prime Minister and to the House of Peoples‘ Representatives,
respectively.
Thus, in the exercise of the powers entrusted to it by the constitution and other legislations,
the executive organ of the government can oversee the activities of the various administrative
agencies of the government responsible to it.
7.3. Control by Administrative Tribunals
The decisions of administrative agencies can also be subjected to the supervision of
administrative tribunals.
Administrative tribunals are the administrative counter part of ordinary courts. Technically
speaking, administrative tribunals also referred to as administrative courts. Courts that are
established outside the organizational structure of ordinary/regular courts.
Administrative tribunals exercise important supervisory role over the decisions of
administrative agencies.
Administrative tribunals undertake merits review over the decision of administrative agencies
falling under the former jurisdiction.
Having appreciated the important roles that the administrative tribunals may play, many
jurisdictions of the contemporary world have established tribunals that fit their respective
realities.
7.2 Judicial control and Judicial review
The objective of the principle of the separation of powers is to promote the ideal of law,
liberty and democracy by controlling circumstances that give rise to tyranny and dictatorship.

44
The concentration of legislative, executive and judicial powers or any combination of these in
the hands of one person or body of persons is the primary cause of tyranny and dictatorship.
According to the advocates of this principle, tyranny and dictatorship cannot strive where
power is divided amongst the three organs, and where there are effective checks and
balances.
Thus, the purpose of the principle of separation of state powers is not to create three empires,
but to create an effective system for checking and balancing among the three organs of the
government.
In line with the principle of separation of state powers and the need for checking and
balancing, the FDRE Constitution, among other things, vests judicial power in the judiciary.
Judicial power both at the Federal and State levels are vested in the judiciary. This means that
the judiciary is made the final arbiter of disputes on point of law and facts. Thus, the judiciary
is one of the most effective machineries in restraining administrative agencies within the
bounds of their powers.
Individuals aggrieved by agency decisions may seek court intervention in appropriate cases.
Broadly speaking, there are two modalities by which the judiciary can exercise supervisory
role over the powers of administrative agencies.
These are appeal and judicial review.
It is important to understand the main difference between appeal and review. The first relates
to the power of the court: in appeal proceedings the court has the power to substitute its
decision on the matter in issue for that of the body appealed from.
In review proceedings the court’s basic power in relation to an illegal decision is to quash it,
that is, to hold it to be invalid.
If any of the matters in issue have to be decided again, this must be done by the original
deciding authority and not by the supervising court.
If the authority was under a duty to make a decision on the matters in issue between the
parties, this duty will revive when the decision is quashed and it will then be for the authority
to make a fresh decision. It is also open to the court, in appropriate cases, to issue an order
requiring the authority to go through the decision-making process again.
Another course open to the …Court when it quashes the decision of a government body is to
remit the matter to the agency with a direction to reconsider it in accordance with the findings
of the …Court. The difference between this and the two previous outcomes is that under this
procedure the agency does not have to go through the whole decision-making process again.
For example, it might be that all the relevant facts have already been ascertained and the

45
finding of the…Court only concerns their legal significance. In such a case a complete
reconsideration of the case, including the taking of evidence and the findings of facts, would
be a waste of time and money; so the court can remit the case and direct the authority to
reconsider the facts in the light of the law as it has been held to be. This procedure differs
from an appeal in only a very formal sense. On the other hand, remission would not be
appropriate where, for example, the authority is found to have been biased. Then a complete
rehearing before a differently constituted body would be needed in order for justice to be seen
to be done.

The second main distinction between appeal and review relates to the subject matter of the
court‟s jurisdiction. This distinction can be put briefly by saying that whereas an appellate
court has power to decide whether the decision under appeal was „right or wrong‟, a court
exercising supervisory powers may only decide whether the decision under review was
„legal‟ or not. If the decision is illegal it can be quashed; otherwise the court cannot
intervene, even if it thinks the decision to be wrong in some respect.
Judicial review is a technical review whereby the court tests whether an agency decisions are
legal or illegal. An appellate court may substitute a new decision by overruling the decision
of the lower body where the appeal was brought.

7.3 Principles of good governance

Principles of good governance like transparency, accountability, responsiveness, concusses

oriented, efficient and effectiveness, equitable and inclusiveness, rule of law and participation
are very important to control the activitiesof administrative agencies.

46
 Chapter Eight
The OMBUDSMAN INSTITUTIONS

Unit Objectives
At the end of this unit you are able to:
 Understand Power and duties of ombudsman
 Discuss Limitations of powers
 Identify Procedures on filing complaints
 Understand Control by people
The Institution of Ombudsman is also one of the widely used important institutions for
checking the powers of administrative agencies in the contemporary world.
The word ombudsman which is Scandinavian in origin can be translated as citizen‘s defender
or representative of the people.
In its Swedish original conception, it is said that it is gender neutral that represents persons of
either sex that represent the institution.
According to definition of Rhodes, Ombudsmanis an office provided for by the constitution
or by action of the legislature or parliament and headed by an independent high level public
official who is responsible to the legislature or parliament.
Who receives complaints from aggrieved persons against Government agencies, officials, and
employees, or who acts on his own motion, and who has the power to investigate,
recommend corrective action, and issue reports.
This definition seems that it is broad and all-inclusive. However, it has to be noted that it
may not fit the situation across countries as there are differences related to the manner of
establishment of the office and the legal weight of its recommendations from jurisdiction to
jurisdiction.

47
 By Proclamation No.211/2000, the Federal House (House of Peoples Representatives) of
Ethiopia proclaimed the establishment of the Institution of Ombudsman.
8.1 Power and duties of ombudsman
 It appreciates the ever increasing powers and functions of the executive organs of the
government and the effect of their decisions on the daily lives and rights of the
citizens;
 It takes a firm stand that unjust decisions and orders of the executive organs and
officials that prejudices the lives and rights of citizens have to be rectified or
prevented;
 It appreciates the possibility that citizens having suffered from maladministration may
be left without redressing unless supported by an institution, which is easily accessible
to them.
 The objective of the ombudsman Institution is to bring about good governance that
is of high quality, efficient and transparent, and are based on the rule of law.
 Ensuring thecitizens’ rights and benefits provided for by law are respected by
organs of the executive.
 Supervise that administrative directives and decisions adopted by the executive
organs and the practices thereof do not contravene the constitutional rights of citizens
and the law as well.
 Receive and investigate complaints in respect of maladministration.
 Conduct supervision and ensure that the executive carries out its functions in
accordance with the law and to preventing maladministration.
 Seek remedies in case where it believes that maladministration has occurred.
 Undertake studies and research on ways and means of curbing maladministration;
 Making recommendations for the revision of existing laws, practices or directives and
for the enactment of new laws and formulation of policies, with a view to bringing
about better governance.
 Perform such other functions as are related to its objectives.

The Institution is expected to resolve the complaints brought before it through a process of
conciliation by bringing the parties together. Where the results of its investigation indicate the
existence of maladministration, the institution is required to recommend the concerned

48
agency to rectify the maladministration committed and to discontinue the act, practice, or
directives having caused same.
The accessibility of the institution of ombudsman is an advantage, in addition to its broad
jurisdiction to investigate cases of maladministration.
The institution can receive complaints of maladministration in any form and can also conduct
investigation upon its own motion.
In this regard, it provides an accessible alternative to individuals who have no other necessary
means to challenge the prejudice caused to their interest before court of law.
In short, ensuring high quality of good governance in the administration system is the ideal
goal of the Institution of Ombudsman in Ethiopia. Its bottom line expectation is to exert
utmost effort to curve maladministration by taking appropriate proactive measures that
prevent and rectify administrative malpractices by providing easily accessible administrative
forum to the citizens.
8.1.1.What is Maladministration?
As clearly indicated in the provisions of the proclamation that established the institution of
Ombudsman (proc. No.211/2000), fighting maladministration is among the primary duties
that necessitates the establishment of the Institution of Ombudsman.
In addition to establishing and empowering the Institution of Ombudsman in order to curve
maladministration in the administration system, providing a working definition of the term
maladministration may have paramount importance in helping the institution to carry out its
responsibilities efficiently and effectively within the domain of its power.
The definition of maladministration by some authorities
The term maladministration is a combination of two words: mal and administration.
According to Black‘s Law Dictionary, the term mal is a prefix meaning bad, wrong
fraudulent.
Thus, while prefixed with the term administration, it may give the meaning bad, wrong or
fraudulent administration.
The following 15 elements to be incorporated in maladministration:
 Rudeness (though that is a matter of degree)
 Unwillingness to treat the complaint as a person having rights
 Refusal to answer reasonable questions
 Neglecting to inform a complaint on request of his or her rights of entitlement
 Knowingly giving advice which is misleading or inadequate

49
  Ignoring valid advice or overruling considerations which would produce an
uncomfortable result for the over ruler
 Offering no redress or manifestly disproportionate redress
 Showing bias whether because of color, sex or any other grounds
 Omission to notify those who thereby lose a right of appeal
 Refusal to inform adequately of the right to appeal
 Faulty procedures
 Failure by management to monitor compliance with adequate procedures
 Cavalier disregard of guidance, which is intended to be followed in the interest of
equitable treatment of those who use a service
 Partiality and
 Failure to mitigate the effects of rigid adherence to the letter of the law that produces
manifestly inequitable treatment
According to Article 2(5) of Proc. No.211/2000 defined the term narrowly as follows:
maladministration includes acts committed, or decisions given, by executive government
organs, in contravention of administrative laws, the labor law or other laws relating to
administration.Thus, in Ethiopia, the term maladministration is equated with violation of
laws.
8.1.2. Mass Media Control
 The role of the mass media in controlling maladministration cannot be undermined.
A strong media plays vital role in promoting the ideals of democracy and good
governance.
 By bringing administrative malpractices and corrupt behaviors of the agencies to
the attention of the public, the media may also exert moral and political pressure on
the day-to-day activities of the administration.
 Media can serve as a forum for mobilizing public opinions concerning
governmental activities.
 Thus, media can be regarded as one of the most effective informal controlling
mechanisms of the powers of administrative agencies provided that freedom of the
press is well guaranteed.
7.1. Advantages and disadvantages of using the Ombudsman
Advantages:

 No cost

50
  Independent from government
 Reports may be published as to systematic issues arising within an agency or with
delivery of a government program
 Bad practices may be remedied
 State Ombudsman can offer conciliation as well as investigation

Disadvantages:

 Cannot provide a quick solution to complex problems

 Complainant has no control over the investigation i.e. the Ombudsman does not act
for the complainant specifically and they can refuse to deal with a specific matter
 Decisions are not binding
 Commonwealth Ombudsman can offer investigation only i.e. no conciliation

7.1 Procedures on filing complaints

A complaintisan expression of dissatisfaction, made either verbally or in writing, about
the standard of service, actions or lack of action by the Council or its staff, affecting an
individual customer or group of customers.
Employers should ensure that their organisation’s complaintprocedures:
 Are clearly documented
 Are explained to all employees
 Offer both informal and formal options
 Address complaints in a manner which is fair, timely and Confidential
 Are based on the principles of procedural fairness
 Are administered by trained personnel
 Provide clear guidance on internal investigation procedures and Record keeping
 Advise a complainant that they can pursue the matter externally
 With the Commission, a state or territory anti-discrimination body and, if it
 Appears to be a criminal matter to the police
 Give a clear undertaking that no employee will be victimised or
Disadvantaged for making a complaint
 Are regularly audited and reviewed for effectiveness.

51
 7.2Control by people

Controlling:- is a constantly ongoing process of designing standards, measuring

performance, comparing the performance with standards, and implementing corrective
actions to ensure effective and efficient running of the organization's activities.

Chapter Nine
The civil service and civil servants
Chapter Objectives
At the end of this unit you are able to:
Know definition of chapter terminologies
Understand historical development
Explain basic features and roles of civil servants
Discuss development of civil service as institution and its laws in Ethiopia
Understand the definition of civil servants in Ethiopian laws
Know rights and duties of civil servants in Ethiopia
Identify similarities and difference between civil service and labor proclamations
9.1 Definition
The civil service is a collective term for a sector of government composed mainly of career
bureaucrats hired on professional merit rather than appointed or elected, whose institutional
tenure typically survives transitions of political leadership.
A civil servant or public servant is a person so employed in the public sector employed for
a government department or agency.
9.2 Historical development
9.3Basic features and roles of civil servants
Characteristics of the Civil Service

 The civil service is a permanent government establishment and employees enjoy security of
tenure
 Neutrality

52
 Impartiality
 Anonymity
 Expertise
 Bureaucracy
 Merit System
The civil service has three main functions
 It advises the Government on policy
 It helps prepare and draft new legislation.
 It helps the Government to run the country according to the legislation passed by the
Oireachtas
9.4 Development of civil service as institution and its laws in Ethiopia
In Ethiopia, the era of Menelik II is known for the state formation and establishment
of a modern public administration
The state formation was done through the northerners’ (Amhara)military conquest. In doing
this they were supported by access to superior weapons and their hierarchical social
Organization molded by Orthodox Christianity.
Subsequently, the regime cherished a religious conversion, particularly from polytheistic
religion into Orthodox Christianity identity. As such coming modern of the time
(zemanawi), “civilized” (siltane), or “educated” (yetamare), required one, to some
considerable degree, to adopt Orthodox Christian customs.
In modernizing the public administration, the European line was followed. The emulation
attempts were commenced by creating various ministries in 1907. Besides, the state, for the
first time, was divided into smaller administrative units.
Gradually, despite the resistances from the Orthodox Church many other initiatives were also
implemented.
The country built a modern army and railways, introduced a motor car, established the capital
city–Addis Ababa, founded a Western-type school,
 In 1907 established Ethiopian’s first cabinet.
 Establishment of independent appellate court system in the provinces
 In 1908: Decreed anew inheritance law,which considerablystrengthened individuals’
rights to property allowed inheritance by will motivated by the need to safeguard and to
transfer capital generationally.
 Established office of prime minister’
53
  Instituted a crown council’
 Established office of prime minister’
 Instituted a crown council’
But the civil service system between Minilik II and Haile Selassie were very weak including
Empress Zawditu.
Haile Selassie adopted the Ethiopia’s civil service system for first time in Japanese style
constitution in 1931.
1943: Defined Powers and duties of ministries by order No.1 and amended by
1943: Defined Powers and duties of ministries by order No.1 and amended by
order No.2. 1952: Established the Imperial Institute of Public Administration. The institute
wasestablished by the technical support from the United Nations.
1955: revised the constitution of 1931. Related the CS, the constitution, amongothers,
accentuates the emperor’s absolute control over the executive branch ofthe government (see
Art. 27)1961: the central personnel agency (CPA)was established. The CPA was entrusted to
maintain a standardized public service governed by the uniform rules and principles.
At point in time, the definition of the civil servants was provided merit, in principle, replaced
nepotism in recruiting employees below the rank of vice-ministers the position classification
system’’ was introduced and formed the basis for grading and salary structureand a pension
scheme was introduced.

In the Derg regime, the number of civil servants increased from 101,147 in the predecessor
reign to 216,058 when the regime left the office.
The starting salary of the civil service from 25 to75 Birr and in 1982, increased the ceiling
from 285 to 636 Birr pledging its horizontal increase.
The civil service was mainly run by ‘‘different orders and decrees issued during the
reign of Haile Selassie.
Important to note during the Derg regime is the politicians’ distrust of the career civil
servants. The situation led to the replacement of the latter at almost all levels by the political
patrons. In doing this, professionalism and ‘’meritocracy’’ in personnel management was
relegated. A parallel ‘’political structure’’ was also introduced into the civil service
organizations Lastly, after 16 years of its application, Mengistu himself admitted that
the ’’Marxism-Leninism ideology’’ was a failure in 1990 (Adejumobi, 2007). One year after
this, the regime has lost support from its external allies, and challenged by opposition
movements at home and ultimately ousted by the EPRDF in May 1991.

54
After 1983 due to the expansion of privatization the FDRE government of Ethiopia started to
formulate different policies which help to serve them
From 1996 – 2003 The reforms in these periods were based on the extensive study of the
country’s civil service. The evaluation result pointed a finger at ‘’the deep institutional
constraints on basic functions such as policymaking, service delivery, and regulation.’’ The
desire to redress such problems has encouraged the implementation of a comprehensive civil
service reform program (CSRP) in 1996. It focusing on five major sub-reform programs like:-
(1) Top management system
(2) Human resource management
(3) Expenditure management and control
(4) Civil service ethics reform, and
(5) Public service delivery.
From 2003– The unresolved problems after the first two phases of the reform have given
birth to the third phase of reform, namely ‘’Public Sector Capacity Building Support
Program (PSCAP). Putting the PSCAP into actions encouraged the use of reform tools such
as BPR, management by objectives (MBOs), integrated performance management
system (IPMS), balanced scorecard (BSC), and yelawutserawit (Amharic for the civil
service change army ), Gemgema is peer evaluation through both self-criticism and
criticism. It involves a daily evaluation of individuals and teams performance-based on ‘1-to-
5' model.
9.5 The definition of civil servants in Ethiopian laws

9.6 Rights and duties of civil servants in Ethiopia

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9.7 Similarities and difference between civil service and labor proclamations

 Civil service is the body of government officials who are employed in civil occupations
that are neither political nor judicial.
 Civil service is the administrative service of government, whereas labor proclamation is
the combination of articles which shows that the obligation and rights of civil servants of
a given country.

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 Chapter Ten
Administrative contracts in general
Chapter Objectives
At the end of this unit you are able to:

 Know why administrative contracts

 Explain features of administrative contracts
 Identify types of administrative contracts
 Discuss formation of administrative contracts

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  Understand the role of courts in relation to administrative contracts

A contract is an agreement whereby two or more persons as between themselves create, vary
or extinguish obligations of a proprietary nature.
Administrative contracts are contracts where one of the parties is a public person. They are
examined by the Administrative Court.
Administrative contracts are qualified as such either by virtue of a specific legal attribution,
or because they concern a public service or contain a highly unusual clause.
10.1. Why administrative contracts
A contract is an agreement whereby two or more persons as between themselves create, vary
or extinguish obligations of a proprietary nature.
Administrative contracts are similar to other types of contracts because of their formation,
validity requirements and the form. On the other hand, administrative contracts are different
from other contracts because of their formation, content and execution.
10.2. Features of administrative contracts
According to organization element of an administrative contract one of the parties should be a
public legal person, which have own exceptions. The purpose' element of an administrative
contract should serve public services or have some exception clauses which are not principal
in general contract law
10.3. Types of contracts
A. Contracts under Seal:- Traditionally, a contract was an enforceable legal document only
if it was stamped with a seal.
 The seal represented that the parties intended the agreement to entail legal
consequences.
 No legal benefit or detriment to any party was required, as the seal was a symbol
of the solemn acceptance of the legal effect and consequences of the agreement.
 In the past, all contracts were required to be under seal in order to be valid, but the
seal has lost some or all of its effect by statute in many jurisdictions.
 Recognition by the courts of informal contracts, such as implied contracts, has
also diminished the importance and employment of formal contracts under seal.
B. Express Contracts:- In an express contract, the parties state the terms, either orally or in
writing, at the time of its formation.
 There is a definite written or oral offer that is accepted by the offered (i.e., the person to
whom the offer is made) in a manner that explicitly demonstrates consent to its terms.

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C. Implied Contracts:- Although contracts that are implied in fact and contracts implied in
law are both called implied contracts, a true implied contract consists of obligations
arising from a mutual agreement and intent to promise, which have not been expressed in
words.
 It is misleading to label as an implied contract one that is implied in law because a
contract implied in law lacks the requisites of a true contract.
 The term quasi-contract is a more accurate designation of contracts implied in
law. Implied contracts are as binding as express contracts.
 An implied contract depends on substance for its existence; therefore, for an
implied contract to arise there must be some act or conduct of a party, in order for
them to be bound
D. Executed and Executory Contracts:- An executed contract is one in which nothing
remains to be done by either party.
 The phrase is, to a certain extent, a misnomer because the completion of
performances by the parties signifies that a contract no longer exists.
 An executory contract is one in which some future act or obligation remains to be
performed according to its terms.
E. Bilateral and Unilateral Contracts:- The exchange of mutual, reciprocal promises
between entities that entails the performance of an act, or forbearance from the
performance of an act, with respect to each party, is a Bilateral Contract.
 A bilateral contract is sometimes called a two-sided contract because of the two
promises that constitute it.
F. Unconscionable Contracts:- An Unconscionable contract is one that is unjust or
unduly one-sided in favor of the party who has the superior bargaining power.
 An unconscionable contract is one that no mentally competent person would
accept and that no fair and honest person would enter into.
 Courts find that unconscionable contracts usually result from the exploitation
of consumers who are poorly educated, impoverished, and unable to shop
around for the best price available in the competitive marketplace.
 The majority of unconscionable contracts occur in consumer transactions.
G. Adhesion Contracts:- Adhesion contracts are those that are drafted by the party
who has the greater bargaining advantage, providing the weaker party with only the
opportunity to adhere to (i.e., to accept) the contract or to reject it. (These types of
contract are often described by the saying "Take it or leave it.")

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 H. Aleatory Contracts:- An aleatory contract is a mutual agreement the effects of which
are triggered by the occurrence of an uncertain event.
 In this type of contract, one or both parties assume risk.
 A fire insurance policy is a form of aleatory contract, as an insured will not
receive the proceeds of the policy unless a fire occurs, an event that is
uncertain to occur.
I. Void and Voidable ContractsContracts can be either void or Voidable. A void contract
imposes no legal rights or obligations upon the parties and is not enforceable by a court. It
is, in effect, no contract at all.
10.4. Formation of administrative contracts
 Legally the life of a contract begins at its formation after parties have consented to be
bound by it, if parties have the capacity to legally express their consent and if the
object of their contract is succinctly defined, plausible and lawful. [Art. 1678]
 Any contract to which a government agency is a party, including any type of
employment contract, should be made in writing. In public administration, officials do
not stay in office indefinitely rather they may leave their office by election, removal
or resignation.
 Once they leave their office it is difficult to ascertain the content of the contract
entered into during their stay in office but that continues to be effective even after
they leave their office. Moreover, oral contract opens a room for corruption since
keeping information is difficult. By presuming that you have made an intelligible
discussion on the General contracts aspect of the law, our concentration will be on the
special part of the law that governs administrative contracts proper. Let us consider
the validity requirements.
 Basically any juridical or physical person that wants to conclude a contract with
administrative agencies should have:
A. Technical and professional capacity
B. Legal capacity
C. Financial capacity
D. Fiscal capacity
10.5. The role of courts in relation to administrative contracts
A court is an institution that the government sets up to settle disputes through a legal process.
People come to court to resolve their disagreements. Courts decide what really happened and
what should be done about it.

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