The Impact of Procurement Ethics on Procurement Effectiveness in the Public Sector (A Case Study of Kotido Local Government)

TABLE OF CONTENTS

DECLARATION ..................................................................................................................................... i

APPROVAL ........................................................................................................................................... ii

DEDICATION ....................................................................................................................................... iii

ACKNOWLEDGMENT ........................................................................................................................ iv

TAGLE Or CONTENTS ........................................................................................................................ v

LIST OF TABLES ................................................................................................................................. ix

ABSTRACT .......................................................................................................................................... xi

CI·IAPTER ONE ..................................................................................................................................... I

JNTRODUCriON ................................................................................................................................... I

I .0 Introduction ................................................................................................................................... I

I. I Background of the Study ................................................................................................................... 3

I .2 Statement of the Problem ................................................................................................................... 5

I .3 Research Objectives .......................................................................................................................... 5

1.3.1 General Objective ......................................................................................................................... 5

1.3.2 Specilic Objectives ....................................................................................................................... 6

1.·1 Research Questions ........................................................................................................................... 6

1.5 Scope ofthe Study ............................................................................................................................. 6

1.5.1 Subject scope .............................................................................................................................. 6

1.5.2 Geographical scope ....................................................................................................................... 6

1.5.3 Time scope ................................................................................................................................. 7

1.6 Motivation of Study ........................................................................................................................... 7

I. 7 Signilicance of the Study ................................................................................................................... 7

1.8 Detinition of Terms ........................................................................................................................... 7

I .9 The Conceptual Framework .............................................................................................................. 9

CIIAPTER TWO .................................................................................................................................. 10

LITERATURE REVIEW ...................................................................................................................... IO

1.0 Introduction ..................................................................................................................................... 10

2. I Menning of Ethics and Procurement Effectiveness ........................................................................... I 0

y

2.2 Ethical Issues in Procurement .................................... : ..................................................................... I I

2.2.1 Codes of Conduct ......................................................................................................................... I 2

2.2.2 Integrity ........................................................................................................................................ 12

2.2.3 Transparency ................................................................................................................................ 12

2.2.-1 Confidentiality .............................................................................................................................. 13

2.2.5 Accountability .............................................................................................................................. 14

2.2.6 Fairness. Economy, Non-discrimination and Efl1ciency ................................................................ 14

2.2. 7 Probity ........................................................................................................................................ 15

2.3 Possibilities of cases ofconfiict of interest by public officers in the Procurement. ............................ 16

2.3.1 Honesty and Fairness .................................................................................................................... 17

2.3.2 Con11nunication ............................................................................................................................ 17

2.3.3 Gins and Hospitality ..................................................................................................................... I7

2.3.-1 Record Keeping ............................................................................................................................ IS

2.'1 Relationships with Suppliers and Contract Awarding ....................................................................... 18

Cli;PTER THREE ............................................................................................................................... 2l

RESEARCH METHODOLOGY ........................................................................................................... 2I

3.0 lntroduction ..................................................................................................................................... 2l

3.1 Research Design .............................................................................................................................. 21

3.2 Area of the Study ............................................................................................................................. 21

3.3 The Study Population ................................................ , ..................................................................... 21

3.4 Sampling Size/ Population ............................................................................................................... 22

3.5 Sampling Strategy ........................................................................................................................... 22

3.6 Sources of Data ............................................................................................................................... 22

3.6.1 Secondary Sources ........................................................................................................................ 22

3.6.2 Primary Sources ........................................................................................................................... 22

3.7 Procedure for Data Collection .......................................................................................................... 23

3.8 Data Collection ................................................................................................................................ 23

3.8.1 Tools of Data Collection ............................................................................................................... 23

i) I ntervie\': .................................................................................................................................. 23

ii) Questionnaires ...................................................... : ..................................................................... 23

VI

iii) Observation .............................................................................................................................. 24

3.8.2 Reliability and Validity of the Instrument ..................................................................................... 24

3.9 Measurement of Variables ............................................................................................................... 24

3.I 0 Data Process. Analysis and Presentation ........................................................................................ 24

3.11 Control of Extraneous Variables .................................................................................................... 24

3.12 Ethicallssues ................................................................................................................................. 25

3.13 Limitations to the Study ................................................................................................................. 25

CHAPTER FOUR ................................................................................................................................. 26

PRESENTATION. INTERPRETATION AND ANALYSIS OF THE FINDINGS ................................. 26

4.0 Introduction ................................................................................................................................ 26

4.1 Presentation of Demographic Information ........................................................................................ 26

4.1.1 Respondents' gender. .................................................................................................................... 26

4.1.2 Respondents' Age groups ............................................................................................................. 27

4.1.3 Respondents' Marital Status .......................................................................................................... 27

4.1.·1 Respondents' Education level ....................................................................................................... 28

4.2 General tlndings ........................................................................................................................... 28

4.2.1 findings on whether the concept of procurement ethics is understood by staff ............................... 29

~1.2.2 Findings on whether ethical codes of conduct have been integrated the purchasing function .......... 29

4.2.3 Findings on whether the district had policies in place regarding ethical code of conduct of staff .... 30

4.2.4 Findings on the ethical codes of conduct commonly employed by the entity .................................. 30

4.3.1 Findings on whether the swff understood the term conflict of interest... ......................................... 30

4.3.2 Findings on wl1ether there are cases of conflict of interest within the district ................................. 31

4.3.3 Findings on whether all communications to suppliers are made in writing and in English as stated in section 93 (I) of the PPDA regulations (I) 2003 .................................................................................... 32

4.3A findings on whether there cases where some officials receive gifts from suppliers of value above that specitied in the PPDA Regulations 2003 ......................................................................................... 32

4.4.1 Findings on whether the district llas relationships with its suppliers ............................................... 33

-1.4.2 Findings on whether such relationships had in any way affected the manner in which contracts are awarded to suppliers .............................................................................................................................. 34

4.4.3 From the opinions given by respondents on what they think should be done to improve the performance of the procurement function .............................................................................................. 34

VII

CHARPTER FIVE ................................................................................................................................ 36

DISCUSSION, SUMMARY, CONCLUSION AND RECOMMENDATIONS ...................................... 36

5.1 Introduction ..................................................................................................................................... 36

5.2 Discussion of the findings .......................................... ~ ..................................................................... 36

5.3 St1111111ary ......................................................................................................................................... 37

SA General conclusion .......................................................................................................................... 37

5.5 Recommendations ........................................................................................................................... 37

5.6 Arens for fLn1her study ..................................................................................................................... 38

REEERENCES ..................................................................................................................................... 39

APPENDICES

APPENDIX 1: QUESTIONNAIRE ........................................................................................................ 40

APPENDIX 11 ....................................................................................................................................... 32

PROPOSED TIME FRAME/WORK PLAN .......................................................................................... 32

AI'I'ENDIX III: .................................................................................................................................... 33

ESTiiviATED BUDGET ....................................................................................................................... 33

ABSTRACT

The study assessed the Impact of Procurement Ethics on Procurement Effectiveness in the Public Sector: A Case of Kotido Local Government. The objectives of the study included: To find out whether Kotido Local Government has policies regarding procurement ethics; identify possibilities of cases of conflict of interest by public officers in the procurement department in Kotido Local Government and to find out the relationship procurement officers in Kotido have with their suppliers among others The research employed Descriptive research approach where simple random sampling technique ''as used to get the sample size which required collecting information through questionnaire, interviews and a total sample size of 40 informants was interviewed. This size was more preferable due to time limit. the resources available t-0 carry out the research and it was also used to ensure accuracy in data collection and data was analyzed quantitatively and qualitatively in form of: tables and conclusion were drawn at the end. The major findings ot'the study was that up to 95% of the respondents revealed that there existed a mutual relationship between Procurement Ethics on Procurement Effectiveness in the Public Sector such as the code of conduct, integrity. transparency, supplier relationship, contract awc1rding and disposing of public assets to mention but a few. Recommendations were that incentives should be provided to those that come out and pinpoint those that are carrying out this practice because they are dearly costing the public sector and organizations should benchmark those that have been able to control this practice so that they also use those mechanisms employed to among the few. In conclusion. therefore. because of the effects that come along with unethical conduct of procurement orticials like misuse of public funds and award of contracts to incompetent providers thereby producing shoddy works, urgent remedial measures should be implemented in order to avoid the escalation of such mentioned effects that might lead to cases like mismanagement of office by those in juicy position.