Assessment Of The Level Of Political Interference In The Implementation Of Public Procurement In Public Institutions
(A Case Study Of New Juaben North And South Municipal Assemblies, Eastern Region)
The evaluation of the extent of political interference in the execution of public procurement within governmental entities requires a nuanced analysis of the intricate dynamics at play. This involves scrutinizing the intricate web of interactions between political figures and the procurement process, assessing the potential influence exerted by political actors. The multifarious factors influencing procurement decisions encompass not only the legal and procedural frameworks but also the socio-political context within which these transactions unfold. It is imperative to delve into the intricacies of how political agendas may impact the impartiality and transparency of the procurement procedures, affecting the allocation of resources and contracts. Furthermore, an exploration of the historical context and the evolving nature of political engagement in procurement practices sheds light on the complexities inherent in maintaining a fair and efficient system. The assessment necessitates an in-depth examination of the regulatory landscape, organizational structures, and decision-making mechanisms to comprehend the delicate balance required for ensuring a procurement process free from undue political influence.
This research aimed at assessing the level of Political Interference in Public Procurement Implementation in Public Institutions in Ghana. Both qualitative and quantitative approaches were used which involved the use of questionnaires, interviews and document review. Data were collected from the sample of 28 procurement officers, Assistant Directors and Financial Officers from the New Juaben North and New Juaben South Municipal Assemblies in the Eastern Region. Thematic analysis was used in analysis of qualitative data while charts were used in quantitative data analysis using Microsoft Excel spread sheet. The key findings indicated that there are some amount of political interferences in the buying or procurement processes in the Municipal Assemblies studied. Quite appreciable percentage of respondents confirmed that there are some level political interferences, which is an indicator that it is a fact that there is an amount of political interference in procurement implementation in the public institutions in Ghana. This research concluded that political interference exists, though minimal, in the public institutions. It thus recommended that all stakeholders in the public procurement in Ghana work at ensuring the full and strict implementation of the procurement laws which will be devoid of political and partisan intrusion and ensuring proper auditing and accountability. It is also recommended that the most important way to improve compliance with the Public Procurement Act, 2016 is to insulate routine procurement decisions from political interference or at least, reduce it to the barest minimum. This requires that political leaders muster the necessary political will to implement the Act in full.
Content
Page
Dedication
Acknowledgement
Declaration
Certification
Abstract
Table of Content
List of Tables
List of Figures
CHAPTER ONE
Introduction
1.0 Introduction 1
Background to the Study 1
Statement of the Problem 4
Aim of the Study 5
Objectives of Study 5
Research Question 5
Scope and limitation of the study 6
Significant of the study 6
Organization of the study 7
CHAPTER TWO
Literature Review
2.0 Introduction 8
2.1 Concept of Public Procurement 8
2.2 Public Procurement Reforms in Ghana 11
2.3 Political Will 13
2.4 Role of Procurement in the Public Sector 14
2.5 Political Interference 16
2.6 Factors influencing Political Interference 20
2.7 Political Compliance 21
2.8 Professionalism in Procurement Practice 25
CHAPTER THREE
Research Methodology
3.0 Introduction 26
3.1 Research Design 26
3.2 Study Setting 27
3.3 Study Population 27
3.4 Sample size and Technique 27
3.5 Data Gathering instrumentation 28
3.6 Sources of data 29
3.6.1 Primary data collection 29
3.6.2 Literature search engines 30
3.7 Mode of Data Collection 30
3.8 Method of Data Analysis. 31
3.9 Ethical Consideration 31
CHAPTER FOUR
Data Analysis and Discussion
4.0 Introduction 32
4.1 Data Presentation and Analysis 33
4.1.1 Sex of respondents 33
4.1.2 Age of respondents 34
4.1.3 Education level of respondents 35
4.1.4 Number of years worked inn organization 35
4.1.5 Politicians Receive Secret payments 36
4.1.6 Engagement of politicians decreases quality 37
4.1.7 Political Interference from within 38
4.1.8 Existence of Political Inheritance 39
4.1.9 Suppliers are selected on demerit 40
4.1.10 Politicians have right of interference 41
4.1.11 Procurement officers fear being sacked 42
4.1.12 Excessive interference by managers 43
4.1.13 Administration the initiator of reforms 44
4.1.14 Audit procedures influenced politically 45
4.1.15 Politicians and self-interest 46
4.1.16 Politicians interfere in tender awards 47
4.2 RESPONSE FROM INTERVIEWS AND DISCUSSION 48
4.2.1 Do you think there is political interference? 49
4.2.2 Are there other factors affecting procurement implementation? 50
4.2.3 Solutions to Political Interference 51
CHAPTER FIVE
Summary of Findings, Conclusion and Recommendations
5.0 Introduction 53
5.1 Summary of Key Findings 53
5.2 Conclusion 55
5.3 Recommendations 55
5.4 Future Research 56
REFERENCES .57
APPENDICES 64
1.0 INTRODUCTION
This chapter gives a general view of the whole thesis and for that matter provides the background to the study, a statement of the problem, objectives, scope and significance of the study as well as the provides the research questions and the organisation of the study.
1.1 BACKGROUND TO THE STUDY
This study is embarked on the topic, “an assessment of the level of political interference in the implementation of public procurement in public institutions: the case of New Juaben North and South Municipal Assemblies.”
Public purchases across the globe are imperative component in service delivery and functioning of various departments of government institutions. It is therefore of essence for governments to ensure that goods, works and services are provided efficiently to the public (Peterson and Flanagan, 2009).
Public procurement procedures arecritical for this to be achieved. All goods and services for public use should be guided by the Public procurement requirement (Roodhooft and Abbeele, 2006).
The public sector comprises of government departments and public institutions or the Ministries, Departments and Agencies (MDAs). These entities supply goods, works and services to the public and are supplied through public procurement (Peterson and Flanagan, 2009).
The Public Procurement Law, 2003 (Act 663) which has been amended in 2016 as Act 914 is a comprehensive legislation designed to eliminate the shortcomings and organizational weaknesses which were inherent in public procurement in Ghana. The government of Ghana, in consultation with its development partners had identified the public procurement system as an area that required urgent attention in view of the widespread perception of corrupt practices and inefficiencies so as to build trust in the procurement system. The World Bank reported that about 50-70% of Ghana’s national budget (after personal emoluments) was procurement related which therefore called for efficient public procurement system to achieve value for money in government expenditures.
Thus, to maintain sanity and attain value for money in public procurement, the government of Ghana in 1996 launched the Public Financial Management Reform Programme (PUFMARP) with the purpose of improving financial management in Ghana. PUFMARP eventually identified some weaknesses in the procurement system which included: lack of a comprehensive public procurement policy, lack of a central body with technical expertise, absence of clearly defined roles and responsibilities for procurement entities, absence of comprehensive legal regime to safeguard public procurement, lack of rules and regulations to guide, direct, train and monitor public procurement. The programme also identified that there was no independent appeals process to address complaints from tenderers. Consequently, the shortfalls identified led to the establishment of the Public Procurement Oversight Group in 1999, assigned to steer the design of a comprehensive public procurement reform programme which later led to the drafting of a public procurement bill in September 2002 and was eventually passed into law on 31 December 2003 and it became the Public Procurement Act 2003 (Act 663).
Public procurement is basically the process whereby public sector establishments, ministries, departments and local authorities acquire goods, works and services. The important function of public procurement has compelled most countries across the world, Ghana included, to promulgate laws and regulatory frameworks to streamline their public procurement activities.
However, many researches have proven that implementation of the public procurement laws and policies in many countries like Ghana have been bedevilled with some numerous challenges or hindrances. For instance, The National Public Procurement Authority of Sierra Leone in its 2005 report outlined several challenges bedevilling the operations of the Authority. Some of them included: inadequate funding, deficient staff strength and organisational and logistical limitations. The report recommended among other things, that the law could achieve its objective if there was a concerted effort by all stakeholders, backed by very firm political will and adequate budgetary support, to streamline and improve public procurement procedures in Sierra Leone.
A number of authors have investigated the factors that militate against public procurement implementation around the globe (Thai, 2004; Wittig &Jeng, 2004; etc.). However, these previous studies have not reported on obstacles to the public procurement implementation in Ghana.
By the year 2016, Ghanaian politicians showcased a strong political will in ensuring that lapses realised in the implementation of the PPA 663 were corrected and eventually, that year, Parliament passed the PP Amendment bill and it became the Amendment Act 914. Almost three years after the Act 914 came into existence, it is important to find out if there exist corruption among other weaknesses in procurement performance in the country. There is therefore the need to undertake a rigorous analysis of one of the key factors that has hindered the law in Ghana from achieving the purpose for which it was enacted.
1.2 STATEMENT OF THE PROBLEM
The public procurement system in Ghana is to ensure that in a harmonized procedure, all goods and services purchased by public institutions are done in a way that ensures a careful, economic and efficient use of public resources. It is also to ensure that transactions are devoid of corruption, but are done in fairly, plainly and in an impartial way, whereas encouraging competition among local industries.
There are important economic and political implications related to Public procurement hence, the need to make sure that the process is efficient and economical.
Political interference with the procurement process poses a challenge to the implementation process and public procurement reforms. A good number of politicians think that they have the right to intervene in the procurement procedures thereby leading to capricious procurement decisions (World Bank, 2012).
All key players in the public procurement process are required to understand the tenets of the procurement processes to ensure that it works efficiently. In a lot of government organizations howbeit, the public procurement process is sheltered with concealment, incompetence and bribery (Nyakundi et al., 2012). Previous studies have only concentrated on factors affecting procurement performance in public sector in Ghana but did not focus on political interference as a challenge.
This has inspired the researchers to carry out this study and also to fill the vacuum created and add to literature to the body of knowledge.
This work seeks to investigate political interference as a factor that affects performance of the public procurement process in Ghana’s public sector.
1.3 OBJECTIVES OF THE STUDY
The main objective of this research is to assess the level of political interference in the implementation of public procurement in public institutions in Ghana. In other words, it seeks to assess the extent to which politicians have interfered with public procurement processes in Ghana.
1.3.1 SPECIFIC OBJECTIVES
1. To assess the level of political interference in the implementation of Public Procurement process.
2. To identify other factors affecting public procurement implementation in public institutions.
3. To suggest some possible remedies to preventing political interference in public procurement implementation in public institutions.
1.4 RESEARCH QUESTIONS
1. Is there political interference in the implementation of the public procurement process in the public institutions?
2. Are there other factors affecting procurement implementation in public institutions?
3. What solutions are there to curb political interference in the implementation of the public procurement process?
1.6 SCOPE OF THE STUDY
The research used the New Juaben South and New Juaben North Municipal Assemblies as case studies for this study. The two municipal assemblies were chosen because they have the autonomy to procure goods, works and services. Most studies on public procurement law implementation have been conducted largely on factors affecting its implementation without focus on political interference. This research was conducted with focus on political interference by politicians in the implementation of the public procurement Act and it elicited responses from public procurement practitioners and other line mangers/administrators working in the two Municipal Assemblies.
1.7 SIGNIFICANCE OF THE STUDY
This study contributes to procurement activities and strengthens the act of obtaining goods, works and services in the public institutions in Ghana and also promotes transparency and accountability which are important components in the procurement practices. The study again contributes to the body of knowledge and offers some suggested remedies to reduce or eliminate political interference in public procurement implementation process in public institutions in Ghana.
1.8 ORGANIZATION OF THE STUDY
There are five chapters in this thesis. The first chapter introduces the study. It defines the problem statement, outlines the research objectives and the research questions as well as the significance of the study. The second chapter discusses the applicable literature on political interference in procurement in Ghana’s public sector, Africa and the world as a whole. Chapter three looks at the study design and methods used to gather the data. This third chapter includes a description of the study area, study participants, data collection guides and data analysis methodology. The fourth chapter dwells on the study results and discussions. Chapter five concludes the research by summarising the findings and offering recommendations for further studies.
SHARE PROJECT MATERIALS ON:
Assessment Of The Level Of Political Interference In The Implementation Of Public Procurement In Public Institutions:
Assessing the level of political interference in the implementation of public procurement in public institutions is a complex and sensitive task. Political interference can have significant implications for the transparency, efficiency, and integrity of the procurement process. Here are some key steps and factors to consider when conducting such an assessment:
- Define the Scope of the Assessment:
- Clearly define the scope and objectives of the assessment. Determine whether it will cover specific public institutions, regions, or the entire country.
- Identify Key Stakeholders:
- Identify the key stakeholders involved in the procurement process, including government officials, procurement officers, suppliers, and civil society organizations. Understand their roles and potential influence.
- Review Legal Framework:
- Analyze the legal and regulatory framework governing public procurement to identify any provisions that may facilitate or hinder political interference. Assess the adequacy of laws and regulations in ensuring transparency and fairness.
- Document Case Studies:
- Collect and document specific cases of alleged or confirmed political interference in procurement processes. These cases can serve as concrete examples of the issue.
- Review Procurement Procedures:
- Evaluate the procurement procedures and practices in place, including bid evaluation, contract award, and supplier selection. Look for any indications of irregularities or bias.
- Conduct Interviews and Surveys:
- Conduct interviews with key stakeholders to gather their perspectives on political interference in procurement. Consider using surveys to gather anonymous feedback.
- Analyze Procurement Data:
- Analyze procurement data to identify any unusual patterns or trends, such as a high number of sole-source contracts or frequent changes in contract terms.
- Assess Transparency Mechanisms:
- Evaluate the effectiveness of transparency mechanisms in place, such as the publication of procurement information, disclosure of conflicts of interest, and whistleblower protection.
- Engage Civil Society:
- Seek input and collaboration with civil society organizations, as they often play a crucial role in monitoring and advocating for transparency in procurement processes.
- Benchmark Against Best Practices:
- Compare the findings and practices against international best practices and standards for public procurement, such as those set by the United Nations or the World Bank.
- Develop Recommendations:
- Based on the assessment findings, develop recommendations for addressing political interference in public procurement. These recommendations may include legal reforms, procedural changes, and capacity-building measures.
- Raise Awareness:
- Share the assessment results and recommendations with relevant authorities, civil society, and the public to raise awareness about the issue and advocate for reforms.
- Monitor Progress:
- Continuously monitor the implementation of recommended reforms and assess their impact on reducing political interference in public procurement.
It’s important to note that political interference can take various forms, ranging from overt manipulation to more subtle pressure or influence. A thorough and impartial assessment should consider these nuances and strive to promote transparency, fairness, and accountability in public procurement processes.