Impact Of The 2007 Procurement Act On Accountability Of Officers In The Public Sector Of Nigeria

Impact Of The 2007 Procurement Act On Accountability Of Officers In The Public Sector Of Nigeria

Abstract

The study examined the impact of the 2007 procurement act on the accountability of officers in the public sector of Nigeria using employees of the state ministry of education, Kaduna as a case study. Objectives formulated were to critically appraise the 2007 procurement act, check mate its impact on quality control in the public sector and examine its overall impact on corruption reduction in the public sector. A sample size of 80 respondents were used for the study as they were issued questionnaires to sample their opinions on the usage and application of the 2007 procurement act in their various departments. Both primary and secondary sources of data were applied for the study. Findings from the study reveal that the procurement act generally allows for a fair opportunity to suppliers to compete with each other. The study revealed that strict compliance when awarding contract, harmonization of the contract process, transparency in the contract process were all enshrined in the procurement act to ensure affair and leveled playground for all contractors.

Chapter One

Introduction

1.1 Background of the Study

This study intends to shed more light on the impact of public procurement act on the accountability of procurement officers in public sector in Kaduna state ministry of education and how it contribute positively towards the conservation of resources in a services organization.

However, the researcher feel it would be of great importance to conduct a detailed study on the procurement process or system used by the services organization and the impact of federal government procurement act on the accountability of procurement officers in the public sector.

Base on wide spread corruption, conducting government business degenerated so much by the year 2000. This was due to the fact that no serious attention was paid to public service rule.

Financial regulations ethics and norms because of selfish reasons. The federal government noted the urgent need to transparency in government procedure so as to be able to move the system forward. Hence, the federal government in 2000 commissioned the world bank to collaborate with some private sector specialist to study financial systems and general procurement related activities in the country. The essence of this request to the world bank is to assist Nigerian government with a process of enthroning efficiency, accountability, integrity and transparency in government procurement and financial management system.

It was based on this that the country procurement assessment report was produced through a participatory review approach from key stakeholders including representative from private and the federal, state and local government with assistance from international and national consultants.

1.2 Statement of the Problems

A diagnostic study conducted in 2001 in to the state of federal government public procurement revealed that Nigeria may have lost trillions of naira over the last two decades because of flagrant abuse of procedures for the award of public contracts, inflation of contracts costs, lack of transparency, lack of competence based competition and merit as the fundamental criteria for the award of public contracts. The finding of the study made it imperative that the country urgently reform its procurements system, if the country is to reduce the large scale corruption and waste that had reduced the efficiency of the Nigeria public sector.

Most organization lost a lot of money annually through all kind of manipulation of the procedure for the award of contracts and supply of materials.

Ministries and government agencies has been facing difficulties in the award of contract due to lack of due process in the agencies.

Federal government preferment act on the accountability of procurement officers in public sector is a vital tool in any fine-tuning organization either service or profit oriented organization. But it has been observed that its importance and role which can lead to efficiency had not yet been appreciated in most Nigeria ministries today.

1.3 Objective of the Study

The main rational of this study is to appraise the procurement act and its impact on the accountability of officers in public sector.

These objectives are as follows:

1. To evaluate the procurement act as it relates to providing fair opportunities to suppliers through bidding in a competitive environment for all government business.
2. To evaluate the contributions /impact of the act towards reducing and eliminating corruption in the procurement process and earn the respect of the public and supplier.
3. To examine the contribution of the act toward Quality control and assurance
4. To evaluate the contributions of the procurement act towards budget monitoring and control.

1.4 Significance of the Study

The research work will critically concern with the impact of procurement act on the accountability of procurement officers in public sector which is essential things in the government ministries for the award of public contract. It is imperative to note that this research work will be beneficial

The importance of the research work base on its benefit, there will be ultimate to the organization itself and students of purchasing and supply department at large.

Significantly the researcher hope that this research work will provide the organization with a meaningful and useful source of information in to guess to embark on procuring and award of contracts.

Organization will benefit from the research finding and recommendation in the process of awarding contract and procurements

It will also be useful to subsequent researcher and student who may wish to conduct further research in this field, it will served as data base for further study.

It is a requirement in partial fulfillment for the award of a Higher National Diploma in Purchasing and Supply of Kaduna Polytechnic.

1.5 Research Questions

1. How do the procurement act provide fair opportunity to suppliers in the competitive market environment.
2. What are the impact of the procurement act towards reducing corruption in the award of public contract.
3. What are the contribution of the procurement act of quality control and assurance.
4. What are the relevance of procurement reforms act to subject monitoring and control.

1.6 Scope of the Study

This study does answer to all problems related to the federal government procurement act rather its limited to it chosen narrow area of accountability of procurement officers, its fairness, integrity and basis of effective control in public sector

Since the researcher is concerned with federal government procurement act on the accountability of procurement officers in the public sector particularly Kaduna state ministry of education.

1.7 Definition of Terms

The terms used in the course of the researchers project are however defined as follows for easy understanding.

Procurement:

This is the acquisition of goods services or works from an external source.

Procurement:

Means acquisition

Procurement Proceeding:

Means the initiation of the process of effecting a procurement up to award of procurement contract.

Procurement entity:

Means any public body engaged in procurement and it include a ministry extra-ministerial office, government agency, parastatals and corporation.

Public procurement:

Means the acquisition by any means of goods, works or services by the government.

Public accountability:

The obligations of public enterprises and agencies (who are entrusted with public resources) to be answerable for fiscal and social responsibilities, to them.

Due process:

It is a mechanism for ensuring strict compliance with the openness, completion and cost accuracy, rules and procedures that should guide contract award within the federal republic of Nigeria (BMPIU 2005)Â

Relevant Authority:

It includes economic and financial crimes commission (EFCC) and independent corrupt practices commission (ICPC).

Public Procurement Act:

It is the act enacted by the national assembly to establish two public procurement regulating authorities.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary of Findings

The first objective of the study was to find out if the procurement act provides fair opportunity to suppliers in the competitive market environment. Table 4.1 reveals that the procurement act generally allows for a fair opportunity to suppliers to compete with each other. The study revealed that strict compliance when awarding contract, harmonization of the contract process, transparency in the contract process were all enshrined in the procurement act to ensure affair and leveled play ground for all contractors.

The study also revealed the impact of the procurement act towards reducing corruption in the award of public contracts. Table 2 revealed that corruption is reduced through planned mechanisms and clauses in the procurement act. The procurement act has led to the formulation of a regulation preventing corruption and various clauses in the procurement act ensure contracts are awarded directly to contractors and suppliers to minimize and curb fraud.
The third research question guiding the study also highlighted the contributions of the procurement act towards quality control and assurance. Table 3 shows that the procurement act acts as a tool for increasing quality compliance in the sector. The procurement act also guide and inspects every public contracts thereby ensuring quality and control.

5.2 Conclusion

For accountability to be sustained in the procurement of goods for public use, there must be contract planning to serve as an impact for increased accountability and controlling mechanism technique, there has to be a plan upon which budget productivity is based.

Productivity must be planned before it can be controlled operation has to be determined and analyzed into expenditure costs so as to know how realistic would be contribution to project goals to make budget without planning.

It is just like putting the cat before the horse and a plan without a complimentary control would be pointless. The private sector has achieved the benefit of long range planning however it has not fully achieved the benefit of short range planning the budgeting fully. Moreover, the company has operated with adherence to the budgets and plans usually made in the areas to which they were applied and has been able to realize a targeted goals with only minor deviations from the budgets.

These deviations were due to external factors which cannot be controlled by the company (private sector) efficiency and effectiveness has also been achieved by the company through the use of long range planning which improve or increase productivity.

5.3 Recommendations

The researcher is of the opinion that long range contract planning of the company should be maintained and pursued fully reached. This is because the company has benefited from it, ranging from creation of economic and minimization e.g. its expenditure.

However, in the area of its operational planning, the company should devise a good specialization policy so that each department within the company should perform specific operation of function.

This will help the company to achieve efficiency and effectiveness in the area of its short term tactical planning and budgeting. This is because for operational performance or goals to be achieved, such operation has to be planned which will go a long way in controlling the productivity of the organization.

The company should employ competent and intelligent staff which a lot of experience to facilitate the planning which will go a long way in controlling in productivity in the organization.

Budget plans and control should be reviewed on an operated effective and efficiently as to facilitate the realization of the goal which is the productivity increase in an organization.

The company corporate planning should have the total support and involvement of top management. It is not a process to be left to technical specialist then assistance and advice can be extremely useful but management involvements is essential.

The company should avoid excessive detail in corporate planning. I recommend that the corporate planning should provide a curse gained strategic structure for long term future.

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