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The Government of Ghana has since 2001 made various efforts to correct the uncontrolled expenditure of public funds that characterised the national economy which has led to a rather unstable economic climate. This article discusses the extent to which the Public Procurement Act (654) has achieved transparency in the use of state resources, causes o...
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Public procure and has hence gained considerable attention from various governments and policy makers. These public expenditures are expended by public organisations and at the focal point of procurement within the organization is the procurement unit. Despite this, the requirements for efficient and effective functioning of the procurement units h...
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... Most of the empirical studies conducted on PFM in Ghana have predominantly been focused among others on the review of PFM reforms (Owusu-Akomea et al., 2022;Tetteh & Ayenim-Boateng, 2021;Abdulai, 2020), Public Procurement (Adam, 2021Tweneboah & Ndebugri, 2017;Sarfo & Baah-Mintah, 2013); and Service Delivery (Scott, 2017). ...
Purpose: This study examines the extent to which public financial management (PFM) laws contribute to audit quality in the public sector and how the auditor-client relationship moderates this effect. Design/Methodology/Approach: This study used a quantitative survey research design to collect data from about 400 public sector auditors working with Ghana's Supreme Audit Institution (SAI), the Audit Service, by adopting the contextual factor of the IAASB's framework for Audit Quality using the PLS-SEM method of analysis. Findings: The study found that in the Public Sector, Public Financial Management (PFM) laws positively influence audit quality, while auditor-client relationships also negatively contribute to audit quality. Furthermore, it was also established that the auditor-client relationship negatively moderated the relationship between Public Financial Management (PFM) laws and audit quality. Implications/Research Limitation: The results of this study extend and add to the growing empirical studies on Public Financial Management (PFM), audit quality and the field of public sector auditing. However, the study will be limited to only public sector auditors working with Ghana's Supreme Audit Institution (SAI), the Audit Service. Practical Implication: The study results have the prospect of encouraging policy-makers to strengthen the independence and improve the capacity of the State Auditor (i.e. Ghana Audit Service) through appropriate PFM laws that seek to improve auditor-client relationships through relevant compliance and enforcement mechanisms. Originality/Value: This study is the first to directly examine how the Public Financial Management (PFM) laws contribute to audit quality in Ghana and how the auditor-client relationship moderates this effect. Nevertheless, this study differs from other prior empirical research on the basis of the method employed and the context of the study.
... Sarfo and Baah-Mintah 2013;Damoah and Kumi 2018;Damoah et al. 2019). There are manipulations of the procurement method (i.e. ...
... Between 1981Between , 1994Between , and 1996, the World Trade Organization (WTO) sponsored a series of good governance in procurement initiatives which culminated in the "Agreement on Government Procurement" aimed at streamlining public procurement in Ghana (World Bank Report, 2004). Ghana as part of the reformation process embarked on the Public Financial Management Reform Programme (PUFMARP) which was an integral component of Public Procurement System Reforms (PPSR) which eventually resulted in the enactment of the Public Procurement Act (Act 663) in 2003 which was later amended in 2016 as Act 914 to regulate all public procurement activities for all government agencies (Sarfo, 2011). The Ministry of Health (MOH), Ghana published its first institutional procurement manual in 2004, a document that provides guidelines and regulates public procurement for all agencies under the Ministry (MOH, 2004). ...
... Governments and institutions worldwide purchase products and services to enhance their activities. In the spate of corruption and scarce resources, the public sector has often developed a procurement system to guard the entire process (Sarfo & Baah-Mintah, 2013). In Ghana, the public procurement Act 663 (2003) is the legal regulatory instrument that guard's procurement processes in the public sector. ...
Procurement has become part of human life, from the fisherman to the cooperate man, the private sector to the public sector. It can be primarily grouped into private sector and public sector procurement. Public Procurement (PP) is a key economic activity of Governments that represents a significant percentage of the Gross Domestic Product (GDP) generating huge financial flows, estimated on average at about 10-15% of GDP across the world. Governments and institutions worldwide purchase products and services to enhance their activities. In the spate of corruption and scarce resources, the public sector has often developed a procurement system to guard the entire process (Sarfo & Baah-Mintah, 2013). In Ghana, the public procurement Act 663 (2003) is the legal regulatory instrument that guard's procurement processes in the public sector. It is the main regulatory framework for all procurements made in the name of public institutions. Though the procurement Act 663 (2003) plays a major role in guarding Government procurement processes, it is not without challenges. The study used multiple case studies as the strategy for the research. The target population of the research included procurement and stores officers of some selected Ministries of the Ghana Civil Service. The research aimed at identifying major procurement methods and their modes of operation in the Ghana Civil Service, determine the extent to which procurement methods used in the Civil Service give value for money and determine whether the approval process of public procurement takes a top-down approach or vice versa before the appointment of boards. The findings revealed request for Quotation as the most applied procurement method used in the Ghana Civil Service followed by National Competitive Tendering. The findings further revealed that a correct usage of the procurement methods ensures some benefits especially value for money. The bureaucratic structure of the government within the Ministries is a major impediment for the procurement system. The Chief Director has high powers over resources available in the Ministry and thus the power to interrupt the procurement process. Corruption was identified as the main snag of the entire procurement system.
... In his study, Mushanyuri (2014) confirms further the devastating effects of corruption in the public procurement systems in Zimbabwe, which have adverse effects on project implementation in several local councils. Research done in the past decade pointed to inefficiency gaps in the public procurement systems in Zimbabwe as the supply chain units of many local councils were ridden by the corruption that had detrimental effects on community service delivery (Mutava, 2012;Sarfo and Mintah, 2013). Although the new public management (NPM) approach advocates for efficiency, accountability, and transparency local councils in Africa experience severe service provision backlogs resulting from corruption and maladministration [ter Bogt, (2017), p.1;Dekker, 2016;Lodge and Hood, 2012). ...
The release of the 2018/2019 Auditor General's report on the state of local councils, unearthed many governance issues in Zimbabwe. Findings released for Harare City Council painted a dark picture in the general way the supply chain department conducts itself. The study reports on the observance of ethics and financial accountability within the supply chain unit. This article draws on data collected through semi-structured interviews and supported by documents solicited from Harare City Council between the period 2013-2018. Being guided by the network governance theory, the findings of the article revealed failure by council authorities to comply with supply chain management regulations, due to issues of fraud and corruption. The findings further indicate that there is an inadequate system to identify and disclose irregular public expenditure, whilst the performance of service providers and contractors was not monitored. As a result, allegations of fraud, corruption and improper financial conduct in the supply chain process, and ineffective internal controls, remain rampant, thereby weakening service delivery. The article recommends that the Harare City Council should strive for good ethical conduct and proper financial accountability in the Supply Chain Management Unit, which is imperative for improving service delivery in urban communities.
... In his study, Mushanyuri (2014) confirms further the devastating effects of corruption in the public procurement systems in Zimbabwe, which have adverse effects on project implementation in several local councils. Research done in the past decade pointed to inefficiency gaps in the public procurement systems in Zimbabwe as the supply chain units of many local councils were ridden by the corruption that had detrimental effects on community service delivery (Mutava, 2012;Sarfo and Mintah, 2013). Although the new public management (NPM) approach advocates for efficiency, accountability, and transparency local councils in Africa experience severe service provision backlogs resulting from corruption and maladministration [ter Bogt, (2017), p.1;Dekker, 2016;Lodge and Hood, 2012). ...
... Countries increasingly have enacted legislation and made rules and regulations that guarantee fairness and transparency in procurement practices and that public funds are deployed to public procurement in the supreme public good. Adu Sarfo (2011 ) points out that the bulk of governments revenue goes to the delivery of services via procurement services. It is therefore in the public interest to achieve value for money through planned and orderly processes of acquisition and management of this key government function. ...
... Improving public procurement management in such an environment will no doubt create wealth and reduce poverty. Public procurement, one can say, acts as a channel connecting public requirements of, for example, housing, transportation, educational infrastructure, sanitation, public health and development of SMEs to private-sector entrepreneurs and providers (Adu Sarfo, 2011 ). ...
... Governments in a sense employ the mechanisms of their budgeting process to ensure this approach is optimised, should they decide to produce their needs in-house or, given the wider public, the opportunity to participate through the procurement process, thus meeting the goals of value for money via sourcing of the services and good at the most optimum price in the appropriately needed quantities for use. Further, public procurement in government must be conducted and directed with the objectives of accountability, non-discrimination among potential suppliers and a commitment to globally best practices in mind (Adu Sarfo, 2011 ). Due to this, public procurement is expected to enact the required legislation to define and guide its practice in all countries, in order to protect its interest (Adu Sarfo, 2011 ). ...
... These are largely achieved through ensuring adequate procurement processes by all public sector organization in a country. Public procurement is the process whereby public sector organizations acquire goods, services and works from third parties (Pavel, 2009;Reimarova, 2011;Sarfo & Mintah, 2013). It also includes money spent by public sector to provide key services directly or indirectly to citizens in areas such as welfare, education, social care and health. ...
... The public sector in the United Kingdom (UK) for example spends over £150 billion a year on the goods and services necessary to deliver public services (European Commission, 2007). Public sector organizations are expected to apply the highest professional standards when spending money on behalf of taxpayers to ensure they get a good deal and to provide appropriate and necessary goods and services to the quality required meeting user needs (Sarfo, & Mintah, 2013). However, Federal contractors, service providers (FCSP), and researchers (Onyema, 2011;Jibrin et al., 2015) identified some problems and organizational weaknesses inherent in the Nigerian procurement system (Public Procurement Act 2007). ...
The costs incurred by various stakeholders participating in the tendering process and their magnitude has attributed incongruity between government and contractors, economic drain and less competition in public sector projects. The aim of the study is to develop model that predict the transaction cost of bidding construction projects based on Public Procurement Act 2007 (PPA 2007). To achieve this, quantitative survey design based on structured questionnaire was used. The data collected from 143 sampled contractors selected using stratified sampling techniques from the NorthWest states of Nigeria were analyzed using Partial Least Squares-Structural Equation Modeling software. The results from the analysis revealed three (3) major sources of transaction costs identified from the field as; eligibility documents, contract administration costs, and securing related documents methods. In addition, the three identified transaction costs sources were found to be significant determinants of transaction costs for contractors bidding for construction projects of various types. Moreover, bidding costs model was found to exhibit good forecasting power that can be used to predict the magnitude of costs incurred by contractors in bidding projects in Nigeria. The study concludes that the transaction costs of contractors in bidding construction projects on average is 8.21% of contract sum after validating the model with real life data, and it will benefit incoming firms into the industry as a bidder by knowing their entry probable costs indicators for public projects. The study recommends that further studies should be explore to identify some potential factors such as Equipments, financial capability and professional staff strength which could provide new insights into bidding transaction costs incurred for construction projects.
... Public procurement is a business function within a political system (Watermeyer, 2011). In Zimbabwe it is estimated that 60 % of government expenditure is allocated to public procurement (Mushanyuri, 2014), as such, it is clear that public procurement decisions significantly affect service delivery and public sector performance (Mutava, 2012;Sarfo & Baah-Mintah, 2013;Thou & Njeru, 2014). A handful of studies associate the poor and continuously declining quality of service delivery and public sector performance to poor implementation of government projects (Tsabora, 2004;Dzuke & Naude, 2015), yet literature on the impact of public procurement decisions on public sector performance remains scant. ...
The study attempts to theoretically explore the influence of public procurement decisions on public service delivery and to propose a structure of the relationship between an efficient public procurement system and the effectiveness of public service delivery. The study hypothesizes that there is a positive relationship between efficient public procurement and effective public service delivery in Zimbabwe local authorities, taking into consideration the mediating effect of corporate governance practices. The study briefly explores the historical background of procurement as an emerging corporate administrative function. Also, a brief review of the relationship between public procurement and public service delivery is outlined. The main objective of this study is to fill the gap in literature on the link between public procurement and public service delivery, and provide an opportunity for future studies to deeply and empirically investigate this relationship.
... The selection of bidders, criteria applied for expenses and tendering procedure can be subject to public examination and review (Beh, 2010). Transparency, especially, enables the public to challenge unfair public officials and make them more accountable, as mistakes, errors in judgement and bad practices can be reviewed (Sarfo and Baah-Mintah, 2013). However, sole-sourcing creates 2 https://www.vg.no/nyheter/innenriks/ghana/ghana-s-minister-of-power-signed-deal-with-a-man-from-oslowanted-for-fraud-and-organized-crime-the-deal-is-worth-510-million-dollars/a/23577965/ 3 Available here: https://www.ghanaweb.com/GhanaHomePage/NewsArchive/FULL-TEXT-Report-on-AMERI-Power-Purchasing-Agreement-522780 ...
