International Journal of Mechanical Engineering and Technology (IJMET)
Volume 10, Issue 04, April 2019, pp. 536-545. Article ID: IJMET_10_04_052
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=4
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication Scopus Indexed
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle
Department of Building Technology, Covenant University, Ota, Ogun state, Nigeria.
ABSTRACT
The procurement system in Nigeria is known to be bedeviled with mismanagement and corruption. The scenario prompted the enactment of Public Procurement Act,
(PPA) 2007 which regulates all procurement of projects made with public funds. The
Act was enacted to be complied with by both the federal and state governments together with Ministries, Departments and Agencies (MDAs) in their procurement of goods, works and services. Studies however, have shown that compliance with the Act by the various procurement entities is affected by diverse challenges. This study investigates and compares the various causes of non-compliance with the PPA, 2007 among two prominent categories of government sponsored tertiary institutions in Southwest,
Nigeria namely; Federal Tertiary Institutions (FTIs) and State Tertiary Institutions
(STI). A questionnaire survey research approach which involved a field survey of
Federal and state Tertiary Institutions in Southwest, Nigeria was carried out . In all, 44
Higher Education institutions comprising 17 federal tertiary institutions and 27 state tertiary institutions were used for the study. The perception of the institutions’
Procurement Officers on the problems associated with the implementation and compliance with the provisions of the Act and their consequences were sampled using structured questionnaires.The results revealed that unfamiliarity with the provisions of the Act, poor record management, unprofessionalism, inadequate organizational incentives and media publicity were the major causes of non-compliance.
The study concluded that there is need for understanding of the Act by the parties involved in the implementation of the Act in both the FTIs and STIs in Southwest,
Nigeria for effective compliance. The study recommended among others, trainings in form of conferences, seminars and workshops to the procurement officers of the institutions for better and improved compliance with the Act.
Keywords : Public Procurement Act, Construction procurement, University,
Polytechnic, College of Education, Higher Education Institution.
http://www.iaeme.com/IJMET/index.asp 536 editor@iaeme.com
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle
Cite this Article Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I.
Fagbenle, Causes of Non-Compliance with Public Procurement Act, 2007 among
Federal and States Tertiary Institutions in Project Delivery in Southwest, Nigeria,
International Journal of Mechanical Engineering and Technology, 10(4), 2019, pp. 536-
545. http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=4
Public procurement refers to the overall process of acquiring, purchasing or obtaining materials, services or properties from outside a government, governmental agencies, ministries, departments or extra ministerial department (PPDC, 2012). The process is usually guided by different laws or regulations in all the nations of the world. The regulation guiding public procurement in Nigeria is referred to as the Public Procurement Act, 2007 (BPP, 2007). The regulatory authorities for the monitoring and implementation of the Act are the Bureau of Public
Procurement (BPP) and the National Council on Procurement (NCP). The Act was enacted in
2007 as a regulatory framework for all public procurement in Nigeria. It stipulates clear cut procedures for achieving competitiveness, credibility, accountability and transparency in all procurement financed with public funds. However, several years after the enactment, compliance with the Act is still a major challenge (Ayangade, Wahab and Alake, 2009; Wahab,
2014; Hyancinth & Yibis, 2017). PPDA 2006 reported that non-compliance with set procurement process, performance and procedure has led to irregular and subjective decisions and that such decisions had resulted into costly consequences for most public entities, and the country at large.
Federal Tertiary Institutions (FTIs) and State Tertiary Institutions (STIs) are two levels of institutions owned by the federal and state governments respectively. They have three categories of tertiary institutions each namely: Universities, Polytechnics and Colleges of
Education. These institutions with the help of funds obtained from their internally generated revenues, allocation from governments, as well as grants from several organizations and
Agencies like Tertiary Education Trust Fund (Tetfund), World Bank, UNESCO, among others, procure several projects. Such projects include classrooms, hostels, lecture theatres, studios, workshops, laboratories, among others. The tertiary institutions from these two levels of governments are part of government MDAs expected to comply with the PPA, 2007 in all their procurement activities. The two levels of government in Southwest Nigeria have 44 Public
Tertiary Institutions (JAMB, 2016). These institutions increased in population as a result of yearly students’ enrolment as well as the corresponding staff recruitments. Resulting from this, an enormous capital outlay is required in terms of physical infrastructural developments. In view of their enormous infrastructural capital projects requirement and the attendant contributions to success and development of the institutions and the nation in general, this study seeks to examine the causes of non-compliance with the procurement Act, 2007 among the
Federal and State Tertiary Institutions in Southwest Nigeria, with a view to comparing the effect of the causes of non-compliance with the Act among the two levels of government sponsored tertiary institutions.
Tertiary institutions in Nigeria refer to the post-secondary section of the national education system which comprises of Universities, Polytechnics and Colleges of Education. Its contribution to the advancement of education and economic development of the nation cannot be over emphasized (Okpareke, 2007). They are involved in the procurement of diverse http://www.iaeme.com/IJMET/index.asp 537 editor@iaeme.com
Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria construction projects for different purposes ranging from classrooms, offices, recreation, residences among others.
Procurement processes in public organizations are done by rules, regulations and Acts.
These regulations seek to check corruption and also to ensure that award of contract is based on competition and not on favoritism. This is because of the contribution of public procurement to the economic development of the nation. It constitute between 15-30% of the Gross Domestic
Product, GDP (Transparency International, 2006). Public procurement is so significant that it cannot be over emphasized as it involves a very huge financial commitment. It accounted for about 20% of government expenditure globally (Mlinga, 2009). The practice of public procurement dated back to 2400 and 2800 BC and has a great impact on economies of developed and developing nation and requires prudent management (Thai, 2009).
Good governance has been traced to existence of clear and unambiguous procurement policies and practices. This ensures a reduction of cost and timely results in government transactions. Poor practices on the other hand lead to waste and delays and are often the cause of allegations of corruption and government inefficiency (BPP, 2011). Efficient, effective and professional application of public procurement regulations can contribute towards sound management of public funds (Hunja, 2003). Past government in Nigeria before the year 1999 experience periods of frauds, corruption and many unwholesome procurement practices. This was attributed to prolonged military rule and absence of statutory laws upon which public procurement are based (Musa, Success & Nwaogu, 2014; Kareem,Asa & Lawal 2014 ).
In attempt to address this issue, the Nigeria government established the Budget and Price
Intelligence Monitoring Unit (BMPIU) popularly called ‘Due Process’ in 2001 to implement public procurement reforms as one of the transparency pillars in the overall federal government economic reform programmes (BPP 2001). This name was later changed to Bureau of Public
Procurement (BPP) with the enactment of Public Procurement Act 2007 (Kareem, et al 2014).
After the enactment of the Act the challenges remain that of compliance, however the questions remain as what are the likely causes of non-compliance with the Act among the tertiary institutions owned by the two levels of government and their attendant effects? The answers to these questions is expected to assist the two levels of government, the BPP as well as the two categories of tertiary institutions to achieve the objectives of the procurement Act and ensure good procurement practice. This study therefore seeks to provide the required solutions needed to achieve the objective.
In order to achieve the objectives of this study a field survey was carried out. The study area consists of six states in the southwest Nigeria namely; Lagos, Ogun, Oyo, Osun, Ondo and
Ekiti.. The population of the study comprises of two subjects namely; 44tertiary institutions divided into 17 Federal Tertiary Institutions (FTIs) and 27 State Tertiary Institutions (STIs) in southwest Nigeria and 44 completed building projects done by the institutions in the year 2016.
The project with the highest value procured by each institution in 2016 was selected by purposive sampling technique to make a sample size of 44 projects. Procurement officer of each institution who was either a builder, architect, engineer or quantity surveyor was adopted as the respondents of the study. To assess the causes of non-compliance with PPA, 2007 respondents were requested to indicate the scale that represented the effect of each cause of non- compliance with the Act in their institutions on a 5-point Likert Scale; very low = 1, low = 2, moderate =
3, high = 4, and very high = 5.
Structured questionnaires administered to the respondents of the study and collected by trained research assistants were used as instrument for collection of data for the study. The http://www.iaeme.com/IJMET/index.asp 538 editor@iaeme.com
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle instrument was first validated by lecturers in the Department of Building Technology, Covenant
University, Ota, Ogun state and by some consultants who were postgraduate students in the
Department before the field survey. The reliability of the instrument was determined by analysing the Crombach alpha coefficient, values of the items or questions in the instrument.
The Crombach alpha coefficient for the instrument ranges from 0.703-0.911. The Crombach alpha coefficient indicated that the instrument was reliable
To provide an understanding of the respondents of the study, their characteristics were investigated as a background to the results. For the investigation, nine (9) characteristics of the respondents were selected. The characteristics are: respondents’ sex, marital status, age, experience in construction, highest academic qualification, professional qualification, professional status and position in the institution.
The distribution of the respondents over the sub-variables of characteristics is analysed using percentage. The results are presented in Table 1.
Table 1 Descriptive result of the characteristics of the respondents of the study
Characteristics
Respondent Gender
Male
Female
Total
Respondent Age
1 - 16years
17 - 32years
Above 32 years
Total
Respondent Highest
Academic Qualification
OND
HND
BSc.
PGD
MSc
PHD
Total
Respondent Professional
Status
Licentiate
Associate
Graduate
Corporate
Fellow
Total
1
7
9
1
25
1
44
44
0
1
43
44
N
37
7
2
5
16
14
7
44
2.3
15.9
20.5
2.3
56.3
2.3
100
%
84.1
15.9
100
0
2.3
97.7
100
4.5
11.4
36.4
31.8
15.9
100
Characteristics
Respondent Marital Status
Single
Married
Divorce
Widow
Total
Respondent experience in Construction
1 - 10years
11 - 20years
Above 20 years
Respondent Professional Qualification
NIOB
NIQS
NIA
NSE
NATE
NITD
Respondent Position in the Institution
Technical Officer
Professional
Deputy Director
Director
Total
19
13
1
8
2
1
44
0
44
18
13
13
44
N
0
44
0
13
26
3
2
44
43.2
29.5
2.3
18.2
18.2
2.3
100
0
100
40.9
29.5
29.5
100
%
0
100
0
29.5
59.1
6.8
4.5
100
N = No of Respondents, NIOB = Nigeria Institute of Building, NIQS = Nigeria Quantity
Surveying, NIA = Nigeria Institute of Architecture, NSE = Nigeria Society of Engineers, NATE
= Nigeria Association of Technological Engineers, NITD = Nigeria Institute of Technical http://www.iaeme.com/IJMET/index.asp 539 editor@iaeme.com
Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria
Table 1 reveals the respondent characteristics which shows that male respondents constitute majority 84.1%, while the female respondents constitutes the minority 15.9% the result widely reflects the nature of construction industry as it is widely dominated by men across the world.
Table 1 further reveals that the respondents belong to the working class age group. It further reveals that the respondents were all married. The table further shows that the respondents fall within the short (1–10yrs), medium (11–20yrs) and long (above 20yrs) years’ of experience in construction. 96% of the respondents sampled being graduates distributed into; HND 15.9%,
BSc 20.5%, PGD 2.3%, MSc 56.8%, and PhD 2.3% as their highest academic qualifications and all are professionally registered. Table 1 further reveals that respondents are all members of professional bodies of different status distributed into; Graduates 36.4%, Corporate 31.8%,
Fellows 15.9%, 4.5% and Associates 11.4%. Table 1 also shows the respondents’ position in their institutions distributed into; Professionals 59.1%, Technical Officer 29.5%, Deputy
Directors 6.8% and Directors 4.5%. The results of the respondents background shows that their characteristics were adequate to participate in the study.
As a way of understanding the institutions sampled in the study, their characteristics were investigated. Seven characteristics of the institutions were investigated altogether. These characteristics are; institution category, ownership, number of students enrolment, number of staff employed, location of the institutions, nature of the location and the year of establishment of the institutions. The data collected were analysed using percentage. The results were presented in Table 2
Table 2 Descriptive result of the characteristics of the respondents’ institution of the study
Characteristics
Institution Category
University
Polytechnic
College of Education
Total
Number of Student Enrolment by the respondent Institution
1 – 1000 (Small size)
1001 – 10000 (Medium size)
Above 10000 (Large size)
Total
Location of Institution
Lagos
Ogun
Oyo
Ondo
Ekiti
Osun
Total
N % Characteristics
Ownership
17 38.6 Federal
17 38.6 State
10 22.7 Total
44 100
Number of Staff Employed
5 11.4 1 – 250 ( Small size)
26 59.1 251 – 500 ( Medium size)
13 29.5 Above 500 ( Large size)
44 100 Total
Nature of the Location of respondents' Institution
10 22.7 Urban
10 22.7 Rural
6 13.6 Total
6 13.6
4 9.1
Year of Establishment of
Respondents' Institution
8 18.1 Before 1979
44 100 1979 – 1983
N %
17 38.6
27 61.4
44 100
8 18.2
12 27.3
24 54.5
44 100
27 61.4
17 38.6
44 100
14 31.8
11 25.2 http://www.iaeme.com/IJMET/index.asp 540 editor@iaeme.com
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle
After 1983
Total
19 43.2
44 100
N = number of respondents, % = percentage
Table 2 reveals that the institutions sampled were drawn from three categories namely;
Universities, Polytechnics and Colleges of Education. Universities constituted 38.6% of the institutions sampled, while Polytechnics constituted 38.6%, colleges of Education constituted
22.7% of the institutions. The result shows that the study sample was fairly distributed over the three categories with none of the three categories constituting the majority. The table also shows that the PTIs were either owned by Federal or state governments with the Federal government owned institutions constituted 45% of the PTIs while the State owned institutions constituted the majority with 54.5% of the PTIs. The table further reveals that the respondent’s institution student’s enrolments were either low (1-100), medium (100-10000) or dense (above 10000) population. The respondents with medium population of students constituted the majority with
59.1% of the institutions student enrolment, the dense population category constituted 29.5% of the respondents, while the low student’s population category constituted 11.4% of the study sample. Table 2 also shows that the staff employments by the respondents institutions were classified into low, medium and high in the range of (1-250), (251-500) and above 500 respectively. The institution with high staff employment constituted the majority 54.5% of the respondents, while the medium employee institutions’ categories constituted 27.3%. The increased number of students and staff in the institutions is an indication of the need for increase procurement of construction projects by the institutions. Table 2 further shows the distribution of the study sample into states with Lagos and Ogun States having the highest number of tertiary institutions of 27.7% each, while Osun State constitutes 18.1% with Oyo and Ondo states having the same number of tertiary institutions of 13.6% each. The table further reveals that the institutions were either established before the first republic 1979, during the first republic
1979-1983 and after the first republic 1983.
Causes of non-Compliance with PPA, 2007 by PTIs
Twenty selected causes of non-compliance with PPA, 2007 by PTIs classified into internal and external causes were investigated. Respondents were requested to indicate the scale that represented the effect of each selected factor on non-compliance with PPA, 2007 by their institutions on a 5- point Likert scale as follows; very low =1, low =2, moderate=3, high =4 and very high =5. Data collected were analysed using
Mean Score (MS).The effect of each factor on non-compliance with the PPA, 2007 was measured using the following ratings; very low= (1.00-1.49), low= (1.50-2.49), moderate (2.50-3.49), high= (3.50-4.49) and very high= (4.50-5.00). The effects are analysed using Mean Score (MS). The results are presented in
Table 3.
Table 3.
Causes of non-compliance with PPA 2007 by Federal Tertiary Institutions(FTIs)
FTIs STIs
N MS Rk Eff N MS Rk
Unfamiliarity with the provision of the
Act
Record management
Professionalism
Corporate Governance
Organisation Incentive
Time Factor
20
20
20
20
20
20
4.0
3.8
3.7
3.7
3.6
3.6
1
2
3
3
5
5
H
H
H
H
H
H
24
24
24
24
24
24
3.6
3.6
3.6
3.2
3.7
3.2
2
2
4
13
1
13
Eff
H
H
H
M
H
M http://www.iaeme.com/IJMET/index.asp 541 editor@iaeme.com
Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria
Organisational Culture
Media Publicity
Corruption
Non employment of procurement officer
Enforcement
Political Interference
Delay caused by the provisions of the
Act
Cost of compliance with the provisions of the Act
Sponsorship of the project
Difficulty in complying with the provisions of the Act
Irrelevant Provisions
Provision not the duty of procurement team members
Risks in complying with the provisions of the Act
Non-availability of document
20 3.5 7
20 3.5 8
20 3.3 9
20 3.2 10
20 3.2 11
20 3.0 12
20 3.0 13
20 3.0 13
20 3.0 13
20 2.9 16
20 2.9 17
20 2.8 18
20 2.8 19
20 2.7 20
H
H
M
M
M
M
M
M
M
M
M
M
M
M
24 3.4 7
24 3.6 4
24 3.0 15
24 3.5 6
24 3.3 10
24 3.4 7
24 3.4 7
24 3.0 15
24 3.3 10
24 2.8 18
24 2.5 20
24 3.1 17
24 3.3 12
24 2.8 18
N= No. of Respondents, MS = Mean Score, Rk = Rank, Eff = Effect
M
M
From Table 3, it could be seen that there are eight major causes of non-compliance with PPA
2007 by FTIs namely; unfamiliarity with the provisions of the Act, records management, professionalism, corporate governance, organizational incentives, time factor, organizational culture and media publicity. All these factors have high effect on non-compliance with the Act while the remaining twelve causes have moderate effect on non- compliance with the Act. The table also reveals that the least causes of non-compliance with the Act by FTIs are; difficulty in complying with the provisions of the Act, irrelevant provisions of the Act, provisions considered not to be the duty of procurement team members, risks in complying with the provisions of the Act, and non- availability of documents.
The table also reveals that there are six major causes of non-compliance with PPA 2007 by
STIs namely; unfamiliarity with the provisions of the Act, records management, professionalism, organization incentives, media publicity and non-employment of procurement officer. These causes of non-compliance all have high effect on non-compliance with the Act.
The remaining fourteen causes have moderate effect on non-compliance with the Act. Table 3 further reveals that the least causes of non-compliance with the provisions of the Act by STIs are; irrelevant provisions, non- availability of documents, difficulty in complying with the provisions of the Act, and provisions not the duty of procurement team members.
Whereas non-employment of procurement officers have moderate effect on non- compliance with the Act by FTIs, it is considered as having high effect on non-compliance with the Act by STIs. The implication of this is that the STIs require the employment of qualify procurement officers trained in the implementation of the Act, this will ensure that the procurement process is being handled by competent person with adequate knowledge of the
Act. Time factor and organizational culture have high effect on non-compliance with the Act by FTIs, whereas, these have moderate effect on non-compliance with the Act by STIs. The implication of time factor is that some of the institutions believe that the time taken to go
M
H
M
H
M
M
M
M
M
M
L
M http://www.iaeme.com/IJMET/index.asp 542 editor@iaeme.com
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle through the various procedures involved in compliance with the Act is too long and it constitutes a sort of delay to the commencement of the project work.
Unfamiliarity with the provisions of the Act, records management, professionalism, organizational incentives and media publicity are the five major causes of non-compliance common to both FTIs and STIs and these causes have high effect on non-compliance with the
Act. Familiarity implies adequate knowledge of the Act for which they are required to comply with. Adequate knowledge is always required for compliance, this agrees with the view of
Gelderman et al (2006) and Rossi (2010) that compliance with formal elements is an indication of possession of the knowledge of the rules and that public purchaser will comply with the rules regarding a system if they perceive the rules as being clear. Records management of procurement proceedings is very important if the objective of the procurement process of ensuring accountability is to be met. Professionalism requires that both the FTIs and the STIs require more employment of procurement officers who are professional in the construction profession. The will ensure that they are capable of handling procurement matters and are able to interpret and implement procurement regulations appropriately. Provision of incentives to the procurement officers as well as staff in the procurement department could go a long way in ensuring better performance, eliminate or at least reduce temptation for corruption in the procurement practice and hence achieving more compliance. The result also shows that media publicity constitute one of the major causes of non-compliance with the procurement Act with high effect. Both the FTIs and the STIs are government institutions headed by accounting officers that have tenure of office, the fear of publication or exposure of their misdeeds or wrongdoing will make them to ensure compliance with the Act.
The study has been able to identify those causes of non-compliance with PPA, 2007 among the
State and Federal tertiary institutions in southwest, Nigeria and subsequently their effects. This will assist the managements of the various categories of institutions under the two levels of governments to take necessary actions in order to forestall further contravention of the Act which may produce the wrath of government as well as their other sponsoring organizations on them.
The study compares the causes and effect of non-compliance with public procurement Act,
2007 among Federal and State sponsored tertiary institutions in southwest Nigeria. It was discovered that there are five major causes of non-compliance with the Act that are common to these category of institutions and that the effect of such causes are high. These causes include unfamiliarity with the provisions of the Act, records management, professionalism, organizational culture and media publicity. Corporate governance, time factor and organizational are causes that contributes major causes among the federal institutions. These three causes have high effect with the FTIs but moderate effect with the STIs.
The study recommended regular trainings, workshops, seminars, and conferences on interpretation and implementation of the procurement Act by the state and federal governments for parties involved in the implementation of the procurement Act. Understanding of the provisions of the acts will assist in the compliance during the procurement process in the two categories if the institutions. These institutions should ensure good record keeping of both the past and current procurement proceedings this will prevent destruction of valuable documents which encourage corruption during the implementation of the provisions of the Act.
Procurement officers employed for procurement in any discipline will perform better when the professionals in that particular field are employed for the purpose, hence employment of procurement officer in the construction discipline should be construction professionals. Regular publications as well as issuance of procurement documents to these institutions will assist them http://www.iaeme.com/IJMET/index.asp 543 editor@iaeme.com
Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria in compliance with the provisions of the Act. The Bureau of Public Procurement as the regulatory body should ensure the publication of the names of institutions as well as the executives of the institutions that refused to comply with the Provisions of the Act. This will serve as a way of enforcing compliance with the Act in these institutions.
The authors acknowledge the article processing charges paid by Covenant University for the
Open Access of this publication.
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Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle http://www.iaeme.com/IJMET/index.asp 545 editor@iaeme.com