NAME OF CENTRE
: ZCAS UNVERSITY
Program
: BA (Hons) BUSINESS PURCHASING
SUPPLY CHAIN MANAGEMENT
Course
: THEMATIC INDEPENDENT STUDY
Student Number
: 001177333
Course Code
: RESE1081
Due Date
: 24th November, 2021
Word Count
: 5425
TABLE OF CONTENTS
1.
Introduction ………………………………………………………………………..…..1
2.
Essay Questions ……………………………………………………………...…….…. 2
3.
Significance of the Study..……………………………………………………..............2
4.
Relevant Literature…………………………………………………………………… 3
5.
Conclusion…………………………………………. …………………………………14
6.
References………….. …………………………………………………………………16
LIST OF ABBREVIATIONS AND ACRONYMS
ASA
American Society of Appraisers
ICT
Information and Communication Technology
HR
Human Resources
OECD
Organization of Economic Cooperation and Development
UN
United Nations
ZESA
Zimbabwe Electricity Supply Authority
i
1.0 Introduction
Ethics are rules or standards for governing the relations between people to benefit all concerned,
with mutual respect for the needs and wants of all parties involved (ASA, 2013). The word "ethics"
means a system or code of morals that mediate how individuals and groups respond to particular
situations. They are the values of thought, attitude, decision making and behavior that are believes
to be morally right and appropriate in a given commercial and economic context (Pasternak, 2015).
In the most basic sense, ethics can be conceptualized as standards of conduct. The primary idea is
that they denote any conduct which society accepts as ideal, good or moral. The level of trust and
good faith during any relationship and transaction is dependent on the level of honesty or integrity
amongst the parties involved. In other words, it depends on the extent to which the parties are
ethical in the way they relate to one another (Ndolo and Njagi , 2014).
Governments the world over are entrusted with the management of public finances which include
tax revenue, donor funds. Therefore, governments have the responsibility to ensure these funds are
utilized for the good of their citizens (Committee on Standards in Public Life, 2018). To this end,
the Procurement function is tasked with the prudent use of resources in order to make available a
sufficient variety, quantity and quality of logistical materials, at minimal cost to the public treasury
(Kinyanjui, 2013; Kootsra, 2013).
Thus, prudent procurement balances the need to acquire high quality products and services with
the need to minimize wastage of resources. Poorly management of this system may have adverse
effects on economic growth, fiscal stability as well as public service delivery. It may also diminish
the level of confidence and trust in the government from its people and its cooperating partners
(OECD/World Bank Group, 2018).
As such these procurement processes require a high degree of ethical integrity. Those entrusted
with the responsibility of procurement are required to discharge their duties in an ethical manner.
Public procurement consists of a significant portion of public financial expenditure. For example
the OECD reports that public procurement constitutes more than 13% of GDP and 29% of public
expenditure of its member states (OECD, 2016). Consequently, this activity is most susceptible
to corruption, wastage and embezzlement (OECD, 2010).
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In many developing countries there are persistent cases of corruption and integrity failures due to
the absence or weakness of governance systems characterized by lack of accountability and
transparency as well as wide spread patronage and partisan interference. There are a lot of financial
interests at stake especially since the process presents ample opportunity for self-enrichment. The
procurement system is one of the main channels through which those in power secure undue
financial benefits for themselves and their clients in the private sector (Essilfie-Baiden, 2020;
OECD, 2010).
This state of affairs represents a weakness or failure in the enforcement of procurement ethics
among public sector officials. A distinction has to be made between competence and ethical
sensitivity. Corruption in public procurement may be understood to be a failure in organizational
management, and also a moral failure among culpable officials. What factors account for this
failure? How can public institutions ensure a more robust enforcement of procurement ethics for
the purpose of enhancing transparency and accountability?
This essay will discuss the main principles governing procurement ethics highlighting the
underlying philosophical rationale behind them. Thereafter, the text will elaborate on the factors
that lead to unethical procurement practices in the public sector. The text will then discuss the
different policy, legislative and organizational interventions necessary to ensure effective
enforcement of procurement ethics within public sector organizations.
2.0 Essay Questions
1. What are the main ethical principles governing procurement in the public sector?
2. What are the institutional causes of unethical procurement in the public sector?
3. What organizational, policy and legislative measures are necessary to enhance
transparency and accountability in public sector procurement?
3.0 Significance of Research
This study may generate a clear understanding on the moral foundations of procurements ethics.
In so doing will enable the reader to appreciate the in the noble virtues behind these ethics and the
practical benefits that these principles may produce among procurement practitioners and among
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all institutions entrusted with procurement sector (for instance improving resource management or
strengthening public confidence in these institutions). The information in this essay may moreover
clarify the institutional failures in public organizations and how these predispose the system to
unethical procurement practices. With this knowledge, the essay is expected to provide practical
guidance on how procurement ethics can be enforced in a more robust and effective manner.
4.0 Relevant Literature
4.1 Philosophical Foundations of Procurement Ethics
1) Results Based Ethics
Results based ethics belong to a philosophical paradigm called consequentialism. This connotes,
that the morality of actions depends on the consequences of these action. The key argument is that
the rightness or wrongness of a decision or action can be judged based on the impacts it will have
on the welfare of other, particularly the majority (Pasternak, 2015). In this respect, when
procurement officers carry out their duties they must aim at “creating the greatest good for the
greatest number of people” (Ayoyi and Mukoswa, 2015). The any decision made; that results in
the greatest benefit to society as a whole is ethically sound. This means decision makers and
procurement managers need to do a cost benefit analysis in order to ascertain the net benefit to the
whole of society. As such a decision or truncation is ethically acceptable if the level of good it
creates for society as a whole is greater than the level that would have been created by any
alternative action the agent would have chosen.
2) Duty Based Ethics
The Duty Based paradigm postulates that actors in the procurement systems have a strong
inclination to abide by the existing codes of conducts and laws, because see themselves as having
the moral responsibility do up hold these rules. They have a strong sense that folowing laid dwn
rules and procedures is essential for good order and for winning building public confidence and
respect (Committee on Standards in Public Life, 2018, Ndolo and Njagi,2014). Conversely
condoning unethical behavior leads to a loss of self-respect, and integrity for individuals and
organizations.
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Adherents of duty based ethics believe that ethical conduct is a practical matter that can be directly
observed through the changed behavior of the individual (Das, 2015). As such the changed
behavior of individuals is one of the ultimate manifestations of an ethical good. An organization
may have a well- crafted written code, but his in itself does not make it ethically conscious. What
makes it truly ethical is if its personnel are able to act in conformity with the stated ethics. What
makes it truly ethical is if its personnel are able to distinguish ethical from unethical actions and if
they are more inclined to choose the former rather than the latter. It is not enough for one to claim
they are ethical. The level of ethical sensitivity is seen not in what is professed, but in what is
actually done (Honeyman, 2013).
3) Character Based Ethics
These ethics depend upon clearly established moral virtues. Virtues are descriptors of morally
acceptable behavior and thought. Therefore the character based ethics focus on the question: Who
is a good person? How does a good person behave and think? What is the distinction between a
virtuous character and a villainous character? The aim of ethics is to present ideal morals that
depict what a person ought to be (Das, 2015). For one to be a virtuous person they must learn the
moral principles and through the process of regular practice, these virtues while become part of
their habits and be embedded in their character. Thus a code of ethics is a list of virtues. If a person
learns these principles and internalizes them, then they will be taken as a truly moral actor (Das,
2015; ASA, 2013).
These philosophical foundations represent a three-fold justification for ethical conduct in public
procurement. Firstly, procurement officers, need to conform to existing codes because doing so is
the best way to produce development results that will benefit the largest number of people. If the
procurement process is fair and imbued with integrity, it will be possible to maximize benefits to
society as a whole and to do so in a way that especially benefits the most vulnerable members of
society. If these officials upholding ethical responsibility, they will promote developmental out
comes that will generate equality and equity among all sectors of society (Tilahun, 2015; UN
Interagency Procurement Working Group , 2012).
Secondly, a system is only as viable as the conduct of all individuals and organs within that system.
Procurement ethics are necessary in ensuring stability within the procurement system. This
stability comes from the fact that these codes of conduct may generate more predictable policies
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and practices which are legally binding on all players. Hence, it is the duty of all actors to abide
by these ethics because this is the only way to ensure a well-functioning procurement system.
When they enforce these ethics, public institutions will manifest minimal resource wastage,
efficient policy/programme implementation and better fiscal outcomes; in addition to wining
public confidence (OECD/World Bank Group, 2018). Conversely, unethical procurement
practices threaten the viability of existing procurement frameworks and ultimately diminish policy
implementation and service delivery in the public sector.
The third rationale, is drawn from the virtue argument. When all players in the public procurement
nexus adhere to ethical conduct, they are upholding the values of good citizenship and patriotism.
Procurement officials are bearers of public trust, and they justify that public trust by acting in an
ethically responsible manner. Their professionalism is not just defined by the skills or expertize
that they hold. Instead that professionalism also arises from being moral agents who represent the
virtues of honesty, selflessness and the desire to use their expertize make a better society. Hence,
the virtue argument focusses more on how ethics produce noble men/women within the profession
of procurement and supply chain management.
4.2 Ethical Principles Governing the Public Procurement
Public procurement is a specialized field regulated by ethics codified in official documents. The
purpose of these documents is to guide individual officers as well as to stipulate appropriate
organizational behavior during the process of public procurement. Ethical codes of codes of
conducts are not just prescriptions of ideal conduct. They are also instruments for controlling
behavior. They set limits to what officers are allowed or not allowed to do. As such these codes
carry legal ramifications in that they cannot just be adhered to or abrogated at will. There are
penalties prescribed for those who abrogate these rules. This element of legality of is what gives
the codes a unique power to control behavior (Ayoyi and Mukoswa, 2015; Chartered Institute of
Purchasing and Supply, 2012). Procurement officers are entrusted with the power to manage
resources and to exercise power on behalf of the masses. If their conduct is to be ethical, it must
meet the following standards.
The first rule is the Avoidance of conflict of interest. In this respect they are requires to prioritize
public interest and not their own personal interest or the interest of their associates. To this effect
they must avoid unethical acts such as receiving of secret gifts, bribery, nepotism or other forms
5
of patronage (Essilfie-Baiden, 2020; OECD/World Bank Group, 2018). The idea is that
procurement officers should not abuse their power to enrich themselves or to secure for themselves
an undue advantage. The public resources entrusted to them should not be used for private gain.
The second standard is that procurement officers must maintain impartiality. Therefore, officials
must be objective in the way they make decisions, by avoiding bias, prejudice and discrimination
(Essilfie-Baiden, 2020; Ayoyi and Mukoswa, 2015). Every transaction presented before them must
be evaluated purely on its merits after a critical and rational evaluation of costs and benefits,
strengths and weaknesses.
The third rule is Avoidance of Impropriety. This principle is based on the view that procurement
officers are public officers. As public officers they should carry a positive image. It is this positive
image that will ensure they are trusted and respected by other stakeholders and the general public
(UN Interagency Procurement Working Group , 2012).
The fourth requirement postulated by the two scholars is Submission to Extensive Public
disclosures. This is done in the interests of accountability and transparency (Essilfie-Baiden, 2020;
OECD, 2016). Procurement officers handle substantial amounts of resources and the temptation
to abuse these resources tends to be great. They are also skilled persons capable of manipulating
accounts to give an appearance of legality when in fact not. If they are not transparent and if not
held accountable they may evolve into white collar thieves.
Thus trust is not enough in itself, but should be accompanied by close monitoring and verification.
Thus procurement officers must be willing to subject themselves to close scrutiny by independent
inspectors to ensure they are working for the good of the public and adhering to standard
procedure. They must also be more tolerant in terms of investigation of their private lives and their
financial condition.
4.3 Institutional Causes of Unethical Procurement Practice in the Public Sector
An argument can be made that unethical practices do not just occur because individuals are corrupt,
but because the institutions they serve are weak. The failure to enforce ethics in public procurement
begins with a failure of institutional oversight over the conduct of public officials. This failure
results in weak transparency as well as weak accountability (OECD/World Bank Group, 2018;
OECD, 2016). Where accountability is impaired corruptions continues to spread at a rapid rate.
6
Furthermore, the severity of ethical malpractice continues to intensify in a vicious cycle (Kootsra,
2013). The failure of ethical systems within public procurement has been attribute to a diverse
array of causal factors.
Many governments have introduced changes in their public procurement systems in order to
promote accountability, transparency and efficiency, while at the same time enhancing free
competition in the supply of various goods and services to the public sector. Dza, et.al, 2013)
reports some preliminary progress in the public sectors across the developing world especially in
financial management and fiscal discipline. Nevertheless, these reforms have not always had the
intended effects. Key among the challenges has been the lack of political will in ensuring these
reforms are effectively implemented. It has also been argued that the measures were applied as
mere copies of what has been done in the developed world, such that some of them have been
incompatible with the cultural, political, economic and social context of the African context
(Dza,et.al , 2013). The investigators moreover explained that:
Inadequate education and training, legislative constraints, especially those associated with
procurement technology, and a lack of political support for the reform process. In political
terms the study identified that the current political position coupled with socio-cultural
sensitivities of participating countries, has created a neglect of ethical and environmental
considerations which in turn has slowed the pace and acceptance of reforms.( Dza,et.al ,
2013, p.49)
Similar observations were made in an investigation by Tilahun, (2015) in which the lack of
knowledge amongst procurement officers ; wih respect to their ethical responsibilities was
identified as a major cause of malpractice within public procurement institutions. This lack of
knowledge induced a failure to follow laid down procedure and an inclination to rely heavily on
personal discretion and improvised shortcut practices that violate the laid down procedures. By
failing to adhere to ethical regulations, procurement officers tended to be biased in they way they
transacted with suppliers, Another survey by Ebekozien (2019) reports that ethical failures iin the
public sector can be attributed to a lack of political will to enforce existing codes; the
ienffectiveness of existing laws and regulations , the fear alleged chaos that may arise if entrenched
systems of plunder and rent seeking are dismantled coupled with the personal greed of many public
officials and their cartels of associates.
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Additional studies have highlighted further challenges. A study by Musanzikwa, (2013) attempted
to provide an overview of the public procurement system challenges in developing countries with
reference to Zimbabwe, adopting a qualitative approach and involved case studies of major public
projects in the country.
It was reported that most of the officers responsible for public procurement were incompetent as
exemplified in the faulty tender to supply ZESA with prepaid meters. In another instance
incompetence led to a loss of around $ 80 million in a road construction project by the City of
Harare. There was also evidence of delayed public projects due to slow decision making. In another
case a tender for the supply of Malaria kits was withdrawn and bidders refunded their bidding fees
due to a failure by the authorities to follow laid down procedure.
Hussein and Wanyoike (2015) conducted an investigation whose purpose was to scrutinize the
challenges of procurement function on service delivery at Nakuru county government in Kenya.
Results indicated political patronage, lack of community involvement and inadequate composition
of procurement committees as the key impediments to effective functioning of the procurement
process.
The research discussed above suggests that procurement function in the public sector is not just a
business activity. Rather, due to its close association to state institutions, it can also be influenced
by political interests at partisan and governmental policy level. Public procurement is also etched
in to the core operations of public administration and management systems; because the civil
service is the operational mover of all public procurement activities. An additional dimension of
this nexus it that the organizations in public sector procures its inputs from other public sector
organizational as well as from the private sector. Because of the interaction between public and
private sector actors in this procurement system, private interests also factor in to this nexus.
Thus, the failure to adhere to procurement ethics can manifest among politicians, technocrats in
the civil service as well as their associates in the public sector. The persistence of ethical failures
in public procurement can be rooted in governance failures.
This failure can also be alluded to resource constrains in that; auditing and law enforcement
institutions lack adequate funding and have limited beyond this, technical expertise to track
advanced financial crime (The World Bank, 2016). Ambiguity and lack of punitive measures in
8
the legal systems may also contribute to the problem (Ayoyi and Mukoswa, 2015; Dza, et.al ,
2013; The World Bank, 2016).
Another possibility may be that the attitudes of various actors in the public sphere is one that
accepts corruption as a normal way of doing business. The capacity of oversight and regulatory
institutions to act on these improprieties is hampered by political interference, where controlling
officers or politicians are selective in terms of which cases to prosecute and which ones to ignore;
based on their personal or partisan interests. In this case, the determinants of corruption are
primarily linked to the nature of the relationship between individuals and the state. The evidence
in the studies above implies that political variables are the most important element influencing the
high all low incidence of corruption in all the regions surveyed.
The way in which political institutions work-such as the type of political system (democracy
,oligarchy , authoritarian and so on); the existence of checks and balances, electoral
competitiveness, decentralization and de-concentration of power among others all play a role in
increasing or diminishing opportunities for corruption (The World Bank, 2016; Dza et.al, 2013).
These elements moreover, influence the extent to which those in public office are observe integrity
as well as their capacity monitor and penalize subordinates engaged in malpractice.
4.4 Organizational, Policy and Legislative Measures are to Enhance Transparency and
Accountability in Public Sector Procurement
The enforcement of procurement ethics in the public sector requires a strong and far reaching
support system consisting strong legislative and policy measures; a suitable institutions structure
at a macro-governmental level and a suitable organizational structure at a micro-agency or
departmental level. These foundations must also be complemented by clear and concise ethical
codes, the use of effective controls, a well-trained pool of human resources; together with the
integration of e-governance in to the whole procurement administration system. According to
research by Essilfie-Baiden, (2020), the presence of these fuoundational requirements is strongly
associated with improved adherence to ethical codes , fairness for all stakeholders and
improvements in transparency and honesty among all actors. This is corroborated in a study by
Njeru (2015), which revealed that stronger regulations , well functioning supplier management,
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the use of Economic Order Quantity, improved suppleir selections resulted in better enforcement
of procurement ethics. The study further recommended the application of Information
communication tecnology and frequent training of personel as requiremnts for improving
adherence to codes of ethics. These recommendations are discussed in detail in the following
sections.
1.
Good Governance Systems for Effective Enforcement of Ethical Systems
Good governance is anchored on principles such as the rule of law, accountability and
transparency. These principles are enshrined in codes of conduct on one hand and then enforced
by inbuilt accountability mechanisms ranging from independent audits, regulatory agencies, law
enforcement and judicial bodies together with public accounts hearings before legislative
committees (Ayoyi and Mukoswa, 2015; OECD, 2010). Enforcement of procurement ethics would
also require corresponding and proportionate disciplinary and prosecutorial sanctions for those
who fail to adhere. Within the good governance framework enforcement of procurement ethics
also requires for checks and balances. Here, it is understood that most procurement functions
within the public sector are overseen by agencies that fall under the executive branch of
government, as represented by both ministerial decision makers and civil service technocrats
tasked with purchasing and supply responsibilities (Musanzikwa, 2013; OECD, 2010). For real
checks and balances occur, it is prudent for two conditions to be in place.
The first, condition is that there must be a dichotomy between the technocratic dimension of
procurement (here represented by expert civil servants who carry out procurement and other supply
chain functions within the public service) and the political dimension of public procurement
(represented by politicians in the executive who have ultimate decision making powers). What this
dichotomy entails is that politicians must be legally barred from interfering in the activities of
technocrats serving under them (Dza et.al, 2013; UN Interagency Procurement Working
Group,2012). As such politicians may provide policy and strategic supervision on the technocrats,
but they must not unduly interfere in how the technocrats will carry out procurement at the
operational level. This dichotomy must be enshrined as an integral part of rules and regulations in
the civil service and where possible enshrined in the national constitutions as part of god
governance principles (UN Interagency Procurement Working Group,2012.
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The second condition is that, there needs to be a complete separation of powers between executive,
legislature and judicial with respect to decision making on public procurement and oversight
functions related to such procurement. Under this separation of powers the judiciary and legislature
must coordinate their activities as they provide oversight to the procurement activities within the
executive sphere (Hussein and Wanyoike, 2015; Dza et.al , 2013). To assure such separation, there
should be no overlap between members of the executive and those of the legislative arm (that is
ministers should be appointed from outside parliament). This lack of overlap would eliminate
conflicts of interest as the legislature provides oversight on procurement functions in the executive
(Dza et.al , 2013. Moreover, members of the legislature and judiciary must be legally compelled
to declare interest in any procurement oversight case presented before them or face legal sanctions
if they knowingly fail to do so. Where a conflict of interests is found the affected members must
be required to recuse themselves (Ayoyi and Mukoswa, 2015; ASA, 2013).
Additionally, with respect to procurement oversight hearings or trials the decisions of the
legislative committee, judicial tribunal or court must be binding upon the executive , in which case
they executive will have no power to ignore or violate these decisions at will. Officials who are
found to have violated procurement codes of ethics and also those who attempt to shield them must
be subjected to investigation by law enforcement agencies and if found with a case to answer, they
must undergo trial in the courts of law (Njeru, 2015; OECD, 2010). Any attempt by a member of
the executive to abrogate these decisions – in this case shielding suspects from prosecution-must
be dealt with through impeachment/suspension /dismissal accompanied by legal action against
errant officials. These sanctions must be applicable to every within official regardless or rank or
political connections; while associates from the private sector who colluded in such corruption
must be held equally culpable (Ebekozien, 2019; Njeru, 2015).
2.
Legislative Interventions
To this end the role of the legislature will be to formulate laws aimed at increasing transparency
and accountability in public procurement. The recommended contents of such laws include, the
creation of institutionalized monitoring and evaluation systems aimed at regular auditing,
recording and reporting on procurement operations on a quarterly basis, annual and 5-year cycle.
These monitoring and evaluation activities must be carried out by an independent auditing agency
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which is answerable to the legislature or judiciary, rather than the executive (Essilfie-Baiden, 2020;
OECD/World Bank Group, 2018).
The legislature must also codify the national budget of which the procurement budget subsists as
a component. In this case, Codification means that the legislature must not merely approve the
budget –by majority vote. Instead the budget for each year must be promulgated as an Act of
parliament for that fiscal year. Every budgetary pronouncement within that act must be treated as
an article of law that is legally binding to all. Abrogation of that Act must have clearly stipulated
sanctions including the payment of fines, forfeiture of assets suspected to be proceeds of
corruption, impeachment, barring one from public office for a period of time and/or prison
sentences for a clearly stated duration of time with or without hard labor (Dza et.al. , 2013).
3.
Stronger Internal Control Measures
Internal control measures represent an institutional check point between the day to day conduct of
officials and the wide legislative and judicial oversight activities discussed above. What this means
is that any ethical violations within a government procurement agency /department are first
prevented, detected and dealt with at this stage (Ebekozien, 2019; Randall & Vedanthachari, 2019).
Such early detection and resolution of ethical misconduct among public officials is essential in
limiting the spread of such corruption and also minimizing any potential damage that it may cause
to service delivery and credibility of the public sector.
Thus, public sector procurement infrastructure must have a stronger system wide array of controls,
which are themselves a sum of smaller departmental level control systems. Such control systems
must contain mechanisms such as double entry mechanisms, hierarchical security clearance levels,
oaths of secrecy, unscheduled internal audits, and measures for resolving conflicts of interest
(Dearing, 2019; Ayoyi and Mukoswa, 2015). Agencies and departments must moreover, have
strict guidelines stipulating transparent, and open tendering systems coupled with more stringent
monitoring mechanisms to scrutinize the performance of all approved supply contracts (Ayoyi and
Mukoswa, 2015).
It is also needful to provide incentives and protections for whistle-blowers. In this regard, a these
institutions should set up mechanisms for anonymous reporting of actual or suspicious
transactions, with cash rewards after such reports have been conclusively proven after
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investigation (Committee on Standards in Public Life, 2018; Hussein and Wanyoike, 2015). Such
whistle blowing mechanisms must be open to both employees within the said institutions as well
as members of the general public. A further deterrent, for corrupt procurement official is the
‘naming and shamming approach’. This entails that once a suspect has been conclusively
investigated, tried and convicted they must be publicly named and blacklisted; irrespective of the
scale of corruption involved.
4.
Secure Procurement Systems through E-Procurement Administration
Within the context of this essay, E-procurement Administration is the deployment of information
communication technology in the management of all government procurement functions (Pandey
and Risal, 2020). The adoption of technology public procurement should be accompanied by a
reorganization of the structure and procedures of procurement processes within public service
organizations. Inevitably, E-administration tends to produce decentralized procurement functions;
and doing so is consistent with the aims decentralization policies adopted by contemporary public
sector reforms (OECD/World Bank Group, 2018). Such decentralization dismantles the large,
cumbersome and uncoordinated bureaucracies in public procurement; which have in many cases
proven vulnerable to individual corruption and/or organized cartels of theft.
Moreover, information technology produces greater efficiency through faster information
processing, transmission, storage and retrieval, while also lowering associated transaction costs
(Pandey and Risal, 2020). In doing so, ICT makes it more feasible to for central government to
coordinate and monitor several autonomous procurement systems located in different parts of their
jurisdiction and also spread out across various agencies and department (Pandey and Risal, 2020;
Dearing, 2019).
This transformation can negate the need for centralized or hierarchical procurement management,
may instead create a more decentralized matrix organizational structure, several independent
procurement systems work on different aspects of government activity, under the supervision of
top management. In this case senior management will just coordinate several subsystems so as to
ensure they are working towards a common set of strategic aims.
A prominent advantage of E-procurement administration is the stronger security features that it
brings to bear; especially when compared to manual systems of unintegrated electronic
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procurement systems. An integrated, e-procurement and supply chain management system in the
public sector provide superior capacity when it comes to implementing control measures such as
vetting, security clearance, auditing, whistle blowing and evidence gathering (Dearing, 2019).
Hence, this technology revolution is associated with
improvements in accountability and
transperency, with the consequent improvement in how procurement ethics are implemented
within the public sector (Pandey and Risal, 2020). Unethical procurement activity thrives where
there is assymetric information among stakeholders. To remedy this, E-administration of public
procurement results in equitable access to information among all players in public procurement,
particularly if such access is guaranteed by existing laws and regulations.
For e-procurement governance to remain viable and effective in combating ethical abbrogations,
it is necessary for governments to invest in contionous training and retraining of personnel, in
both procurement ethics as well as the best practices realting to e-procurement management. An
additional a core requirement is for public organizations to establish competent IT departments to
mange these ICT networks and to provide guidance on when and how to upgrade the systems
(Ebekozien, 2019; Njeru, 2015).
Here, the rationale is that as technology evolves, white collar criminals also become more
sophisticated. If public sector organizations operate obsolete technologies; they become more
vulnerable to security breaches targeting their procurement systems. By continually upgrading
their ICT infrastructure and skill sets , governmental organizations have a better change of
preventing , detecting and counter-manding these security attacks.
5.0 Conclusion
Procurement is a core determinant of the quality, responsiveness and scale of public service
delivery. The philosophical basis of procurement ethics represents the idea that public service is
about providing the best development al income for the highest number of people, on the basis of
equality and distributive justice for all the ethics also represent a mechanism for ensuring the
efficient management for public resources as guided by existing laws, procedures , which are
predictable and applicable to all actors. Beyond this ethics enhance professionalism inculcating
noble virtues, in the conduct and character of all persons associated with public procurement.
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Yet in spite of these noble aspirations and in spite of existing ethical codes to govern public
procurement, cases of malpractice still remain wide spread, in both developed and developing
countries. There are institutions weaknesses and organizational problems that predispose the
public sector to such ethical conduct. The review has identified the lack of knowledge, poorly
formulated and poorly enforced regulatory regimes, ineptitude of oversight agencies and the lack
of political will as the main institutional failures. By weakening transparency and accountability
mechanisms, these failures provide both the opportunity and the means for public officials to
engage in procurement related corruption.
Therefore to strengthen the enforcement of procurement ethics, there is need for institutional,
legislative and organizational reforms. These reforms must be complemented by departmental or
agency level internal controls coupled with the creation of an integrated E-procurement
administration system. These measures would assure stronger transparency and accountability in
public procurement with a consequent improvement in public service delivery.
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6.0 References
ASA, 2013. Principles of Appraisal Practice and Code of Ethics. American Society of Appraisers,
New York
Ayoyi, I.S., and Mukoswa,O, 2015. "Ethical Issues in Public Procurement in Kenya". International
Journal of Scientific and Research Publications, Vol. 5(9)
Chartered Institute of Purchasing and Supply, 2012. Business Needs in Procurement and Supply.
Profex Publishing Limited, Linconlnshire
Committee on Standards in Public Life, 2018. The Continuing Importance of Ethical Standards
for Public Service Providers. Committee on Standards in Public Life, London
Das, R., 2015. Virtue Ethics and Right Action: A Critique. Victoria University of Wellington,
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