CHALLENGES AFFECTING PROCUREMENT PROCESSES IN PUBLIC ORGANIZATIONS IN NIGERIA
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CHALLENGES AFFECTING PROCUREMENT PROCESSES IN PUBLIC ORGANIZATIONS IN NIGERIA
Chapter one
INTRODUCTION
1.1 Background for the Study
Procurement procedures include a wide range of responsibilities that go far beyond the traditional idea that procurement’s primary duty is to acquire goods or services from outside sources in order to meet the needs of the organisation. Mlinga (2007) defines procurement as the assessment and purchase of works, goods, and services.
Today, in many nations, public procurement has become a source of public concern and controversy, with reforms, restructuring, laws, and regulations enacted. Public procurement is the purchasing of commodities, services, or works by a procuring institution with public funding (World Bank, 1995).
Public agencies have historically been large purchasers, and public procurement accounts for 18.42% of global GDP (Roodhooft & Abbeele, 2006; Mahmood, 2010). In developing nations, public procurement is increasingly recognised as critical to service delivery, accounting for a significant share of total expenditure (Hunja, 2003).
Because of the enormous amount of money involved in government procurement, and because such money is provided by the public, accountability and openness are required. As a result, many developed and developing countries have implemented procurement reforms that include rules and regulations.
The main impediment, however, has been insufficient regulatory compliance. Noncompliance is a problem that affects both developing and industrialised countries. Hui et al. (2011) found that procurement officers in Malaysia were blamed for malpractice and noncompliance with procurement policies and procedures.
Most developing countries are dealing with the issue of rapid changes in procurement, which puts pressure on how the procurement function executes its internal and external operations in order to achieve its goals (Wambui, 2013).
Its implementation may be led by development partners who have focused on persuading governments to adopt a standard law created by the United Nations Commission on International Trade Law (McDonald, 2008).
The present focus of public procurement reforms is on ensuring that countries establish a standardised procurement law and system. This is an issue that governments should face, as Thai (2001) notes that public practitioners may have to deal with contradicting and contrasting procurement rules and objectives imposed by laws and trade agreements.
Such issues in procurement reform extend beyond procurement legislation to processes, methods, procurement organisational structures, and manpower. Public procurement policies are based on agreed-upon donor requirements, and procedures must adhere to international standards (MoE, 2007).
The application of prescribed public procurement structures may determine whether or not public procurement regulations are implemented. The main goal of this research is to identify the difficulties that affect procurement processes in Nigerian public organisations.
1.2 Statement of Problem
Public procurement has been regarded as the government activity most susceptible to corruption. As a key interaction between the public and commercial sectors, public procurement offers several chances for both public and private players to divert public funds for personal advantage.
Bribery by transnational businesses is more common in public procurement in OECD nations than in utilities, taxation, the judiciary, and state capture (OECD, 2007:9). The challenge of guaranteeing integrity in public procurement processes is not limited to Nigeria or underdeveloped countries.
The lack of open processes and procedures, as well as mismanagement of resources in the award of contracts in government circles, may have prompted international organisations to call on governments to pay more attention to the public procurement process, ensuring that contract awards and other procurement matters are handled professionally and in accordance with acceptable global standards.
Also, the impact of issues influencing these processes in public organisations has gotten less attention, as most studies have concentrated on central government procurement, in which the government is directly involved using taxpayer funds.
Although procurement processes have been followed in accordance with existing legislation, there are still numerous obstacles that must be faced and addressed in order to improve this area.
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