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About this book

This book establishes a nexus between corruption in public procurement and the prevailing crisis of governance in Africa. The African continent is characterised by the growing concern for the deteriorating human security. In the midst of these woes, African political leaders are known for their stupendous wealth and riches through expropriation of national resources for personal benefits. This growing inequality in the continent has become a major driver for a series of violent and criminal activities, which have added to the worsening governance crisis. Thus, the abuse of public power for advancing private gain constitutes an impediment to effective public service delivery, thereby engendering a crisis of governance. The consequence of this is not limited to the socio-economic growth and welfare of citizens, but it often also jeopardizes the democratic credentials and objectives of the state.

Table of Contents

Frontmatter

Concepts and Theories

Frontmatter

Chapter 1. Conceptualizing Procurement, Corruption, and Governance

Abstract
This chapter conceptualizes procurement, corruption, and governance, indicating how corruption in the public procurement system facilitates the crisis of governance. Having identified the primacy of institution in state administration, the authors note that effective oversight of the procurement system was essential to safeguard the interests of the public. The weakness of the oversight institution makes procurement a source of corruption that endangers governance. Thus, when political actors compromise procurement system, its impacts extend to weaken the constitutional responsibilities to tame the corruption monster. It gives the actors the leverage to exploit the structural deficiencies to advance personal interests. The central position of the chapter is that any society whose procurement system is fraught with corruption would not only slow down governance but would facilitate a cycle of dysfunctional government process that retards growth and development.
Omololu Fagbadebo, Nirmala Dorasamy

Chapter 2. An Overview of Public Procurement, Corruption, and Governance in Africa

Abstract
This chapter presents a general overview of the African context of corruption–procurement–governance nexus. African states attached importance to public procurement, not as a means of advancing public interests but the desires of the political elites. The African procurement system is characterized by monumental corruption, which had contributed greatly to the incessant regression in the socioeconomic development of the continent. This chapter identifies the challenges associated with poor service delivery, which are attributable to corruption in public procurement in Africa. It also presents a survey of public procurement practices in some African countries, expressing the need for concerted effort by the African government to induce mechanisms that would sanitize the procurement system management. The major mechanism in the direction is to strengthen the various institutions of governance in a way that would entrench the culture of checks and balances in public procurement.
Nirmala Dorasamy

Chapter 3. Corruption in Procurement- Antecedents, Practices, and Challenges

Abstract
Governance aspects of African democracies have been the focus of theoretical and empirical study for over two decades. With the introduction of newly established democracies, new markets evolved with controversial results. The basic premise of this chapter is that good governance practices are shaped and constructed through organizational practices. Within the most large public and private sector entities, procurement practices are organized around institutional measures and the extent of compliance with legislative controls. This chapter examines corruption in procurement- its antecedents, practices, and challenges, through the lenses of institutional theory. Instances of corruption in African public services are reported on almost a daily basis. There is no scarcity of scandals that illustrate the depth and pervasiveness of corruption. In the wake of these scandals and the role that corruption has played, awareness has grown about the social, political, and economic costs of the corruption which such African countries cannot afford. In Africa, as in most parts of the world, governments are major consumers of goods and services. It is therefore expected that government procurement presents opportunities for governance challenges. Such governance challenges may be attributed to the area of government procurement having a series of unique features and as such participants are susceptible to acts of poor governance such as corruption. Antecedents such as the magnitude and volume of procurement activities, ambiguity around the market value of many of the items being purchased, the spaces for political discretion that exist within government, and interdependence among various agencies, all contribute to government procurement as a fertile ground for corruption.
Soma Pillay

Chapter 4. Understanding Corruption in Africa from an Economic and Neopatrimonial Perspectives

Abstract
Their central argument is that African states have deviated from the social contract theory, which stipulates the existence of states through a contractual agreement to promote the interest of the citizens with a responsible exercise of state power. Hence, there is the prevalence of government involvement in the economic activities to the detriment of the public interest. The economic theory of corruption and the neopatrimonial perspective, postulate that the involvement of the state in economic sphere creates opportunities for corruption. Citing the case of Cadre deployment in South Africa, they argue that Africa’s socio-political milieu is redolent of neopatrimonial practices. In most cases, an adverse result of this particular practice is the creation of an avenue for politicians to consolidate power with state resources to buy loyalty.
Nolubabalo Lulu Magam, Regis Wilson

Country Cases

Frontmatter

Chapter 5. Exploring the Procurement Challenges in the South African Public Sector

Abstract
Procurement is both a strategic tool and a mechanism enabling the South African government to implement policies for socio-economic development and transformation. Procurement is central to the government’s service delivery system and promotes aims which are, arguably, secondary to the primary aim of procurement, for example, using procurement to promote social, industrial or environmental policies. Supply Chain Management is a policy tool used in the management of the procurement process. Public procurement refers to the process by which the state obtains goods and services. Such a process includes identifying goods and services needed, selecting suppliers, contracting and contract management. Public procurement entails public administration as well as public finance management. The aim of this chapter is to explore the challenges experienced in the field of procurement within the South African public sector. Public procurement operates in an environment of increasingly intense scrutiny driven by technology, programme reviews, and public and political expectations for service improvements. In this chapter, the procurement challenges of the South African public procurement system and process will be analysed and discussed. Furthermore, this chapter explores the link between procurement and supply chain management in the South African context, and, discusses the legislative and policy framework on public procurement systems in South Africa. The chapter discusses the key drivers for centralisation and decentralisation.
Thokozani Ian Nzimakwe, Andile Clifford Biyela

Chapter 6. Weak Procurement Practices and the Challenges of Service Delivery in South Africa

Abstract
Procurement is a crucial institutional process and measure for the functioning of government, regarding service delivery. As such, it is important that such a process is characterised by ethical standards to ensure that service delivery is not compromised and undermined. However, despite the establishment of oversight mechanisms to monitor irregular, wasteful and unauthorised expenditure, corruption in procurement remains a challenge. One of the major problems is non-compliance with the requisite legislative frameworks. Consequently, weak procurement practices and corruption have a significant impact in the attainment of good governance. Although procurement plays a major and strategic role in the acquisition of goods and services, it is one of government’s activities that is most vulnerable to waste, fraud and corruption. Methodologically, desktop research was used with content analysis of the various primary and secondary resource material. The chapter concludes that the effect of corruption in procurement has seriously constrained sustainable economic development and seriously affected service delivery in South Africa. The chapter therefore recommends that there should be consequences for non-compliance and misuse of public resources and institutional entities must ensure full compliance with procurement legislation and processes.
Koliswa Matebese-Notshulwana

Chapter 7. Public Procurement Governance: Toward an Anti-corruption Framework for Public Procurement in Uganda

Abstract
For most developing countries, public procurement is a fertile ground for corruption in Government. In Uganda, specifically, corruption in public procurement involves the abuse of the procurement processes and diverting from established legal frameworks takes a multitude of forms. It is perpetuated procurement planning distortions, through supplier collusion, dodgy computation of costs by evaluation teams, poor quality goods and services delivered, pitiable performance of civil and construction works etc. These and many other manifestations suggest that corruption has a significant impact, not just in delivery of public services, but it also inhibits development of the national economy and has significantly inhibited good governance in the country. This chapter develops a conceptual framework on the vitality of public procurement for the good governance agenda and demonstrated the primacy of public procurement for good governance. It also evaluates more pertinently, the sufficiency of existing anti-corruption mechanisms in addressing corruption challenges in public procurement in Uganda. The chapter notes the inefficiency of a number of anti‐corruption initiatives in Uganda and observes the lack of effective coordination of anti‐corruption efforts within the public sector and among the various state and sector actors. This deficiency constitutes the main reason why the corruption battle is almost lost. The chapter concludes with a proposed framework to address the public procurement corruption malaise, with a set of critical success factors (CSFs) that government can apply in striking against the corruption dilemma.
Benon C. Basheka

Chapter 8. Rising Above the Tide: Review of Anti-corruption Measures in the Ghanaian Procurement Process

Abstract
Governance revolves around sourcing for materials and services for the accomplishment of public policy. Accordingly, proper management of the procurement process could enhance efficient delivery of services and prevent corruption to a large extent. This study builds a logical framework depicting the interrelationships between the key institutional frameworks for preventing corruption and contextual factors that influence the effectiveness of these frameworks as important tools for prevention of corruption in Ghana. The review focuses on assessing the effectiveness of anti-corruption measures instituted by the state in the fight against corruption, examining the challenges in the implementation and enforcement of anti-corruption laws. The study maintains that actual implementation of the procurement law, coupled with competent judicial system, the political will to successfully prosecute those found culpable, free and politically neutral media as well as professionalism on the part of law enforcement institutions are important ingredents in the fight against corruption in Ghana.
Evans Sokro, Ruby Melody Agbola

Chapter 9. Public Procurement Law, Due Process, and Public Sector Corruption in Nigeria: A Review

Abstract
Public procurement corruption is a part of the larger corruption regime in Nigeria. Its pervasiveness is noticeable in a number of abandoned and incomplete infrastructural facilities designed to facilitate socio-economic aspirations of members of the public. Despite a series of comprehensive frameworks legislated to tackle down malfeasances, safeguard public resources, and ensure effective service delivery, compliance in the sector remains rare. Corruption in Nigeria’s public sector continues to compromise effective public service delivery; the procurement process characterized by a network of unethical practices including the circumventing of procurement regulations by agencies of government, thereby violating requisite laws aimed at promoting transparency. This chapter reviews existing legislative frameworks guiding public procurement and the level of compliance by stakeholders in the public sector. While there are sufficient provisions intended to curb sleazes in public procurement, institutional constraints coupled with abuse of power by top government officials, have weakened the potency of relevant laws. Besides, selective application of the law has institutionalized the culture of corruption in public sector procurement in Nigeria.
Omololu Fagbadebo, Kikelomo Aboyowa Mbada

Chapter 10. Public Procurement Reforms in Tanzania: Dispersion of Corruption and Governance

Abstract
Public procurement reform has been a core focus of the Tanzanian government from early 1960s to date. From independence today public procurement has been given high premium due to the fact that it is directly linked to economic development as well as poverty reduction. In the early 1960s and 1970s, public procurement system in Tanzania was highly centralized as almost of goods and services were procured and supplied by government agencies. These agencies include medical stores, Veterinary stores, Maji store, government press printers, and others. These government stores were expected to procure and deliver quality goods and services to ministries, departments and agencies, and prevent extravagance. However, procurement procedures were characterized by a number of deficiencies which created loopholes for corruption and financial misappropriations. In addition, accountability on the part of office holders was nearly non-existed. It also led to laxity in enforcing discipline at work, erosion of public service ethics, corruption, abuse and misuse of authority.
John Samuel Kihamba

Chapter 11. Political Polarisation, Compromised Procurement and Poor Service Delivery in the Kingdom of Lesotho

Abstract
This chapter traces the factors that led to political polarisation and how this engendered corruption and compromised procurement and, in turn, how corruption in public procurement has negatively affected service delivery in the Kingdom of Lesotho (henceforth Lesotho). Essentially, the process of public procurement involves administration of large volumes of money, goods and services and this predisposes such a process to corruption. Literature points to a wide variety of underlying reasons driving corruption in general (Søreide in Corruption in Public Procurement: Causes, Consequences and Cures, 2002) and public procurement corruption in particular in Lesotho, including the country’s socio-economic, political, and administrative conditions (Toeba in Law and Development Review 11: 397–431, 2018), fragile and weak state institutions (Mothibe in Towards an Anatomy of Persistent Political Instability in Lesotho, 19662016, National University of Lesotho & Open Society Initiative for Southern Africa, Roma, 2017) and political leadership that focuses on self-interest (Thabane, Towards an Anatomy of Persistent Political Instability in Lesotho, 19662016, National University of Lesotho & Open Society Initiative for Southern Africa, 2017). This combined descriptive and analytical chapter, which is based on desktop research and personal observations concludes that although the existing legal framework around public procurement is generally sufficient but the main challenge is that processes are systematically manipulated, skillfully bypassed and deliberatively undermined and, therefore, cannot ensure transparency and accountability. Informed by this state of affairs, the recommendations arrived at include the dire need for legal reforms and administrative considerations to strengthen procurement processes in Lesotho.
Teboho J. Lebakeng

Chapter 12. Public Procurement Oversight and the Scourge of Corruption in the Public Sector: A Comparative Analysis of South Africa and Kenya

Abstract
This chapter critically examines the robustness of public procurement oversight and a scourge of corruption in the public sector in South Africa and Kenya. In so doing, a comparative analysis of South Africa and Kenya is conducted. The chapter relied on qualitative research methodologies. The study furthermore adopted secondary quantitative research methods using cross-country comparative strategy. The chapter discovered that both South Africa and Kenya do conform to international laws and standards in designing institutional architecture prescribed to govern the space where public procurement is exercised. However, what appears to be a challenge is that internal controls are hugely used as front to tick a box and for obtaining legitimacy to international community. Weak internal controls are deliberately designed so that one way or the other, corruption activities are galvanized. This is enabled by limited access to information pertaining to procurement contracts between the public and the private sector. Thus, the internal statutes designed by these countries embody a specific clause that bars practical transparency, rendering state coffers to the hands of the corrupt. It would be best if both ex ante and ex post oversight are concurrently applied and strengthened so that significant impact in putting corruption to a complete halt, is realized.
Msuthukazi Makiva

Chapter 13. Public Procurement Corruption and Service Delivery in Nigeria and South Africa

Abstract
Public procurement corruption can be categorized either into administrative or state captured. However, transparency, competition, and integrity were identified as the hallmarks of a good procurement system. Unfortunately, monopoly of power, impunity, wide discretion, lack of transparency and weak accountability overtime have characterized government agencies and transactions mostly in developing countries and this has created an avenue for service failure in those countries. The study examined procurement laws, impact and corruption perception index in Nigeria and South Africa as it affects governance and service delivery. Notably, corruption can occur along the entire procurement cycle from needs assessment through to finalization of either a contract or even disposal of assets. Of note, national governments and other agencies fund large infrastructure projects throughout the developing world running into billions of dollars annually and organizations such as the World Bank, African Development Bank Group, the Asian Development Bank, the European Bank for Reconstruction and Development as well as Inter-American Development Bank adopt “cross-debarment” as a deterrent. The study adopted secondary data and descriptive method of analysis. Albeit, corruption remains a major albatross in procurement and service delivery in the countries. Although there may not be a one-size-fits-all-approach to rescue the situation, the e-procurement process should be encouraged where the procurement processes are red flagged for close monitoring and infractions subjected to administrative law remedy.
Tunde A. Abioro

Chapter 14. Charting Pathways to Growth and Development Through Transparent Procurement Management in Africa

Abstract
Efficient government procurement system is significant in cases where public procurement accounts for a large portion of economic activity. While in major OECD countries, government procurement ranges from 12–14% of the gross domestic product, this range is substantially larger in Africa. Therefore, ensuring transparency in the procurement procedure is an essential determinant of good governance practice and efficiency, as it enhances the competitiveness of public procurement. In this chapter a review is offered of best practices in public procurement. The chapter also examines transformational procurement which refers to a type of organizational change management focusing on strategies to enable major and long-term improvements to procurement processes, activities, and relationships. As the public sector is becoming focused on procurement transformation, it is timely to strengthen the strategic value of the procurement function and highlight its vital role in increasing efficiency and maximizing the value of money spent. The chapter reviews the most common procurement transformation challenges agencies have been tackling with public procurement professionals across the African continent and a shared perspective on how to overcome them. The introduction of transparent practices is insufficient to ensure competitive public procurement, therefore in order to enjoy maximum benefits from the reform toward transformational and transparent procurement, African countries must simultaneously combat conspiratorial practices of firms in the public procurement tendering system. This chapter also helps us understand the reasons for agencies’ reluctance toward introducing transformational procurement in government purchasing.
Soma Pillay

Chapter 15. Good Governance and the Prospect of Sustainable Growth and Development in Africa

Abstract
This chapter reviews the crisis of governance in Africa, noting the preponderance of weak public institution as a catalyst for the pervasive underemployment in the continent. Personalization of state power coupled with ravaging poverty and unemployment have bolstered regression in the development of the African states. The chapter notes the high rate of corruption and the dangers of constant Illicit Financial Flow (IFF) as albatross in Africa. In most African states, institutional failures endanger accountability. The chapter notes the importance of virile civil society, as in other developed democracies, to assert vertical accountability in the face of the failure of horizontal accountability. It concludes that African citizens should brace up for sustained public challenge against poor governance and demand accountability with a view to inducing inclusive development and growth.
Omololu Fagbadebo, Nirmala Dorasamy

Backmatter

Additional information