Assessment of Ethical Practices in Public Procurement. The Case of Woldia City Administration

Table of Contents

Acknowledgement

Table of Contents

List of Tables

List of Figures

Aberivations and Acronyms

Abstract

CHAPTER ONE
Introduction
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.3.1 General Objective of the Study
1.3.2 Specific Objectives of the Study
1.4 Research Questions
1.5 Scope of the Study
1.6 Significance of the Study
1.7 Limitations of the Study
1.8 Description of the Study Area
1.9 Organization of the Paper

CHAPTER TWO
Review of the Related Literature
2.1 Introduction
2.2 Introduction to Ethics
2.2.1 Professional Ethics
2.3 Definition of Public Procurement
2.4 Public Procurement as a Profession
2.5 The objectives of Public Procurement
2.5.1 Value for Money in the Acquisition of Required Goods, Works or Services
2.5.2 Integrity Avoiding Corruption and Conflicts Of Interest
2.5.3 Accountability
2.5.4 Equal Opportunities and Equal Treatment for Suppliers
2.5.5 Fair Treatment of Supplier
2.6 Basic Ethical Issues and Risks in Public Procurement at different bid stages
2.6.1 Corruption Risks in Public Procurement Cycle
2.6.1.1 Pre Tender Stage
2.6.1.2 Tender Stage
2.6.1.3 Post Tender Stage
2.6.2 Methods of Public Procurement
2.6.2.1 Open procedure (sealed bidding)
2.6.2.2 Restricted Tendering
2.6.2.3 Negotiated Procedure
2.6.2.4 Single-Source Procurement (Direct Award or Limited Tendering)
2.6.3 Possible Risks in bid preparation
2.6.3.1 Technical Specification
2.6.3.2 Collusion
2.6.3.3 Award criteria
2.7 Public Procurement as a Policy Tool
2.7.1 Public Procurement as an Economic Policy Tool
2.7.2 Public Procurement as an Environmental Policy Tool
2.7.3 Public Procurement as a Social Policy Tool
2.8 Ethical Behaviour of Public Procurement Officers
2.9 Ethical Public Procurement
2.10 Relationship among Ethics, Public Procurement and Corruption
2.11 Code of Conduct for Public Procurement
2.12 The Role of Public Procurement in Preventing Corruption
2.13 Empirical Related Literature

CHAPTER THREE
Research Design and Methodology
3.1 Introduction
3.2 Research Design
3.3 Target Population
3.4 Sample Selection, Size and Technique
3.5 Data Processing and Analysis
3.6 Data Collection Methods and Instruments
3.7 Response Rate
3.8 Procedure
3. 9 Reliability and Validity
3.9.1 Reliability
3.9.2 Validity
3.10 Ethical Considerations

CHAPTER FOUR
Data Presentation, Interpretation and Analysis
4.1 Introduction
4.2 Demographic Characteristics of Respondents
4.2.1 Demographic Characteristics of Public Procurement Officers
4.3 Assessment of Ethical Practices of Public Procurement Officers and Suppliers Attitude
4.3.1 Public Procurement Officers Equal Treatment of Suppliers
4.3.2 Whether Public Procurement Officers Uses the Same Evaluation Criteria in evaluating all Responsive Bids
4.3.3. Preparing of Bids Unbiased and Clear to Suppliers
4.3.4 Confidentiality of Information in Public Procurement
4.3.5 Public Procurement Officers Collusion with Suppliers
4.4 Public Procurement as a Policy Tool
4.4.1 Public Procurement as an Environmental Protection Policy Tool
4.4.1.1 Procuring of Environmentally Friendly Products or Services
4.4.1.2 Procuring of Reusable or Recyclable Products or Services
4.4.2 Public Procurement as an Economic Policy Tool
4.4.2.1 Public Procurement Officer’s Preference for Local Products that Encouraging Small Businesses
4.4.3 Public Procurement as a Tool for keeping social Right
4.4.3.1 Public Procurement Preference for Women Suppliers
4.4.3.2 Procurement Officer’s Preference for Suppliers who Produces Safe Products or Services
4.4.3.3 Procurement Officer’s Preference for Disable Suppliers or Producers

CHAPTER FIVE
Summary of Findings, Conclusion and Recommendations
5.1 Introduction
5.2 Summary of Findings
5.2.1 Public Procurement as a Policy Tool
5.2.2 Assessment of Ethical Practices of Public Procurement Officials and Suppliers Attitude
5.3 Conclusion
5.3.1 Public Procurement as a Policy Tool
5.3.2 Public Procurement Officials Ethical Practices and Suppliers Attitude
5.3.3 Recommendations and Further Studies

Reference

Acknowledgement

It has been a long road, but here I am at the end, but there are so many people to whom thanks I extend.

My first acknowledgement goes to my Advisor Dr. Samson Kassahun, for his academically advise, friendly approach and invaluable comments. The process has taken longer than what I imagined but with his encourage it become accomplished. Besides my advisor I would like to thank my office (GubalafetoWoreda Court) for their financial support; Ethiopian Civil Service University for initiating the idea that this Master’s thesis would be a useful tool for graduate students and public procurement officers and suppliers found in the selected study area of Woldia City administration.

I wish to thank my parents, TiruTegegne and HailuMarye. They bore me, raised me, supported me, taught me, and loved me. To them I dedicate this thesis.

Lastly, and most importantly, I wish to thank my best friend, WuhabeTibebu,for helping me get through the difficult times, and for all the emotional support, camaraderie, entertainment, and caring he provided.

List of Tables

Table 2.1: Conflict of Interest by Bidding Stages

Table 3.1: Population of the Study

Table 3.2: Response rate of the study

Table 4.1. Public Procurement Officers Gender

Table 4.2: Age of Public Procurement Officers

Table 4.3: Work Experiences of Public Procurement Officers

Table 4.4: Education Levels of Public Procurement Officers

Table 4.5: Organizational Levels of the Public Procurement Officers

Table 4.6: Public Procurement Officials Level of Agreement and Disagreement regarding on giving Equal Treatment to all Suppliers

Table 4.7: Suppliers Response based on basic Ethical Practices of Procurement Officials on giving Equal Treatment to all Suppliers

Table 4.8: Public Procurement Officer’s Level of Agreement and Disagreement of using the Same Evaluation Criteria to all Suppliers

Table 4.9: Suppliers Response based on Basic Ethical Practices of Procurement Officials on using the Same Evaluation Criteria to all Suppliers

Table 4.10: Public Procurement Officials Preparation of Unbiased Bids

Table 4.11: Suppliers Response based on Basic Ethical Practices of Procurement Officials on Preparation of Unbiased Bids to all Suppliers

Table 4.12:Confidentiality of Public Procurement Officers

Table 4.13: Suppliers Response based on Basic Ethical Practices of Procurement Official’s Confidentiality

Table 4.14: Public Procurement Officers Collusion with Suppliers

Table 4.15: Suppliers Response based on basic Ethical Practices of Procurement Officials on Collusion of Public Procurement Officers with Suppliers and their Attitude

Table 4.16: Procurement of Environmentally Friendly Services or Products

Table 4.17: Procurement of Recyclable (Reusable) Products or Services

Table 4.18: Procurement Preference for Small and Micro Enterprises
Giving preference for women owned enterprises provides resources to help women entrepreneurs launch new businesses, grow their businesses and compete in the global marketplace

Table 4.19: Procurement Officer’s Preference for Women Suppliers

Table 4.20: Procurement officer’s Preference for Suppliers who Produces Safe Products or Services

Table 4.21: Public Procurement Officers Preferences for Disable Suppliers

List of Figures

Figure 4.1: Procurement of Environmentally Friendly Services or Products

Figure 4.2: Procurement of Recyclable (Reusable) Products or Services

Aberivations and Acronyms

illustration not visible in this excerpt

Abstract

This study was carried out for the purpose of determining the status of public procurement officers ethical practices based on public procurement roles in achieving government objectives. The descripto-explnanatory design of research was utilized. The questionnaire, observation, semi structured interview and focus group discussion served as the instrument for gathering data. All public procurement officers that worked in the pool sector offices and suppliers who frequently deliver products and services that are found in Woldia city were employed for the study. The study aims to answer the questions raised in the basic ethical practices of public procurement .

Based on the data obtained from 16 procurement officers, the result indicated that only procurementused as an economic policy, by giving preference for small and micro enterprises. In contrary 75%’s of procurement officers did not purchasedenvironmentally friendly products and services. Based on findings from questionnaires and interview of procurement as a social policy tool, only 46% and 6% of procurement officers were gave preference for women suppliers and disable suppliers respectively. The findings from observation and focus group discussion revealed that lack of knowledge and the preference in not included in the procurement proclamation and manual was the major reason for not to give preference for these suppliers.The study also revealed that suppliers have negative attitudes towards procurement officers; 58% of suppliers were dissatisfied with procurement officer’sequal treatment, the same evaluation criteria and confidentiality of public procurement officers practices. Again 53% of suppliers disagreed that procurement officers were not prepare bids unbiased.While 52% of supplier revealed that procurement officers was not collude with suppliers.

The findings acknowledge that procurement officer’s lack of knowledge and the Amhara National Regional State public procurement proclamation and manual do not incorporate environmental and social criteria and this hinders from achieving procurement objectives. Therefore, training for procurement officers and incorporating environmental and social policies and strategies in proclamation and manual, make information available to suppliers and bids should be registered electronically are believe to minimize the problems raised in ethical practices of public procurement and the factors affect procurement ethical practices call for to be further studied.

CHAPTER ONE

Introduction

1.1 Background of the Study

Purchasing of goods, services and works are one of the key activities of the government that help to carry out its functions. According to Ethiopian Proclamation No.649/2009; ‘‘Procurement means obtaining goods, works, consultancy or other services through purchasing, hiring or obtaining by any other contractual means; and public procurement mean procurement by a public body using public fund.” Because of public procurement is run by public money that serves the public interest, procurement officers required to purchase from the firm that offers the best value for money.

Public procurement accounts that 15-30% of the gross domestic products (GDP) for many countries in the world (United Nations Office on Drugs and Crimes (UNDOC), 2013). While public procurement represents an estimated 15% of GDP in Organization for Economic Co-operation and Development (OECD) countries and up to 25% of GDP in developing countries (OECD, 2007); Studies are also shown that 70 percent of the public budget goes to for procurement purposes in sub Saharan countries (Abebe, n.d). In addition, Ethiopia also spends more than 60 percent of public expenditures for procurement of goods and services (Tesfahun, 2011). This implies that a large amount of money spent by the government every year to purchase goods, services and works. As UNDOC (2013) explained that due to this huge amount involved in public purchasing, that makes procurement prone to corruption.

Basing on Corruption Perception Index scores of 2013, Ethiopia ranks 111th out of 177 countries around the world and it scores only 33 percent free of corruption in the sub Saharan countries (Transparency International, 2013). For example, Mekonnen and Shimeles (2012), found out that unethical practice of public procurement officers negatively influences the whole process of procurement and leads to loss to public resources and corruption. Therefore, this indicating that there is a serious corruption problem in Ethiopia. After examining the consequence of corruption in social and economic endeavor, the Ethiopian government takes steps to tackle this problem and the Federal Ethics and Anti-Corruption Commission established in 2001 by proclamation No.235/2001. The ANRS government has also established the Amhara Ethics and Anti-Corruption Commission on 2003 by proclamation No.93/2003. The commission has identified that procurement of goods and services are among the most prone areas of corruption (Amhara Ethics and Anti-Corruption Commission report, 2012/13).

Because of public procurement has a great portion governments budget; it needs careful attention especially the persons who runs the so-called public procurement officials. Procurement officers should practice ethical principles of procurement in each stages of public procurement.According to Thai (2001), give explanations that, ethics in public procurement is very essential to reduce corruption and to make public procurement as a tool for economic development. As Lars, Sofia, Nojan, William and Karl (2008), defined that Ethics is the basic principles of correct behavior, with reference to a specific activity, profession or person.Lars et, al(2008), further elaborates that Public procurement ethics is not only related to bribes and gift giving from supplier to public procurement officials but also includes suppliers practices related to their sourcing strategy. Getnet (2014),also argued that Public procurement is a key tool to promote objectives of an economic, environmental and social. In developing countries, it is one of the main instruments to the achievement of development goals such as reducing poverty and providing health, infrastructure, education and other services hence immensely contributes to best utilization of public resources.

Therefore, ethical principles of public procurement are both using basic ethical practices in each stage of procurement and using procurement as a policy tool. For example, basic ethical practice like using the same evaluation criteria in award of contracts, keeping secret and confidential information, not collude with suppliers, prepare bid specification clear and impartial, etc. And applying procurement as a tool for; economic development (giving preference for local suppliers and products), environmental protection (givingpreference for environmental friendly products or services) and procurement used associal policy tools (giving preference for disadvantaged groups like women owned, disable and micro and small enterprise suppliers) are the major ethical practices in public procurement activities.

1.2 Statement of the Problem

Public procurementis an activity that is the most corruption prone area.According to the report by OECD (2009), risk areas in each stage of public procurement has been identified that as biased bid specification, Collusion between the official in charge of specification and a supplier, Leaking information, Bribery etc. are some of the major unethical practices have done by public procurement officers. For example,Abeje (2015), stated that public procurement as one of the major corruption prone public services in the AmharaNational Regional State.

Public procurement has been increasingly considered as a powerful public policy tool to bring about major economic, environmental and social benefits and it is increasingly recognized as a central instrument to ensure efficient and corruption-free management of public resources.Government procurement is not only business, that is, the acquisition of goods and services atthe best possible terms, but also has broader social, political, and economic implications (Thai, 2009). In this context, the role of procurement officials has changed dramatically in recent years, to cope with the demand for integrity in public procurement. Now a day’s public procurement becomes an important tool for the development of countries economy by applying objectives of public procurement (OECD, 2005).Due to the vast amount of money goes to public procurement, the government able to use his power to achieve value for money and social, economic and environmental objectives.Therefore, Public procurement official’s ethical practices are important to put procurement goals into practice because these goals can be practiced if the procurement officer appointed is ethical.

To date, however, much attention has not been given studying humans who run this procurement. Due to a consequence of unethical practices by procurement officers, public bodies do not get value for money on procurements (Joseph, Augustine and Sarah, 2011).Most studies have shown that (Abebe, n.d;Abeje, 2015; Getnet, 2014; Mekonnen, 2012; and Tesfaye, 2007), public procurements ethical practices based on bribery and corruption in procurement activities however, a little consideration is given to public procurement as a policy tool. Since public procurement has both objectives, which is,getting goods and services at the lowest possible price and using procurement as a policy tool.

The purpose of this study is to assess public procurement officers ethical practices based on public procurement roles in achieving government objectives. Studying of unethical practices of public procurement officers by combining with factors for unethical practices like suppliers attitude may be relatively permanent solution to the betterment of ethical practices of public procurement officers.

1.3 Objective of the Study

1.3.1 General Objective of the Study

The Main Objective of the Study was to assess Public Procurement Officer’s Ethical practicesin Woldia City Administration.

1.3.2 Specific Objectives of the Study

i. Assess the practice of public procurement in purchasing of environmentally friendly products and services.
ii. Evaluate the practice of public procurement in giving preference forsmall and micro enterprise.
iii. Determine the practice of public procurement in giving preference for safe products,women and disable suppliers.
iv. Evaluate public procurement officer’s ethicsbased on conflict of interest in public procurement system.
v. Assess supplier’s attitude towards public procurement ethical practices based onconflict of interest in procurement.

1.4 Research Questions

i. What are the practices ofpublic procurement in purchasing of environmentally friendly products and services?
ii. How sounds like the practices of public procurement in giving preference for small and micro enterprise.
iii. What are the practices of public procurement in giving preference for women and disable supplier and safe products and services.
iv. What arepublic procurement officers ethics based on conflict of interest in procurement?
v. What are the attitudes of suppliers towards the ethical practices of public procurement officers?

1.5 Scope of the Study

The study carry out in AmharaNational Regional State at Woldia city named WoldiaWoreda Administration, North WolloZone sector office and GubalaftoWoredaadministration (pool sector offices). The researcher chooses these three selected offices because they purchase goods, services and works for all sector offices, which found in Woldia city. However, office `s that purchase goods, services and works by themselves (non-pool sector offices) did not included in this study because the researcher believed that they were not sufficient to get adequate data, due to their low purchasing power and the researcher unable to reach all offices that found in Woldia city.

In order to address the research objectives, to complete according to the planned time and due to the broad nature of procurement ethics the researcher was limited to some selected ethical principles of public procurement, which is appropriate for this study.

1.6 Significance of the Study

The study could reveal the current procurement malpractices in government procurement system, which might be useful as a feedback for the government to take measures in order to improve the misconduct and strengthen the good behavior of public procurement officers.The study also believed to contribute to researchers who have an initiation and those who are interested to conduct a detailed and comprehensive study regarding factors affecting ethical practices of procurement officers. Further, the study also important for the three pools sector offices in Woldia city because it will bring the success and failures of the practices of procurement in their offices.

This studyalso important to know the status of public procurement used as a policy tool.The study might be important to take measures on unethical practices of public procurement officers that foster corruption and loss to public money and to know the attitudes and practices of supplier’s attitude towards public procurement officials.

1.7 Limitations of the Study

There are external (Uncontrollable) variables that confronted the investigation and conclusion although the researcher tried his best to design his research as properly as possible.

Due to the nature of the data collection tool, the collected data through questionnaire from both suppliers and procurement officers became slightly different however, the researcher tried to collect adequate information through interviews for suppliers, secondary data and observation on procurement officers to make the data meaningful and to generate reliable and valid findings.

Some respondents were unwilling to fill the questionnaire and to give the necessary data for the study;however, the researcher tried to get the required data from the respondents by making hard effort by going their home, day to day follow-up and by explaining the importance of the study.

The study was not used correlations to see how variable like gender, education and experience affects ethical practices of public procurement officers rather it only assesses their ethics with the general selected principles of public procurement.

1.8 Description of the Study Area

The study was undertakenat WoldiaCity Administration.Woldia is the Capital city of northernWollo and it is located north of Dessie and south east of Lalibela in the AmharaNational Regional State. To study the ethical practices of public procurement officers at Woldia city, three pool sector offices, named GubalaftoWoreda, WoldiaWoreda Administration and North Wollo Zone were incorporated for this study. Starting from 2004 offices has been organized as pool sector government organization and Public procurementfunctions become taking place in this department. The aim of these departments is to provide goods, services and works of different government offices in one pool sector office. The fact that there are many government organizations in Woldia city which is difficult to achieve goods and services in one pool sector and in order to reach all these offices these three pool sector offices were organized. The central objective of the establishment of these pool sector offices was to reduce corruption done by procurement officers with centralized procurement.Procuring in a single department and distributing for the request department is important to get skilled manpower, to purchase a large amount at a time and to save money.

These Pool sector officeswere selected because they are found in Woldia city Administration and they can purchase goods, services and works for all government departments.However, there are some government offices, which procure by their own procurement officer for example; hospitals and courts are not part of this study. These selected offices also have sixteen procurement officers and for each pool sector offices five in GubalaftoWoreda and WoldiaWoreda and the remaining six procurement officers in North Wollo Zone.

1.9 Organization of the Paper

This research paper has five chapters. The first chapter provides relevant introductory part, which contains background of the study, statement of the problem, objectives of the study, significance of the study, scope of the study, description of the study area and limitation of the study. Followed by Chapter two that deals with the related literature reviews of ethical practices of public procurement officers. Chapter three covered the research design and methodology, in this section it incorporates research methods, design, data collection instruments, data processing and analysis, reliability and validity and ethical consideration are included. Chapter four deals with the presentation, analysis and interpretation of data obtained from questionnaires, observation, interview and focus group discussion. Finally, the last chapter, chapter five finished with the summary of findings, conclusions and recommendations of the study.

CHAPTER TWO

Review of the Related Literature

2.1 Introduction

This chapter focuses on the review of the related literature of ethical practices of public procurement officers and supplier related ethical issues. The related literature reviewed on this chapter based on the two goals of public procurement: basic ethical issues in public procurement including equal treatment, impartiality, confidentiality, collusion etc. while the second goal of public procurement is public procurement as a policy tool including procurement as an economic policy tool including preference for local suppliers and products procurement as environmental policy tool including environmentally friendly products and services and procurement as a tool to keep social rights including preference for women and disable suppliers etc.

In addition,this chapter tries to review the related literature on the study of public procurement ethical practices specifically public procurement officers’ ethical practices and suppliers attitude towards public procurement officers.

2.2 Introduction to Ethics

The concept of ethics is very old and has been discussed by different scholars in various fields. Crocker (2008),stated that humans had tomanage their social existence; they had to define ethical rules even if theythought that they were God-given. “Ethics” comes from theGreek “ethos” which is related to “oikos” (house). In the Stone Age period, this meaning was a little like “pasture” or “meadow”. This means that we livetogether in a society that consists of different backgrounds, culture,gender and norms that will affect the way we behave. According to Donaldson (1999), also indicated that Ethics has been the main discussion in almost all fields.Ethics involves the principle of morality, values and norms that apply to ourdaily lives. This also includes the understanding of what is right and wrongbased on our understanding and reasonable thinking.

Ethics is the science of morals in human conduct. It is the branches of philosophy concerned with the study of the conduct and character of people. It is the systematic study of the principles and methods for distinguishing right from wrong and good from bad. To consider specifically administrative ethics is the responsibility of public officials to multiple sources of authority or legitimacy. Why do some administrators fail to follow ethical imperatives even when a person wishes to be ethical, to do right, it is often difficult (William and Frances, 2007).

2.2.1 Professional Ethics

Professional ethics is the underlying concept behind the successful accomplishment of any act of professional towards achieving the individual and societal goals. These goals should ultimately result in morally, legally, ethically and even culturally acceptable good things for all. Profession the term can be taken narrowly to refer the traditional learned and broadly to embrace the literally hundreds of occupations. As other discipline Public procurement also needs high professional ethics due to huge budget run by those procurement official’s and if any misbehave on practices of procurement leads to loss of public money while the intended services could not reach to the users (Alavudeen, jayakumaranandKalil, 2008 ).

2.3 Definition of Public Procurement

Public procurement is the process of procuring of goods, services and works on behalf of Government organizations . According to Hamdan and Othman (2010), describes thatprocurement is the list of processes to produce, display and manage tender documents by clients or consultants. Furthermore, Sarvanto(2013), describes public procurement as purchasing of goods, services or works by public organizations such as the Municipality, Governmentand different State Authorities. According to Kotoka(2012), again explains that procurement as that function responsible for obtaining by purchase, lease or other legal means, equipment, materials, supplies and services required by an undertaking for use in satisfying wants. Therefore, the key task in public procurement is the purchasing of goods, works and services through contract with suppliers. The contract is a legal bidding document which needs to be respected and adhered to at all time. Tendering is thus a formal and legal procedure of soliciting tender offers in order to select the most suitable contractor.

2.4 Public Procurement as a Profession

Unfortunately, educators and researchers have not given much attention to public procurement. Indeed, in scholarly research publications, while there are a significant number of academic books, journal and articles in private sector purchasing, good scholarly publications in public procurement are hard to find (Rosalyn and Rick, 2001).While there are many universities that offercourses in supply and purchasing management and public procurement laws for the private sector, public procurement remains a neglected area of education (Thai, 2001).Public procurement has until recently been a neglected area of research. Consequently, getting a good number of submitted papers is always a major challenge.

As Thai (2009, p.8), points out, Public procurement is an extremely complicated function of government and public procurement requires interdisciplinary skills and knowledge, including economics, political science, public administration, accounting, marketing, law, operations research, engineering, and architecture, among others. Ethiopian Civil Service University also has been giving public procurement in Masters Level since 2004 E.C. This is also may be an indication of public procurement still a neglected area in our country, which might facilitate unethical practices of public procurement officers due to lack of knowledge and little consideration of the discipline.For example Fransiska (2014),found that procurement officers have no the necessary skills and knowledge to perform their functions properly and ethically in Namibia and Ghana, Ashanti region respectively. A similar finding was made by Abebe (n.d), also revealed that there is lack of skilled labor in public procurement in area and a need for implement capacity development through training.

2.5 The objectives of Public Procurement

There are a number of objectives of public procurement. These objectivescan be implemented through various means. To know objectives of public procurements are crucial to understand these possible objectives and to understand how they relate to each other and the importance of each objective in ethical practice of public procurement to understand their relevance for the particular procurement system.

According to Arrowsmith, Linarelli and Wallace (2000), mostly the followings are key public procurement objectives.

i. Value for money (efficiency) in the acquisition of required goods works or services.
ii. Integrity, avoiding corruption and conflicts of interest
iii. Accountability
iv. Equal opportunities and equal treatment for providers
v. Fair treatment of providers
vi. Efficient implementation of economic, social and environmental Objectives (“horizontal policies”) in procurement.

It is common that within different public procurement systems the existence of different objectives and the weight attached to the various objectives differs. For example, some systems attach much more importance than others to policies of fair and equal treatment of providers, to the use of procurement to promote social objectives or to accountability, however many of the objectives of public procurement showed below shared about greater or lesser degree with private persons engaged in procurement. Most obviously, both public and private procurement has a major goal of obtaining value for money, and both public and private purchasers are concerned to ensure an efficient procurement process. Further, although it has sometimes been asserted that public procurement differs with private purchasing in that public purchasers are concerned to use procurement to promote economic, social and environmental objectives, in fact this use of procurement is also common in the private sector, and has become increasingly important with the development of the concept of Corporate Social Responsibility. However mostly government procurement have a great responsibility to keep it (Arrowsmith et al, 2000).

2.5.1 Value for Money in the Acquisition of Required Goods, Works or Services

According to Business Dictionary (2015), Value for money is a utility derived from every purchase or every sum of money spent. Value for money is based not only on the minimum purchase price (economy) but also on the maximum efficiency and effectiveness of the purchase.Value for money is taking into account the optimum combination of whole life cost and qualitynecessary to meet the customer’s requirement (Emmet and Crocker, 2008).As Lyson (1994), has pointed out, the real value for money question is ‘How much will the item or service purchased cost to own and used’. On the other hand, Saunders (2004), echoed the previous reviews, particularly regarding the primary objective of government procurement as being the achievement of value for money.

2.5.2 Integrity Avoiding Corruption and Conflicts Of Interest

A second very important objective of many public procurement systems and public procurement regulation is to ensure integrity in the system. Integrity refers, first, to the idea that procurement should be carried out without any influence of corruption. Corruption can cover various types of practice. Many such practices involve various forms of collusion between government and bidders, notably:

- Awarding contracts on the basis of bribes;
- Awarding contracts to firms in which one has a personal interest;
- Awarding contracts to firms in which one’s friends, family or business acquaintances have an interest; and
- Awarding contracts to firms who have provided financial support.

Such corruption can occur in the execution as well as award of contracts e.g. officials can collude with bidders to allow them to claim extra payments for non-existent work (Anechiarico and Jacobs, 1996).

2.5.3 Accountability

A third objective of many public procurement systems is to ensure accountability in the sense that the system providea means for interested parties to establish whether the government is meeting its objectives. Such interested parties can include, for example, the general public tenderers. Accountability aspect is important as a means to achieve many of the objectives of a procurement system, including value for money and integrity. However, accountability can also sometimes be considered as a value in its own right especially in democratic countries. Transparency is of more importance to restore faith in the system for contractors and the taxpayers by allowing them to see exactly what transpires in the government contracting arena. To the extent that accountability is a separate objective of the procurement system governments may accept costs to accountability mechanisms for example, costs of publishing information or loss of value for money from reducing discretion even if these accountability mechanisms do not produce, for example, financial savings or any actual reduction in corrupt activity(Kenneth and Brian, 2006).

2.5.4 Equal Opportunities and Equal Treatment for Suppliers

This principle requires that identical situations to be treated in the same way or that different situation not be treated in the same way.Comparable situations must not be treated differently and different situations must not be treated in the same way, unless such the preparatory stage of any procurement procedure treatment is objectively justified. For example, when choosing a procedure, you should use the same deadlines must be applied to all tenderers consider at what stages you will be able to apply and the same information provided. However, tenders withdifferent prices should receive different marks in the cost evaluation(Hunja, 2002). Furthermore, Thai (2004), describes equality problems in a procurement context may arise from equality failures in the procurement practice of the contracting authority, eg direct or indirect discrimination on grounds of nationality, sex, race, etc in the contracting authority’s conduct of procurement processes.

Many public procurement systems refer to a principle of equal treatment of those participating in the system. Equal treatment in public procurement may take on two different roles. First, equal treatment may serve simply as a means to achieve other objectives of the public procurement system, such as value for money in obtaining goods, works and services, preventing corruption and opening up markets to competition. Thus all interested firms have an equal opportunity to participate is often the method chosen for seeking out the best terms for the goods, works and services. Requiring that those involved in the competition be treated on an equal basis during the conduct of the competition can help ensure value for money and/or prevent corruption in the procedure in two ways:

- By limiting the opportunities for the procuring entity to make discretionary decisions that could be abused to favors particular firms (for example, a firm that has paid a bribe or from the perspective of opening up markets).
- By encouraging firms to have confidence in the process and thus encouraging, the best firms to participate in the procedure. Secondly, however, in addition to serving as a means to support other procurement objectives, equal treatment may also serve as an objective of the procurement process in its own right (Weele, 2010).

2.5.5 Fair Treatment of Supplier

Fair treatment will encourage firms to participate in government procurement, and enhancing value for money. For example, the principle of fair treatment might suggest that a supplier who has invested significant resources in a procurement process. Fair treatment for suppliers is important to for suppliers which have different capacity and size. This objective used for suppliers who have lesser in capacity to do balance among suppliers and also used as to support lower level suppliers; here is in fact a debate in many legal systems over whether certain standards of fair treatment that apply generally to those dealing with the administration should also be applied to suppliers dealing with the government in the context of public procurement, or whether procurement should be treated as a “commercial” function that is an exception to general principles of fair dealing that apply to the conduct of the government towards its citizens.And it is difficult to implement this principle due to a crash with other principles (Soreide,2002).

2.6Basic Ethical Issues and Risks in Public Procurement at different bid stages

There may be different risk areas in public procurement at each bid stages for example, a study by Aliza (2013),identified potential risks to integrity at various points of the public procurement process as follows:

- Definition of specifications: The definition of specifications of a concrete project is adjusted in order to favor a specific bidder.
- Selection procedure: When using restricted procedures, the selection of potential suppliers is not based on objective criteria, with the risk of limiting the number of participating bidders.
- Bids submitted after the delay of submission: Bids are accepted after the delay of submission, including during the official opening of the submitted bids.
- Change in bid description: Certain elements of the initial contract notice are changed during the selection and award process, which can positively influence the matter of a privileged bidder.
- Award: When selection criteria are defined in too general terms, the risk of a subjective evaluation that favors a specific bidder is more common.
- Contracts with low monetary value: Overestimated prices are used for purchases of low monetary value, resulting in significant mismanagement of public funds.
- Contract management: Contracts are invoiced but not completed.

- In order to reduce the above identified risks Aliza (2013), also give several recommendations as follows:

F In order to avoid bias in the definition of specifications, the public official who is responsible for the definition of specifications must justify that these are based on the results of a market study about the needs. The definition of specifications must be clear and detailed.

- To avoid modifications of the bid during the process, it was recommended to use the four-eye principle, with several persons signing the bid project.
- Effective accountability mechanisms are necessary to balance the discretionary power of the public official responsible for inviting suppliers in a restricted procedure.
- Several public agents should attend the official opening of the submitted bids.
- A database should be created containing information on past purchases to be used as a price reference system.

2.6.1 Corruption Risks in Public Procurement Cycle

To understand corruption in public procurement, it is important to understand the procurement process. Public contracting processes broadly follow the same general steps. There are generally three phases of the public procurement process: the pre-tender stage, the tender stage and thepost-tender stage. Corruption risks exist throughout the entire procurement cycle.

According to OECD (2005), conflict of interest might happen in different bidding stages as below shown in the table:

Table 2.1: Conflict of Interest by Bidding Stages

illustration not visible in this excerpt

Source: OECD 2005 Report of Fighting Corruption and Promoting Integrity in Public Procurement.

2.6.1.1 Pre Tender Stage

The pre-tender stage includes the decision on the scope of the governmentalneed, i.e., deciding which goods, services or works are to be purchased. The procurement officials need to identify the relevant technical requirements to determine what exactly willbe sought from the private sector and when. The pre-tender stage also includes the structuring of the contracting process. In this regard, procurement personnel generally follow a pre-existing regulatory structure to determine how the process will work, including the timeframes for bidding, the stages in the process, the number of bidders who are eligible, any applicable restrictions or exceptions from normally applicable processes, and what transparent communications systems and opportunities are available between the procuring entity and the bidders. The pre-tender stage will also involve budgeting (Treumer,1999).

2.6.1.2 Tender Stage

The tender stage includes the invitation to tender, which is choosing which offeror will become the contract partner by evaluating the actual tender and the tenderer, and the award of a contract based on established terms and conditions for how the goods, services or works are to be provided. It includes any conditions or limitations relating to the award, including agents and subcontractors that may have connections to government officials(Harrison,1981).

2.6.1.3 Post Tender Stage

The post-tender stage refers to the administration of the contract to ensure effective performance. Further interactions of many kinds between the successful bidder and governmental authorities continue during the course of contract performance, e.g., regarding benchmarks, changing orders, payment schedules, licensing and permits. The choice of procurement procedure is a crucial factor in the procurement process. In particular, it determines the number of stages intervening between the decision to buy and the actual purchase. It is important to understand how the choice of the procurement method can have an impact on corruption in public procurement (Brown and Golfinopolous, 2003).

2.6.2 Methods of Public Procurement

According to the AmharaNational Regional State Proclamation No. 179/2011, article 20 of sub article of 1, clearly states that methods of public procurement are:

Open Bidding,Restricted Tendering, Request for Quotation (proforma), Direct Procurement, Request for proposals, and Two stages Tendering are methods of public procurement. However, according to sub article 2 it stated that, ‘except as otherwise provided in this proclamation, procuring entities shall use open bidding as the preferred procedure of procurement’.

2.6.2.1 Open procedure (sealed bidding)

Open tendering is a formal single-stage procurement method in which any interested company, without any pre-selection, may submit a bid; bids are usually made against detailed government specifications, and the award is usually made to the bidder offering the lowest price. This method allows maximum transparency and competition, for it generally requires a public notice advertising the contract opportunity, exhaustive technical specifications and contractual terms, a public opening of tenders and the absence of the possibility to negotiate the contract. In general, a procuring entity must use this procurement method unless the use of alternative methods is justified. Selection of tenderers,In the case of single-stage procedures, such as open procedures, the assessment as to whether tenderers satisfy the set selection (qualification) criteria is normally carried out soon after the formal compliance check has been performed (Hansen, 1986).

2.6.2.2 Restricted Tendering

According to Arrowsmith (1998), explained that, a restricted procedure is different from an open procedure in the sense that only pre-selected qualified companies are allowed to submit a bid. There are slight Variations in restricted procedures under different frameworks. They may involve a restriction of the bidding to those companies, which pre-qualified following a public advertisement and based on disclosed minimum and selection criteria, as is done under the restricted procedure may also mean that a public advertisement of a contract opportunity is not required, as interpreted in the ANRS proclamation. This may happen, for instance, if the subject matter of the procurement is available only from a limited number of suppliers.

In addition, Govert andTelgen (2002), Calls for tender are known as “restricted” when only a short-list of candidates is permitted to submit a tender. In principle, this procedure is used when the work can only be performed by a limited number of firms or for low value contracts. However, it is also misused to exclude firms that may be less favourably disposed towards the decision-maker (e.g. those that will not accept being discriminated against) or that are less familiar with local “practices” (e.g. foreign firms).

2.6.2.3 Negotiated Procedure

According to Whiteford(2003), A negotiated procedure is often used for cases in which it is not feasible(or not possible) to formulate exhaustive technical specifications and contractual terms. It is thus necessary to enter into a dialogue with the offerors to conclude the contract. Anegotiated procedure is also often used for cases of failed tendering procedures (e.g., notenders or only non-responsive tenders were delivered). Another frequent reason for a negotiated procedure is circumstances of urgency or a catastrophic event.

Furthermore, Holmes (1995), stipulated that All negotiated contracts when only chosen suppliers are invited to negotiate a contract are suspect in the eyes of inspectors because directnegotiation between a decision-maker and a supplier can give rise to all sorts of manipulation leading to fraud, misappropriation of public funds and corruption. This is why use of this procedure has only been permitted in a number of specific cases (those listed in ANRS Procurement and Property Administration Proclamation).

2.6.2.4 Single-Source Procurement (Direct Award or Limited Tendering)

Single source procurement oftenallows the procuring entity to choose the contracting partner without any form of transparency or competition. This type of procurement constitutes a major departure from thefundamental principles. Grounds for direct contracting may include, forinstance, the low estimated value of the contract, the fact that the goods, services at issueare available only from a particular provider, urgent needs, a catastrophic event, the needfor additional supplies to beprocured from an existing contractor, or special concern regarding national defense or national security (Adnan, Sherif, and Munther, 2013).

2.6.3 Possible Risks in bid preparation

2.6.3.1 Technical Specification

Technical specifications should be designed so as to avoid bias, especially so as not to favor any particular bidders or particular products or services. They must be predisclosed, relevant andappropriate with regard to the subject matter of the procurement, objective and be based on theactual needs of the government(Bozeman, 2002). According to UNODC (2013), also indicated that good practice suggests that procuring entities should call for a particular good or service a brand name only where no other sufficiently precise description can be used. The call for a particular good can also be followed by the wording “or equivalent” with a description of the key characteristics being sought. Good practice requires, where appropriate, that technical specifications be set out in terms of performance and functional requirements rather than design or descriptive standards. In addition Amhara Regional State Proclamation NO.179/2011 article 17(4) stated that;There shall be no requirement or reference in the technical specifications to a particular trademark or name, patent, design or type, specific original producer or service provider, unless there is no sufficiently precise or intelligible way of describing the procurement requirements of the procuring entity and provided that words such as “or equivalent” are included in the specifications.Therefore, public procurement officers should not indicate any brand names during bid preparation stage, which may lead to favoritism for a specific supplier and this results unethical practices and bias towards suppliers.

2.6.3.2 Collusion

Price increases during execution through “change orders” reflecting changes in specifications or cost increases, facilitated often by collusion between corrupt contractor and corrupt control official.This occurs when bidders colluded with one another and kept the bid amount at a pre-determined level. This normally occurs in a competitive public tender environment (Francosis, 1997). This process would involve public officials who were responsible for conducting the tender and who were willing to collaborate with the bidders in the bid-rigging fraud.

2.6.3.3 Award criteria

To minimize corruption and ensure appropriate competition, the award of a public contract should be made only based on pre disclosed criteria. It may be either the lowest price or a combination of the price with other criteria, such as the most advantageous or best value tender. Award criteria should be drafted in an objective way to ensure fair, impartial and non-discriminatoryapplication. The weighting between criteria, and the manner of application for the criteria, must be set out in the tender documents, and non-price related criteria, such as time for delivery and extension of the minimum warranty period should be quantifiable, so that they can be assessedobjectively and transparently. Good practice suggests that a panel or commission, to reduce the risk of individual corruption and to gain the benefit of a consensus opinion (OECD, 2006), best evaluates subjective criteria, such as the viability of a bidder’s proposed stating schedule. In addition, UNODC (2009), explains that Good practice of evaluation criteria requires that a procuring entity set out all award criteria and their relative weighting in detail in the tender documents.

2.7 Public Procurement as a Policy Tool

Public procurement is a key tool at addressing socio-economic imperatives such as social environmental and economic empowerment (Ellmers, 2010). Due to the high volume government purchasing power, public procurement can be used to influence social, environmental and economic objectives of the government (Bovis, 1998). McDonald (2008) furthermore, stipulated that public procurement could play a powerful role in poverty reduction if it accounts socio-economic criteria in the procurement process. Public procurement is a powerful tool to achieve socioeconomic objectives because it operates at the intersection of the government’s regulatory and buying powers. Governments are market regulators and market participants. They regulate the public procurement process by establishing the legal and regulatory framework. Governments spend trillions of dollars annually purchasing the goods, works and services they require to fulfil their public functions. The public procurement process involves three phases: acquisition planning and market research; source selection and contract award; and contract administration and close out. By carefully structuring the rules that govern each of these phases, governments seek to achieve various policy objectives. For most procurement systems, those objectives include value for money, integrity, equal treatment and efficiency. These objectives can and should include increased participation by women and disable entrepreneurs, environmentally friendly producers and small and micro enterprises in public procurement and in the economy more broadly (Rolfstam, 2009).

Public Procurement accounting for over 15% of GDP in most countries has become an important priority. Many are pushing for an increased use of Public Procurement as an active policy tool to stimulate innovation, green technologies, and social inclusion through giving preference for minority groups, women owned and disability owned enterprise, while suppliers who keeps the rights of their employees and produce safe products or services for both environment and humans (Brammer and Walker, 2011).

Public procurement therefore should be directly used as a tool to achieve socio-economic objectives such as economic development, poverty eradication, social and gender equality and environmental sustainability. Unethical practices are enemies to development. It may lead to poverty, unemployment or under development if not well managed.

According to UNPPHP (2006), as a mechanism to further economic, social and environmental development:

Procurement can be used as a mechanism to further the economic, social and environmental development of recipient countries and/or regions. As such, sustainable procurement should incorporate a number of safeguards and checks in the procurement process to positively assist in the following areas:

- Human rights: The procurement function must include processes that are designed to identify companies that flaunt their responsibility to uphold universal human rights towards their employees and toward the communities in which they operate.
- Labor rights: With globalization and increasingly extending global supply chains, procurement officers have the unique opportunity as well as responsibility to ensure that the procurement function serves to protect workers’ rights.
- Environmental impacts: Procurement can play an integral role in promoting sustainable production and consumption patterns. It is widely recognized that industrial development will only be truly sustainable if it is built on firm ecological foundations. The growing attention to issues of sustainable production and consumption is a natural outcome of decades of work on cleaner production and eco efficient industrial systems. It represents the final step in a progressive widening of the horizons of pollution prevention; a widening which has gone from a focus on production processes
- Local entrepreneurship: Strategic procurement can provide a framework to ensure that local content becomes an integral component of the procurement policies and practices.
- Government: The procurement function plays an important role in achieving and ensuring good governance. It is an integral component of a government’s capacity to provide the required goods and services. A well-functioning procurement system ensures; better value for money, increased efficiency and effectiveness of delivery, reduces the potential for corruption, positive impact on a country’s investment climate, non-discriminatory practices, transparency and accountability. Good governance encompasses a functioning regulatory system, as well as institutional setup, well-designed processes and proven capacity. Strategic approaches to procurement, as well as the knowledge transfer of good procurement practice and capacity building within procurement functions toward National government procurement entities assist in the development of good governance practices(CIPs, 2013).

2.7.1 Public Procurement as an Economic Policy Tool

Buyers should, wherever possible, be aware of opportunities to support the local community and Small and Micro Enterprises (SMEs), whilst maximizing opportunities for global Sourcing It is good practice to balance the risk of awarding contracts to new or small suppliers with the opportunity of encouraging new business to flourish (Chartered Institute of Purchasing and Supply,2013 ). In the Amhara National Regional State Proclamation No. 197/2011, article 13(4), states that there should be a preference for small and micro enterprises found in the region.

2.7.2 Public Procurement as an Environmental Policy Tool

According to Purchasing Supply (2011),Sustainable procurement is not simply about concerning the environment but it considers socially and ethically responsible purchasing. The realization of environmental standards is a complex issue especially in developing countries. Environmentally purchasing practice that reduces sources of waste and promotes recycling and reusing without reducing quality of the products or services (Min and Galle, 2001). According to UNPPHP (2006), also argued that it is important to consider that it covers both, products and services, and they have to successfully minimize negative environmental impacts throughout the Supply Chain until the disposal of such materials. The increased concern for the environment in the society of today has lead to a greater awareness of the consumers, and they keep track on companies making sure they are performing in an environmentally friendly manner. In addition,Tyler (1997),stated that no matter how good a company performs, if the suppliers do not comply with the environmental standards the customer would soon hold the company responsible. Purchasing environmentally is equal to procuring reusable and recyclable goods, taking part and supporting the development of environmentally friendly items, and take actions to reduce the utilized resources (Carter, 1996).

2.7.3 Public Procurement as a Social Policy Tool

Government has a key role to play in improving the lives and work prospects of our citizens. This means providing people with the opportunity to flourish as well as supporting those who are disadvantaged and ensuring that all have equal access to public services that meet the diverse needs of our communities.

With an annual, spend of around £220 billion, public procurement can help towards achieving these social objectives through the way that Government buys public goods and services. By taking account of social benefits to society, Government can maximize value for money from its spending. Therefore, Public sector bodies need to address social issues in procurement.Empowerment of womenare one of the Millennium Development Goals (MDGs) addressing this issue set a target for “the elimination of gender disparity in primary and secondary education preferably by 2005, and to all levels of education no later than 2015”. The procurement function can assist this issue by adopting practices that promote the contracting of minority businesses, particularly those owned by women. A straightforward and simple approach is to use an evaluation preference that favors’ minority business by a certain percentage(McCrudden, 1998).

2.8 Ethical Behaviour of Public Procurement Officers

According to Joseph, Warren, Sarah and Alex, (2010), as a consequence of questionable behaviors by procurement officers, public bodies do not get value for money on procurements. At the community level, procurement malfeasance impacts negatively on the quality of social services that are intended to benefit the poor. Significant losses of public funds also occur due to through mishandled procurements. Furthermore, Fredrick,John, Swan David and Rink (1988),stated that Norms are rules for behavior, and a behavior is considered unethical if it violates a norm and ethical if it supports norms of the group. A fundamental assumption is that the self-interest of the individual and the interest of the group will not necessarily be the same in all instances. Norms arise to regulate individual conduct and help achieve the larger interests of the group or to reduce conflict between group members. Ethics begins with the individual. As a public servant,it is important to disconnect one’s leanings toward favoritism. It is human nature to develop attachments towards individuals we like and People who satisfy our needs. As a representative of public interest, however, it is important to never let these emotional bonds away our judgment. It is also essential that gifts of gratitude are not accepted, as these gifts may cloud our judgment in future dealings with a particular vendor. We have in place a system of laws that are written to guide us through our procurement decisions. For example, we have laws that help us gain fair and competitive competition to save taxpayer money; we also have laws that prohibit us from taking bribes and showing favoritism. However, simply following what the law states does not always constitute ethical behavior. In order to address this we must look at why these laws were made and what constitutes ethical behavior. According to Achua (2011), typically public procurement corruption takes place during the planning (budgeting) and execution stages. There should not, there is less room for mistakes by new employees that are untrained in professional practices, which could be construed as unethical behavior (Hunsaker, 2009). Furthermore,Khramkin (2005),explains that conflict of interest can arise in situations where individual/private interests collide with official functions/responsibilities.

2.9 Ethical Public Procurement

According to Lars et, al (2008), Public procurement ethics is not only related to bribes and gift giving from supplier to public procurement officials but also includes suppliers practices related to their sourcing strategy. Public procurement officers should purchase and give any preference for suppliers who respects legal requirements like child labor, child labor, workers’ rights regarding illegal work, wages and working hours, factory conditions and safety, environment, but also requirements that the products not shall affect the users’ health negatively. As of (European Commission., 2001; Zanden., 2007; and Wood, 1995), claims that bribery is the largest ethical problem within the purchasing function and this means that a major reason for this is that business people from the Western world, which have successfully industrialized their economies, assume that non- or semi-industrialized countries work in lower ethical standards than their own and that bribery is common in these cultures. Bribery, gift giving and entertainment are used to make the purchasers favor specific suppliers during the supplier selection instead of only base it entirely on price, quality and delivery. In addition,Nagitta and Ssennoga (2008), Corruption in public procurement process has become increasingly critical to many organizations both public and private, and has attracted significant attention from governments, civil society institutions and international bodies. The cost of corruption in procurement is difficult to measure quantitatively, if at all, due to the clandestine environment in which it takes place. Given the massive amounts of money spent on public contracts, however, no one doubts that corruption in procurement has an immense impact on the effectiveness of government investments. Transparency International estimates that damage from corruption can represent on average 10 to 25 percent and in the worst cases as much as 50 percent of a contract’s value (Rozo, 2010).

2.10 Relationship among Ethics, Public Procurement and Corruption

Ethics is a significant issue when it comes to public procurement. As procurement professionals, it is our responsibility to ensure that the core values of honesty, integrity and transparency arenot only followed, but disseminated throughout the agencies for which we work (Hunsaker, 2009).According to Dean and Charles (2005), Ethics exists apart from ones profession, but no profession exists apart from ethics. So, as other professions ethics is very important in general for procurement and specifically for public procurement that run by taxpayers’ money to minimize corruption.Furthermore, Keylan (2009), elaborates thatin all periods of history, corruption and non-ethical behavior were always on the immediate agenda of societies. Ethics bears a resemblance to the foundation of a building. Since the foundation of a building is below the earth, we are able to realize that it is a weak building only when it collapses. When ethical values and cultures of societies are based on sound foundations, they usually do not draw much attention. The importance of ethical values is taken into consideration only whenever societies and institutions experience significant crises.

2.11 Code of Conduct for Public Procurement

A document that explains specifically how employees should respond in different situations.A code of ethics is especially useful when problems arise the most important element of the code of conduct is commitment to integrity and corruption prevention. The code should very explicitly prohibit bribery and not talk around it(Business ethics and social responsibility, 2013). The fight against corruption is waged both through control and through prevention. Control is a function of the state. Here, criminal laws are the most important instruments. The other instruments of control are civil and administrative sanctions and the debarment or blacklisting of corrupt companies (OECD,2007).When developing a Code of Conduct it is according to Evans, Powderham and cross (2008) important to ensure that it reflects issues that are of importance for the company, e.g. human rights, the environment or corruption. Procurement codes of conduct should be consistent with its own values and that they are relevant to the business sector the companies work in. This since it is the market sectors and the locations where the company and its suppliers work that will dictate the relative importance of the different issues in the codes (Evans, et al., 2008).

Organizations and professions often seek to address standards of conduct through the adoption of codes of conduct. Procurement professionals cannot abide merely by the letter of the law or the specific words in any code, but rather, they are guided by the spirit of the law or the broader concept that the code is intended to express. One reason why many Procurement stages of bid and organizations avoid detailed and specific codes is these may give the impression that anything not prohibited is permitted or that anything not specifically addressed is not important. People in other professions who have not been trained in or are not appreciative of procurement ethics may not realize that a situation not specifically identified in the code may still be vitally important. Those who do not understand the foundation of a general requirement may not be able to apply a code in a specific situation. No matter how hard policy-makers try, they will never specify in law, code, regulation, rule, or other written requirement everything that a procurement officer needs to know regarding what is allowed or appropriate and what prohibited. It is necessary for procurement officers to understand what the law or rule is intended to accomplish(UNPPH, 2006). Conflict of interest can arise in situations where individual/private interests collide with official functions/responsibilities (Khramkin, 2005).

2.12 The Role of Public Procurement in Preventing Corruption

Public procurement is regarded increasingly as a strategic profession that plays a central role in preventing mismanagement and minimizing the potential of corruption in the use of Public funds. Public procurement is progressively recognized as an instrument of government policy and a lever for wider economic, social and environmental change (OECD, 2007). While many countries have not been able to tackle public procurement unethical practices and public procurement, become government activity most vulnerable to corruption. Improvements in the public procurement system can have a direct and beneficial effect on the overall economic situation of a country. This underscores the importance of ensuring ethical standards are maintained in public procurement processes. Most countries procurement of goods, services and works required by government departments consumes a considerable part of government resources (Wittig, 1999).

2.13 Empirical Related Literature

Empirically, application of procurement rules appears to reduce prices by around 30 percent because effective public sector procurement contract system hinges on a desired degree of transparency, integrity, competence, competition, and value for money (Adegbola, Akpan, Eniaiyejuni, Alagbe and Kappo,2006).Public sector employees are generally not familiar with the provisions and principles of the ethical code and its supporting documents. What remains a matter of concern is the lack of independent control mechanisms to regulate and cover this area. There also remains a special problem with regard to integrity in public procurement as there are no mechanisms in place to prevent related persons from participating in them, so tenders are sometimes awarded to people who are related to the representatives of the contracting authority through family or other ties (Divjak, Nebojsa, Aleksandra, Svetlana, Slavica, Igor, Vera.,… Alma,2013). According to a study by Tesfaye (2007), and the Amhara Ethics and Anti-Corruption Commission report (2012/13), it is found that public procurement is the most corruption prone areas in the public service. Furthermore,According to Corruption Perception Index scores of 2013 Ethiopia rank 111th of the perceived levels of public sector corruption in 177 countries/territories around the world and scores 33/100. Of Sub-Saharan Africa 90% Score below 50/100.Top: Botswana and Bottom: Somali 69 % the percentage of countries worldwide that score less than 50 indicating a serious corruption problem.Therefore, procurement has been one of corruption prone area, which faces to corruption since above 70% of the budget go to public procurement (Transparency International, 2013). In addition, a study by Abeje (2015), and Abebe (n.d), indicated that, public procurement ethics in public procurement had a positive andsignificant association with effective public procurement implementation. This implies procurement people whoavoid the intent and appearance of unethical or compromising practice in relationships, actions andcommunications will contribute for the effectiveness of public procurement implementation.Whereas many previous research for example (Getnet,2014; Mekonnen and Shimeles, 2012; Tesfahun, 2011), has focused on identifying ethical practices based on only the functional objectives of public procurement; which means the primary objectives of public procurement is the purchase on competitive terms of a product or servicemeeting a particular functional need. However, this paper argues that horizontal considerations can be asimportant as, or even more important than, the functional objectives served by the procurement,particularly where horizontal objectives relate to such vitally important matters as protecting humanhealth and safety, promoting human equality and dignity, conserving natural resources, orpreventing climate change. Thus, an important principle informing the analysis of public Horizontal procurement policies are sometimes referred to as ‘secondary policies’, implying that the competitive terms of a product or servicemeeting a particular functional need, and that factors relating to horizontal policies are ‘secondary’in the sense that they do not relate directly to this need. Therefore, using public procurement as an economic policy tool is little known activity in public procurement specially in our country, Ethiopia and particularly, in the study area of Amhara National Regional State.

CHAPTER THREE

Research Design and Methodology

3.1 Introduction

The study was conducted to assess ethical practices of public procurement officers and suppliers influence on public procurement. To answer the research objectives, the researcher opted to obtain the ethical practices of public procurement officers, suppliers’response towards public procurement official’s ethical practices. In line with this topic specifically, two type of population were selected for the study: public procurement officers and suppliers. For Public Procurement Officers: a total of 16 respondents from three public organizations by using purposive sampling within Woldia city administration and for Suppliers: a total of 19 suppliers and purposive sampling also used for this study. The Selected participants answered a survey questionnaire structure in Likert format, observation, focus group discussion and an interview was usedfor better investigation of the problem; the researcher takes questionnaire for both suppliers and procurement officers whilefocus group discussion and observation in the procurement activities and interviews for suppliers. Data gathered from this research instrument were then computed for interpretation. Along with primary data, the researcher also made that use of secondary resources as published articles and literatures to support the survey results.

The research methodology of a study should be reflecting the research objectives (Yin,2009). The research methods to be selected are depends on the situations to be studies, (Loraine, Christina, and Malcolm, 2006). To achieve those objectives the following techniques were employed.

3.2 Research Design

A research design is a blueprint or detailed plan for how a research study is to be completed (Anol, 2012). According to Hakim (2000), explains that a research design is a procedural plan that is adopted by the researcher to answer questions validly, objectively, accurately and economically. Your research design will be the general plan of how you will go about answering your research questions.According to Selltiz, Deutsch and Cook (1962:50), further elaborate that ‘A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure’.

The study was intended to investigate the existing situation and ethical practices of public procurement in Woldia City Administration. A descripto-explanatory research design was used and both qualitative and quantitative methods used to analyze the data gathered through questionnaire, Observation, focus group and Interview.

As Erik and Marko (2011), noted that descriptive research design as its name impliesthat all about describing certain phenomena, characteristics or functions. Robson (2002:59), also indicated that the object of descriptive research is ‘to portray an accurate profile of persons, events or situations’ whichdescriptive research examines the what, where, and when of a phenomenon while explanatory research seeks explanations of observed phenomena, problems, or behaviors and it seeks answers to why and how types of questions.

Good description provokes the `why' questions of explanatory research. We are forced to ask `Why is this happening?' However, before asking `why?' we must be sure about the fact and dimensions of the phenomenon. This means that if your research project utilizes description it is likely to be a precursor to explanation and such studies are known as descripto-explanatory studies(Saunders, Philip, and Andrian, 2009). According to Yin (2003), also explains that when descriptive research design is combined with explanatory research design it answers why questions and they will want you to go further and draw conclusions from the data you are describing. Therefore, the researcher used both descriptive and explanatory research design, which called descripto-explanatory research design while the data that collected through questionnairewas analyzedquantitatively and observation, focus group discussion and interview were analyzed qualitatively.According to Mooi and Sarstedt (2011, p. 20):

˝Most people regard as the difference between qualitative and quantitative research as one between numbers and words, as quantitative researchers focusing on numbers and qualitative researchers on words. However, this distinction is not accurate, as many qualitative researchers use numbers in their analyses. Rather, the distinction should be made according to when the information is quantified. If we know that the possible values occur in the data before the research starts, we conduct quantitative research, while if we know only this after the data have been collected, we conduct qualitative research.̏

Therefore, the questionnaire employed in this study was closed questions such as “Yes” or “No” option and “Strongly agree”, “Agree”, “Uncertain”, “Disagree”, and “Strongly disagree,” and since the researcher can know that the respondents only chooses from these alternatives only. On the contrary,interview, observation and focus group discussion that the researcher used was not able to know what the respondent’s answers would be. As a result, this study employed both qualitative and quantitative data and it analyzed qualitatively and quantitatively.

3.3 Target Population

Population is the entire collection of all observations of interest to the researcher (Bryman, 2012).The study population was taken from Woldia City Administration. The populations were also divided in to two parts. The first were public procurement officers found in the three pool sector offices with total of 16 officers and the study covered GubalaftoWoreda officials (58), WoldiaWoreda officials (57) and North Wollo Zone officials (38).

Table 3.1: Population of the Study

illustration not visible in this excerpt

Source: Human Resource Management Department

3.4 Sample Selection, Size and Technique

According to Bryman (2012), sample is the segment and subset of the population that is selected for investigation. For all research questions where it would be impracticable for you to collect data from the entire population, you need to select a sample. The researcher used non-probability sampling technique of purposive sampling was used to select public procurement officers in the three pool sector offices in Woldia city administration and 16 procurement officers were selected which incorporates GubalaftoWoreda (5), WoldiaWoreda (5) and North Wollo Zone (6) procurement officers selected based on professional judgement. Professional judgmental sampling is important especially when data is obtained only from a specific group of people who have the knowledge or expertise.

3.5 Data Processing and Analysis

After gathering all the completed questionnaires from the respondents, total responses for each item were calculated and tabulated. Likert-scale type questionnaire from Strongly agrees to Strongly disagree and a Yes or No type questionnaire were utilized. The research was analyzed qualitatively and quantitatively.Data obtained through focus group discussion, semi structured interview and observation were reported based on summaries of the major ideas and themes. However, actual quotes that illustrate views of the participants own words are rarely used. Due to the similarity of respondent’s findings, it was not used direct quote of the respondents ideas.

3.6 Data Collection Methods and Instruments

The researcher used both primary and secondary data.In addition, existing documents like journals, books, different OECD reports, articles, audit reports etc.were scrutinized to collect the required data. Important information related to the study was dotted down and compiled accordingly.

- Questionnaires: Questionnaires were used to collect information from public procurement officers and suppliers. This helped to compare data and information which collected within a short time. It was administered by self and voluntary cooperation of respondents. Questionnaires were distributed for 16 public procurement officers and 19 suppliers.

- Observation: a nonparticipant observationwas used for public procurement officers.

- Interview: Semi structured interview for the sample Suppliers was made. Semi structured interviews are most frequently used in an explanatory research and it is used to explain themes that have emerged from the use of questionnaires (Tashakkori and Teddlie, 1998). This interview method also used as a means to validate findings from questionnaires (Bryman, 2006). Therefore, semi structure interview was appropriate for this study.

- Focus Group Discussion: According to Bryman, (2012), focus group technique is a method of interviewing that involves more than one, usually at least four; interviewees and it essentially emphasize a specific topic that is explored in depth.Additionally how large the sample should be; Morgan (1998), suggested that the typical group size is six to ten members which admitted are not randomly. Therefore,9 public procurement officers were purposively selected for the study who have better experience and educational qualification in order to get adequate and reliable data.

3.7 Response Rate

The questionnaire was sent for 16 selected sample public procurement officers and all questionnaire returned as the same time the questionnaire, which sent for 19 selected sample suppliers also all returned with a 100% response rate.

Table 3.2: Response rate of the study

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Source: Field Survey February, 2014

3.8 Procedure

The researcher obtained a letter of introduction from the Institute of Tax and customs Ethiopian Civil Service University. Then questionnaires were distributed to the respondents and finally collected by the researcher to minimize loss.

3. 9 Reliability and Validity

Robert and Richard (2008, p413 and 426) states that reliability refers to “the degree to which there is an absence of measurement error” while validity “to what extent does the testing instrument actually measure the construct/concept/variable it purports to measure”.

3.9.1 Reliability

Reliability is the extent to which a test is repeatable and yields consistent scores. Internal reliability assesses the consistency of results across items within a test. Internal consistence is commonly measured as Cronbach's Alpha (based on inter-item correlations) between 0 (low) and 1 (high). The greater the number of similar items, the greater the internal consistency. Internal reliability of 6 items (6 questionnaires, “Yes” and “No”) was assessed using the Cronbach alpha technique and the scale produced an alpha of .827. That is acceptable because of it is greater than .72 that the standard acceptable level of Cronbach alpha reliability test. The second questionnaire was prepared based on basic ethics 6 items with a .823 Cronbach alpha result and this is acceptable for an attitude scale of from strongly agree to strongly disagree. The third questionnaire had a Cronbach alpha reliability of .89.

3.9.2 Validity

While reliability is necessary, it alone is not sufficient. For a test to be reliable, it also needs to be valid. External validity was taken because it refers the extent to which the result of a sample is transferable to findings or how much the sample can generalize the total population. According to the researcher taken purposive sampling which the profession is directly related with the selected sample and it is believed to be the findings going to be valid.

3.10 Ethical Considerations

As this study required the participation of human respondents, specifically public procurement professionals and suppliers, which certain ethical issueswere addressed. The consideration of these ethical issues was necessary for the purpose of ensuring the privacy as well as the safety of the participants. Among the significant ethical issues that were considered in the research process, include consent and confidentiality. In order to secure the consent of the selected participants, the researcher relayed all important details of the study, including its aim and purpose. By explaining these important details, the respondents were able to understand the importance of their role in the completion of the research. The respondents were also advised that they could withdraw from the study even during the process. With this, the participants were not forced to participate in the research. The confidentiality of the participants was also ensured by not disclosing their names or personal information in the research. Only relevant details that helped in answering the research questions were included.

CHAPTER FOUR

Data Presentation, Interpretation and Analysis

4.1 Introduction

In this part of the study, the data obtained using primary sources are presented by using descriptive methods. Tables and charts are used to present and interpret the finding. The primary data collected from the procurement officers and suppliers is presented using a descripto-explanatory research method and major findings of the studies are discussed using various literatures and personal judgments.

Respondents were asked to indicate on a 5-point scale, varying from 1 (strongly agree)to 5 (strongly disagree) on their perception on the basic ethical principles of public procurement. In this study, the researcher analyzed the responses that were collected on questionnaires; the scale 1 and 2 (strongly agree and agree) respectively, to mean that respondents are in agreement with the fact that the variable is present. On the other hand, the scale 4 and 5 (disagree and strongly disagree) respectively, means that respondents disagree with the fact the variable is present. Scales 3 mean that respondents are neutral to the question.

4.2 Demographic Characteristics of Respondents

4.2.1 Demographic Characteristics of Public Procurement Officers

Table 4.1.Public Procurement Officers Gender

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Source: Field Survey February, 2014

As the above table shows, the majority (69%) or 11 out of 16 public procurement officers were male and the remaining 31% or 5 out of 16 were females that attended the questionnaire.

Table 4.2: Age of Public Procurement Officers

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Source: Field Survey February, 2014

The above table shows that age of public procurement officials which is divided based on a 5 years interval, the respondents replied that 1(6%) were between 18 up to 23 years, 6(38%) ranges between 24 up to 35 years, 4(25%) ranges between 36 up to 41 years and the remaining 31% greater than 41 years. Above half (56%) of procurement officials are adults above 35 years old.

Table 4.3: Work Experiences of Public Procurement Officers

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Source: Field Survey February, 2014

As we can see from the above table that, the work experience of public procurement officers 6(38%) out of 16 had an experience of four up to eight years and as the same time 6(38%) also had greater than 12 years of work experience. While others 25% or 4 out of 16 had an experience of below 4 years. Based on the responses, one can understand that most of public procurement officers had experienced.

Table 4.4: Education Levels of Public Procurement Officers

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Source: Field Survey February, 2014

The above table shows that the distribution of public procurement officers in their educational level. Out of 16 Procurement Officers, half of the total respondents were degree holder and 31% (5) diploma, 3(19%) certificates. Therefore, this finding revealed that half of procurement officials were certificate and diploma holders. At the same time half were degree holders.Fromthese findings, there is a need for training and education. Mekonnen and Shimeles (2012),found out that skilled public procurement professionals are most significantly considered to assure integrity in public procurement. Therefore, even if there is skilled man power in the area there also a need for additional training and education to make qualified and competent officers.

Table 4.5: Organizational Levels of the Public Procurement Officers

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Source: Field Survey February, 2014

As presented in table 9, public procurement official’s organizational level in the three pool sector offices and both WoldiaWoreda Administration and GubalaftoWoreda had equal work force that 5 employees for each and North Wollo Zone had 6 employees.

4.3 Assessment of Ethical Practices of Public Procurement Officers and Suppliers Attitude

4.3.1 Public Procurement Officers Equal Treatment of Suppliers

According to Kenneth (2006), equal treatment to all suppliers in public procurement is one fundamental principle of public procurement. It means that all suppliers should be treating equally and seen by public procurement officers on equal footing. All suppliers must get the same information at the same time and equally. Furthermore, OECD (2009), stipulated that this principle requires that identical situations to be treated in the same way, while different situations not be treated in the same way.

Table 4.6: Public Procurement Officials Level of Agreement and Disagreement regarding on giving Equal Treatment to all Suppliers.

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Source: Field Survey February, 2014

As the above table shows that the above 5-likert item questionnaire from strongly agree to strongly disagree option, public procurement officers answered only two of them. The answer also shows that they agreed which they were, give equal treatment to all suppliers, which 31% strongly agree and 69% agreed. However, according to the interview made with suppliers, public procurement officers gave more attention to suppliers that mostly deliver products and services to them.

Table 4.7: Suppliers Response based on basic Ethical Practices of Procurement Officials on giving Equal Treatment to all Suppliers

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Source: Field Survey February,2014

Here as we see from the above table, 4(21%) strongly disagree, 7(37%) disagree, 6(32%) agree and strongly agree and the remaining 2(10%) were uncertain.

Depending on the findings from questionnaire, above half (58%) of suppliers disagreed that public procurement officers could not give equal treatment to all suppliers. On the other hand, 32% of suppliers believed that as they get equal treatment from procurement officers and the resting 10% were having no knowledge.

As the researcher observed on procurement work activities and interviews for suppliers, mostly procurement officers have a good personal relationship with experienced suppliers’ rather new and inexperienced suppliers and some suppliers able to get information before bid competition to prepare in advance for the bid competition. However, this ignores the principles of equal treatment, practically procurement officers give equal treatment during the awarding of the contract that they select the winner bidder according to the criteria set to competing bidders. As procurement officers and suppliers responses based on the given questionnaire had different results, the researcher takes interviews and observation to get adequate and supportive data in order to reach a reliable conclusion. As a result, public procurement officers were not giving equal treatment to all suppliers and this is mostly due to lack of awareness about the guiding ethical principles of procurement. Even if they were not follow the principle of equal treatment fully in their procurement system, they mostly not involved to benefit a specific supplier to win the bid rather it was their working condition not follow ethical principles of public procurement like giving information for all suppliers. Therefore, the findings from observation showed that most public procurement officials were not giving equal treatment for all suppliers and this is due to they are not aware of the principles of equal treatment to all suppliers. Interview for suppliers also showed that most of the respondents felt that public procurement officers were not giving equal treatment in their procurement system.

4.3.2 Whether Public Procurement Officers Uses the Same Evaluation Criteria in evaluating all Responsive Bids.

Public procurement officers are responsible to use the same evaluation criteria at the time of bid competition. Without favoritism all suppliers should evaluated according to the specified criteria and the criteria should be uniform for all suppliers. In public procurement, the public official may improperly exercise his discretion in deciding which firms to invite for tender and the award of a public contract should be made only based on pre disclosed criteria. It may be either the lowest price or a combination of the price with other criteria, such as the most advantageous or best value tender (OECD, 2009).

Table 4.8: Public Procurement Officer’s Level of Agreement and Disagreement of using the Same Evaluation Criteria to all Suppliers.

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Source: Field Survey February, 2014

As can be viewed from the above table, 6(37%) and 7(44%) of the respondents strongly agreed and agreed respectively. The remaining3(19%) of the respondent were disagreed. From the respondents’ expressions, more than 80% take the same evaluation criteria in evaluating all responsive bids.

Table4.9:Suppliers Response based on Basic Ethical Practices of Procurement Officials on using the Same Evaluation Criteria to all Suppliers.

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Source: Field Survey February, 2014

As illustrated on the above table, 5(26%) strongly disagree, 6 (32%) disagree, 3(16%) agree and 2(10%) strongly agree and the remaining 3(16%) were uncertain.

Questionnaires that took from both suppliers and procurement officers as illustrated in table 12, 81% of public procurement officers agreed that they use the same evaluation criteria in the procurement awarding stage. While at table 13, 58% suppliers reported that they disagreed that, they did not get the same criteria in the evaluation of bids. Only 36% of suppliers agreed that as public procurement officers use the same evaluation criteria in the competition of bidding. Based on these findings, from table 12, procurement officers’ response and table 13, suppliers’ response concerning this similar questionnaire, both of the respondents had a different response. In order to get reliable and agreeable data, the researcher additionally takes interview, for suppliers and observation on public procurement officers.

As an interview made with suppliers, the procurement officers mostly, prefer bidders that have familiarity or relationship overtime with bidders and excluding bidders without sufficient and adequate reason to with draw from bid competition. Therefore, as Suppliers said that procurement officers select bidders based on award criteria which not included in the solicitation document or they are not set out all award criteria and their relative weighting in detail in the tender documents. Observation made with procurement officers also supports the findings in the interview; Even if it is invisible or difficult to know whether procurement officers use the same evaluation criteria during bidding or not,Public procurement officers use the same criteria to compete the bidders. However, public procurement officers sometimes include criteria’s that besides in the tender documents by contradicting the principle that those solicitation materials do not provide any further explanation after once the bid document prepared. This result is supported by Aliza (2012), which found that Evaluation criteria could be drafted in a subjective way or may not be stated in the tender documents. This allows room for manipulation and biased assessments and that can be utilized to corrupt the procurement process. Therefore, as findings from both interview and observation showed as slightly different finding, be that as it may, some suppliers also have lack of awareness about procurement officers activities that leads them wrong prediction regarding as they conceived that procurement officers might be biased in their decision making.

Procurement officers are not using objective criteria to evaluate tender documents and as a result above half suppliers have no positive attitude on procurement officers. Finally, In order to curve this problem Thai (2009), stated that tenders should be evaluated only based on the pre-disclosed requirements and criteria. According to OECD (2009), also explains that the evaluation of bids should be carried out not by a single individual but by a committee with the relevant technical and economic experience. If the evaluation is done by an individual only, the resulting decisions should be reviewed and approved by that individual’s superior.

4.3.3. Preparing of Bids Unbiased and Clear to Suppliers

According to the Amhara regional state Proclamation No 179/2011 of Art 17(4),

‘‘There shall be no requirement or reference in the technical specifications to a particular trademark or name, patent, design or type, specific original producer or service provider, unless there is no sufficiently precise or intelligible way of describing the procurement requirements of the procuring entity and provided that words such as “or equivalent” are included in the specifications”.

Therefore, Public procurement officers should prepare bid specifications unbiased and clear to suppliers. Specifications could be compiling in unbiased manner, for example, specification may not refer to a particular supplier by emphasizing or designing evaluation criteria that favor a preferred company (Rose, 1999).

Table 4.10: Public Procurement Officials Preparation of Unbiased Bids.

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Source: Field Survey February, 2014

As the above table, 9 (56%) and 3 (19%) of the respondents agreed and strongly agreed the bids specification are prepared with clear and unbiased manner. The other 4 (25%) of the respondents were uncertain about preparing bids unbiased and clear to suppliers. From the respondents’ expressions, they agreed that bid specification should be prepared clear and free from biased criteria.

Table 4.11: Suppliers Response based on Basic Ethical Practices of Procurement Officials on Preparation of Unbiased Bids to all Suppliers.

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Source: Field Survey February,2014

As the above table, 6(32%) strongly disagree, 4 (21%) disagree, 1(5%) agree and 1(5%) strongly agree and the remaining 7(37%) were uncertain. By holding the above information, above half of suppliers disagreed that procurement officers were preparedbiased specification.

Based on findings from suppliers’ interview and observation on public procurement officers that made by the researcher, Public procurement officers indicate specific brand names when they prepare bid specifications without adding the word ‘‘equivalent’’. Furthermore, definition of specifications of bid is adjusted in order to favors a specific bidder. Even if public procurement officers study the available markets before preparing bid specifications, it did not justify that based on the results of a market study about the needs and it was favoring a particular bidder or particular products or services. As the observation revealed that why procurement officers indicate brand names and the bid is prepared according to a specific supplier products or services is, mostly they believed that in order to buy quality products, trusts suppliers that rendered services frequently and the influence of user departments that asks products or services according to his/her needs. In addition, questionnaires which conducted in order to identify the attitudes of suppliers and the result showed as nearly half of the respondents have negative attitude towards procurement officers based on unbiased preparation of bid. Therefore, the findings from observation, interview and questionnaire are almost similar and it reveals that procurement officers are not preparing bid specifications to avoid bias.

4.3.4 Confidentiality of Information in Public Procurement

Confidentiality is keeping commercially sensitive information that was provided by suppliers. Confidential information may include technical or trade secrets that might harm if it not kept by public procurement officers. It said that information asperse had provided was of great value to a competitor because rivals could have used the information to their advantage.Confidentiality is a mutual responsibility and critical obligation, both legal and ethical that buyer and supplier owe one another. Maintaining confidentiality becomes especially important when the information one has received can affect the organizations competitive position and result in financial loss (Fred and John, 2007). The Amhara Regional State Procurement and Property Administration Proclamation No. 179/2011 Art9 (1) c, also describes; ‘‘keep in secret any confidential information concerning procuring entities, candidates or suppliers that he/she came to know on account of his/her duty’’.

Table 4.12:Confidentiality of Public Procurement Officers

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Source: Field Survey February,2014

As showed in the above table, majority of the respondents that account for 87% agreed that information gotten from suppliers has been kept secret and the remaining 12% or 2 respondents were uncertain about whether they were kept confidential information or not. As the respondents said, procurement officers agreed to information should be kept confidential and secret during procurement bid stage or any time during the procurement process.

Table 4.13: Suppliers Response based on Basic Ethical Practices of Procurement Official’s Confidentiality.

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Source: Field Survey February, 2014

As presented in table 17, 7(37%) strongly disagree and 4 (21%) disagreed that procurement officers were not keeping confidential information as compared to 3(16%) agree and 1(5%) who strongly agreed and 4(21%) were uncertain. The result of the questionnaire indicated that suppliers had similar ideas about procurement officer’s ethical practices regarding confidentiality.Above half or 58% of suppliers disagreed those procurement officers unable to keep confidential information. In supporting this argument, Interview made with suppliers also revealed that procurement officers are not keeping confidential information that they may release some important information about theircompetitors’products or services before bidding starts and this can be as a recommendation for suppliers to win these competitors. However, according to observation made on procurement officers, they give extra information for some suppliers due to lack of awareness about the ethical principles of public procurement and on the other side, bid are not registered electronically in the website which is important to reject late comers automatically otherwise may facilitate confidentiality problem. Therefore, based on these findings in most of public procurement officers were not kept confidential information.

4.3.5 Public Procurement OfficersCollusion with Suppliers

Collusion is making an agreement between two parties for their advantages. Collusion between suppliers and public procurement officers might happen by collaborating one another. Public procurement officers should work for his/her organization interest rather than his/her interest and when his/her interest greater than his/her organization, conflict of interest might arise and unable to do the procurement function ethically. Collusion is committed by suppliers and procurement officers, which prevent the government from obtaining value for money (Klitgaard, 1988).As the Amhara Regional State Procurement and Property Administration proclamation No 179/2011, Art9 (2) c,“Not to connive with another candidate in an act of false competition in order to get unfair advantages’’.

Table 4.14: Public Procurement Officers Collusion with Suppliers

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Source: Field Survey February, 2014

According to the responses in the above table shows that 8(50%) of public procurement officers, strongly disagreed that they did not defraud their organization by working together with suppliers. 6(37%) also disagree and the other 2(13%) were uncertain. From the above respondent’s response, one can understand these public procurement officers do not defraud their organization.

Table 4.15: Suppliers Response based on basic Ethical Practices of Procurement Officials on Collusion of Public Procurement Officers with Suppliers and their Attitude.

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Source: Field Survey February, 2014

As the above table, 2(10%) strongly disagree, 8 (42%) disagree, 1(5%) agree and 2(11%) strongly agree and the remaining 6(32%) were uncertain.From this, we can understand majority of respondents (62%) believed that procurement officials did not collude with suppliers.

In addition to, an interview collected from suppliers were, the majority of respondents agree that procurement officials did not collude with suppliers. Therefore the findings tell us even if some suppliers were not sure whether procurement officers collude with supplier or not and very few confirms that procurement officers collude and the majority indicated that procurement officers were not colluding.While another supporting data which showed us the majority, suppliers have the same attitude towards procurement officer’s collusion with suppliers. Therefore, relatively public procurement officers not collude with suppliers.

4.4 Public Procurement as a Policy Tool

Public procurement as a tool for various economic, social and environmental policies might be performed if public procurement officer put in to practice. To strengthen this statement, we can see the known public procurement journal editor Thai:

“The public procurement function of government is further complicated when public procurement, due to the size of its spending, becomes a policy tool that policy makers use to address social issues (helping minority/women-owned enterprises, and small and medium firms), economic development (local preferences) and environment protection(Thai, 2009)”.

European Commission (2001), EgelsZanden (2007) and Lars et. al (2008), also supports Thai’s idea requirements that a company could put on their suppliers involves demands on legal requirements, child labor, workers’ rights regarding illegal work, wages and working hours, factory conditions and safety, environment, but also requirements that the products not shall affect the users’ health negatively. Most companies aggregate all these requirements into a framework called “Code of Conduct”.

4.4.1 Public Procurement as an Environmental Protection Policy Tool

Environmentally friendly products or services: this concept is wide issue and the World summit on sustainable Development in 2002 made a call “to promote public procurement policies that encourage development and diffusion of environmentally sound goods and services (Walker and Brammer, 2009).” Ethiopia also starts the development of environmental laws since 1943. Environmentally friendly products are purchasing of goods or services which might not affect the environment or not harmful for the environment. Recyclable or reusable products are one method of applying environmentally friendly products or services that are made by the process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products. Recycling can also benefit the community and the environment. For example, Papers which produced directly from forest and by turning waste paper into new paper products or may be from other raw materials that could not affect the environment. Therefore, public procurement officers should give preference for the environmentally friendly products including reusable products or services to support suppliers who produce it.

4.4.1.1 Procuring of Environmentally Friendly Products or Services

Table 4.16:Procurement of Environmentally Friendly Services or Products

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Source: Field Survey February, 2014

Figure 4.1: Procurement of Environmentally Friendly Services or Products

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Source: Field Survey February, 2014

As the result implied on the above figure that 75% procurement officers were not procure environmentally friendly products or services while the remaining 25% procure. Environmentally products or services are designed to make which keep environments from pollution or further damage that government by using its purchasing power because public procurement is used for as one of a tool to protect the environment (Arwel Davies and Sue Arrowsmith, 2002). The findings in the study clearly states that environmentally friendly products or services are not purchased. Focus group discussion was used to further explore why this product not purchased and the findings states that public procurement officials are not aware of what environmentally friendly products or services and they also argued that there are no suppliers who provide these products. This result corroborate to the assertion made by Green Public Procurement in Europe report (2005 and 2006) that, "… the lack of knowledge, lack of management support, lack of practical tools and information, and lack of training” are some of the challenges facing nations in the implementation green procurement effectively (Bouwer ,2005; Bouwer, 2006; and Carlsson and Waara , 2006). Even if, Ethiopia is one of the countries which accepts environmental laws, it still not adequately and clearly included legally binding documents in its procurement laws and regulations and this is also another important point which hinders including environmental criteria’s in the preparation of bid specification. Therefore, from findings of this study we can conclude that environmentally products and services have not been purchased.

4.4.1.2 Procuring of Reusable or Recyclable Products or Services

Purchasing environmentally is equal to procure reusable and recyclable goods, taking part and supporting the development of environmentally friendly items, and take actions to reduce the utilized resources (Carter, 1996).

Table 4.17:Procurement of Recyclable (Reusable) Products or Services

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Source: Field Survey February, 2014

Figure 4.2: Procurement of Recyclable (Reusable) Products or Services

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Source: Field Survey February, 2014

As showed in the above figure 75% of respondents replied that recyclable products and services were not purchasedwhile the remaining 25% of respondents only said that recyclable products and services were procured. Based on findings, recyclable products or services were not purchased except few procurement officials said that they procure. In addition, this showed that public procurement officials could not give preference for suppliers who produce or supplies reusable products and services. As findings from figure 1, is similar to that of figure 2, which is 75% of respondents,replied that for the questionnaire of procurement of environmentally and reusable products and services that they have not purchased these products. However, the remaining 25% reported that they were purchased these products and to further know why 25% of the respondents replied as they were purchased these products, focus group discussion was used for them and the findings affirms that they have not purchasing environmentally products or services. But they can identify and understand what these products mean for example, as one procurement officer answered that ‘‘sometimes we purchase products like papers which write on them ‘recycled’ and ‘acid free’ paper ’’. Despite the fact that they can differentiate and have knowledge of what environmentally products and services; they do not give any preference to purchase these products and service. When all is said, the findings acknowledged that reusable or recyclable products are not purchased and this is due to lack of legal materials. For example, it is not stated neither in the proclamation nor in the manual of public procurement.

4.4.2 Public Procurement as an Economic Policy Tool

4.4.2.1 Public Procurement Officer’s Preference for Local Products that Encouraging Small Businesses.

Preference for micro and small enterprises are important to support infant enterprises and make competitive with that of large enterprises by giving preference for them. According to Proclamation No. 179/2011, Article 13(4) of the Amhara National Regional StateProcurement and Property Administration Proclamation:“There shall be made a preference with a view to encouraging micro and shall trade and industry institutions with regard to procurement execution”.

Table 4.18: Procurement Preference for Small and Micro Enterprises

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Source: Field Survey February, 2014

As we can see from the above table that all procurement officers were given preference for local products that made by small business. As focus group discussion revealed that in the times of bid competition, public procurement officer’s always gives preference for small and micro enterprises. Therefore, this finding showed as public procurement officers give preference in their procurement system for small and micro enterprises.

4.4.3 Public Procurement as a Tool for keeping social Right

4.4.3.1 Public Procurement Preference for Women Suppliers

Enterprises owned by women’s might get preference to support women’s that compete with other enterprises due to disadvantages in the past or to make competition with other enterprises.

Giving preference for women owned enterprises provides resources to help women entrepreneurs launch new businesses, grow their businesses and compete in the global marketplace.

Table 4.19: Procurement Officer’s Preference for Women Suppliers

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Source: Field Survey February, 2014

As presented in table 23, Procurement Officers responses were 44%, yes and the remaining 56% were not given preference for woman’s. The findings from the questionnaire revealed that above half of public procurement officers was not able to get preference while nearly half of procurement officers able to give preference for women suppliers.In order to get a deep understanding about women suppliers’ preference, focus group discussion was used. The findings also revealed that women suppliers are able to get preference. However, the preference margin is not adequate; since it said that when two bidders compete each other and if both can score similar point, women suppliers can win the bid. This is why it said that in adequate preference margin. The other problem is it is not included in the Amhara public procurement manual rather it founds in females and young associations organization, as a result majority of procurement officers have no awareness about these preferences.Therefore, majority of women suppliers were unable to get preference in their competition of bidding.

4.4.3.2 Procurement Officer’s Preference for Suppliers who Produces Safe Products or Services.

As Forte and Lamont (1998), explained that good business practice to be “green” as its main elements, safety and health, have a tendency to promote profitability, improve employee motivation and commitment in addition to customer loyalty.

According to Proclamation No. 179/2011, Article 17(2) of the Amhara National Regional StateProcurement and Property Administration Proclamation:

‘‘ The technical specifications shall clearly describe the procuring entities requirements with respect to quality, performance, not harmful, safety and where necessary dimensions, symbols, terminology, packaging, marking and labeling or the processes and methods of production and requirements, relating to conformity assessment procedure.’’

Table 4.20:Procurement officer’s Preference for Suppliers who Produces Safe Products or Services.

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Source: Field Survey February, 2014

As presented in table 28 , out of sixteen (16) respondents who took part in the study, 88% of the respondents replied that, they did not give preference for safe products and services, whereas only 2 (12%) of the respondents said that they purchase these products and services. As the findings from the questionnaire clearly showed us, majority of public procurement officers did not give preference for safe products and services. Furthermore, in order to get sufficient data and to answer why public procurement officers did not give preference for these products and services,the researcher tried to use a focus group discussion. Therefore, at the end of this discussion it wasfound that, public procurement officers were not aware about safe products and services, as a result they could not include in the bidding documents during the preparation of bid. In addition, even though it stated in the AmharaNational Regional State Proclamation (ANRSP) No.179/2011, that the technical specification should consider safe products and services.It is not clearly stated in the manual of ANRSP which, when and how to give preference for this products.

4.4.3.3 Procurement Officer’s Preference for Disable Suppliers or Producers

Disable suppliers or producers might not able to compete with other suppliers and due to this reason; they should get preference to make them competent to others while keeping their right to do equally with others.

Table 4.21: Public Procurement Officers Preferences for Disable Suppliers

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Source: Field Survey February, 2014

As showed in the above table, the majority of the respondents (94%) replied that, they were not given preference for disable suppliers. while only 1(6%) of the respondents said that, disable suppliers was get preference. According to participants who participated in focused group discussion, similar findings revealed that of the discussion on women suppliers regarding safe products and services. Lack of evident document (which not included in the manual of ANRS) was the major obstacle to give preference for disables and lack of awareness about disable suppliers were hinders them from giving preference.

CHAPTER FIVE

Summary of Findings, Conclusion and Recommendations

5.1 Introduction

In this chapter, findingsare summarized; generalizations in the form of conclusions are made; and recommendations for the solution of problems discovered in the study are addressed to those concerned.

5.2 Summary of Findings

5.2.1 Public Procurement as a Policy Tool

- Majority of respondents (75%) replied that environmentally friendly and recyclable or reusable Services and Products do not boughtin public procurement activities. While only 25% of them say that,these products and services are able to get.Lack of awareness of public procurement officers about environmentally friendly products and services, in accessibility of suppliers who provide these products and no adequate legal materials which talks about giving preference for suppliers of these products are the major reasons why environmentally products and services are not able to get preference.
- Public procurement officers gives Preference for Small and Micro Enterprise.
- The Amhara Regional National State Procurement Manual did not indicate about giving preference for women suppliers, instead it is included in other documents. Majority of Women suppliers are not able to get preference while the remaining 44% can get preference. Absence of adequate and accessible legal documents are the major reasons for the majority of procurement officers unable to give preference for women suppliers.
- The majority of public procurement officers do not give preference for suppliers who produces safe products or services except only 12% of respondents replied that procurement official’sgives preference.
- Almost all respondents (94%) of replied that,public procurement officers do not give preferences for disable suppliers. A preference for disable suppliers in purchasing of goods, services and works are not included in the procurement manual.

5.2.2 Assessment of Ethical Practices of Public Procurement Officials and Suppliers Attitude.

- Half of public procurement officers are degree holders while half are diploma holders and certificate and majority (76%) of respondents have work experience of greater than four years.
- All public procurement officers indicated that they give equal treatment for all suppliers. However, majority (58%) of suppliers indicated that procurement officials were not give equal treatment. Majority of public procurement officials do not apply the principles of equal treatment, for the reason that they lack knowledge about this guiding principle.
- Majority (81%) of public procurement officials replied that they use the same evaluation criteria in evaluating all responsive bids. However, 58% of suppliers indicated that procurement officers are not treating suppliers equally. Suppliers also indicated that public procurement officials include criteria’s besides in the tender documents after bid preparation is completed and submitted.Suppliers had negative attitude towards public procurement officials.
- Even if majority (75%) of public procurement officials has indicated that, they prepared bids unbiased and clear to suppliers. however, above half of (53%)of suppliers indicated that mostly procurement officers indicate brand name during preparation of bidspecifications. Public procurement officials believed that indicating of brand names are important in order to purchase high quality products from trusted suppliers and in order to satisfy user departments, procurement officers obliged to add brand names in their bid specification document.
- Due to lack of awareness about confidential information in public procurement activities, public procurement officerswas unable to keep confidential information.Bid are not electronically registered. Suppliers had negative attitude towards public procurement regarding confidentiality that 58% has replied that, as they release important information about their products and services. In the contrary, majority of public procurement officers believed that as they were keep confidential information and a few are not aware about confidentiality.
- Majority (87%) of public procurement officers conceived that they were not collude or make negotiation between suppliers and procurement officials. In supporting this findings above half (52%) of Suppliers also considers that as public procurement officers do not make collusion. However, 32% of suppliers were uncertain that have not adequate information about collusion. .

5.3 Conclusion

5.3.1Public Procurement as a Policy Tool

- Most public procurement officers do not buy environmentally friendly and recyclable or reusable services or products. Even if Ethiopia one of the country which accepted environmental law, based on the findings, environmental policy tool is not practicing in the study area which almost all procurement officers are not giving preference for environmentally friendly and recyclable products and services.
- It appears that public procurement officers give Preference for Small and Micro Enterprise.
- Majority of procurement officers do not give preference for women suppliers while the left gives preference. It is foundthat the preference is depending on each procurement and offices individual decision and it is not included in any directives or manuals, instead it is included in women’s, children and youth service bureau, which support women’s preference in bidding competition.
- Almost no public procurement officers give preference for suppliers who produces safe products or services and it is noticed that majority procurement officers and offices have no awareness about safe products.
- Disable suppliers are not getting preference in bidding competition in the procurement process .
- Mostly public procurement is not used as a social policy tool like giving preference for women and disables supplier and giving preference for safe product. This is also due to not included in procurement legal documents such as proclamation and procurementdirectives and manuals. However, some offices give preference especially for women suppliers by their will and attaching supporting documents which found in women, children and youth bureau that talks about women suppliers preference in procurement.
- It is found that mostly public procurement officers do not give preference and practicing procurement as asocial policy and environmental policy tool. It is mostly due to lack of knowledge (awareness) and lack of supporting legal documents or not included in the proclamation and manuals.
- There is a preference for small and micro enterprises and it is the only fully accepted and practiced procurement as a policy tool, which is procurement as an economic policy tool.

5.3.2 Public Procurement Officials Ethical Practices and Suppliers Attitude.

- It is observed that,as a result public procurementofficer’s lack of knowledgemost public procurement officers are not able to give equal treatment for all suppliers. Based on the findings, suppliers also have a negative attitude towards equal treatment of public procurement officers.
- It is obtained that majority of public procurement officials do not use the same evaluation criteria in evaluating all responsive bids. It appears that additional criteria’s is included after the bid is submitted. Suppliersalso havea negative attitude towards public procurement officials concerning evaluation criteria’s in bid competition.
- Based on findings, public procurement officers lack knowledge having to do with preparation of impartial bid specification. It also noticed that public procurement officers indicate particular brand names in preparation of the bid specification. Enforcement from user departments, believing that indicating a specific brand name will be important for buying quality products and purchase from trusted suppliers are found to be the major reasons for procurement officers indicating a particular brand name in formulation of the bid specification. Suppliers also have no good attitude towards procurement officers concerning on the preparation of bid specification.
- It is observed that public procurement officers do not keep confidential information in public procurement activities andthis also found that due to lack of awareness about confidential information in public procurement and traditional bid registration method which electronically not registered.
- It is noticed that public procurement officers are not colluding with suppliers. Based on findings, above half of suppliers considers that as public procurement officers do not make collusion anda very few suppliers were uncertain that have not adequate information about collusion.

5.3.3 Recommendations and Further Studies

Based on the findings of the study, the researcher makes the following recommendations:

- Training of public procurement officials especially in the area of public procurement used as social, economic and environmental policies and the basic guiding principles of procurement.
- Environmental and social policies should be adequately included in public procurement proclamation and manuals.
- The procurement unit should constantly make information available to all suppliers; this will ensure that reduced the negative attitude of suppliers.
- The government should give better emphasis, in order to use procurement’s power to benefit the disadvantaged groups and to keep environments. This can be accomplished by incorporating environmental, social and economic policies in the proclamation and directive of public procurement.
- Attention should be paid to ensuring that the information exchange is organized in an open, structured and ethical manner to avoid collusion between potential suppliers and that the outcomes of discussions are recorded.
- Based on findings, most of public procurement officers had lacked awareness about the guiding ethical principles. Therefore, ensuring that officials are informed and have received guidance about how to handle conflict of interest situations, and training of this guiding principle believed to be important for future smooth functioning of procurement activities.
- Ensure that specifications are designed in a way to avoid bias, in particular that they are clear and comprehensive but not discriminatory (e.g. no proprietary brands or trade descriptions). It is necessary to avoid any form of specification that favors a particular product or service.
- Staffmust be appropriately informed and trained on how to navigate through complex legal frameworks, such as public procurement and anti-corruption laws.
- Ensuring that measures are in place for the security and storage of tendering documents, as well as for limiting access to documents; Considering electronic security issues and having documented processes for electronic storage and communication (e.g. tenders submitted electronically are safeguarded from access before the closing time; the system has the capacity to reject late tenders automatically).

This study do not see how variables education, gender etc. affects public procurements ethical practices.Finally, the researcher wants to recommends those researchers who have an interest on studying of how variables (educational level, experience, etc.) affects ethical practices of public procurement officers. Quantitative research methods and explanatory research design will be more appropriate.

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Annex: I

Questionnaires designed for Woldia City Administration Public Procurement Staff

Ethiopian Civil Service University

Institute of Tax and Custom Administration

Department of Public Procurement and Asset Management

Dear Sir/Madam

My name is TilahunHailu and I am a student in Ethiopian Civil Service University. The purpose of this questionnaire is to collect data for the study entitled ‘Assessment ofEthical Practices in Public Procurement: the case in Woldia City Administration. More importantly, the study is required for the partial fulfillment of MBA in Public Procurement and Asset Management. Therefore, your cooperation in responding the questionnaire is crucial and makes the study to achieve its objective successfully. So, please take a little time to fill the questionnaire and be frank and objective while putting your answer. You are not required to write your name and the information you give will be strictly confidential and used only for academic purpose only.

INSTRUCTIONS: you can select one option from the providing questionnaires

1. Questionnaires for public procurement officers

Section A: Personal Data

1. Gender : Male ( ) Female ( )

2. Age Group:

18-23yrs ( ), 24-29yrs ( ) 30-35yrs ( ) 36-41 yrs ( ) 42-65

3. Level of Education and your area of specialization:

illustration not visible in this excerpt

4. What is your level of organization (office)?

a) Woreda level b) Woreda administration c) Zonal level

5. How many years of working experiences do you have in your organization? )

a) Less than 2 years b) 2-4 years c) 4-8 years d) More than 8 years

6) Questionnaire to Assess General Ethical Practices of Public Procurement Officers.

illustration not visible in this excerpt

7) Questionnaires for public procurement officers to assess ethical practices of public procurement officer’s based on public procurement as a policy tool

1. Do you procure environmentally friendly services or products?

illustration not visible in this excerpt

2. Do you procure recyclable (reusable) products or services?

illustration not visible in this excerpt

3. Do you give preference for local products that Encouraging small businesses?

illustration not visible in this excerpt

4. Do you give preference for women suppliers?

illustration not visible in this excerpt

5. Do you give preference for disable suppliers?

illustration not visible in this excerpt

6. Do you give priority for suppliers who produce safe products to keep the societies health?

illustration not visible in this excerpt

Annex: II

Questionnaires designed for Woldia City Administration Public Procurement Staff

Ethiopian Civil Service University

Institute of Tax and Custom Administration

Department of Public Procurement and Asset Management

Dear Sir/Madam

My name is TilahunHailu and I am a student in Ethiopian Civil Service University. The purpose of this questionnaire is to collect data for the study entitled ‘ Assessment ofEthical Practices in Public Procurement : the case in Woldia City Administration ’. More importantly, the study is required for the partial fulfillment of MBA in Public Procurement and Asset Management. Therefore, your cooperation in responding the questionnaire is crucial and makes the study to achieve its objective successfully. So, please take a little time to fill the questionnaire and be frank and objective while putting your answer. You are not required to write your name and the information you give will be strictly confidential and used only for academic purpose only.

INSTRUCTIONS: you can select one option from the providing questionnaires.

1. Questionnaires for employees

Section A: Personal Data

1. Gender: Male ( ) Female ( )

2. Age Group:

18-23yrs ( ), 24-29yrs ( ) 30-35yrs ( ) 36-41 yrs ( ) 42-65

3. Level of Education and your area of specialization:

illustration not visible in this excerpt

4. How many years of working experiences do you have in your organization? )

a) Less than 2 years b) 2-4 years c) 4-8 years d) More than 8 years

5) Questionnaires for Supplier’s attitude based on ethical practices of public procurement officers ethical practices.

illustration not visible in this excerpt

Annex: III

Focus Group Discussion designed for Woldia City Administration Public Procurement Staff

Ethiopian Civil Service University

Institute of Tax and Custom Administration

Department of Public Procurement and Asset Management

Dear Sir/Madam

My name is TilahunHailu and I am a student in Ethiopian Civil Service University. The purpose of this Focus group discussion is to collect data for the study entitled ‘ Assessment ofEthical Practices in Public Procurement : the case in Woldia City Administration ’. More importantly, the study is required for the partial fulfillment of MBA in Public Procurement and Asset Management. Therefore, your cooperation in responding this Focus group discussion is crucial and makes the study to achieve its objective successfully. We are recording yourresponses, but will keep all individual comments confidential. Keep in mind thatwe are just as interested in negative comments as in positive comments, and oftenthe negative comments are the most helpful. So, please take a little time to discuss about focus group discussion and be frank and objective while putting your idea. The information you give will be strictly confidential and used only for academic purpose only.

INSTRUCTIONS: you can give and suggest any idea what you know about.

1) Discuss that public procurement used as a policy tool; Social, Environmental and Economic policy tool.

2) Does public procurement officers give preference for women and disable suppliers, as well as small and micro enterprises.And if procurement officers do not give preference. Why?

Annex: IV

Semi structured Interview designed for Woldia City Administration Public Procurement Staff

Ethiopian Civil Service University

Institute of Tax and Custom Administration

Department of Public Procurement and Asset Management

Dear Sir/Madam

My name is TilahunHailu and I am a student in Ethiopian Civil Service University. The purpose of this Semi structured interview is to collect data for the study entitled ‘ Assessment ofEthical Practices in Public Procurement : the case in Woldia City Administration ’. More importantly, the study is required for the partial fulfillment of MBA in Public Procurement and Asset Management. Therefore, your cooperation in responding this Semi structured interview is crucial and makes the study to achieve its objective successfully. We are recording yourresponses, but will keep all individual comments confidential. Keep in mind thatwe are just as interested in negative comments as in positive comments, and oftenthe negative comments are the most helpful. So, please take a little time to answers about this semi-structured interview and be frank and objective while putting your idea. The information you give will be strictly confidential and used only for academic purpose only.

INSTRUCTIONS: you can give and suggest any idea what you know about.

1) What do you believe that about public procurement officer’s confidential information.

2) What do you think that about public procurement collusion with suppliers?

3) Do you think that public procurement officers gives equal treatment for all suppliers. And if not give equal treatment why?

4) What do you think about public procurement evaluation criteria?

5) What do you think about public procurement preparation of bid specification.