The findings of this research are expected to answer the following research questions: To what extent do key stakeholders of the procurement process understand the requirements of the Public Procurement Act, 2003 (ACT 663) of Ghana? What factors delay procurement activities in the public sector? To what extent has the implementation of the Public Procurement Act, 2003 (ACT 663) ensured transparency and accountability in the utilization of public funds? Has the implementation of Public Procurement Act, 2003 (ACT 663) influenced government spending? What are the main challenges encountered in implementing the provisions of the Public Procurement Act, ACT 663?
Procurement is seen as a strategic fiscal policy or programme used to observe effectiveness and efficiency in the public financial management system of Ghana. As an economic tool for accomplishing national objectives, procurement activities should be adequately planned and executed to realize the following: rapid improvement in resource mobilization, improvement in managing and maintaining debt sustainability effectively, enhancing the public expenditure framework of the country, improvement in revenue generation and a reduction in economic and financial slavery. Key objects of the Public Procurement Act, 2003 (ACT 663) includes the following: harmonization of all public procurement processes within the public sector, ensuring public funds are utilized judiciously, economically and efficiently to achieve value-for-money, promoting fairness and competition in public procurement, and maintaining and improving high standards of transparency and accountability to eliminate fraudulent practices in public procurement.
Unfortunately, little efforts have been made to evaluate the impact of the causes of delay in the implementation of the Procurement Act, the impact of the Act on government expenditure, savings and debt management, as well as transparency in the utilization of public funds. This research is therefore aimed at obtaining requisite data to evaluate the causes of the delay, impact of the Procurement Act on public financial management as well as the impact of the Act in ensuring high level of transparency in the spending of public funds.
Table of Contents
CHAPTER ONE
GENERAL INTRODUCTION
1.1 Background of the research
1.2 Research Problem Statement
1.3 Research Questions
1.4 Research Objectives
1.5 Relevance of the Research
1.6 Research Scope
1.7 Research Limitations
1.8 Research Organisation
CHAPTER TWO
OVERVIEW OF PUBLIC FINANCIAL MANAGEMENT AND PUBLIC PROCUREMENT SYSTEM
2.1 Introduction
2.2 Definition of Key Concepts
2.3 Public Financial Management
2.4 Transparency and Accountability
2.5 Bureaucracy
2.6 Government Expenditure and Budgetary Control
2.7 Conceptual Definition of Procurement
2.8 Best Practices and Significance of Public Procurement
2.9 Public Procurement Practices in Sweden
2.10 Curtailing Bribery and Corruption in Public Procurement in Asia and the Pacific
2.11 Public Financial Management Reform Programme (PUFMARP)
2.12 Structure of Ghana’s Public Procurement Act, 2003 (ACT 663)
2.12.1 Procurement Process Model
2.13 Drivers for Accomplishing Procurement Objectives
2.14 Criteria for Choosing Successful Suppliers/Vendors
2.15 Challenges in Ghana’s Public Financial Management System
2.16 Enhancing Public Expenditure Management System in Ghana
2.17 Rules and Regulations Governing Public Procurement Procedures in Ghana
2.17.1 Procedures for the Award of Procurement Contracts
2.18 Challenges of Public Procurement and Effects of Poor Procurement
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Population and Sampling Size
3.4 Sampling Technique
3.5 Sources of Data
3.6 Instruments for Obtaining Data
3.7 Data Analysis and Presentation
3.8 Ethical Considerations
CHAPTER FOUR
RESULTS AND ANALYSIS OF FIELD DATA ON THE PUBLIC PROCUREMENT ACT, 2003 (ACT 663) AND PUBLIC FINANCIAL MANAGEMENT
4.1 Introduction
4.2 Profile of Study Areas
4.2.1 Regional Medical Stores, Koforidua, Eastern Region
4.2.2 Hawa Memorial Saviour Hospital, Osiem, Eastern Region
4.3 Background and Characteristics of Respondents
4.3.1 Working Experience of Respondents
4.4 TRANSPARENCY IN PUBLIC PROCUREMENT
4.4.1 Availability of Written Records of Procurement Activities
4.4.2 Tender Invitation and Opening
4.4.3 Tendering Methods
4.4.4 Appeal Cases or Disputes and its Resolution Mechanisms
4.4.5 Time for Opening Tendering and Mode of Opening
4.4.6 Internal Quality Control and Auditing of Procurement Activities
4.5 CAUSES OF DELAY IN PUBLIC PROCUREMENT ACTIVITIES
4.5.1 Time Period for the Preparation of Procurement Plan
4.5.2 Duration for Advertisement and Evaluation of Tender Documents
4.5.3 Duration for Payment of Suppliers
4.5.4 The Public Procurement Act, 2003 (ACT 663) as cause of delay in Procurement Activities
4.5.5 Compensation for delay in Payment of Suppliers and its Consequences
4.5.6 Cumbersome Procedures in Public Procurement
4.6 EXPENDITURE CONTROL
4.6.1 Auditing of Procurement Activities
4.6.2 Market Survey
4.6.3 The Public Procurement Act, 2003 (ACT 663) and Value-for-Money/ Cost of Business
4.6.4 Expenditure and Budgetary Control of Procurement Activities
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 Introduction
5.2 Summary of Findings
5.3 Research Recommendations
5.4 Conclusion
Research Objectives and Key Topics
This research evaluates the impact of the Public Procurement Act, 2003 (ACT 663) on transparency, efficiency, and public financial management in Ghana, specifically within the Ghana Health Service in the Eastern Region.
- Transparency and accountability in public procurement processes.
- Causes and impacts of delays in public procurement and supplier payments.
- Assessment of the Public Procurement Act's role in cost control and value-for-money.
- Compliance with procurement rules by public health institutions.
- The role of capacity building and institutional procedures in improving procurement outcomes.
Excerpt from the Book
2.5 Bureaucracy
To effectively understand the impact of public procurement in achieving prudent financial management, it is important to discuss the concept of bureaucracy and how it contributes to the objectives of the Public Procurement Act, 2003 (ACT 663). Weber (1920) defined bureaucracy as an organizational development depending on a hierarchy of offices and systems of rules having its main objective of ensuring the permanence of the organisation, although there will exist a level of employee turnover within the organisation.
Weber observed that formal procedures and processes of organizational operations would be adequately documented and stored in files; this ensures permanence and continuity of organizational operations into the foreseeable future. The concept of bureaucracy explains the hierarchical structure of formal organisations, with each level within the organisation being controlled by the other level above it. All activities and organizational transactions are recorded and stored. The main objective of the bureaucratic nature of organisations is to ensure an optimum degree of operational efficiency and effectiveness and also enhance the permanency of the institution as a going concern entity.
Lack of bureaucratic procedures often leads to red tapes and conflicting rules, regulations and administrative procedures in conducting the day-to-day administrative works of the organisation. In respect of this, it can be concluded that all organisations (private or public) have some level of bureaucracy in their operating procedures (Weber 1920).
Bureaucracy is therefore characterized by the following: rules and regulations are made available and explained to all parties concerned; the objectives of these rules and regulations are explicitly explained and depends on a valid theory of cause and effect; there is absolute consistency in the rules and regulations developed; it is very clear when to adopt a particular regulation and the scope for subjectivity is reasonably defined and limited (Weber, 1920). From the above, bureaucracy in the public sector can be viewed as a governance system whereby public sector officers who undertake rationalized activities within an organisation observe laid down procedures in executing their functions.
Summary of Chapters
CHAPTER ONE: Provides the research background, identifies the research problem regarding procurement delays and bureaucracy, and sets out the study objectives and scope.
CHAPTER TWO: Reviews literature on public financial management, the history of procurement laws in Ghana, and concepts like transparency, accountability, and bureaucracy in the public sector.
CHAPTER THREE: Outlines the research methodology, including the use of explanatory research, purposive sampling, and data collection via questionnaires and interviews within the Ghana Health Service.
CHAPTER FOUR: Presents the results and analysis of field data, focusing on transparency practices, causes of delay in procurement, expenditure control, and compliance with the Public Procurement Act.
CHAPTER FIVE: Summarizes the study's findings regarding the Act's impact, offers recommendations for procurement improvement, and provides a concluding assessment.
Keywords
Public Procurement, Financial Management, Ghana, ACT 663, Transparency, Accountability, Bureaucracy, Expenditure Control, Value for Money, Procurement Process, Ghana Health Service, Tendering, Public Spending, Budgetary Control, Supplier Payments.
Frequently Asked Questions
What is the primary focus of this research?
The research examines the effectiveness and impact of the Public Procurement Act, 2003 (ACT 663) on the public financial management system within the Ghana Health Service in the Eastern Region.
What are the core thematic areas?
The study centers on transparency, procurement procedures, causes of delays, expenditure control, and the balance between bureaucratic requirements and organizational efficiency.
What is the main research objective?
To evaluate how the Act influences transparency in the use of public funds, to identify causes of procurement delays, and to assess its overall impact on government expenditure and financial discipline.
Which research methods are employed?
The study uses an exploratory and explanatory research design, gathering primary data through structured questionnaires and focus group interviews with procurement and finance personnel.
What does the main body cover?
It provides an overview of financial management concepts, a literature review on procurement, a detailed methodology chapter, and an extensive analysis of field data regarding procurement activities and compliance.
Which keywords define this work?
Key terms include Public Procurement, Financial Management, Ghana, ACT 663, Transparency, Accountability, and Value for Money.
How does the Act affect procurement delays?
The research highlights that while the Act provides a framework, bureaucratic procedures and delays in payments for goods and services contribute to operational inefficiencies and procurement delays.
What specific role does the National Health Insurance Scheme play?
Delays in the reimbursement of insurance claims from the National Health Insurance Authority are identified as a major cause for delays in the payment of suppliers by the health facilities studied.
Are there recommendations provided?
Yes, the study recommends decentralizing payment systems, reviewing procurement thresholds and steps, and investing in capacity building and professional training for procurement staff.
- Quote paper
- Edward Odum Forson (Author), 2014, The Impact of Public Procurement Act, 2003 (Act 663) on the Public Financial Management System of Ghana, Munich, GRIN Verlag, https://www.grin.com/document/508696
