Using public money to procure goods, works and services to provide public services is a frequent but complicated decisions of Head of Procurement entities. It is required that such decisions should go through due process to attain value for money for the public. The Public Procurement laws are embodiment of core principles that governs the entire process. Procurement entities are therefore entreated to promote and secure this core principles in the conduct of public procurements. Non-compliance to these principles embedded in the law increases the risk associated with public procurement.
Required:
i) Explain SIX (6) general principles of public procurement that an officer in charge of procurement of goods, services and works should consider in line with the Public Procurement Act 2016 (Amendment) Act 914. (6 marks)
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- Competition
Opening up procurement opportunity to all potential supplies and contracts bring forth to competition and creating value for money. Thus, competitive tendering should be the first option in procurement decisions - Accountability
The procurement entity as well as the head of the procurement is answerable to the public for their procurement decisions. The head of procurement has the responsibilities to give explanations for their actions and inactions. - Transparency
The entire procurement processes should be transparency, from the invitation, opening of tenders, evaluations and selection of the supplier or contract should be done in the open. - Fairness/non-discrimination
All potential suppliers and contractors should be treated fairly, ensuring that only price and quality are discriminatory factors. Gender, party affiliation, ethnicity, religion should not be used to discriminate against suppliers. - Economy
Procurement should aim at reducing the cost of the process as well as the cost of the procurement itself. - Efficiency
The process must ensure efficiency in procurement. The objective of the procurement should be achieved efficiently. - Environmental sustainability
The environmental implications should be factored into procurement decisions. - Social impact
The social implications of the procurement decisions should be given due attention. For example, buying from China may be economical but may increase unemployment in Ghana.
(1 marks each for 6 principles explained = 6 marks)
ii) Discuss FOUR (4) risks associated public procurement in Ghanaian Public Sector. (4 marks)
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- High propensity to over value procurement contracts and supplies.
In the public sector, it is not uncommon to find the buyer negotiating for high prices of goods and services for their personal gain. - High possibility of procuring inferior goods and services.
It a common practice in which goods and services that could not be sold in the open market find their way into the public sector for personal gain and lack of competence in procurement. For example, public sector entity procurements a plant which never works well from the first day of installation. - Susceptibility to conflict of interest situation
Head of entity and other officers responsible for public procurement may give contracts and supplies to their own private companies or affiliates. This is a recipe for corruption in public procurement. - Fake procurement of goods and services
Paying for goods and services that has never been procurement and the perpetrators share the proceeds. - Discrimination of supplier
Contracts are given not on merit but other considerations that breeds unfairness and discrimination.
(1 mark each for any 4 risks explained = 4 marks)