AN ASSESSMENT OF ETHICAL PROCUREMENT PRACTICES IN THE HEALTH SECTOR: A CASE STUDY OF SOGAKOPE DISTRICT HOSPITAL

ABSTRACT
The research study was carried out for the purpose of assessing the status of ethical procurement practices of procurement officers at Sogakope District Hospital based on public procurement roles in achieving value for money. The purposive sampling method was employed by the researcher. A structured questionnaire was used to collect primary data from the respondents. The data was analyzed by using descriptive statistics, relative importance index and mean score ranking. Public procurement and supply chain officers and other staff made of various departments were employed for the study. The main objective of this study was to assess the ethical practices of public procurement practices at Sogakope District Hospital. Based on the data obtained from 25 members of staff made up of procurement practitioners and other staff members, the result showed that the Sogakope District Hospital complied with Public Procurement Act and Disposal Regulations on ethical issues, by preparation/ implementation of procurement plans annually. ‘Inadequate training Programmes on ethical procurement practice’ as well as unequal opportunities to practitioners are the major challenges to procurement practitioners at Sogakope District Hospital, as it was ranked highest among the factors identified. Therefore, it was recommended that, there should be regular training programmes for procurement practitioners and equal treatment before and after procurement processes without any discrimination to avoid unethical procurement practices.


CHAPTER ONE
GENERAL INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Purchasing of services, goods and works are among the most significant activities of the government that help in performing its functions. According to Ethiopian Proclamation Law (2009), “Purchasing refers to the procurement of services, works, goods and consultancy through means of obtaining, purchasing or hiring by other means of contractual agreement; and ‘public procurement’ refers to the procurement by a public organization using public fund." Efficient public procurement is a key ingredient to good governance including the government capacity in managing resources efficiently as well as formulating, implementing and enforcing comprehensive policies and regulations. Ethical procurement is one of the measuring rods for professionalism and efficiency in most organization (Mekonnen and Shimeles, 2012). Because of public procurement is run by public money that serves the public interest, procurement managers supposed to purchase from the firm that offers the best value for money.

According to United Nations Office on Drugs and Crimes UNDOC, (2013). Public procurement accounts for 15-30% of the gross domestic products (GDP) for many countries in the world. Public purchasing represents an estimated 15% of GDP in Organization for Economic Co-operation and Development (OECD) states and up to 25% of Gross Domestic Product in under developed countries (OECD, 2007); the studies are also revealed that 70 percent of the public budget goes to procurement purposes in sub Saharan countries (Abebe, n.d). Furthermore, Public procurement in Ghana accounts for approximately 50-70% of the total budget for the nation (after private remunerations), 14% of GDP, 24% of total imports according to the World Bank CPAR (2003). In addition, for example Ethiopia spends more than 60 percent of public expenditures for procurement of goods, work and services (Tesfahun, 2011). This means that a large amount of money spent by the governments to purchase goods, services and works. According to UNDOC (2013), states that because of the huge amount involved in public purchasing, it makes procurement prone to corruption in many institutions. According Mekonnen and Shimeles (2012) unethical procurement practice of public procurement officers negatively influences the whole process of procurement activities and leads to loss to public resources and corruption. Ethics and Anti-Corruption Commission report (2012/13) indicated that public purchasing take the great part of governments budget. Thus, special attention should be given to persons who coordinate public procurement activities. Procurement officers should practice ethical principles of procurement in each stage of public procurement in order to achieve value for money.

According to Thai (2001), provide explanations that, ethics in public procurement is very vital tool to reduce corruption and to make public procurement as a backbone for economic development. Lars et al. (2008), also explained that ethics in public purchasing does not related to only bribes and gift giving from supplier or contractors to public procurement officials but also includes suppliers and contractor’s practices that relate to sourcing strategy. Getnet (2014), also, argued that public procurement is a key that promote efficient economic, environmental and social. In developing nations, public procurement is among the tools engaged in achieving developmental goals like infrastructure, reducing poverty, education, providing health care and other services for best utilization of public resources. Therefore, ethical principles of public procurement are both using fundamental ethical practices in each stage of procurement and using procurement as a policy tool. For instance, ethical practices like using the same evaluation criteria in award of contracts, not disclosing secret and confidential information, not collude with suppliers; clearly prepare bid specification, etc. and applying purchasing as a tool for; economic development (giving preference for local suppliers, contractors and products), environmental protection (giving preference for environmental friendly products or services) and procurement used as social policy tools (giving preference for disadvantaged groups like women owned, disable and micro and small enterprise suppliers) are the main ethical practices in government procurement activities.

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Item Type: Ghanaian Project Material  |  Attribute: 63 pages  |  Chapters: 1-5
Format: MS Word  |  Price: GH50  |  Delivery: Within 30Mins.
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