Weaknesses of Malaysian public procurement: a review of auditor general’s reports

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siti Maryam Mohamad Azmi ◽  
Suhaiza Ismail
Keyword(s):  
Internal Control ◽  
Design Methodology ◽  
Public Procurement ◽  
National Audit ◽  
Close Attention ◽  
Content Type ◽  
The Public ◽  
Auditor General ◽  
Quality Of Products

Purpose This paper aims to systematically analyze the weaknesses of public procurement in Malaysia as reported in the Auditor General’s Reports from 2011 until 2018. Specifically, the study examines the types of weaknesses, the modes of public procurement involved with the weaknesses, the procurement categories involved with the weaknesses and the key recommendations to mitigate the weaknesses in public procurement. Design/methodology/approach A document analysis was adopted in achieving the objective. The Auditor General’s reports and the reports of activities of federal ministries/departments published by the National Audit Department, Malaysia from the year 2011 until 2018 are the main documents used in this study. The data gathered were analyzed using frequency distribution and displayed with descriptive statistics and relevant graphs. Findings The findings of the study revealed that the top five reported are non-compliance to scope, specifications and terms of contracts; delayed completion/non-completion of project; poor documentation; low quality of products, service and work; and little or no prior planning. It is also found that direct negotiation mode was reported with the highest issues of public procurement, while the procurement mode with the least public procurement weaknesses is direct purchase. Moreover, it was found that work category is the highest with public procurement issues reported compared to supplies and services. The top recommendations given by the Auditor General were to improve internal control, to enhance monitoring, to establish planning in details, to improve assets management and to take appropriate actions toward contractors and procurement officers when needed. Originality/value This is among a few studies that attempted to systematically examine the main issues regarding the public procurement activities in Malaysia. This study highlighted pertinent aspects of the public procurement activities, which need close attention by the relevant authorities to ensure efficient and effective public procurement.

Systemic corruption and public procurement in developing countries: are there any solutions?

2018 ◽  
Vol 18 (2) ◽  
pp. 131-147 ◽  
Author(s):  
Sope Williams-Elegbe
Keyword(s):  
Quality Of Life ◽  
Developing Countries ◽  
Design Methodology ◽  
Public Procurement ◽  
Content Type ◽  
Asymmetry Of Information ◽  
Culture Of Silence ◽  
Systemic Corruption

Purpose Corruption affects development and quality of life of citizens in affected countries. The increase in anti-corruption measures globally reflects a consensus that corruption is pervasive and costly. Public procurement is one area in which corruption manifests because of the sums of money involved; the asymmetry of information; and the bureaucratic nature of decision-making, which presents opportunities for abuse. In developing countries, procurement corruption is rife because of institutional weaknesses, lack of enforced accountability mechanisms and culture of silence in relation to public sector malfeasance. Design/methodology/approach This paper examines procurement corruption in countries with systemic corruption, using Nigeria as a case study, to determine how to reduce public procurement corruption. Findings The paper will highlight prevalent corrupt schemes in public procurement in Nigeria, examine the reasons for the failure of state anti-corruption institutions and analyze the kinds of initiatives that reduced procurement corruption and increased accountability in other countries and the utility of adopting such mechanisms in the Nigerian context.

Unpacking the framework of unsolicited proposal for public private partnership projects – the Indian case

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Varaprasad Mallisetti ◽  
Tharun Dolla ◽  
Boeing Laishram
Keyword(s):  
Design Methodology ◽  
Public Procurement ◽  
Time Frame ◽  
Public Private Partnership ◽  
Successful Implementation ◽  
Implementation Framework ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
Private And Public

Purpose The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public sector agencies. Also, they have increased the practitioners' difficulties to work out strategic mechanisms and methods to manage these unsolicited proposals (USP) effectively. So, this study aims to understand how well equipped are the Indian USP guidelines for managing procurement. Design/methodology/approach Content analysis with coding procedures was carried to understand the regulations of USP frameworks of India over the four stages of USP procurement. Findings The findings show that there are severe flaws in various states' frameworks. The states have flaws in their policies in implementation features across the stages of USP such as defined objectives, the absence of fees and review timeframes in the submission, time frame and guidance on benchmarking and market testing in evaluation and development, time frame for bidding and access to information in procurement stages. Originality/value The USP implementation framework developed as part of this study can direct the policymakers and practitioners to improve public procurement regulations and the necessary changes for the successful implementation of USPs. In doing this, the private sector is enabled to develop more competitive and innovative proposals.

Getting innovations out of interactions in the public procurement context

2020 ◽  
Vol 35 (12) ◽  
pp. 2051-2065 ◽  
Author(s):  
Lisa Melander ◽  
Ala Pazirandeh Arvidsson
Keyword(s):  
Public Sector ◽  
Business Model ◽  
Design Methodology ◽  
Public Procurement ◽  
Business Model Innovation ◽  
Structured Interviews ◽  
Demand And Supply ◽  
Content Type ◽  
The Public ◽  
Product Service

Purpose The purpose of this paper is to discuss how a seller can use interactions to respond to public procurement needs for innovation when the buying side is restricted by public procurement regulations. Design/methodology/approach The authors collected data using qualitative semi-structured interviews of different empirical examples, in which private–public interactions of four different high-technological products are studied. Two products belong to the defence industry and two to the civil industry. Findings The findings point to three types of innovations in public procurement: product, service and business model. The empirical examples further indicate, as suggested in previous studies, that innovation is hindered by regulations that limit interaction between suppliers and the public. In addition, the empirical examples indicate that firms mobilize actors in their network when the buyer is restricted in regard to interaction. The findings also add to the IMP literature by comparing interactions in the three types of innovations in the public procurement context. Originality/value Public procurement is an area where innovations are lagging behind, compared with private procurement. Research points to limited interaction between actors as an obstacle to innovation in public sector collaborations. This paper extends the literature on how organizations interact in the setting of public procurement. The authors identify demand and supply triggers for three types of innovations: product, service and business model innovation.

Risk managing contractual routes to effective innovation procurement

2019 ◽  
Vol 35 (10) ◽  
pp. 18-20
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Reading Time ◽  
Public Procurement ◽  
Public Organization ◽  
Content Type ◽  
The Public ◽  
Pertinent Information ◽  
Practical Implications ◽  
The Eu

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the public procurement of innovations (PPI) within the EU as a mechanism for stimulating private sector R&D efforts that solve public organization-identified problems. The authors encourage less risk aversion and greater risk management to encourage the increased use of cost-plus contracts to spread some risk between the procurer and supplier, which should in turn attract more innovative companies to participate in PPI exercises. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Misunderstandings about older people fuel corona virus complacency

2020 ◽  
Vol 24 (4) ◽  
pp. 269-272
Author(s):  
Ellery Altshuler
Keyword(s):  
Quality Of Life ◽  
Data Collection ◽  
Older People ◽  
Economic Impact ◽  
Design Methodology ◽  
Content Type ◽  
Public Response ◽  
The Public ◽  
Personal Experiences

Purpose The purpose of this paper is to explore public assumptions underlying the apparent disregard for the lives of older people during the coronavirus outbreak. It attempts to dispel myths about quality of life among older people. Design/methodology/approach This paper integrates the author’s personal experiences as a doctor with data collection, which involved general PubMed searches for articles relating to the public response to the effect of coronavirus on older people; beliefs about the lives of older people; and issues of happiness, contentedness and quality of life in older people. Findings Some people have concluded that the lives of older people – which they believe to be of low quality – are worth risking to lessen the economic impact of coronavirus. This morbid calculation is based in part on the assumption that older people are less happy than younger people. In fact, the evidence shows that as people get older, they become significantly happier. Originality/value This paper asks readers to explore their assumptions about ageing and reaffirms the importance of protecting older people in the midst of the coronavirus pandemic.

Reform of the contract system in the sphere of public procurement: illusion of solutions and reality of problems

2021 ◽  
Vol 96 (3) ◽  
pp. 87-95
Author(s):  
E. B. Barabash ◽  
Keyword(s):  
Public Procurement ◽  
Current System ◽  
Regulation System ◽  
Practical Implementation ◽  
The Public ◽  
The Russian Federation ◽  
Quality Of Products ◽  
Procurement System ◽  
Current Stage

The article analyzes the main development of the current stage of the reform of the public procurement system in the Russian Federation, which began in 2013. It is shown that since the beginning of the reform, the Russian procurement regulation system has made significant progress in terms of standardization and simplification of contractual relations, organization of processes and facilities. The experience of practical implementation of the contracting system is considered, the problems that have developed in the field of public procurement to date are identified. It is shown that the problems of organizing public procurement are not limited to corruption and the desire to give large contracts to “their” suppliers. An unresolved problem remains the need to maintain a balance of interests between ensuring procurement efficiency for the customer and providing contractors with competitive access to the competition for contracts. Unresolved this dilemma often turns budget savings into an end in itself, which reduces the effectiveness of the Russian contract system as a whole. The price and quality of products are different scales, which in modern reality are increasingly leaning towards economy. Hard-to-reach and sparsely populated municipalities become especially vulnerable in this struggle. It is shown in the work that the named problems cannot be solved by mere «easing» or «toughening» of the provisions of the law. It is important, while maintaining the foundations of the current system, to focus on finding options that stimulate efficient spending of funds or, at least, prevent the growth of inefficiency in procurement. The conclusion is made about the need for a systematic evolution of the contract system, taking into account regional aspects. To do this, it is advisable to transfer the emphasis in the organization of public procurement from the regulation of the procurement procedures themselves to the formation of incentive (restraint) mechanisms for specific officials involved in the organization of procurement.

scholarly journals The legal regime and the compliance façade in public procurement in Ghana

2017 ◽  
Vol 30 (4) ◽  
pp. 370-390 ◽  
Author(s):  
Mohammed Ibrahim ◽  
Justice Nyigmah Bawole ◽  
Theresa Obuobisa-Darko ◽  
Abdul-Bassit Abubakar ◽  
Anthony Sumnaya Kumasey
Keyword(s):  
Developing Country ◽  
Public Procurement ◽  
Empirical Studies ◽  
Management Tool ◽  
Group Discussions ◽  
Procurement Management ◽  
Content Type ◽  
The Public ◽  
Study Approach

Purpose The extant literature posits several claims about the equitable resources allocation through compliance in public procurement management. Notwithstanding, there are hardly any empirical studies that explore the link between the causes and extent of compliance on one hand and value for money (VfM) on the other hand. The purpose of this paper is to investigate the efficacy of public procurement laws in ensuring VfM in a developing country context. Design/methodology/approach The study employs a qualitative case study approach involving three local government agencies in Ghana. Purposive and stratified random sampling strategies were used in selecting respondents who were interviewed through focused group discussions, semi-structured and open-ended questionnaires. The study utilizes an interpretivist/constructivist paradigm which allows for the co-creation of knowledge and subjectivity in knowledge acquisition. Findings The study finds that the presence of a legal and regulatory framework does not ipso facto guarantee compliance and VfM. Additionally, a possible reason why even reported cases of compliance do not translate into VfM is that evidence of compliance, especially in a developing country setting, is often a façade. Practical implications Public procurement entities in developing countries stand little chance of achieving accountability and VfM gains if they continue to rely on compliance as a micro-management tool. Originality/value The paper challenges the dominant assumptions in the public procurement management discourse by drawing attention to the quality of reported compliance and its implication for VfM.

Why people commit public procurement fraud? The fraud diamond view

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ni Wayan Rustiarini ◽  
Sutrisno T. ◽  
Nurkholis Nurkholis ◽  
Wuryan Andayani
Keyword(s):  
Literature Review ◽  
Internal Control ◽  
Public Procurement ◽  
Risk Area ◽  
High Risk Area ◽  
Content Type ◽  
The Public ◽  
The Government ◽  
The One ◽  
Procurement Fraud

Purpose This paper aims to discuss the factors that cause individuals to commit fraud, especially in the public procurement context. All this time, an empirical review of public procurement fraud has only focused on the macro and micro level, as well as its losses on the country's economy. This paper highlights individuals’ fraudulent behavior from the four elements of the fraud diamond theory, namely, pressure, opportunity, rationalization and capability. Design/methodology/approach This paper is a literature review that discusses the fraudulent behavior of bureaucrat as a procurement official in the context of public procurement. This review uses fraud diamond theory as its theoretical framework to explain the attributes to do fraud. Findings Public procurement is a high-risk area for fraud (corruption), particularly in the government institution. It cannot be denied that the situation factor (pressure and opportunity) will interact with psychological aspects (rationalization) and individual capability to direct the individuals to commit fraud. This study discusses how existing pressure (motivation) and opportunities are used by individuals who have the capability to rationalize their actions. This literature review also endeavors to shed light on the strategy to prevent, detect and control the causes of fraud. Practical implications This paper provides an understanding of regulators, auditors and other employees in recognizing the characteristics and nature of fraud antecedents. This understanding can help prevent various forms of procurement fraud that occur within their organizations. This paper also can be a guideline to assist public sector organizations in designing effective internal control systems to prevent fraud in the process and practice of public procurement. Social implications Public procurement has a central role that enables the government to allocate the budget effectively and efficiently. Compliance in implementing procurement rules and procedures will improve the quality of public services. Originality/value There exists relatively little study outlining the factors underlying of bureaucrats’ (procurement official) opportunistic behavior on procurement activities. The authors focused on bureaucrats’ behavior because they have unique positions of power and responsibility of the procurement process. On the one hand, they have a crucial role in serving the public and safeguarding public assets. On the other hand, they have the ability to collaborate with politicians and business actors in corrupt procurement practices. Therefore, the discussion on this topic is very relevant and interesting.

High intergenerational connections: a film-based inquiry

2017 ◽  
Vol 40 (12) ◽  
pp. 1298-1315
Author(s):  
Anselmo Ferreira Vasconcelos
Keyword(s):  
Design Methodology ◽  
Interpersonal Skills ◽  
Real Life ◽  
Human Beings ◽  
Close Attention ◽  
Content Type ◽  
Intergenerational Connections ◽  
Film Method ◽  
Practical Implications

Purpose This study aims to increase the understanding about the concept of high-quality connections (HQCs) by examining how it develops between members of different generations. Design/methodology/approach It draws on film-based method to explain how the theory of HQC unfolds, particularly in a context of high intergenerational connection. Findings This study reflects the analysis of a movie that, to a large extent, fits in the HQCs conceptual framework. Rather, all key mechanisms of HQCs concept (i.e. behavioral, cognitive and emotional) were found in the plot of Die Hard 4.0. It provides compelling evidence that films may explore the possibilities of reality including the nuances of the relationships among human beings, despite the fact that it portrays a fictional creation. In doing so, it shows that HQCs are likely to be found – as very often happens in the real life – even in the worst situations. Findings also show that HQCs may be built through the time as individuals start to better know each other, i.e. their styles, behavior, religion preferences, held values, capabilities and interpersonal skills. Research limitations/implications Otherwise, film method does not allow that the research results be generalized. At best, it offers elements to the viewers reflect about. Practical implications Very often individuals are designated to carry out certain tasks along with unknown colleagues with whom they need to interact in a positive manner to accomplish the goals. As a result, organizations should pay close attention to the quality of connections among their employees. Originality/value To the best of the author’s knowledge, this is the first endeavor toward analyzing the mechanisms of HQCs concept by means of such approach. In doing so, this analysis strongly corroborates HQCs concept functioning.

The effect of academic education on employers’ satisfaction and audit quality in Iran

2016 ◽  
Vol 48 (5) ◽  
pp. 249-256
Author(s):  
Mahdi Salehi ◽  
Mostafa Bahrami ◽  
Fatemeh Alizadeh
Keyword(s):  
Internal Control ◽  
Design Methodology ◽  
Audit Quality ◽  
Accounting Standards ◽  
Financial Statements ◽  
Academic Education ◽  
Content Type ◽  
Audit Firm ◽  
Audit Reports

Purpose – The purpose of this paper is to examine the effect of academic education of auditors on the satisfaction of employees and the quality of audit reports. Design/methodology/approach – In order to collecting data a questionnaire designed and developed among the auditors, managers, and professors in Iran during November 20, 2014. Findings – The results of the study reveal that the inability to fully understand the audit report is one of the major problems of customers. For the audit firm, issues such as observation of accounting standards in financial statements, preparation of sufficient documents for the auditor, strong internal control, and understanding the limitations and problems of auditors were considered important. Originality/value – To the best of the authors’ knowledge the current paper is the first study which deals with the topic of the study in developing countries, especially Iran.

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