Transparency level of the electronic procurement system in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hawa Ahmad ◽  
Sitti Hasinah Abul Hassan ◽  
Suhaiza Ismail

Purpose This paper aims to examine the level of transparency of the electronic procurement (e-procurement) system in Malaysia. Design/methodology/approach Using the content analysis method, 23 transparency disclosure items from the Website Attribute Evaluation System (WAES) checklist were used to evaluate the transparency level of the e-procurement system. The data gathered from the WAES were analysed using frequency and percentage based on the various categories of transparency. Findings The study reveals that the e-procurement system disclosed 17 out of the 23 WAES transparency disclosure items, which represents a transparency disclosure level of 73.91%. Of the five categories of disclosure, i.e. ownership, contact information, organizational information, citizen consequences and freshness, the detailed results show that the items are fully disclosed for only two categories, and for three categories, i.e. ownership, contact information and organizational information, the items are not fully disclosed. Research limitations/implications The findings of the present research offer a positive indication that the government is moving in the right direction, particularly in efforts to reduce the corruption level in procurement activities and to improve the accountability level of the government. Originality/value The present study is among the few studies that attempts to address a fundamental issue of transparency in the public procurement system that has an important relationship with the occurrence of corruption in procurement activities.

2018 ◽  
Vol 2 (2) ◽  
pp. 39-48
Author(s):  
Azem Duraku

Abstract Treaty of Rome of 1957 and following treaties on amending the Treaty of Rome contain a number of basic principles on which the EU is founded. Among these principles, the most important ones related to the public procurement are: prevention of discrimination based on nationality, free movement of goods; right and freedom of establishment of a business; the right to provide services. Spending of public money in Kosovo pursuant to the Law on Procurement is found on the following principles: economization and efficiency; equal treatment and non-discrimination; transparency; value for money. The average of open procedure application in EU countries is 73% based on notices, whereas in Kosovo is 82.80% based on notices. In the end of 2014, Kosovo commenced the development of electronic procurement platform. This project takes place within the Public Sector Modernization Project. The importance of the electronic procurement is stated in the statement of European Commission: “Modernization and opening of procurement markets across borders - including through the electronic procurement expansion - are crucial for the competition in Europe and creating new opportunities for businesses in EU”. A good procurement system in Kosovo will have an impact on elimination of negative phenomena (corruption and bad management) in the management of public expenditures from spending agencies, as well as an impact on increase of budget saving.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huimin Li ◽  
Limin Su ◽  
Jian Zuo ◽  
Xiaowei An ◽  
Guanghua Dong ◽  
...  

PurposeUnbalanced bidding can seriously imposed the government from obtaining the best value for the taxpayers' money in public procurement since it increases the owner's cost and decreases the fairness of the competitive bidding process. How to detect an unbalanced bid is a challenging task faced by theoretical researchers and practical actors. This study aims to develop an identification method of unbalanced bidding in the construction industry.Design/methodology/approachThe identification of unbalanced bidding is considered as a multi-criteria decision-making (MCDM) problem. A data-driven unit price database from the historical bidding document is built to present the reference unit prices as benchmarks. According to the proposed extended TOPSIS method, the data-driven unit price is chosen as the positive ideal solution, and the unit price that has the furthest absolute distance measure as the negative ideal solution. The concept of relative distance is introduced to measure the distances between positive and negative ideal solutions and each bidding unit price. The unbalanced bidding degree is ranked by means of relative distance.FindingsThe proposed model can be used for the quantitative evaluation of unbalanced bidding from a decision-making perspective. The identification process is developed according to the decision-making process. The finding shows that the model will support owners to efficiently and effectively identify unbalanced bidding in the bid evaluation stage.Originality/valueThe data-driven reference unit prices improve the accuracy of the benchmark to evaluate the unbalanced bidding. The extended TOPSIS model is applied to identify unbalanced bidding; the owners can undertake objective decision-making to identify and prevent unbalanced bidding at the stage of procurement.


Author(s):  
Yernur Mukhtar ◽  
Yuri Toluev

The relevance of this research topic lies in the fact that public procurement requires in-depth consideration and comprehensive analysis, including the scientific and methodological level of analysis. The use of special legal documents in public procurement and the specific procedure for the execution of these documents is not a factor in the full understanding of this direction, including the economic assessment of the entire process. An economic and statistical approach using system analysis is required, which was used by the authors of the scientific article as the proposed research methodology. One of the main parts of the progressive process of commodity exchange in the economies of the analyzed countries is the mechanism for building public procurement. Currently, the problem of material and technical support of public needs in developed countries is solved as a result of logistics processes in the system of public procurement through the acquisition and supply of goods, works, and services, tangible and intangible resources. The article submits a review of foreign experience in building a public procurement system with special features characteristic of this region of the world, presented as an object of research. Country aspects in the object under study and allowed the authors to formulate the relevant main results and conclusions concerning various parties in the public procurement system, which determined the further strategy to improve the procurement system of the government and international integration union. Key words: public procurement (PP), regulation of the public procurement system, government orders, entrepreneurship, international regional institutions, regulation of the public procurement system, procurement, USA, European Union (EU), Poland, Germany, World Bank.


Author(s):  
Edi Wahyu Widodo ◽  
Tri Harsono ◽  
Ali Ridho Barakbah

In the last few years in the world of auctions, electronic auctions become a hot topic for discussion, especially in Indonesia. In Indonesia, the auction has been using online electronic system since 2007 with all its advantages and disadvantages. This system is one of a fairly successful program in a good governance. Until now, there are 620 government agencies in Indonesia have been using this electronic procurement systems[19]. The Government can perform a budget efficiency nearly 5% of the total budget by using today's electronic procurement system. The current system is good enough, but there are still some deficiencies found. Some of solutions to cover the deficiency offered in this paper. Starting from the classification of goods or services according to the UNSPSC, applying business classification with ISIC Indonesia in 2009, recording the activity of vendors for consideration decision, and implementing a decision support system using AHP to facilitate the auction committee to determine the winner. All of above matters are intended to improve the effectiveness and efficiency of the current system.


2013 ◽  
pp. 1164-1185
Author(s):  
Karunanidhi Reddy ◽  
Renitha Rampersad

Broad-based black economic empowerment has been a central part of the South African government’s economic transformation strategy. The main purpose of BEE is to increase the number of black people that manage, own, and control the country’s economy, and as a result, to reduce income inequalities and to contribute to economic transformation in South Africa. During apartheid in South Africa, the government procurement system favoured large, established businesses and made it difficult for newly established businesses to participate in the procurement system. This chapter gives an overview of the Black Economic Empowerment policy as a means to achieve socio-economic transformation in South Africa by providing preferences for Historically Disadvantaged Individuals (HDIs) and small businesses, when making procurement decisions. It also examines how procurement is used as a policy tool by government while simultaneously ensuring that it does not contradict the constitutional right to equality. The chapter also explores the implications of the Preferential Public Procurement Framework Act (Act 5 of 2000) and the latest procurement regulations. Finally, it discusses the use of ICT and the vital role it plays in preferential procurement in South Africa.


2018 ◽  
Vol 18 (1) ◽  
pp. 68-87
Author(s):  
Andrei Yakovlev ◽  
Olga Balaeva ◽  
Andrey Tkachenko

Purpose This paper aims to measure the cost of procurement because public procurement procedures prescribed by legislation not only enhance transparency and competition but also entail certain transaction costs for both customers and suppliers. Design/methodology/approach These costs are important to the efficiency of the procurement system. However, very few previous studies have focused on estimating procurement costs. This paper proposes a methodology for public procurement cost evaluation. Findings This paper shows how procurement costs can be calculated using a formalized survey of public customers. This methodology was tested with a representative group of public customers operating in one region of the Russian Federation. Originality/value The authors formulate the policy implications of this paper, as they relate to the improvement of public procurement regulations and argue that this methodological approach can be applied in other developing and transitioning economies.


2019 ◽  
Vol 26 (4) ◽  
pp. 951-968 ◽  
Author(s):  
Ni Wayan Rustiarini ◽  
Sutrisno Sutrisno ◽  
Nurkholis Nurkholis ◽  
Wuryan Andayani

Purpose This study aims to examine the effects of fraud triangle (pressure, opportunity and rationalization) on individual fraudulent behavior in Indonesian public procurement. Empirical research in this area is relatively sparse. Design/methodology/approach Data were collected using laboratory experiments. Findings The results revealed that fraudulent behavior is higher when an individual has high pressure and high opportunity. These factors play an important role in determining individual rationalization. Most of participants used “displacing responsibility” to rationalize their actions. This study also demonstrated that negative affect mediates the relationship between fraudulent behavior and rationalization. Research limitations/implications First, fraudulent behavior research cannot be separated from social desirability bias. Second, the experiments only involved individual decision-making, not in groups. Finally, this study did not examine the effectiveness of rationalization in reducing negative affect. Practical implications Over the years, the government has only focused on the identification of pressure and reduction of opportunities, but ignored individual psychological reasons. Considering that procurement fraud is always increasing, the government must more focus on individual reasons to design an effective prevention and detection system. Social implications There are various conflicts of interest in public procurement budgeting. These conflicts can distort resource allocation and causes budget leakage. As a result, the government is incapacitated to achieve social and economic goals of the community. Originality/value There is limited research about fraud in public procurement budgeting, especially in developing countries. In addition, the fraud triangle research, which focuses on rationalization is still limited.


2020 ◽  
Vol 36 (3) ◽  
pp. 427-447
Author(s):  
Rames Sivadasan ◽  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Rohaida Basiruddin

Purpose The purpose of this study is to investigate consumers’ buying intentions (BIs) towards sustainable properties with green living concept (GLC). It also aims to examine the dynamic relationships between environmental advertisements (EAd), green brand positioning (GBP), attitude towards environmental responsibility (ER) and consumers’ sustainable properties BI in the Malaysian context. Design/methodology/approach Data were collected via online questionnaire survey, which yielded 143 completed usable responses. Structural equation modelling–partial least squares (Smart PLS, version 3) was used to analyse the data. Findings The findings of this study revealed that EAd and GBP significantly affect consumers’ attitude towards ER, which in turn affects consumers’ BI of the sustainable properties with GLC. Practical implications This study suggests that without inculcating a positive attitude towards the environment among consumers, it becomes a daunting task to drive consumers to purchase sustainable properties in Malaysia. Thus, the marketers should focus on green promotional activities to attract more customers to buy sustainable properties with GLCs. Moreover, it is suggested to target the right market segment to secure more sales. Social implications The findings of this study will enable the government and the social marketers to understand the drivers of buying sustainable properties with GLC, which in turn will contribute to the higher environmental welfare. Originality/value This study is among the pioneers to examine consumers’ sustainable property purchase intention. It provides significant insights for the social marketers and policymakers to understand how to motivate consumers to purchase sustainable properties with GLCs. Moreover, this study has investigated few comparatively new links such as the direct effect of EAd and GBP on attitude towards environmental responsibility and the mediating effect of attitude towards environmental responsibility between environmental stimuli and consumer’s sustainable properties BI.


Subject Pre-election politics in Ecuador. Significance Deteriorating economic conditions, declining public spending and falling support for the government have provided opposition forces with a favourable climate to make gains in advance of next year's general elections. However, with little over eight months before voters are scheduled to go to the polls, the opposition is fragmented and the main challengers are uncertain. The political landscape is further complicated by uncertainty over who will stand for the ruling party. While President Rafael Correa has repeatedly stated that he will not compete, he may yet seek election for a fourth successive term. Impacts Constitutional reform, media freedom, security and tax reductions will be the focus of electoral campaigns from the right and centre. Preventing large-scale mining, environmentalism, creating a plurinational state and wealth redistribution will be central to the left. The full list of parties and candidates authorised to compete in the elections will not be known until the year-end.


Significance The new government will have only 34 of the 179 seats, because policy differences among the right-wing parties, and the political strategy of the electorally strengthened anti-immigration, Euro-sceptic Danish People's Party (DF), mean DF will remain outside. Policy-making will be difficult. The government will be more economically liberal and pro-EU than it would have been with DF, but to make policy it will rely on partners across the political spectrum, especially the ousted Social Democrats -- who remain the largest party -- and DF. Impacts If DF is seen as a welfarist protector of ordinary citizens, it is more likely to repeat, at least, its 22% vote in the next election. The much-tighter immigration regime which is in prospect could taint Denmark's image and make it less attractive to foreign investment. The new government is likely to be an ally for much of UK Prime Minister David Cameron's EU reform agenda.


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