Corruption in Public Procurement in Lesotho

2018 ◽  
Vol 11 (2) ◽  
pp. 397-431 ◽  
Author(s):  
Thato Toeba

Abstract Public procurement refers to the acquisition of goods and services by government in order to facilitate the efficient operationalisation of the state machinery. Public procurement however extends beyond transactions to acquire commodities to “the relationship between the state and its suppliers, and between the state and the commodity transaction”. Global political hierarchies, with affluent democracies at the apex, play a dominant role in how states like Lesotho, with little political agency internationally buy and sell commodities and what terms and conditions attach to such transactions. This paper argues that the architecture of public procurement policy in Africa generally and Lesotho specifically is anchored in neoliberalism which emerged as the dominant economic theory globally after the end of World War II. Corruption which is critical in public procurement because of the huge quantities of commodities often being transacted and the volume of money involved in the procurement process. This creates substantial opportunities for public officials with the propensity to be corrupt because of the high profitability attached to these large procurements. According to the director of the Directorate on Corruption and Economic Offences (DCEO), public procurement in Lesotho is the most vulnerable area to corruption and public procurement cases form 99% of corruption cases handled by the DCEO in 2016. The paper argues that he most combative and dictatorial mechanism of the neoliberal approach to anti-corruption and public procurement policies in Lesotho is the lack of consideration for local contexts, particularly when such policies are adopted litereratim. The slow erosion of corruption, particularly in public procurement in Lesotho is testimony to the futility of neoliberal policies in the country. Officials often adopt neoliberal policies disingenuously and masquerade them as actual reform. Alternatively, policies are adopted to comply with foreign aid requisites or to guarantee Lesotho’s place in global trade. At close inspection, the public procurement legal regime reveals weaknesses which are antithetical to the enthusiastic anti-corruption narratives that the Lesotho government performs to appease donors. Political agents in Lesotho often condemn corruption and reiterate a commitment to corruption-free procurement processes, however, overt corruption that permeates all sectors in the country contradicts this narrative. This paper provides an appraisal of the Public Procurement Regulations of Lesotho as anchored in the neoliberal approach. It argues that the socio-political nuances in Lesotho are in fundamental conflict with the neoliberal theory, making legal enforcement of the regulations extremely difficult.

2021 ◽  
Vol 2 (517) ◽  
pp. 35-40
Author(s):  
O. I. Laiko ◽  

The article is concerned with topical issues of the State regulation of public procurement in Ukraine in the context of reforms and integration processes. The conceptual principles of regulation of the public procurement system have been formulated, taking into account the requirements and challenges of modern processes of reforms of the national economy and the implementation of the European integration vector. The public procurement system is considered as a new institutional unit in the national economy – the market for goods and services to the State-owned institutions and organizations with the involvement of budgetary funds. The significance of the public procurement system for the country’s economy as an environment for financing and implementing entrepreneurial initiatives aimed at creating high-quality goods and services, which is characterized by volumes equal to 15% of GDP, is substantiated. The article is aimed at defining the theoretical-conceptual and applied principles of the State regulation of the public procurement system in Ukraine in the context of efficient implementation of reform goals and taking into account the impact and challenges from the active participation of the national economy in the international distribution of labor in the course of integration processes with the EU countries. The article defines the key directions of the State policy on the regulation of the public procurement system, which include: stimulating the economic development of the entrepreneurial sector and overall economic growth on the basis of sustainability and balance; support for the production of domestic goods and services with high added value; stimulation of production of goods and services using local resources; stimulating the creation by domestic producers of both goods and services of cooperation associations in order to use the opportunities for the distribution of labor to create more competitive products; supporting the formation of an economic basis for the development of territorial and economic entities in the regions of Ukraine. As for the above defined directions of the State regulation of the public procurement system in Ukraine, appropriate measures have been proposed, the implementation of which is expected to contribute to the strengthening of the national economy and does not contradict the provisions of ratified international agreements.


2021 ◽  
pp. 268-289
Author(s):  
Milan Rapajić ◽  

In this paper, the author deals with the issue of forced acquisition of goods and services. The topic is approached both according to positive law and from the historical aspect. Attention is paid to various forms of confiscation of property with a special analysis of the process of expropriation of private goods and services. After public procurement, expropriation is the most common type of procurement of goods and services for the benefit of the state or the wider community. Also, expropriation, on the other hand, is a forced way of transferring the property rights of a natural or legal person on immovable property in favor of the state, which is done in the public interest and with compensation (which should be fair). Other coercive ways of acquiring property for the benefit of the state (ie public entities) are: nationalization, confiscation and arondation. However, only expropriation (from the extraordinary measures mentioned in the paper) has a wider application or significance for the regular functioning of the state, ie its public administration. The author (also) looks at the types of forced acquisition of goods and services for their temporary use. Requisition for the needs of the country's defense is of wider significance. Finally, instead of a conclusion, the legal nature of expropriation was pointed out. It is an institute of mixed legal nature - administrative law nature (public law elements) and property law nature (civil law elements). However, its public law elements prevail.


Author(s):  
E.I. Efremova ◽  
E.A. Fedchenko

The article analyzes the procedure of procurement by the state control bodies with the participation of audit organizations. In recent years, the procurement system has improved in terms of openness and transparency of tenders due to the gradual electronics and innovations in legislation. The public procurement system is used for the acquisition by the state of a wide variety of goods and services, but it is far from perfect in the procurement of specific areas. The system does not provide for full disclosure of customer information for such orders where it is highly desirable, in particular when conducting a tender for the audit of financial statements. These and many other factors may ultimately affect the quality of audit services, which is why it seems relevant to study the control system of procurement from audit organizations and mechanisms to ensure the high quality of the audit.В статье анализируется порядок проведения государственными контрольными органами закупок с участием аудиторских организаций. В последние годы система закупок усовершенствовалась в части открытости и прозрачности торгов благодаря постепенной цифровизации и нововведениям в законодательстве. Система государственных закупок служит для приобретения государством самых различных товаров и услуг, однако она далеко не совершенна при осуществлении закупок в специфических областях. Система не предусматривает раскрытие полной информации о заказчике для таких заказов, в которых это весьма желательно, в частности, при проведении конкурса на аудит финансовой отчетности. Эти и многие другие факторы в конечном итоге могут влиять на качество предоставления аудиторских услуг, именно поэтому представляется актуальным изучение системы контроля закупок у аудиторских организаций и механизмы обеспечения высокого качества проводимого аудита.


Author(s):  
Sergei Aleksandrovich Konovalenko ◽  
Georgy Ismaylovich Harada ◽  
Nazirkhan Gadzhievich Gadzhiev

Implementation of the decisions made in the course of management of economic and socio-political development of the state causes the adequate financial flows forming the budgetary sphere of the state. The trouble in this sphere does not allow to provide the necessary level of economic growth, hampers reforming of the economy, makes negative impact on commercial and foreign economic activity, interferes with improvement of monetary and credit, tax, insurance and other spheres of the financial system of the Russian Federation. The offenses connected with corruption and theft of budget funds committed by officials at various levels significantly undermine the authority of the government, cause a growth of discontent of society and impact the social and economic situation in the country. The practice of identifying the offenses connected with theft of public funds and property shows that practically all spheres of the public sector of economy are, to a greater or lesser extent, subject to the risks of such crimes commitment. In this regard, a research of methods and ways of assessment of corruption theft amount in the public sector of the economy is an important and hot topic. The main types of public funds theft have been analyzed, including theft of budget funds allocated in the form of grants for targeted measures; theft by overcharging the prices of goods and services used for the state needs; the acquisition of inventory for personal use of the heads of public companies at the expense of the company, etc. The dynamics of the amount of budget crimes in the Ryazan region has been analyzed. It was inferred that corruption crimes in the public sector of the Ryazan region include fraud, abuse of power, abuse of authority, illegal participation in business, as well as taking bribes. A set of measures for preventing the above crimes has been proposed.


2019 ◽  
Vol 110 ◽  
pp. 02090 ◽  
Author(s):  
Elena Karanina ◽  
Ksenia Kartavyh

Every year, the volumes of funding in the sphere of provision of state and municipal demand increases significantly. Achieving the effectiveness of government contracts is one of the main and “eternal” problems of public funds management. For public procurement to be effective, it is necessary to meet the needs of the relevant actors, i.e. society, the state, and the private sector. In order to make a qualitative forecast of the results of public procurement placement, the development and implementation of measures aimed at improving the public procurement system, it is necessary to assess the current situation of manifestation of risks arising from the procurement of goods, works and services for state and municipal needs. For this purpose, a risk-based model for assessing the system of state and municipal procurement has been developed, which allows disclosing the nature of the risks of the procurement cycle fully and identifying a case scenario for choosing a way to loss minimization.


Author(s):  
Brian Cheffins

The publicly traded company has played a dominant role in the American economy for decades. The Public Company Transformed examines the history of the American public company from the mid-twentieth century through to the present day. The analysis is oriented around constraints that have affected the discretion available to public company executives, such as monitoring by the board of directors, activism by shareholders, complying with regulation, dealings with unions, and pressure from competitors. The chronological departure point is the managerial capitalism era, which prevailed in large American corporations following World War II. Managerial capitalism’s rise, its 1950s and 1960s heyday, and its fall in the 1970s and 1980s are canvassed. Prosperity that American public companies and their executives enjoyed during the 1990s is described, as is a reversal of fortunes in the 2000s precipitated by corporate scandals and the financial crisis of 2008. The Public Company Transformed concludes by offering conjectures on the future of the public corporation, indicating in so doing that predictions the public company will soon be an afterthought are likely to be proved incorrect.


2020 ◽  
Vol 50 (6-7) ◽  
pp. 628-634
Author(s):  
Christopher L. Atkinson ◽  
Clifford McCue ◽  
Eric Prier ◽  
Allison M. Atkinson

The COVID-19 pandemic has placed remarkable stress on all aspects of society, from health care and the economy to the psychological well-being of communities. While the crisis is still playing out in the United States and around the world, it is nevertheless appropriate to begin to assess its impact. This article asks: What documentable public failures provide a deeper understanding of the U.S. government COVID-19 responses’ impact on supply chains? Case examples show that markets were adversely affected in ways that caused avoidable shortages of critical goods and supplies. Moreover, public procurement effectiveness was likely reduced by short-run efforts to obtain political advantage. The article begins with a brief review of disaster procurement, highlighting how public procurement professionals tried to respond to the COVID-19 pandemic. The next section delineates three politically led phenomena that adversely impacted procurement’s ability to acquire the needed goods and services, including a lack of cohesive strategy in acquiring essential personal protective equipment; preference for unproven drugs and magical thinking; and cozy relationships between the public and private sectors. The article concludes by discussing the centrality of public sector procurement professionals as a critical link for effective provision of government services, especially in times of crisis.


Populism ◽  
2018 ◽  
Vol 1 (2) ◽  
pp. 146-171
Author(s):  
Emre Balıkçı

AbstractThe aim of this article is to reveal the institutional dimensions of populism, which tend to be ignored because of the hegemony of economic analysis of the subject. Whereas many researchers assume that populism is a result of the negative economic effects of neoliberal policies on the middle class, I argue that populism is also a corollary of neoliberal institutions’ effect on the political power of so-called ordinary people. To illustrate this, I focus on the rhetoric of Turkish populists concerning two important economic institutions in Turkey: the Public Procurement Authority and the Central Bank. This examination shows that Turkish populists view the independent institutions of neoliberalism as a barrier against the people’s political will and define themselves as fighters for democracy.


Author(s):  
Kanu Success Ikechi ◽  
Benedict Anayochukwu Ozurumba ◽  
Akuwudike Hilary Chinedum

This study investigated the effect of Public Procurement Act (PPA), 2007 in curbing corruption in public services in Nigeria. The research is prompted by the sheer waste of public resources in the process of public procurements which necessitated the enactment of the PPA in 2007. The operations of the Act requires constant appraisal in order to achieve the desired objectives, hence the main goal of this study. Convenience sampling technique was used to collect data from a sample of 50 staff from 3 select MDA’s operating at the FCT, Abuja. Questionnaires were used to collect data and this was administered through personal delivery. The survey questionnaire measured the different dimensions of corruption in public service in Nigeria. The research design used 2 scales to collect the data. The nominal scale was used to collect personal information about respondents while an open ended questionnaire format was used to measure the response of all dimensions on subject matter .Data analysis was performed with the aid of simple percentages and descriptive statistics. Result obtained establishes that the PPA has helped to curb corrupt practices, improved on transparency and accountability in procurement process. It has minimized discrimination in the awards of contract. It has also helped to facilitate the procurement of works, goods and services in the select MDA’s. Most of the respondents opined that they have adequate value for money in their procurements but that goods and services procured may not have been delivered on time. The major problems confronting procurement practice in some of the select MDA’s include lack of experienced staff and inadequate training. Thus, the study recommends a strong commitment to capacity building and the political will to implement the PPA at all tiers of government in Nigeria. The federal government should be determined in her resolve to fight corruption. This is very crucial for an effective public procurement practice in Nigeria


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