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

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.

SME’s disinclination towards subcontracting in the public sector markets: an attributional perspective

Purpose This study aims to examine the causes of small and medium-sized enterprises (SMEs) disinclination towards subcontracting in public sector markets. Previous studies have revealed that UK SMEs are reluctant to do business with the public sector through the subcontracting route, but the reasons for this lack of enthusiasm have not been widely researched. Design/methodology/approach Drawing on semi-structured interviews with SMEs competing for public contracts in North West England, a qualitative study was performed, from which several themes emerged. Findings The findings were synthesised into a framework underpinned by attribution theory, to portray situationally and dispositionally caused factors that were used to interpret SMEs’ behaviour. Social implications The findings can guide policy development and government interventions in developed and developing countries, aimed at using public procurement as a policy tool to develop the small business sector. Originality/value This paper contributes in a unique way to an emerging discourse on how subcontracting can facilitate the access of SMEs to government procurement spending. It adds to knowledge regarding the explanatory power of attribution theory – from its base in social psychology.

Digital Institutional Transformation of Electronic Trading Platforms in the Field of Public Procurement of the Russian Federation

Purpose: the aim of the article is to calculate the reduction in transaction costs when transferring purchases to electronic format, as well as determine the potential for digitizing the consideration of all requirements for procurement participants.Methods: the study is based on the conceptual provisions of the institutional economic theory, the use of the system approach methodology, the use of survey research methods, and the generalization of expert assessments. The development of the proposed topic is also based on the use of methods of economic and statistical analysis, scientifc abstraction, comparison and scientifc generalizations.Results: as a result of a detailed analysis, the digital transformation electronic trading platforms into the digital trading platforms was substantiated. The paper also shows the role of electronization and digitalization in reducing transaction costs and time spent on customers. It was revealed that the transfer of authority to the electronic trading platforms not only excludes the possibility of errors, unfair and opportunistic behavior of customers, and as a result – the imposition of fnes, but also reduces the time spent on procurement. The main approaches to improving the contract system, building its digital ecosystem, where the necessary actions are performed by the software and hardware complex, and the contract manager only "accompanies" the purchase, are proposed. The article presents the evolution of the use of digital technologies and the corresponding legal regulation in Russia.Conclusions and Relevance: the use of digital technologies in public procurement is becoming a factor causing changes in the contractual system. The electronic form of trading has brought a new reality, opportunities for digital transformation are opening up. The use of automated counterparty verifcation technologies in the activities of electronic trading platforms is a potential factor in reducing transaction costs. In the future, it is possible to use digital technology “big data”, which helps to identify and categorize the necessary information regarding the availability of experience in the execution of similar contracts.

Media reporting on public procurement: an analysis of UK press coverage, 1985–2018

Purpose The media is an important actor in public procurement, but research on its role is limited. This paper aims to investigate how the media has engaged with public procurement, using UK newspapers as a case example. Design/methodology/approach The method consisted of searching Nexis database for news articles on public procurement; automatic extraction of article attributes such as length, section, authorship; and manually coding each article for its theme and industry context. This produced quantitative indicators about the extent and focus of press coverage on public procurement. Findings Press coverage of public procurement increased between 1985 and 2018. The focus of coverage has been on governance failure and socio-economic policy. Governance failure, which includes corruption, cronyism and supplier malpractice, is associated with construction, outsourcing and professional services sectors. Socio-economic policy, which includes supporting small suppliers and favouring domestic industry, is associated with manufacturing, defence and agriculture. Research limitations/implications The analysis included UK media only. While the trends observed on the extent and focus of public procurement news coverage likely reflect the situation in other countries, international comparative research is still required. Practical implications Government officials should be more proactive in countering the “negativity bias” in news coverage of public procurement by showcasing projects where value-for-money has been achieved, services have been successfully delivered and social value has been realised. Social implications The media accentuates the negatives of public procurement and omits positive developments. The end-result is a selective and, at times, self-serving media narrative that is likely to engender cynicism towards public procurement. Originality/value To the best of the authors’ knowledge, this is the first study on media coverage of public procurement. It highlights that while there are similarities between media and academic treatment of public procurement, particularly in relation to its socio-economic side, the media emphasises governance failings and negative developments to a greater extent.

Development of treasury management of public procurement: problems and prospects

The subject of this study is the legal norms contained in legislation, other legal acts, as well as materials of law enforcement practice regulating the process of treasury management of budgetary funds. This article also analyzes the experience of legal regulation of the mechanism of treasury management of budgetary funds during public procurement, examines the gaps in budget legislation directly related to the topic under consideration.The purpose of this article is to consider the problems and prospects of the development of the Institute of the Federal Treasury in the Russian Federation. The reason for this study was multiple scientific discussions, which caused an ambiguous reaction from the legal community of Russia. The gaps in the budget legislation directly related to the topic under consideration are considered.The methodology. General scientific methods were applied in the framework of comparative, logical and statistical research and analysis of law enforcement and judicial practice in the field of treasury management of budget funds.The main results. A number of issues related to the chosen topic were considered. First of all, it is necessary to understand how the legal regulation of treasury management of budgetary funds is carried out. The form of legal regulation of treasury management differed from other forms and instruments of control the norms on treasury management were established annually by the federal law on the federal budget and acts of the Russian Government, Russian Ministry of Finance and the Federal Treasury adopted in pursuance of this federal law. Secondly, it is worth noting how the procedure for treasury management of budgetary funds during public procurement is built. The mechanism of treasury management provides for operations on personal accounts opened in the Federal Treasury with funds received from the relevant budget in the form of subsidies and budget investments, as well as funds directed to the execution of government contracts, contracts, the sourceof financing of which is the budget of the budgetary system of the Russian Federation. Thirdly, it is necessary to understand what prospects the institute of treasury management of public procurement has. Trends in the development of the institute of treasury management show that quantitative parameters will grow, including due to the use of "extended" treasury management and due to the spread of technological solutions to the level of subjects of the Russian Federation and municipalities.Conclusions. Treasury management of budgetary funds during public procurement is a new institution of budget law, a comprehensive budgetary and legal instrument of public administration, which is used at the stage of budget execution for expenditures to exercise financial control over the public procurement, contracts with legal entities and sole proprietors who are not participants in the budget process. In addition, treasury management is a tool with sufficient elasticity and relative "versatility". At its core, it allows you to strengthen control over the targeted and effective use of budget funds, ensure transparency and openness of procurement procedures and execution of state contracts; reduce unscrupulous suppliers in the chain of co-executors while ensuring proper execution of the state contract; increase financial discipline of the parties to the contract. It is also worth noting that treasury management minimizes some of the risks inherent in the use process. This institution should be considered as a system element in a larger mechanism of budget monitoring.

Beschaffungsdienstleister im Vergabeverfahren

For the first time, this research opens up the field of procurement services, which has long existed in the real world, in a profound and comprehensive manner by developing a phenomenology and typology based on Art. 2 (1) No. 17 Directive 2014/24/EU. In essence, Nicole Lieb sheds light on the legal status of the procurement service provider and examines the legal requirements for the division of labour between it and the contracting authority in the context of an award procedure (the whether, the how and the consequences). Finally, valuable legal policy suggestions are made for the professionalisation of public procurement.