Question

Explain five possible reasons accounting for the public procurement act in addressing procurement related corruption in the public sector

Answer 1

-Public sector is that part which is controlled or operated by the government.

-Public procurement is the process by which overnment and other bodies governed by public law , purchase goods and services.

There are several factors that results for public sector corruption:

1. Country size:

Corruption may occur if the size of the country is very large , and have low density.

2. Monopolist market:

Sometimes, monopolist also exploit people by charging high prices, which leads to corruption.

3.Low wages:

Sometimes, people get low wages, which is not sufficient for them to run their houses. As a result they go to wrong side ie. on corruption to earn their livelihood.

4. Lack of rules:

Corruption in public sector is increased beacuse , the rules and regulations of that country is not strict.

-Public procurement is one of the government activities , which are vulnerable to corruption.. Corruption risks are occured because of the complexities of the process, the close interaction between public officials and businesses.

- AS we know that various types of corrupt acts may exploit the vulnerabilities. It may lead to bribery , fraud and obligations. Corruption in public procurement gives negative impacts. Negative impacts in terms of Economic and social disability, wastages of resources,inefficiencies, and missed opportunities. It ultimate reduce public trust from the fovernment.

-Because of public procurement corruption , various guidlines have been made in public procurement act to remove this. These are as follws:

Basically there are 5 Principles of Public Procurement:

1.Accountability:

-Be responsible for the public funds.

-Support economic, social, sustainable community.

- Apply sound business judgement.

- Use procurement strategies to optimize values to stakeholders.

2.Ethics:

-Maintain consistency in all process and actions.

-Meet the ethical standards.

- Conduct the business activities with honesty, integrity.

3.Impartiality:

- Be open, fair impartial to all persons.

-Use sound professional judgement and legal framework to satisy the interest of the stakeholders.

4.Transparency:

-Maintain complete records, policies and procedures of the company.

-Provide all informations to stakeholders and public except confidential one.

-Make a healthy competitive environment.

5.Service:

- Providing services to the customers by providing and meeting their requirements.

-Develop and maintain good relationship with stakeholders.

We can curb the corruption in public procurement by integrity, transparency, accessibility and control.