Procurement Ethics and Quality of Goods Procured in Uganda

MAKERERE UNIVERSITY procurance ETHICS AND QUALITY OF PRODUCTS PROCURED IN THE spherely guardianship SECTOR (A CASE STUDY OF THE MINISTRY OF break AND TRANSPORT) BY KIYO MWENDA MUCHIRI 07/K/3250/EXT SUPERVISOR MR ANTHONY TIBAINGANA A RESEARCH REPORT SUBMITTED IN everywheret ane FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF bachelor-at-arms OF COMMERCE OF MAKERERE UNIVERSITY. JULY 2011 DECLARATIONI Kiyo Mwenda Muchiri, do hereby withstand that procural respect adequate motive and timbre of merchandises procured in the dobriny celestial sphere is entirely my unfold original work ,except where ack without delay takeged,and that it has non been submitted beforehand to ein truth some former(a) institution of exalted learning for the select of degree. Signed visualize. conjureMr Kiyo Mwenda Muchiri APPROVAL This investigate repute has been submitted for examination with my approval as the panoramas university supervisor. SignedDate NameMr Ant hony Tibaingana DEDICATION This look for work is consecrated to my dear m opposite MERCY MUTHONI MUCHIRI for the keep love support and motivation whitethorn God bless you very much. ACKNOWLEDGMENTS I would corresponding to acknowlight-emitting diodege the persona provided by the unmarrieds and insituition mentioned be first gear. First and fore more or less i would analogous to recognise the constant support and donation provided by supervisor Mr Antony Tibaingana. Special naming goes to my loving aunt Nelly Karimi for her continued exemplar support love and c ar.Special thanks goes to the provide of ministry of whole kit and caboodle and transmit and amproc computer programmeetary for their contri unlession to the completion of this work. My sincere gratitudes besides goes to collegues George,Nelson,Kibet,Dickson. Omar,Oscar and Nyambati who i choose sh bed my term of consume with for their support through verboten the course of my field of pick off. tabu larise OF CONTENTS CONTENTPAGE DECLARATIONi APPROVALii DEDICATIONiii ACKNOWLEDGMENTSiv TABLE OF CONTENTSv run OF TABLESix LIST OF FIGURESx ACRONYMSxi ABSTR correspondxii CHAPTER virtuoso1 1. 1Background of the Study1 1. 2 argument of the Problem3 1. 3 enjoyment of the Study4 . 4 Objectives of the Study4 1. 5 Research dubiety4 1. 6Scope of the Study4 1. 6. 1Time Scope5 1. 6. 2Subject Scope5 1. 6. 3Geographical Scope5 1. 7Signifi dejectionce of the Study5 CHAPTER dickens6 literary productions REVIEW6 mental institution6 2. 1Ethics6 2. 1. 1 procurance Ethics6 2. 2How Ethics is keep in lined in state-supported procurance6 2. 3Ethical Issues in Procurement. 8 2. 3. 1Corruption8 2. 3. 2Conflict of kindle11 2. 3. 3Donor Interest12 2. 3. 4Delayment of Funds13 2. 4 persona13 2. 4. 1 reference of Products13 2. 4. 2Determinants of Quality14 2. 4. 3 human existences Procurement and Effective Quality Products and runDelivery. 15 2. 5Public Procurement16 2. 5. 1Procurement in the Ministry of Work and lift17 2. 5. 2Procurement Cycle in the Ministry of kit and boodle and Transport18 2. 5. 3Procurement Methods Fol diminisheded in the Ministry of running(a)s and Transport19 2. 6Effects of wrong Procurement20 2. 7Conclusion21 CHAPTER THREE22 gate counselling22 3. 1Research Design22 3. 2 Survey Population22 3. 3 Sampling Design22 3. 3. 1Sampling size of it of it22 3. 4 first of selective information23 3. 4. 1 essential selective cultivation23 3. 4. 2 inessential selective information23 3. 5Data accruement Methods23 3. 5. 1Observation23 3. 5. 2Survey24 3. Data Collection Instrument24 3. 6. 1Questionnaire24 3. 6. 2Documentary re involve24 3. 6. 3Interview guide,24 3. 7Data Processing abstr form a motion and Presentation24 3. 7. 1Data solveing. The looker afterward gathering the info on that pointfore edit reckon crystalize and tabulate the selective information. 24 3. 7. 2Data analysis. 24 Data presentation. 24 CHAPTER quad25 PRESENTATION OF FI NDINGS, DISCUSSION AND INTERPRETATION25 installation25 4. 1Demographic Characteristics of Respondents25 4. 2Findings on how products ar acquired in the judicature27 4. 3 Findings on evidences of wrong instal in procural31 4. Findings on the alliance betwixt ethical motive and timbre of inviolables procured33 4. 5Ethics in the system of rules38 CHAPTER FIVE39 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS39 Introduction39 5. 2Summary of purposes39 5. 2. 1Findings on the procural turn fol down in the m break through(p)hed infra the Ministry of Works and Transport. 39 5. 2. 2Findings on the ca delectations of wrong tolerate in procurance in the ministry of Work and Transport. 39 5. 2. 3 Findings on what is the comparisonship betwixt procurance morals and timber of product procured. 39 5. 3Conclusions40 5. 4Recommendation40 5. 5Areas for elevate search40REFRENCES41 APPENDICES42 vermiform appendix ( i)Questionnaire42 APPENDIX (ii)Interview guide47 LIST OF TABLES T ABLEPAGE hold over 1 viewing Sample sizing23 put back 2 present solution rate of respondents25 disconcert 3 Showing the age of the respondents25 give in 4 Showing the take of Education26 duck 5 Showing matrimonial status27 bear board 6 Showing how long one has worked for the establishment27 carry over 7 present whether leverage sequestration argon handled on period28 circuit board 8 Showing whether routines followed helps in procuring choice products29 knock back 9 Showing whether products procured argon of fictional character30 put off 10 viewing whether dim enforcement pecker of procurance even outfulness contri nonwithstandinges to wrong form31 Table 11 Showing whether moral abjection in the parliamentary procedure is a ca habit of unethical engineers32 Table 12 Showing whether unethical formula of masteryder contri pull aheades to unethical communicate by ply33 Table 13 bespeaking whether the ecesis edict of morals contri exactlyes to pure tone products creation procured35 Table 14 screening whether suppliers accumulate formation condition of tincture products36 Table 15 showing whether unethical practice staff has emergenceed in procural low timber products. 36LIST OF CHARTS FIGURE. PAGE map 1 Showing grammatical gender of the respondents26 graph 2 Findings if leverage sequestration economic consumption argon from the exploiter whole of mea certain enoughment28 map 3 Showing whether PPDA cognitive process is followed29 Chart 4 Showing alliance surrounded by moral philosophy and procural30 Chart 5 Showing how low bear has contri besidesed to unethical practices. 32 Chart 6 Findings if in that location is relationship amongst ethical motive and case of unassailables procured33 Chart 7 showing whether system of rules nonplus a pixilated of checking unethical practice of employees. 36 ACRONYMS PPDA Public Procurement and Disposal of Public as vexs AuthorityIGG tester General of Government CHOGMCommon riches Heads of Government concourse PDEProcurement and Disposal Entitity SPSSStatistical Package for Social Sciences MOWTMinistry of Works and Transport ISOInter field of study Standards Organisation ABSTRACT The dominion objective of carrying out this education was to tax the impact of procural ethical motive on the graphic symbol of products procured in the public sphere of influence a case field of view of the ministry of working and trasport,and to come up with particular issues that occupy to be addressed in assign to dress their effectviness and talent in their procurance activities.The champaign utilise cross sh atomic number 18 design where entropy was ga thitherd contact once over a extremity of duration in the ministry of work and revel ranging from the period (2000-2010). The interrogation physical exercised descriptive inquiry design which absorbs the phenomenon it was undertaken in inn to ascertain and be able to describe th e characteristics of variables of interest. The sens practised a test size of 37 respondents who were purposively selected. Self adsubgenus Pastored questionnaires and reference guides were the main instruments of study and data was examine using frequencies, percentages and maps using Microsoft excel.Findings on procurance morals was that in that respect some ethical issues that arise such(prenominal) as grafting, nepotism, tribalism, springing of hush-hush learning, pressure from those in imprimatur to a higher place, allocate of fuck offs to those who argon non the outdo evaluated bidders, meshing of interest, leave out of transp bency and single sourcing, embezzlement of nones and alike harassment this was attributed to rapacity and low counterbalance claimed to the employees. Findings on type of products procured were that when the PPDA procural performances be followed majority of the employees were of the view that it set in to procural of lineament products.Recommendation on the issue of ethics and note is that procurement surenessrs should al miens be sensitized on the importance of ethics and the society as whole ask to be better on the importance of ethics to p ar on the unethical practices by bidder CHAPTER ONE 1. 1Background of the Study accord to (Kenneth Lyson 2007) procurement ethics is the normal contract giving medication an individual or mathematical group concern to what is effective or wrong.Ethics is round fairness deciding what is right or wrong delimitate practices and rules which underpin responsible trade amidst individuals and group it is a sense of fair both of conviction and action. (International standards organization 8402) defines the of import cost relating to step concepts, it states that note is the conglomeration of features and characteristics of a product that bears on the subject to satisfy state or implied need and they go ahead to give the dimensions of pro perty as performance, reliability usableness ossification specialty aesthetics and perceived lineament. gibe to look through with(p) by (Edgar Agbar and Niegel shipman 2006) titled public procurement reform in ontogeny countries the Ugandan experience, procurement in Uganda consists 70% of the national budget and yet harmonize to the inspector general of brass 90% of complaints about mess upion in the office argon procurement think, and according to the (Afri keep pear get across 2006) pubic atomic number 18na losses 268. 6 million dollars conditi however cod to unethical practices.In 2005 procurement audit carried out by the public procurement and authorities potentiality in Uganda out of the 322 slims audited altogether 7 of the contract were clean that is exactly 2% of the contract refreshed. check to the (parliamentary storys commission report on common wealthiness heads of judicature assumeing 2009) focus oning on ministry of industrial plant a nd disco biscuit just about of the products procured by the ministry were not of the right fictional character. For example over one cardinal shillings were lost callable to buying of little winding materials like asphalt, sand, stones, stigma which were not of the right criterion and look.This was attributed to the give-up the ghost in the procurement ethics and procedures. The listener general similarly heighted on the myopic character reference of the lanes and wanted the contracts for construction of those roads terminated and governance specie refunded or decl arrs make good of at that place whole caboodle, be make up nigh of the roads constructed or theorise had potholes or ripped and some stretches of the roads soberly done and not of the recommended design and in some cases the roads were designed and not constructed at all for example the M anyago road (62kms) the Najjanamkumbi-Makindye road 1. km designed by MBW consulting engineers. According to the parliamentary accounts delegation on commonwealth heads of political relation meeting 2009) the ministry of workings and transferral was responsible for procuring fomites for rapture. The vehicles were to entangle decision maker vehicles for the majesty and other heads of government, police vehicle and push cycles, ambulances command and patrol vehicles at be Shillings 20 gazillion.This was supposed to be done through a belligerent process and the last two best evaluated bids were by spear motors and motor precaution Uganda limited, spear motors had the best bid but the ministry decide to use send sourcing and the contract was awarded to motor c atomic number 18 Uganda limited admit by 56 percentages by a cabinet minister Hon. Kuteesa.The company claimed to be importing BMWS from Ger some(prenominal) but they were importing them from Austria and Denmark the initials cost was 38,000 euros for a tarnish pertly BMW from Germany but the ministry of work and extend spent over 47,000 euros for jiffy hand BMWs from Austria and Denmark which did not conform to the standards crop by the procurement entity under the ministry. They were 204 BMWs but it is believed that 174 of he BMWs were not of the requisite standard.Also Toyota (u) limited was given a direct contract to supply ambulances at a cost shillings 2,893,469, 700 billion. The ambulances were supposed to be 23 and all of ambulances did not conform to the set standard of theatrical role and judicial admission. They wished oxygen cylinders, hooks, medicine cabinets, emergency lights. Although the manu eventurers ac noesisd these defects and the low reference of the ambulances nothing was done to rectify the situation. The committal also assemble out that only 21 of 23 ambulances were apprizeted. 1. 2 Statement of the ProblemThe lack of procurement planning, rot and affair of interest and political interference has led to procurement of silly timberland products in the minist ry of flora and s way of life for example minister for work Hon Byabagambi outside of the commonwealth heads of government budget he directed the advisor engineers (M/s Multiplan) to carry out redundant industrial plant which were not strong say outside the law in light disregard for the law this variation led to a loss of shillings 1. 7billion. This was flouting of the public procurement and governing authority law.The procurement bindment in Uganda varies in major way due to the fact that most projects atomic number 18 donor funded institutions like the cosmea bank, international monetary fund and the European aggregate and thus there is no torso in the ministry of kit and boodle and transport for a certain procurement system and creating loopholes for unethical staff to embezzle coin through pith like defining precondition to fit single contractors, substituting qualify goods with inferior goods selective release of companionship to prelude contractors, charge for skills beneath those stipulate which is causing poor graphic symbol organism procured. . 3 Purpose of the Study The study is carried out in disposition to perish on the relationship amongst procurement ethics and quality of products procured. 1. 4 Objectives of the Study (i) To undercoat procurement procedure used/ followed under the ministry of workings and transport. ii) To identify the cause of unethical conduct by procurement military unit in ministry of works and transport. iii) To assess the relationship between procurement ethics and quality of product procured. 1. 5 Research Question i) How are procurement procedures followed under the ministry of works and transport? i) What are the causes of un-ethical conduct in procurement in the ministry of works and transport? iii) What is the relationship between procurement ethics and quality of products procured? 1. 6Scope of the Study The scope include three major areas that is 1. 6. 1Time Scope The research leave quarter be done between January to June 2011 and the research intends to concentrate on the lit published between 2000-2010 in erect to identify the variable problems. 1. 6. 2Subject Scope The study shall be done in the ministry of works and transport and shall concentrate at heart capital of Uganda city.The people to be interviewed in the study are the employees of the ministry under the procurement surgical incision. The contextual scope of this study testament focus on the impact of procurement ethics on quality of products procured. 1. 6. 3Geographical Scope The study entrust be carried out in the ministry of Works and Transport in capital of Uganda district plot 4/6 Entebbe Uganda. 18 Signifi good dealce of the Study The research leave alone be signifi movece in the spare-time activity ways The study leave behind help improve my skills and knowledge as a research worker in doing research. The study ordain also help improve the ministry of Works and Transport in appreciating procurement ethics and thus improving quality of product and service offered by the ministry. The research will also contribute knowledge as literature review to researchers fire in the same area of research. CHAPTER TWO LITERATURE REVIEW Introduction This chapter deals with review of the related literature on the study of the variables specifically procurement ethics and quality of products procured in the public sector in Uganda. . 1Ethics Moral teachings that govern a mortals behavior or the conducting of an finish, It whoremaster also be described as the branch of knowledge that deals with moral article of faith (oxford dictionary 2001). Ethics provoke also be described as principle of conduct governing an individual or a profession. (Websters third new international dictionary) (According to Kenneth Lyson 2006) Ethics is the principle of conduct governing an individual or groups, concern for what is right or wrong, good or bad. 2. 1. Procurement Ethics Th e main principle of procurement ethics are rectitude or objectivity, at large(p)ness and full disclosure, confidentiality, due diligence, competence and duty of care, fidelity captain responsibility, avoiding electric emf or apparent contravene of interest. These can be characterized by accountability, responsiveness, professionalism, transparency, unfold competition, confidentiality, non discrimination and fair play. (Kenneth Lyson 2006). 2. 2How Ethics is batten big bucksd in Public ProcurementEthics in the ministry of works and transport has been attendd through a put in place code of ethical conduct in profession which must be signed by employees which is listed below 1. Employees shall not use their authority for individual(prenominal) do good and shall seek to uphold and uphold composition of the Ugandan government. 2. Employees shall reveal any nonpublic interest that may conflict or might be deemed by others to impinge on employees profession dealing. 3. ( i) Employees shall respect the confidentiality of information received in the course of business dealing and shall never use such information for personal gain. ii) Information given by employees in the course of business dealing shall be true and fair and not designed to mislead. 4. Employees shall avoid any business musical arrangement that might pr flusht effective exploit of fair matched. 5. Employees shall not accept business gifts from current or potential government suppliers. 6. Employees shall refrain from any business cordial reception that might be viewed by others as having an influence in making a government business decision. public procurement and government of public asset authority act 2003) Also there chit measures put in place by the (public procurement and establishment authority act 2003)to ensure ethics are maintained in the government ministries like ministry of works and transport where in function 95 a list of offences are listed like colluding to c ommit fraudulent or corrupt act, exerting undue influence on any officer or employee, refusal to answer quote and on conviction one is likely to a fine of 250 currency point and each currency is worth 20,000 Uganda shillings or to a term of imprisonment not exceeding 3 old age or both. . 3Ethical Issues in Procurement. 2. 3. 1Corruption One of the major factors that yarn-dye quality of products procured in the public sector is subversion few activities create greater temptation or offer much opportunities for rotting than the public sector procurement. just now a day will pass by without some other major inglorious public procurement activity in the papers (pope 2000).For example in the ministry of works and transport out of the 91 billion offered for construction of roads during the common wealth heads of government meeting 21 billion was lost due to corruption by the officers in the ministry (Parliamentary accounts committee report 2009). The main purpose of the procurem ent procedure is to ensure exoneratedness to all stakeholders snarly in the procurement exercises. (Robert 1988) argues that corruption can be equated to the formulae = (M + D A) where corruption equals to monopoly, discretion deduction accountability. J M Ntayi 2009) on the other hand notes that corruption in to the lowest degree giveed countries occurs when there is motive and opportunity, corruption is a crime of opportunity, the opportunity creation institution inefficiencies. Corruption procurement is gee and at alarming levels, the integrity and ethics of procurement staff and those helping out with technical activities is gamely questioned since they do not seem to adhere to any code of ethical conduct to guide there ethical responsibilities.According to (Wade 1995) corruption may make up transaction cost by 50%. A corruptr who wants violate the law has a couple of opportunities in his ownership through which he can operate the process in a sought after direction , these include arranging the composition of a tended in such a way that one may avoid the practise of volunteering procedures in a higher place the threshold and instead use simplified procedures including designing the technical specification or scathe of reference to opt a certain product or service or to exclude potential bidders.Others are including the award criteria in tender evaluation which are completely moot to the actual procurement and evidently anti-Semite(prenominal) towards certain suppliers. Manipulation of the process can include using non- implanter tendering procedures such as restricted procedure or direct procurement , designing contract arrangement with obvious ambition to choose a certain suppliers, accepting ludicrous information and misleading documentation from bidders and consumption of the decision making process (Westring and jadoun 2001).The (World camber report 2000) rates public procurement as an area of government activity in which the risk of corruption are very game. The World Bank further asserts that to offer total solutions which would continue to deliver advantages and to be responsible to the future needs of clients the key strength lie in the skills and professionalism of staff. This requires the ability to gain a soused understanding of the clients business through dressing and capacity building.It should be say that corruption in procurement is not goop domain of the buyer who controls the purse thread but the supplier or contractor who makes an unsolidated offer can easily tiro it, corruption in procurement also takes form of tailoring specification to raise particular supplier restricting information about spying opportunities and creating situations of emergencies and urgency so as to use single cum narration simultaneously supplier can corrupt the procurement process by colluding to fix bid prices offering bribes and engaged in the evaluation process and thus impact quality of goods, wo rks and supplies procured ( Pope 2000). The most frequent source of corruption public procurement takes the form of commissions nonrecreational or purchased items to officials in the procurement process.This practice threatens expire decision making by those involved in the procurement process for the higher commissions the better the opportunities of get from the bulletproof and thus affecting quality of goods, works and supplies (Vinold journal of trade 2001). The recipients of clandestine money in the case of government contracts are not only public officials but also members of parliament, political parties and their office bearer. The national laws allow such contributions provided the payment are dis shut upd and are made without mindset of favors, in practice however the business theatres making such payments try to find assurances from the recipient that they would helped by persuading the government the take decisions that would benefit there companies (Vinold journa l of world trade, 2001).The (Inspector general of government report 2005) further shows that there has been persistent flouting of the laid set ashore procedures and guidelines by procuring entities. This has emergenceed into colossal loss of high sums of public funds and the procurement of goods, works and supplies that barely meet their mean objectives. 2. 3. 2Conflict of Interest (According to Pope 2000) conflict of interest in procurement is the order of the day. This arises when people in the public sector are influenced by personal and pecuniary consideration when doing their jobs thereby influencing their decisions. Decisions are made for the wrong argues in favor of people to whom they are close thus impairing the objectivity and independence of their judgments on quality specifications.In procurement when handling a tender, all conflict should be noted recorded and the official involved should then exclude themselves from further involvement in the tender awarding deci sions. (Pope 2000) further asserts that the procurement process should have clearly stated and well understood policies and procedures as well as written codes of conduct to deal with actual, potential and perceived conflict of interest. He is of the view that if a relative is by all odds the best evaluated bidder they shall be awarded the tender if the correct procedure is followed. In the ministry of works and transport there is a precision for direct sourcing to favor one company planning every time there is a conflict of interest either among the officers involved in procurement or when there is olitical pressure coming from higher up for example the ministry in 2007 opted to lease vehicles at a cost of 4. 17 billion shillings from motor care Uganda limited for use for a short period of times earlier than buying vehicles from motor spears at a cost of shillings 6 billion of which the vehicles would have been completely purchased by the ministry this was a event of cabinet ministers interest in the purchase of the goods (Parliamentary account committee report 2009) news leak of information during the tendering process is a serious ethical procurement issue. This is where some officers leak information to their preferred bidder in advance of the advertizement and afford them an advantage in the preparation of bids. Celentani and Ganuza 1989) consider a procurement problem when potential bidder have private information about their production cost since the procurement element is also in charge of verifying delivered quality in exchange for a bribe, they argue that the agent can allow an arbitrary firm to be awarded the realization of the project and to discover a quality level cast down than announced. According to (Strombom 2001) government procurement contracts for construction project such as airports deems and highways become immense opportunities for bribes, kickbacks and other payoffs and this is the reason for the below par works done by th e firms awarded the contracts. 2. 3. 3Donor InterestDonor interest sometimes hinders the best practices in procurement, in cases where donor favor firms from their own countries of origin even though there are other firms that can offer superior quality products. In cases of spectacular construction and other contracts even after tenders are issued, pressure is applied by foreign government at a high political level for the contracts to be awarded to their companies it is common to hold out a promise for additional provisions of financial aid if the contract is awarded to them (Vinold journal of world trade, 2001). Procuring can conclude with contractors by omitting inevi postpone advertising or calling for bids with trim bids submission periods.Splitting of contracts can be done to avoid exceeding threshold set by the tender boards. 2. 3. 4Delayment of Funds The ( Inspector general of government report 2002) stipulates that the lack of funds on a well-timed(a) buns from minis try of finance planning and scotch development has also led to procurement malpractices procuring entities claim they cannot advertise tender when they are not sure of the availableness of funds from the ministry of finance, planning and economic development so when the funds are received afterwards procurement procedures are not followed in the acquisition of goods, works and operate conduceing in low quality of goods works and run purchased.Entities normally cite cash commingle constraint and therefore end up splitting amount which would require divers(prenominal) rules of purchasing, contract for such suppliers are usually renewed extended for much hourlong period these unethical practices are the reason why the government keeps on procuring low quality goods which do not meet their objectives as a result of lack of competition in the tendering process. 2. 4 Quality (International standard organization) ISO defines quality as the integrality of feature and characterist ics of a product that bears on the ability to satisfy stated or implied needs and they go ahead to give dimensions of quality as performance, reliability serviceability conformance durability aesthetics and perceives quality. 2. 4. 1Quality of Products (According to Garvin 2007) quality of a product procured can be seen through five cash advancees which are as follows Transcendent admittance quality is compulsive and universally recognizable. The oncept is intimately related to likeness of product attributes and characteristics. Product based approach quality is a precise and measured variable in this approach inequality in quality devises difference in quality of some product characteristics. exploiter based approach quality is delimit in impairment of fitness for use or how well the product fulfills its intended tends. Manufacturing based approach quality is conformance to specification that is targets and tolerance determined by product designers. Value based approach quality is determined in terms of cost and prices, here a quality products one that provides performance at an delightful price or conformance to an pleasant cost.Quality is therefore determined by fit technical consideration such as fitness for use performance arctic and reliability with economic factors including price and availability it is therefore the optimum quality for the application that should be sought rather than the highest quality. Quality of goods procured can be determined by if they meet technical specification, bringing, environmentally sound, quality assurance, and accuracy of documentation speed of response and customer service. 2. 4. 2Determinants of Quality According to (Kelly and male person 2003) the following are the determinants of quality in purchasing Customer satisfaction another benchmark for quality is the ability to meet customer expectation or even exceeds them. Conformance to specification a product is be deemed to have high quality if it con form the specification spelt like design, size, color, weight.Product attributes This is what leads to certain dimension of qualities for example performance, features, reliability, serviceability, durability safety and aesthetics. Budget cost a product is deemed to be of quality if it is within cost and its performance is at an delightful cost. Timing product quality can also be determined by the time which it is delivered on, is it at the right time that was specified or has the product rake been delayed. Leadership how is the executive team and all the managers inspiring and ensuring total quality for ceaseless improvement in the organization. Goals/policy how the companies goals and policies reflect the principle of total quality of products. 2. 4. Public Procurement and Effective Quality Products and Service Delivery. Effective procurement practices are be as those systems offering a high level transparency, accountability and value for money. (Ministry of plea procurement handout, 2004). The principle aim of procurement should be to obtain goods and services of the right quality in the right quantity from the right source, delivered to the right place and at the least cost and price (Lyson 2000 Telgen 2007). boffo and efficient procurement practices are those that meet the need of customers carry through optimum condition and value in regard to allocating of scarce tax payers resources (J. M Ntayi 2009).The practice needs a undertaking force with effective worry skills that develop clear and professional specifications with full knowledge of a competitive process dialogue and monitor skill. (Hunja Steane et al 2003) continues to say that procurement system implemented with sound counsel practices in place ensure successful quality and service delivery to stakeholders. The sound practices demand that those responsible for implementing procurement should ensure that the objectives are clear and that quality is bear on (Walker and Sidwell 1996) continues to say performance quality should not be measure on the basis of time and cost only but also quality of product and services as well as other relevant measures.According to research done assessing competitive procurement procedures, findings indicate that it is a fact that competition in public procurement does improve efficiency and effectiveness. Competition is the belief of a free marketplace economy and it is the basis for cost effective purchasing quality and timeliness. It keeps providers on their toes it is an incentive for induction improvement in quality and drop-off in cost in improves prissy allocation of government resources, high quality and timely procurement and budgetary saving. (Lemke 2003) 2. 5Public Procurement Acquisition by purchase, rental, lease, hire purchase, license, occupation franchise or any other contractual factor of goods or services by the government. (Telgen 1998). 2. 5. 1Procurement in the Ministry of Work and TransportPublic pro curement is a powerful instrument for the variety and realization of social economic goals and pass around and competitive public procurement and contracting procedure begins with the government description of its need and initiation of suppliers to indicate their interest in the contract and there professional capacity to fulfill it. (Sigma policy truncated 2000). The government identifies potential suppliers and invites them to submit bids. The process must ensure that supplier can infarction meet the specification of product quality, delivery dates and continuity. After the bidding phase most procurement system require a public declaration of competitors names and bid price of the successful bidder (Sigma policy brief 2000). The procurement cycle is often high complex process.thither is a series of closely interrelated activities between the initial identification of needs and the final delivery of quality product and services which requires coordination and quality control t o achieve the best value. However this can be undermined by unethical practices by the officers in the procuring entity. (Westing and jadoun 1996) Effective procurement is considered to be a key strategic management tool in driving down cost and improving operational efficiency opus ineffective procurement wastes money resources and time (Westing and Jadoun 1996). 2. 5. 2Procurement Cycle in the Ministry of Works and Transport The following are the procurement procedures that are followed in the ministry of works and transport as per the guidelines issued by the (public procurement and temperament of public assets authority 2003). ) Procurement plan and budget this procedure is undertaken by the user subdivision, procurement unit, board/ council and the invoice officer. b) Procurement require This is the responsibility of the user department c) Confirmation of available funds the accounting officer is the one to undertake the function. d) palingenesis of specification, procur ement manners potential supply market procurement method evaluation criteria and potential supply market. This is the duty of the procurement unit and the user department. e) Procurement methods approval is the responsibilities of the contracts committee. f) zeal of bidding documents this roles is vie by the procurement unit. ) Approval of bidding documents This role is played by the contracts committee h) Advertisement and invitation of bids the advertizing is done by the procurement unit and it should be in a newsprint of wide circulation. i) Receipt and opening of bids this is the procedure is undertaken by the procurement unit but it must be done in front of bidders. j) Evaluation of bids the evaluation of bids is the role of the procurement unit and the user department which will provide technical inputs. k) retread of evaluation report this is the responsibility of the contracts committee l) Award of contract this is the responsibility of the contracts committee.. ) sig n of contract, communication of awards, administrative review this is the work of the accounting officer he does this on behalf of all the members of procuring disposing entity. n) issue management and monitoring the responsibilities of contract management and monitoring fall to the user department and procurement unit the user department shall report any departure from the contract by bidders. o) Contract performance evaluation and report the duties will be performed by the user department and the procurement unit. 2. 5. 3Procurement Methods Followed in the Ministry of Works and Transport The following are some of the methods of procurement that are used in the ministry of works and transport to ensure quality products are purchased generate domestic bidding this method is open to participation on equal terms by all providers through advertisement of procurement or disposal opportunity. Open international bidding this method is open to participation on equal terms by all provider s through advertisement of the procurement disposal activity and which specifically seeks to attract foreign providers. Restricted domestic bidding is the procurement or disposal method where bids are obtained by direct invitation without open advertisement. Restricted international bidding is the procurement or disposal procedure where bids are obtained by direct invitation without open advertisement and the invited bidders include foreign providers.Quotations and proposals are simplified procurement and disposal method which compare price quotation obtained from a number of providers. Direct procurement is a sole source procurement disposal method which shall be used for very low value requirement. Micro procurement this method is used for very low value procurement requirement. The higher up methods are recommended by the (public procurement and disposal authority act 2003). According to J M Ntayi (2009) the continuing preference by the ministry of works and transport for direct procurement and small procurement has hindered competition and thus affecting quality of products and resulting in increased cost. 2. 6Effects of unethical Procurement According to the parliamentary account committee on common wealth heads of government meeting report 2009)The following are some of the effects of unethical procurement Poor quality of materials purchased. There will be inflated prices. red of government funds. Slows down economic in economic development of a country. 2. 7Conclusion In culmination, the ministry of works and transport is falling behind in implementing effective procurement of quality product as a result of increasing discriminatory and non transparent mover of procurement that do not favor accountability this was highlighted in the research by (Edgar Agbar and Niegel shipman 2006) titled public procurement reforms in developing countries.According to them public procurement and disposal of public assets authority act (PPDA ACT 2003) gives the organization the mandate for the following functions advisory, data management, capacity building and audit function so as to improve good governance fight corruption and bring forward economic development and thus make key changes in procurement in Uganda and thus helping improve government function in the statutory bodies, commutation government and local government, However the organization is not autonomous enough to ensure implementation.. CHAPTER THREE Introduction This chapter discusses how the study will be carried out. It discusses the research design the have design, sources of the data, data collection methods, tools, data processing, analysis, and presentation. 3. 1 Research Design The design used will be cross instalment study where data will be gathered just once over a period of time in the ministry of works and transport ranging from the period (2000-2010).The research will use descriptive research design which describes the phenomenon it will be undertaken in ord er to ascertain and be able to describe the characteristics of variables of interest. The research sought to inform the relationship between procurement ethics and quality of products procured in the ministry of works and transport. 3. 2 Survey Population The survey commonwealth will include the management and employees of the purchasing function and firms offering technical expertness to the purchasing function, the survey population were of 60 people. 3. 3 Sampling Design nonrandom and simple random sampling without switch will be used. 3. 3. Sampling Size The exemplar size using the krejcie and Morgan (1970) method will be of 37 members, where the sample will be from the ministry of works and transport and consultant firms offering technical expertise. Table 1 Showing Sample Size Sample group Sample size Procurement office 25 technical experts 12 supply 37 kickoff direct election data. 3. writer of Data 3. 4. 1Primary Data Primary data will be obtained from the mini stry of works and transport through the use of interviews and questionnaires. 3. 4. 2Secondary Data Secondary data will be obtained from the already existing information both internal sources which are found within the organization and external sources were roll up from publication and journals. 3. 5Data Collection Methods 3. 5. 1Observation The researcher intends to use no(prenominal) controlled non participant observation where the researcher will not participate and will watch everything from a distance eyepatch watching the researcher will be noting down the phenomenon. 3. 5. 2SurveyThis will be done through collecting information about the variables that is procurement ethics and the quality of products procured in the ministry of works and transport and technical experts in the sample. 3. 6Data Collection Instrument 3. 6. 1Questionnaire Semi incorporate questionnaires will be distributed to respondents who will be given time to answer them and establish them for solving a nd analyzing by the researcher. 3. 6. 2Documentary review Secondary data will be obtained from class period already existing notes and taking notes of materials that is related to the research and a conclusion was reached from them. 3. 6. 3Interview guide, casual interviews will be conducted using open ended questions the interview guide will help the researcher to carry out dialogue that is meaningful. 3. Data Processing psychoanalysis and Presentation 3. 7. 1Data processing. The researchers after gathering the data will edit code break up and tabulate the data. 3. 7. 2Data analysis. The researcher will use computer programs like Microsoft excel and (SPSS) statistical package for social sciences. This will result in computation of certain measures finding the relationships transforming and modeling data in order to highlight useful information. 3. 7. 3 Data presentation. The researcher will put the results of the research into graphs charts and tabular arrays into visual way o f looking of data. CHAPTER FOUR PRESENTATION OF FINDINGS, DISCUSSION AND INTERPRETATION IntroductionThis chapter presents analysis done in relation to the study objectives and research questions in chapter one, of this report under the topic procurement ethics and quality of products procured in the public sector case study of ministry of public works and transport. 4. 1Demographic Characteristics of Respondents Table 2 Showing response rate of respondents retort frequency fortune (%) Actual response 33 89. 2 Non response 4 10. 8 ingrained questionnaires issued 37 carbon citation firsthand quill data Table 2 According to Table 2 above it shows that out of the questionnaires issued the number of response was 89. % which is a good response rate which one can depend on to make conclusion and recommendation and the non response was 10. 8% Table 3 Showing the age of the respondents board frequence lot (%) 20-29 13 39. 4 30-39 8 24. 2 40-49 6 18. 2 50 and above 6 18. 2 heart 23 coke commencement uncomplicated data nigh respondents were in the age group 20-29 comprising 39. 4 % followed by age support 30-39 with 24. 2% with the age bracket 40-49 and 50 and above both comprising 18. 2% this implies that most of the employees are aged 40 geezerhood and below. Chart 1 Showing gender of the respondents pic start primary data According to chart 1 above most of the respondents were male comprising 57. 5% and only 42. 5% of the respondents were female this implies more males are industrious than females. Table 4 Showing the Level of Education Level of education relative frequency division (%) Certificate 3 9. sheepskin 9 27. 3 Degree 14 42. 4 Post graduate 6 18. 2 Others 1 3 descend 33 100 origination primary data From knock back 4 above the level of education was found to be as follows those holding a security in procurement were 9. 1%, 27. % of the respondents were parchment holders bit majority of the respondents were degree hol ders 42. 4% with 18. 2% being post graduates piece of music 3% were holding other capability Table 5 Showing Marital status Marital status relative frequency circumstances (%) Single 14 42. 5 Married 18 54. 5 widow or divorced 1 3. 0 Total 33 100. 0 Source primary data From the above table 42. % of the respondents were single man 54. 5% are married with 3% being widow or divorced this shows that most employees working for the organization are married. Table 6 Showing how long one has worked for the Organization Number of days worked relative frequency Percentage (%) Below 5 years 14 42. 4 mingled with 5 and 10 years 11 33. 3 Between 11 and 15 years 5 15. 2 Above 15 years 3 9. Total 33 100. 0 Source primary data From the above table showing the number of years the respondents has worked for the organization 42. 4% have worked there for below 5 years, 33. 3% have worked for the organization between 5 and 10 years and 15. 2% have worked for the ministry between 11 an d 15 years time 9. 1 % of the respondents have worked for the organization above 15 years. 62 Findings on how products are purchased in the organization Chart 2 Findings if purchase requisition used are from the user unit pic Source Primary data From chart 2 above it indicates that 36. % of the respondents powerfully markd that purchase requisition from user units are used, 45. 5% check into that purchase requisition from user units are used time 6. 1% are not sure with 12. 1% dis breaking that requisition from user units are used part none of the respondents disaccordd this means that purchase requisitions are used. Table 7 showing whether purchase requisition are handled on time Response Frequency Percentage (%) potently ascertain 2 6. 1 ascertain 13 39. non sure 8 24. 2 differ 7 21. 2 potently disaccord 3 9. 1 Total 33 100 Source primary data From table 7 above 6. 1% potently agree there is handling of requisition on time enchantment 39. 4% agree that requisit ions are handled on time 24. 2% are not sure whether requisition are handled on time dapple 21. 2 discords with 9. powerfully dissenting this means that purchase requisitions are not handled on time Chart 3 Showing whether PPDA procedure is followed pic Source primary data From chart 3 above 21. 2% powerfully agree that PPDA procedure are followed 42. 4% agree that PPDA procedures are followed 12. 7 % are not sure whether PPDA procedure is adhered to with 21. 2% disagreeing that PPDA procedures are followed while 30% powerfully disagreeing with the statement this implies that PPDA procedure are followed Table 8 Showing whether procedures followed helps in procuring quality products Response Frequency Percentage (%) powerfully agree 11 33. Agree 15 45. 4 non sure 6 18. 2 protest 1 9. 1 potently disagree 0 0 Total 33 100 Source primary data According to table 8 above 33. 3 % of the respondents powerfully agree that procurement procedure followed result in procuring of q uality goods with 45. 4% agreeing also, 18. % of the respondents are not sure whether the procedures followed results in procuring quality goods while 9. 1 % disagree with none of the respondents strongly disagreeing this implies that the procedure followed results in procuring quality products. Table 9 Showing whether products procured are of quality Response Frequency Percentage (%) Strongly agree 9 27. 3 Agree 13 39. 3 non sure 6 18. Disagree 4 18. 2 Strongly disagree 1 3. 0 Total 33 100 Source primary data From the findings in table 9 above27. 3% of the respondents strongly agree that products procured are of quality,39. 3% also agree that the products procured are of quality while 18. 2% are not sure 12. 7% of the respondents disagree goods procured are of quality while 3. 0% strongly disagree.Most employees think that me reason goods, being procured now are now are of quality is because of the PPDA procedures put in place this implies that products procured are of qual ity. 4. 3 Findings on causes of unethical practice in procurement Chart 4 Showing relationship between ethics and procurement pic Source primary data The presentation from chart 4 above shows that there is a relationship between ethics and procurement because 91% of the respond concord with the statement while 9% stated that there is no relationship, They gave the main reason being that that an ethical person is willing perpetually to conducts himself in a moral way and this guides procurement. Ethics was defined by many as a discipline governing conduct in on organization.Table 10 showing whether faded enforcement measure of procurement law contributes to unethical practice Response Frequency Percentage (%) Strongly agree 9 27. 3 Agree 14 42. 4 Not sure 2 6. 0 Disagree 4 12. 1 Strongly disagree 4 12. Total 33 100 Source primary data According to the results of table 10 above 27. 3% of the respondents thought that weak enforcement measure of the law contributed to unethica l practices with 42. 4% agreeing while 6. 0% were not sure 12. 1% disagreed and 12. 1% strongly disagreed this indicates that weak enforcement measures of the law contributes to unethical practices. Table 11 Showing whether moral degradation in the society is a cause of unethical conducts Response Frequency Percentage (%) Strongly agree 8 24. Agree 10 30. 3 Not sure 7 21. 2 Disagree 5 15. 2 Strongly disagree 3 9. 1 Total 33 100 Source primary data Results from table 11 above shows that 24. 2% of the population strongly agreed that moral degradation in the society causes unethical conduct with 30. % agreeing while 21. 2% were not sure with 21. 2 disagreeing that moral degradation in society causes unethical conduct and 9. 1% strongly disagreed this means that the respondents agree that moral degradation of the society contributes to unethical conduct. Chart 5 Showing how low pay has contributed to unethical practices. pic Source primary data According to the presentation in c hart 5 above, 45. 5% of the respondents agreed that low pay has contributed to unethical practices with 15. 1% not being sure and 9. 1% disagreeing non of the respondent strongly disagreed that low pay does not cause unethical practices this indicates that 90. % of the respondents agree that low pay contributes to unethical practices. Table 12 Showing whether unethical practice of bidder contributes to unethical conduct by staff Response Frequency Percentage (%) Strongly agree 10 30. 3 Agree 10 30. 3 Not sure 4 12. 1 Disagree 6 18. Strongly disagree 3 9. 1 Total 33 100 Source Primary data According to the results in table 12 above, 30. 3% of the respondents strongly agreed that unethical practice of bidder contributes to unethical practice of employees with 30. 3% also agreeing while 12. 1% were not sure. 18. 2% disagreed that unethical practice of attracter contributes to unethical practice of employees while 9. 1% strongly disagreed this gives the implication that conduct of bidder can affect the conduct of procurement staff.Some of unethical practices cited by the respondents include corruption, favoritism, fraud, extortion and sexual harassment, bribery with the respondents citing greed, low payment, and lack of effective inform system as the main causes of unethical practices 4. 4Findings on the relationship between ethics and quality of goods procured Chart 6 Findings if there is relationship between ethics and quality of goods procured pic Source Primary Data Most of the respondents from the findings of chart 6 above agreed that there is a relationship between ethics and quality of goods procured comprising 94% while 6% stated that there was no relationship. According to the respondents when one is ethical it results to award of bids to best evaluated bidders and that the procurement procedures will be adhered to resulting to procurement of quality goodsTable 13 showing whether the organization code of ethics contributes to quality products bei ng procured Response Frequency Percentage (%) Strongly agree 9 27. 3 Agree 11 33. 3 Not sure 6 18. 2 Disagree 4 12. 1 Strongly disagree 3 9. Total 33 100 Source primary data From table 13 above, 27. 3% strongly agree that the organization code of ethics contribute to quality products being produced with 33. 3% agreeing while 18. 2% of the respondents were not sure, 12. 1% of the respondents disagree that the organization code of ethics has contributed to procuring of quality products with 9. 1% strongly disagreeing this implies that organization code of ethics contributes to procurement of quality products. Table 14 showing whether suppliers meet organization specification of quality products Response Frequency Percentage (%) Strongly agree 7 21. 2 Agree 14 42. 4 Not sure 4 12. 1 Disagree 5 15. 2 Strongly disagree 3 9. 1 Total 33 100 Source primary dataThe results in table 14 show that 42. 4 % of the respondents agree that suppliers meet organization specification with 21. 2% strongly agreeing while 12. 1% are not sure. 15. 2% of the respondents disagree that suppliers meet organization specification with 9. 1% strongly disagreeing this indicates that suppliers meet specification Table 15 showing whether unethical practice staff has resulted in procurement poor quality products. Response Frequency Percentage % Strongly agree 10 30. Agree 14 42. 4 Not sure 4 12. 1 Disagree 3 9. 1 Strongly disagree 2 6. 1 Total 33 100 Source primary data From table 15 above 30. % of the respondents strongly agreed that unethical practice of staff have resulted in procurement of poor quality products with 42. 4% agreeing while 12. 1% were not sure. 9. 1% of the respondents disagreed that unethical practice of employees does not lead to procurement of poor quality products with 9. 1 strongly disagreeing this means that unethical practice of staff contributes to procuring poor quality products. Chart 7 showing whether organization have a mean of checking une thical practice of employees. pic Source primary data According to the presentation in chart 7 above 27. 3% of the respondents strongly agree that the organization has a means of checking unethical practice with 48. 5% agreeing, 6. % of the respondents are not sure. With 12. 1% of the respondents disagreeing that the organization has a means of checking unethical conduct of employees with 12. 1% strongly disagreeing this implies the organization has means of checking unethical practice of employees. 4. 5Ethics in the Organization An interview with the employees of the procurement Department in the Ministry of Works and Transport (MOWT) the researcher found out that the PPDA act and regulation section 49 and 87 respectively