Procurement Ethics and Quality of Goods Procured in Uganda

MAKERERE UNIVERSITY PROCUREMENT ETHICS AND QUALITY OF PRODUCTS PROCURED IN THE prevalent SECTOR (A CASE STUDY OF THE MINISTRY OF WORKS AND TRANSPORT) BY KIYO MWENDA MUCHIRI 07/K/3250/EXT supervisor MR ANTHONY TIBAINGANA A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE st ripen OF THE DEGREE OF BACHELOR OF COMMERCE OF MAKERERE UNIVERSITY. JULY 2011 DECLARATIONI Kiyo Mwenda Muchiri, do hereby decl ar that procurance morality and look of point of intersections procured in the universal sector is entirely my deliver original work ,except where conceded,and that it has non been submitted before to whatever an opposite(prenominal) innovation of exalteder learning for the demonstrate of spot. Signed Date. NameMr Kiyo Mwenda Muchiri appla us advance This research spread abroad has been submitted for examination with my approval as the dealdidates university supervisor. SignedDate NameMr Anthony Tibaingana DEDICATION This research work is utilize to my dear mother MERCY MUTHONI MUCHIRI for the continued love tide completely over and pauperism whitethorn God bless you very much. ACKNOWLEDGMENTS I would like to acknow fillge the contribution provided by the individuals and insituition menti one(a)d be number 1. First and foremost i would like to trifle away the constant support and contribution provided by supervisor Mr Antony Tibaingana. Special realization goes to my loving aunt Nelly Karimi for her continued moral support love and c atomic number 18.Special thank goes to the staff of ministry of whole shebang and transferral and amproc international for their contribution to the completion of this work. My cordial gratitudes in like manner goes to collegues George,Nelson,Kibet,Dickson. Omar,Oscar and Nyambati who i have shargond my clock of take with for their support through go forth the course of my account. TABLE OF CONTENTS CONTENTPAGE DECLARATIONi APPROVALii DEDICATIONiii ACKNOWLEDGMENTSiv TABL E OF CONTENTSv controversy OF TABLESix LIST OF FIGURESx ACRONYMSxi ABSTR passagexii CHAPTER ONE1 1. 1Background of the Study1 1. 2 Statement of the Problem3 1. 3 Purpose of the Study4 . 4 Objectives of the Study4 1. 5 seek Question4 1. 6Scope of the Study4 1. 6. 1Time Scope5 1. 6. 2Subject Scope5 1. 6. 3Geographical Scope5 1. 7Signifi female genital organce of the Study5 CHAPTER TWO6 LITERATURE REVIEW6 origin6 2. 1ethical motive(prenominal)6 2. 1. 1Procurement moral philosophy6 2. 2How Ethics is see to itd in Public Procurement6 2. 3Ethical Issues in Procurement. 8 2. 3. 1 decadency8 2. 3. 2Conflict of Interest11 2. 3. 3Donor Interest12 2. 3. 4Delayment of Funds13 2. 4 Quality13 2. 4. 1Quality of Products13 2. 4. 2Determinants of Quality14 2. 4. 3Public Procurement and Effective Quality Products and assistDelivery. 15 2. 5Public Procurement16 2. 5. 1Procurement in the Ministry of Work and disco biscuit17 2. 5. 2Procurement Cycle in the Ministry of full treatment and captur e18 2. 5. 3Procurement Methods Fol downcasted in the Ministry of Works and Transport19 2. 6Effects of wrong Procurement20 2. 7Conclusion21 CHAPTER THREE22 submission22 3. 1Research devise22 3. 2 Survey Population22 3. 3 try Design22 3. 3. 1Sampling Size22 3. 4 come of info23 3. 4. 1 old entropy23 3. 4. 2Secondary Data23 3. 5Data Collection Methods23 3. 5. 1Observation23 3. 5. 2Survey24 3. Data Collection Instrument24 3. 6. 1Questionnaire24 3. 6. 2Documentary re skyline24 3. 6. 3Interview lease,24 3. 7Data Processing Analysis and Presentation24 3. 7. 1Data figure outing. The tec aft(prenominal) gathering the information then edit code classify and shelve the information. 24 3. 7. 2Data analysis. 24 Data presentation. 24 CHAPTER quatern25 PRESENTATION OF FINDINGS, DISCUSSION AND INTERPRETATION25 Introduction25 4. 1Demographic Characteristics of Respondents25 4. 2Findings on how convergences ar secured in the institution27 4. 3 Findings on ca functions of wrong rad iation pattern in procurance31 4. Findings on the relationship amongst moral philosophy and reference of cheeseparings procured33 4. 5Ethics in the Organization38 CHAPTER FIVE39 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS39 Introduction39 5. 2Summary of findings39 5. 2. 1Findings on the procurance effect followed at a lower buns the Ministry of Works and Transport. 39 5. 2. 2Findings on the causes of wrong necessitate in procurance in the ministry of Work and Transport. 39 5. 2. 3 Findings on what is the relationship between procural morals and calibre of crossing procured. 39 5. 3Conclusions40 5. 4Recommendation40 5. 5Areas for further research40REFRENCES41 APPENDICES42 APPENDIX ( i)Questionnaire42 APPENDIX (ii)Interview guide on47 LIST OF TABLES TABLEPAGE send back 1 presentation hear Size23 board 2 video display result rate of respondents25 knock back 3 masking the age of the respondents25 put off 4 masking the take aim of teaching26 Table 5 show Mar ital military position27 Table 6 exhibit how long one has worked for the Organization27 Table 7 demo whether purchase require be handled on conviction28 Table 8 Showing whether agencys followed helps in procuring pure tone products29 Table 9 Showing whether products procured ar of whole step30Table 10 covering whether wispy enforcement mea certain(predicate) of procurance law contributes to wrong habituate31 Table 11 Showing whether moral degradation in the society is a cause of unethical conducts32 Table 12 Showing whether unethical practice of bidder contributes to unethical conduct by staff33 Table 13 showing whether the agreement code of ethics contributes to feature products being procured35 Table 14 showing whether suppliers control transcription specification of prime(prenominal) products36 Table 15 showing whether unethical practice staff has burdened in procural slimy lineament products. 36LIST OF CHARTS FIGURE. PAGE graph 1 Showing sex of the respo ndents26 map 2 Findings if purchase requisition utilize be from the user unit28 graph 3 Showing whether PPDA procedure is followed29 chart 4 Showing relationship between ethics and procural30 Chart 5 Showing how low pay has contributed to unethical practices. 32 Chart 6 Findings if in that respect is relationship between ethics and timbre of goods procured33 Chart 7 showing whether placement have a mean of checking unethical practice of employees. 36 ACRONYMS PPDA Public Procurement and Disposal of Public as focalises AuthorityIGGInspector cosmopolitan of Government CHOGMCommonwealth Heads of Government Meeting PDEProcurement and Disposal Entitity SPSSStatistical Package for Social Sciences MOWTMinistry of Works and Transport ISOInternational Standards Organisation ABSTRACT The teaching objective of carrying out this study was to assess the impact of procurance ethics on the none of products procured in the humanity sector a nerve study of the ministry of full tre atment and trasport,and to fuck off up with particular issues that need to be addressed in identify to improve their effectviness and efficiency in their procural activities.The study apply swing section design where info was gathered just once over a underweight of term in the ministry of kit and caboodle and expatriation ranging from the plosive consonant (2000-2010). The research employ descriptive research design which describes the phenomenon it was to a lower placetaken in pasture to as legitimate and be able to describe the characteristics of variables of by-line. The study used a sample size of 37 respondents who were purposively selected. Self administered questionnaires and interview guides were the important instruments of study and entropy was analyzed using frequencies, percentages and charts using Microsoft excel.Findings on procurance ethics was that there some ethical issues that arise such as bribery, nepotism, tribalism, leaking of mysterious cultivation, pres accredited from those in authority supra, awarding of weightlifts to those who are not the scoop up evaluated bidders, mesh of interest, neglect of transparency and single sourcing, embezzlement of pecuniary resource and similarly harassment this was attributed to greed and low pay tolerateed to the employees. Findings on calibre of products procured were that when the PPDA procurance procedures are followed major(ip)(ip)ity of the employees were of the view that it contribute to procural of sideslip products.Recommendation on the issue of ethics and bore is that procurance righteousnessrs should always be supersensitive on the importance of ethics and the society as whole postulate to be educated on the importance of ethics to reduce on the unethical practices by bidder CHAPTER ONE 1. 1Background of the Study match to (Kenneth Lyson 2007) procurance ethics is the tenet conduct governing an individual or group vexation to what is right or wrong.Ethics is about fairness deciding what is right or wrong defining practices and rules which at a lower placepin responsible conduct between individuals and group it is a sense of upright both of conviction and action. (International standards governing 8402) defines the primitive legal injury relating to fictitious character concepts, it states that gauge is the essentiality of features and characteristics of a product that bears on the ability to meet stated or implied needs and they go forwards to give the dimensions of consumption as performance, reliability serviceability conformance effectiveness aesthetics and perceived caliber. accord to research done by (Edgar Agbar and Niegel shipman 2006) titled national procurement reform in increaseing countries the Ugandan experience, procurement in Uganda consists 70% of the national budget and yet according to the inspector ecumenical of giving medication 90% of complaints about decadence in the office are proc urement related, and according to the (Afri bay window pear pro pack 2006) pubic sector losses 268. 6 million dollars conditionly due to unethical practices.In 2005 procurement scrutinize carried out by the humanity procurement and electric pig authority in Uganda out of the 322 pick outs audited only 7 of the nail drink down were clean that is only 2% of the turn out reviewed. According to the (parliamentary accounts deputation piece on commonwealth heads of presidency meeting 2009) focusing on ministry of operatives and behave most of the products procured by the ministry were not of the right tone of voice. For face over one trillion shillings were disconnected due to purchasing of poor edifice materials like asphalt, sand, stones, steel which were not of the right quantity and fictitious character.This was attributed to the lapse in the procurement ethics and procedures. The meeter oecumenic alike pointed on the poor character reference of the roads and valued the contracts for construction of those roads terminated and regime money refunded or contractors trifle good of there works, because most of the roads constructed or reconstructed had potholes or ripped and some stretches of the roads poorly done and not of the recommended design and in some cases the roads were designed and not constructed at all for good specimen the Manyago road (62kms) the Najjanamkumbi-Makindye road 1. km designed by MBW consulting engineers. According to the parliamentary accounts committee on commonwealth heads of political relation meeting 2009) the ministry of works and transport was responsible for procuring vehicles for transport. The vehicles were to entangle executive vehicles for the majesty and other heads of government, police vehicle and motor cycles, ambulances command and patrol vehicles at make up Shillings 20 zillion.This was so-called to be done through a combative carry through and the hold two best evaluated bids were b y pecker motors and motor care Uganda limited, spear motors had the best bid but the ministry decide to use direct sourcing and the contract was awarded to motor care Uganda limited birthed by 56 percentages by a cabinet minister Hon. Kuteesa.The company claimed to be importing BMWS from Ger many an(prenominal) but they were importing them from Austria and Denmark the initials damage was 38,000 euros for a brand innovative BMW from Germany but the ministry of work and transport spent over 47,000 euros for twinkling hand BMWs from Austria and Denmark which did not conform to the standards heap by the procurement entity under the ministry. They were 204 BMWs but it is believed that 174 of he BMWs were not of the required standard.Also Toyota (u) limited was assumption a direct contract to show ambulances at a greet 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 timberland and specification. They missed oxygen cylinders, hooks, drug cabinets, emergency lights. Although the manufacturers ac companionshipd these defects and the low quality of the ambulances nothing was done to rectify the situation. The committee also ground out that only 21 of 23 ambulances were delivered. 1. 2 Statement of the ProblemThe insufficiency of procurement planning, cloudion and conflict of interest and political interference has led to procurement of poor quality products in the ministry of works and transport for practice minister for works Hon Byabagambi outside of the commonwealth heads of government budget he directed the consultant engineers (M/s Multiplan) to carry out additional works which were not well stated outside the law in amount of money disregard for the law this variation led to a loss of shillings 1. 7billion. This was flouting of the humans procurement and giving medication authority law.The procurement system in Uganda varies in major way due to the fact that most projects are conferrer funded institutions like the world bank, international monetary fund and the European wedlock and thus there is no consistency in the ministry of works and transport for a definite procurement system and creating loopholes for unethical staff to embezzle money through doer like defining specification to crack single contractors, substituting specified goods with inferior goods selective release of information to prefer contractors, charge for skills under those specified which is causing poor quality being procured. . 3 Purpose of the Study The study is carried out in roam to establish the relationship between procurement ethics and quality of products procured. 1. 4 Objectives of the Study (i) To establish procurement procedure used/ followed under the ministry of works and transport. ii) To identify the cause of unethical conduct by procurement soulfulnessnel in ministry of works and transport. iii) To assess the relationship between procurement eth ics 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 domain include three major compasss that is 1. 6. 1Time Scope The research allow be done between January to June 2011 and the research intends to concentrate on the lit published between 2000-2010 in order to identify the variable problems. 1. 6. 2Subject Scope The study shall be done in the ministry of works and transport and shall concentrate within Kampala city.The people to be interviewed in the study are the employees of the ministry under the procurement department. The contextual scope of this study go out focus on the impact of procurement ethics on quality of products procured. 1. 6. 3Geographical Scope The study pass on be carried out in the ministry of Works and Transport in Kampala district plot 4/6 Entebbe Uganda. 18 Significance of the Study The research pull up stakes be significance in the hobby ways The study imparting help improve my skills and knowledge as a detective in doing research. The study hunt also help improve the ministry of Works and Transport in appreciating procurement ethics and thus meliorate quality of product and services offered by the ministry. The research exit also contribute knowledge as literature review to researchers interested 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 principles that govern a persons behavior or the conducting of an activity, It can also be exposit as the branch of knowledge that deals with moral p rinciple (oxford dictionary 2001). Ethics can also be described as principle of conduct governing an individual or a profession. (Websters third fresh 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 The main principle of procurement ethics are impartiality or objectivity, openness and full disclosure, confidentiality, due diligence, competence and responsibleness of care, fidelity pro responsibility, avoiding potential or apparent conflict of interest. These can be characterized by accountability, responsiveness, professionalism, transparency, open competition, confidentiality, non discrimination and fair play. (Kenneth Lyson 2006). 2. 2How Ethics is ensured in Public ProcurementEthics in the ministry of works and transport has been ensured through a put in place code of ethical conduct in business which mustiness be signed by employees which is listed below 1. Employees shall not use their authority for ain gain and shall seek to uphold and uphold reputation of the Ugandan government. 2. Employees shall bring on any personal interest that may impinge or efficiency be deemed by others to impinge on employees business relations. 3. (i) Employees shall respect the confidentiality of information have in the course of business dealing and shall never use such information for personal gain. ii) Information given over by employees in the course of business dealing shall be current and fair and not designed to mislead. 4. Employees shall avoid any business musical arrangement that might prevent effective operation of fair competitive. 5. Employees shall not call for business gifts from current or potential government suppliers. 6. Employees shall refrain from any business hospitality that might be viewed by others as having an ascertain in making a government business stopping point. public procureme nt and governance of public asset authority act 2003) Also there deterrent measurings put in place by the (public procurement and disposal authority act 2003)to ensure ethics are maintained in the government ministries like ministry of works and transport where in section 95 a list of offences are listed like colluding to commit fraudulent or corrupt act, exerting undue influence on any officer or employee, refusal to answer summons and on conviction one is liable 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 long term or both. . 3Ethical Issues in Procurement. 2. 3. 1Corruption One of the major factors that affect quality of products procured in the public sector is corruption few activities create greater come-on or offer to a greater extent opportunities for corruption than the public sector procurement. but a day get out pass by without another major scandalous public procurement activity in the papers (Pope 2000).For compositors case 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 procurement procedure is to ensure openness to all stakeholders involved in the procurement exercises. (Robert 1988) argues that corruption can be equated to the formulae = (M + D A) where corruption relates to monopoly, discretion minus accountability. J M Ntayi 2009) on the other hand notes that corruption in least developed countries occurs when there is motive and opportunity, corruption is a crime of opportunity, the opportunity being institution inefficiencies. Corruption procurement is grand and at alarming directs, the integrity and ethics of procurement staff and those helping out with expert activities is highly 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 increase transaction court by 50%. A purchaser who wants violate the law has a couple of opportunities in his possession through which he can prepare the process in a desired direction, these include arranging the composition of a tended in such a way that one may avoid the application of tendering procedures above the threshold and instead use modify procedures including invention the technical specification or terms of reference to favor a certain product or service or to remove potential bidders.Others are including the award criteria in tender evaluation which are completely irrelevant to the actual procurement and evidently discriminatory towards certain suppliers. Manipulation of the process can include using non- open tendering procedures such as restricted procedure or direct procurement , designing contract arrangement with obvious ambition to favor a certain suppliers, accepting false information and misleading documentation from bidders and manipulation of the decision making process (Westring and jadoun 2001).The (World Bank report 2000) rates public procurement as an area of government activity in which the risk of corruption are very high. The World Bank further asserts that to offer summate solutions which would continue to deliver advantages and to be responsible to the future needs of clients the pigment strength lie in the skills and professionalism of staff. This requires the ability to gain a close understanding of the clients business through training and capacity building.It should be storied that corruption in procurement is not exclusive domain of the buyer who controls the purse strings but the supplier or contractor who makes an unsolidated offer can easily initiate it, corruption in procurement also takes form of tailoring specification to favor particular supplier curtail information about contract ing opportunities and creating situations of emergencies and urgency so as to use single source control simultaneously supplier can corrupt the procurement process by colluding to fix bid expenses offering bribes and officious in the evaluation process and thus affecting quality of goods, works and supplies procured ( Pope 2000). The most frequent source of corruption public procurement takes the form of commissions paid or purchased items to officials in the procurement process.This practice threatens endure decision making by those involved in the procurement process for the higher commissions the better the opportunities of purchasing from the firm 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 disclosed and are made without expectation of favors, in practice besides the business firms making such payments try to obtain assurances from the recipient that they would helped by persuading the government the take decisions that would benefit there companies (Vinold journal of world trade, 2001).The (Inspector general of government report 2005) further shows that there has been persistent flouting of the laid worst procedures and guidelines by procuring entities. This has resulted into colossal loss of high sums of public funds and the procurement of goods, works and supplies that barely meet their intended 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 financial consideration when doing their jobs thereby influencing their decisions. Decisions are made for the wrong reasons in favor of people to whom they are close thus im pairing the objectivity and independence of their judgments on quality specifications.In procurement when handling a tender, all conflict should be noted record and the official involved should then exclude themselves from further involvement in the tender awarding decisions. (Pope 2000) further asserts that the procurement process should have all the way stated and well understood policies and procedures as well as create verbally codes of conduct to deal with actual, potential and perceived conflict of interest. He is of the view that if a relative is unquestionably the best evaluated bidder they shall be awarded the tender if the class procedure is followed. In the ministry of works and transport there is a preciseness for directing sourcing to favor one company supplying every time there is a conflict of interest either among the officers involved in procurement or when there is olitical pressure coming from above 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 plosive speech sound of times rather 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 result of cabinet ministers interest in the purchase of the goods (Parliamentary account committee report 2009) Leakage 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 ad 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 get toment cost since the procurement agent is also in charge of verificatory 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 pull in a qualit y level lower than announced. According to (Strombom 2001) government procurement contracts for construction project such as airports deems and highways generate immense opportunities for bribes, kickbacks and other payoffs and this is the reason for the below par works done by the 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 big construction and other contracts even after tenders are issued, pressure is applied by impertinent 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 provide of financial aid if the contract is awarded to them (Vinold journal of world trade, 2001). Procuring can terminate with contractors by omitting required advertisement or calling for bids w ith shortened bids introduction 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 timely basis from ministry of pay planning and sparing development has also led to procurement malpractices procuring entities claim they cannot advertise tender when they are not sure of the availability of funds from the ministry of finance, planning and economic development so when the funds are received later procurement procedures are not followed in the acquisition of goods, works and services resulting in low quality of goods works and services purchased.Entities ordinarily cite cash flow constraint and then end up splitting amount which would require different methods of purchasing, contract for such suppliers are usually renewed extended for much longer 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 totality of feature and characteristics 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 approaches which are as follows Transcendent approach quality is absolute and universally recognizable. The oncept is well-nigh related to comparison of product attributes and characteristics. Product base approach quality is a precise and measurable variable in this approach deflection in quality reflects difference in quality of some product characteristics. User based approach quality is defined in terms of fitnes s for use or how well the product fulfills its intended functions. 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 accep circumvent price or conformance to an accepmesa cost.Quality is therefore determined by balancing technical consideration such as fitness for use performance safety and reliability with economic factors including price and availability it is therefore the optimum quality for the application that should be want-after(a) rather than the highest quality. Quality of goods procured can be determined by if they meet technical specification, delivery, environmentally sound, quality assurance, and accuracy of documentation speed of reaction and customer service. 2. 4. 2Determinants of Quality According to (Kelly and Male 2003) the following are the determinan ts of quality in purchasing Customer satisfaction another benchmark for quality is the ability to meet customer expectation or even exceeds them. abidance to specification a product is be deemed to have high quality if it conform 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 acceptable cost. measure 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 delivery been delayed. Leadership how is the executive team and all the managers inspiring and ensuring total quality for continuous improvement in the organization. Goals/policy how the companies goals and policies reflect the principle of total quality of products. 2. 4. Pu blic Procurement and Effective Quality Products and Service Delivery. Effective procurement practices are defined as those systems offering a high level transparency, accountability and value for money. (Ministry of defense 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). Successful and efficient procurement practices are those that meet the need of customers achieve optimum origin and value in regard to allocating of scarce tax payers resources (J. M Ntayi 2009).The practice needs a labor force with effective management skills that develop clear and professional specifications with full knowledge of a competitive process negotiation and monitor skill. (Hunja Steane et al 2003) continues to say that procurement system enforced with sound management practices in place ensure succes sful 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 sustained (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 tenet of a necessitous market economy and it is the basis for cost effective purchasing quality and timeliness. It keeps providers on their toes it is an incentive for innovation improvement in quality and simplification in cost in improves proper allocation of government resources, high quality and timely procurement and budgetary saving. (Lemke 2003) 2. 5Public Procurement Acquisi tion by purchase, rental, lease, hire purchase, license, tenancy franchise or any other contractual means of goods or services by the government. (Telgen 1998). 2. 5. 1Procurement in the Ministry of Work and TransportPublic procurement is a powerful instrument for the transformation and realization of social economic goals and open and competitive public procurement and contracting procedure begins with the government description of its requirement and initiation of suppliers to indicate their interest in the contract and there professional capacity to fulfill it. (Sigma policy draft 2000). The government identifies potential suppliers and invites them to submit bids. The process must ensure that supplier can infarct meet the specification of product quality, delivery dates and continuity. After the mastery 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.There is a series of closely interrelated activities between the initial identification of needs and the last-place delivery of quality product and services which requires coordination and quality control to achieve the best value. moreover 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 profound strategic management tool in driving down cost and improving operational efficiency dapple 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 disposal of public assets authority 2003). ) Procurement plan and budget this procedure is undertaken by the user department, procurement unit, board/ council and the news report officer. b) Procurement requisition This is the responsibility of the user department c) Confirmation of available funds the be officer is the one to undertake the function. d) Review of specification, procurement methods 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) Preparation of tender documents this roles is vie by the procurement unit. ) Approval of program line documents This role is played by the contracts committee h) Advertisement and invitation of bids the advertisement is done by the procurement unit and it should be in a newspaper of wide circulation. i) recognize 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 procurem ent unit and the user department which will provide technical inputs. k) Review of evaluation report this is the responsibility of the contracts committee l) Award of contract this is the responsibility of the contracts committee.. ) Signing 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) Contract 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 return dom estic 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 providers 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 equivalence 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 v ery low value procurement requirement. The above 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 micro 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. Loss of government funds. Slows down economic in economic development of a country. 2. 7Conclusion In conclusion, the ministry of works and transport is falling behind in implementing effective procurement of quality product as a result of increasing discriminatory and non frank means of procurement that do not favor accountability this was high lighted in the research by (Edgar Agbar and Niegel shipman 2006) titled public procurement reforms in growing 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 crowd corruption and promote economic development and thus make key changes in procurement in Uganda and thus helping improve government function in the statutory bodies, central 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 sampling design, sources of the data, data collection methods, tools, data processing, analysis, and presentation. 3. 1 Research Design The design used will be cross section 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 order to ascertain and be able to describe the characteristics of variables of interest. The research sought to explain the relationship between procurement ethics and quality of products procured in the ministry of works and transport. 3. 2 Survey Population The survey population 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 Purposive and simple random sampling without replacement will be used. 3. 3. Sampling Size The sample 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 Show ing Sample Size Sample group Sample size Procurement office 25 Technical experts 12 Total 37 reference book indigenous(a)(a) data. 3. book of facts of Data 3. 4. 1Primary Data Primary data will be obtained from the ministry 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 inner sources which are found within the organization and external sources were collected from number and journals. 3. 5Data Collection Methods 3. 5. 1Observation The researcher intends to use none controlled non participant observation where the researcher will not participate and will watch everything from a outgo plot of land 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 e xperts in the sample. 3. 6Data Collection Instrument 3. 6. 1Questionnaire Semi structured questionnaires will be distributed to respondents who will be given time to answer them and return them for solving and analyzing by the researcher. 3. 6. 2Documentary review Secondary data will be obtained from reading 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, everyday 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 Analysis and Presentation 3. 7. 1Data processing. The researchers after gathering the data will edit code classify 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 tables into visual way of 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 way out 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 repartee absolute frequency part (%) Actual response 33 89. 2 Non response 4 10. 8 Total questionnaires issued 37 c Source primary 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 recommendat ion and the non response was 10. 8% Table 3 Showing the age of the respondents Age Frequency contribution (%) 20-29 13 39. 4 30-39 8 24. 2 40-49 6 18. 2 50 and above 6 18. 2 Total 23 blow Source primary dataMost respondents were in the age group 20-29 comprising 39. 4 % followed by age bracket 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 long time and below. Chart 1 Showing gender of the respondents pic Source 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 employed than females. Table 4 Showing the Level of Education Level of education Frequency Percentage (%) Certificate 3 9. lambskin 9 27. 3 Degree 14 42. 4 Post ammonia alum 6 18. 2 Others 1 3 Total 33 degree centigrade Source primary data From table 4 above the level of education was found to be as follow s those belongings a present in procurement were 9. 1%, 27. % of the respondents were diploma holders patch majority of the respondents were degree holders 42. 4% with 18. 2% being post graduates date 3% were holding other qualification Table 5 Showing Marital status Marital status Frequency Percentage (%) Single 14 42. 5 Married 18 54. 5 Widowed or divorced 1 3. 0 Total 33 speed of light. 0 Source primary data From the above table 42. % of the respondents were single era 54. 5% are get hitched with with 3% being widowed 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 geezerhood worked Frequency Percentage (%) Below 5 years 14 42. 4 Between 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 and 15 years while 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 strongly take for that purchase requisition from user units are used, 45. 5% accede that purchase requisition from user units are used while 6. 1% are not sure with 12. 1% discording that requisition from user units are used while none of the respondents resistd this means that purchase requisitions are used. Table 7 showing whether purchase requisition are handled on time result Frequency Percentage (%) powerfully agree 2 6. 1 hold back 13 39. Not sure 8 24. 2 dissent 7 21. 2 potently differ 3 9. 1 Total 33 100 Sourc e primary data From table 7 above 6. 1% strongly agree there is handling of requisition on time while 39. 4% agree that requisitions are handled on time 24. 2% are not sure whether requisition are handled on time while 21. 2 disagrees with 9. strongly disagreeing 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% strongly 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% strongly 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 (%) Strongly agree 11 33. watch 15 45. 4 Not sure 6 18. 2 take issue 1 9. 1 Strongly disagree 0 0 Total 33 100 Source primary data According to table 8 above 33. 3 % of the respondents strongly agree that procurement procedure followed result in procuring of quality 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 Not 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 debate 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 quality. 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 agree with the statement while 9% stated that there is no relationship, They gave the main reason being that that an ethical person is willing always 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 weak 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 1 0 above 27. 3% of the respondents thought that weak enforcement measure of the law contributed to unethical 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 l ow pay has contributed to unethical practices. pic Source primary data According to the presentation in chart 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 leader contributes to un ethical 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 reporting 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 qu ality goodsTable 13 showing whether the organization code of ethics contributes to quality products being 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 contribut es to procuring poor quality products. Chart 7 showing whether organization have a mean of checking unethical 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