Abstract
This study examines procurement irregularities, as one of the most unexplored threats in the procurement process of construction projects. It also tests the suppositions associated with the contributions of irregularities to corruption in construction procurement. An expert survey is conducted with 62 construction-related practitioners selected via non-probabilistic sampling in the context of a Ghana, to assess the criticalities of the irregularities. Eighteen irregularities were identified within the context selected for this study. A soft computing technique known as the Fuzzy Synthetic Evaluation (FSE) method is employed to examine the identified irregularities. Other relevant techniques including factor analyses, normalization, and descriptive tools are employed to factorize the identified irregularities and test the hypotheses. Out of the 18 irregularities, 11 were revealed to be critical. The findings reveal that the top three irregularities were: payments for uncompleted works, sourcing of proforma invoices from the same supplier and the lack of proper coordination among key departments. Moreover, four constructs were developed using the identified measurement items. They are administrative-specific, procedural, compliance and contract monitoring irregularities. Out of the four, the topmost critical construct turns out to be compliance irregularities. Theoretically, this study advances the scholarship of construction by shedding lights on the irregularities associated with the procurement processes of construction projects. It also contributes to an in-depth understanding of the noted irregularities. In practical terms, this study contributes to the procurement planning and policy-making process, it assists decision makers in putting in place measures to prevent or extirpate the likelihood of any of the irregularities’ occurrences.
Highlights
Every year, trillions of dollars are expended in purchasing and procurement of goods, works, and services for public projects (Transparency International [TI], 2019). Kim (2016) pointed out that procurement accounts for over 30% of GDP in developing countries and between 10 and 15% in developed economies, highlighting the excessive amount of money expended in public procurement
The two constructs: procurement irregularities and the barriers that hamper the effectiveness of anti-corruption measures were identified to be critical contributors to the occurrence and proliferation of corruption
The occurrence and proliferation of corruption in the procurement and management of construction projects are propelled by corruption constructs, which include causes of corruption, irregularities, and the barriers that hamper the effectiveness of anti-corruption measures
Summary
Trillions of dollars are expended in purchasing and procurement of goods, works, and services for public projects (Transparency International [TI], 2019). Kim (2016) pointed out that procurement accounts for over 30% of GDP in developing countries and between 10 and 15% in developed economies, highlighting the excessive amount of money expended in public procurement. Procurement irregularities are not necessarily causes of corruption, neither do they directly trigger the occurrence of corrupt practices but rather induce negative sufficient conditions that make procurement process vulnerable to corruption (Owusu et al, 2017) They can be referred to as indirect systematic loopholes or negative actions of public officials or project parties that trigger causal factors of corruption. The measurement items such as ‘work not executed as per original specified design’ and ‘sufficient publicity not given to a tender’ identified in the study of Le et al (2014) as irregularities may not necessarily be causes of corruption They can serve as signals that have the potency to instigate corruption if proper measures are not undertaken to determine the rationale behind the indicators.
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