Determinants of Goods/Services Procurement Fraud with Performance Accountability as Moderation in Central Lombok Regency Government

Abstract

The purpose of this study is to examine the effects of competence and opportunity, as well as organizational commitment to PBJ fraud, directly or with performance accountability as a moderation variable. The study was conducted on a sample of goods and services procurement actors in Central Lombok Regency, with as many as 120 respondents. Data analysis was done using SmartPLS. The results showed the correlation of variables in Goods/Services Procurement Fraud (PBJ) with the principles of agency theory and the fraud triangle. The competence of PBJ implementers has a negative influence on PBJ fraud, in line with agency theory, which emphasizes the importance of highly competent individuals in reducing opportunities for unethical behavior in public agencies. Strong organizational commitment also shows a negative influence on PBJ fraud, confirming agency principles that emphasize adherence to procurement processes. On the other hand, the finding that opportunity has a positive effect on PBJ fraud is in line with the fraud triangle theory, which highlights that opportunity in the procurement system can facilitate fraudulent practices. The role of performance accountability that strengthens the influence of competence and commitment to PBJ fraud is in line with the fraud triangle theory, affirming the importance of accountability in controlling fraud opportunities. These findings consistently support the principles of agency theory and the fraud triangle in the context of the procurement of goods and services in the public sector.