E-PROCUREMENT FRAUD DETERRENT IN THE MINISTRY OF HIGHER EDUCATION IN MALAYSIA

Abstract

The adoption of e-procurement in the government procurement process is assumed to provide accountability and transparency. It could mitigate fraud and corruption by decreasing the chances at every level of the procurement system by using information communication technology. Hence, this study aims to examine the relationship between information quality, system quality, service quality and transparency, and e-procurement fraud deterrent in the Malaysian public sector. Primary data was collected through the distribution of the questionnaire. A total of 300 samples were selected from the Ministry of Higher Education. Two hundred and twenty-seven (227) respondents responded to the questionnaire, which then was used for the analysis. Statistical tests such as descriptive analysis, correlation and regression analyses were conducted to answer the study’s research questions. The findings from the study show that system quality, service quality and transparency have a significant positive relationship with e-procurement fraud deterrent. However, there is no significant relationship between information quality and e-procurement fraud deterrent. This study gives a holistic picture of the impact of information quality, system quality, service quality, transparency, and e-procurement fraud deterrent as well as the important insight of e-procurement to deter fraud in the public sector.Keywords: E-procurement, fraud deterrent, government procurement, procurement system