Corruption In Procurement Research Articles

Corruption and Stooges in Procurement

This paper theoretically analyzes the impact of stooges on procurement outcomes as well as optimal procurement design.

Exploring Systemic and Behavioral Factors Influencing Corruption in Public Procurement: A Global Comparative Study

Public procurement is particularly vulnerable to corruption due to the substantial financial transactions and discretionary powers involved. Inadequate governance structures and cultural norms often exacerbate this vulnerability. This study explores the systemic and behavioral factors contributing to corruption in public procurement through a global comparative lens, focusing on regions including Africa, Asia, Australia, Europe, and the Americas. Systemic factors, such as weak legal frameworks, lack of transparency, and institutional weaknesses, are analyzed alongside behavioral influences, such as cultural norms, individual ethical considerations, and moral disengagement. By conducting a comprehensive literature review, this study consolidates existing knowledge to pinpoint areas for improvement and emerging trends concerning procurement corruption. The research reveals that corruption in public procurement is deeply ingrained in both institutional frameworks and the cultural context in which procurement occurs. It recommends an integrated anti-corruption strategy combining structural reforms, such as bolstering regulatory oversight, with behavioral interventions to reshape cultural norms and foster ethical behavior. These findings offer valuable insights for policymakers and academics, emphasizing the necessity of tailored and multifaceted approaches to combat procurement corruption effectively. The study's results enrich the theoretical understanding of corruption by connecting structural and behavioral strategies, guiding policymakers and international organizations striving to promote transparency and accountability in public procurement.

Corruption in public procurement: Can e-procurement and artificial intelligence make a difference in Africa?

Corruption is a challenge that hinders countries’ development. The huge spending on public procurement, particularly on capital projects, makes it highly prone to corruption. The conventional paper-based procurement process has been linked to inefficiency and corruption in procurement practices. Given the expanding role of technology in an increasingly interconnected world, many leading experts suggest that technology can be a powerful tool to reduce opportunities for corruption in public procurement. In the past three decades, the use of technology, including electronic procurement (e-procurement) and artificial intelligence (AI), in public procurement has globally gained popularity. However, currently, technology in public procurement is not widely used in the African continent. This paper's main hypothesis is that technology can have an impact on reducing corruption in public procurement in Africa, with a particular emphasis on the prospects and challenges for technology adoption in Ghana and South Africa. The paper analyzes the types of initiatives that helped technology implementation in other countries and the utility of adopting such mechanisms in the context of the subject countries under review. The study investigates the critical success factors for adopting technology in public procurement activities in Ghana and South Africa using qualitative data analysis and mixed theories. This paper aims to assist public procurement practitioners, government entities, and funding organizations in a better understanding of the technology role, including public e-procurement and AI, in their efforts to minimize the scourge of corruption in public procurement.

Corruption in defense procurement: key threats and mechanisms to overcome them to ensure the national security of Ukraine

Corruption in defense procurement: key threats and mechanisms to overcome them to ensure the national security of Ukraine

Can individual MPs damage their party's brand? Quasi-experimental evidence from a public procurement corruption scandal

Can individual MPs damage their party's brand? Quasi-experimental evidence from a public procurement corruption scandal

Rules, Discretion, and Corruption in Procurement: Evidence from Italian Government Contracting

Rules, Discretion, and Corruption in Procurement: Evidence from Italian Government Contracting

Identifikasi Penyebab Korupsi dalam Prosedur Pengadaan Barang dan Jasa Pemerintah

This study shows solution to prevent a corruption in government procurement. This study was conducted using descriptive qualitative methods with secondary data collection through a literature review. The results of the research show that cases of corruption in the procurement of government goods and services in Indonesia are due to the lack of strong regulations for procurement of government goods/services and the ineffectiveness of the government procurement system for goods/services, such as poor quality and quantity of goods, wrong goods obtained, lack of clarity in other technical requirements. , as well as the slow implementation of procurement and delivery of required goods and services, which makes beneficiaries disappointed. Maladministration is also seen as an important component of corruption in goods and services procurement procedures.

Sustainability and high-level corruption in healthcare procurement: Profiles of Italian contracting authorities

Addressing corruption is crucial for building a sustainable healthcare system that ensures access, quality, and equity in healthcare delivery. Despite that, many current strategies to combat corruption in the healthcare sector do not evaluate high-level corruption, such as corruption risks occurring at sub-national levels. This work bridges this gap by providing corruption risk profiles of Italian contracting authorities responsible for procuring goods and services for healthcare facilities in the public procurement process. Using an array of 14 red flags of corruption risk and an extended Item Response Theory model applied to a big data source made available by the Italian Anti-corruption Authority, our main findings show that: i. the risk of corruption is a multidimensional occurrence, which can be represented as a four-dimensional latent variable; ii. there are eight clusters of contracting authorities, having distinct and well-defined risk profiles over the four ascertained dimensions of corruption risk; iii. the distribution of risk profiles at sub-national level showcases relevant geographic variations and emphasises the need for tailored anti-corruption strategies to effectively address region-specific challenges and risk factors.

Understanding with a Practical Perspective the Corruption Mode of Goods/Services Procurement in Indonesian Public Organizations

This research aims to clarify the study of corruption in public procurement in public organizations in Indonesia, which when studied through the dimensions of anthropology and democracy is considered too broad in scope and cannot touch the main substance in the discussion of corruption that is specific to public organizations. Corruption in public procurement management in Indonesia is still seen as part of unethical behavior and from a rational perspective is also seen as deviant behavior. The factors for the formation of unethical behavior and categorized as deviant behavior are due to, among others, the structural pressure factors of individuals in public organizations and the intervention factors of parties ranging from vendors, state administrators, and state officials in providing "lure" in the form of gifts or rewards for state administrators and state officials to abuse authority. The results of the study successfully identified modes of corruption in the procurement of goods/services based on the stages and perpetrators of corruption. Corruption in particular in Indonesia is also caused by the weak supervision and management system for preventing corruption in Indonesia. The design of an appropriate and credible public procurement method is one of the solutions to reduce the risk of corruption that begins with the public procurement process. The e-Purchasing method with the e-Cataloque mechanism without negotiations with vendors as a concrete manifestation of the selection of goods/services procurement methods is considered to be very supportive of corruption prevention efforts in Indonesia, because it can directly limit corrupt behavior in public organizations. The novelty, in this study, is to provide recommendations for improvement in the form of a recommendation system design for government procurement of goods/services that is more directed at prioritizing the use of the e-Purchasing method with the e-Cataloque mechanism to reduce the risk of corruption in government spending.

Promoting transparency and accountability towards anti-corruption in pharmaceutical procurement system: does e-procurement play a significant role?

PurposeUnderstanding the interplay between transparency, accountability and e-procurement and their collective contribution to anti-corruption efforts in public procurement is crucial for developing effective strategies and policies. This research seeks to investigate whether e-procurement plays a significant role in enhancing transparency and accountability and subsequently reducing corruption risks in the public pharmaceutical procurement system.Design/methodology/approachThe study employed a cross-sectional questionnaire survey to gather data from 274 procurement personnel and pharmacists working in 28 government-owned hospitals in the Southern Highlands of Tanzania. The collected data were then analysed using confirmatory factor analysis (CFA) and the Hayes PROCESS macro to test the study hypotheses.FindingsThe study findings revealed a negative and significant relationship between transparency and procurement corruption (ß = −0.117, p < 0.008). Moreover, accountability negatively and significantly affects procurement corruption (ß = −0.162, p = 0.006). Furthermore, the findings indicate that, at a high degree of e-procurement system implementation, transparency and accountability have a stronger impact on procurement anti-corruption measures.Practical implicationsPolicymakers and decision-makers should implement robust mechanisms that enhance transparency, accountability and anti-corruption efforts. These may include providing clear and accessible information on procurement processes, efficient mechanisms for monitoring and reporting procurement irregularities and continuous improvement of e-procurement systems. By incorporating these measures and nurturing collaboration amongst procurement stakeholders, it becomes possible to foster a procurement environment characterised by integrity, fairness, accountability and reduced corruption.Originality/valueWhilst previous studies delved into exploring the effect of transparency and accountability on procurement anti-corruption, the novelty of this study is the inclusion of e-procurement as a moderating variable in the relationship between transparency, accountability and anti-corruption. By so doing, this study adds to the existing body of knowledge regarding anti-corruption measures and offers valuable practical insights for policymakers and professionals aiming to enhance transparency, accountability and ethical conduct within the public pharmaceutical procurement system.

Examining corruption risks in the procurement and distribution of COVID-19 vaccines in select states in Nigeria

BackgroundPublic health emergencies raise significant concerns about corruption and accountability; however, these concerns can manifest in different ways across diverse locations. For instance, more developed countries with a stronger rule of law may experience more corruption in vaccine procurement, whereas developing countries may experience more corruption at the point of distribution and delivery to end users. This research focuses on corruption concerns in Nigeria, specifically examining the procurement and distribution of COVID-19 vaccines.MethodsThis paper utilizes a scoping review and a qualitative research approach. Key informants (n = 40) involved in the procurement and distribution of COVID-19 vaccines across two states in Nigeria were interviewed. Findings from the scoping review were summarized, and collected data were inductively coded and analysed in themes, revealing clear examples of implementation irregularities and corruption in the country’s COVID-19 vaccination processes.ResultsVaccination programme budgeting processes were unclear, and payment irregularities were frequently observed, resulting in vaccinators soliciting informal payments while in the field. Recruitment and engagement of vaccination personnel was opaque, while target vaccination rates incentivized data falsification during periods of vaccine hesitancy. Accountability mechanisms, such as health worker supervision, vaccination data review, and additional technical support provided by donors were implemented but not effective at preventing corruption among frontline workers.ConclusionsFuture accountability measures should be evidence-driven based on findings from this research. Personnel recruitment, contracting, budgeting, and remuneration should focus on transparency and accountability.

Effect of Leadership Transparency on Perceived Levels of Corruption in the Procurement Department in the Judiciary of Kenya

Corruption is a major impediment to the development of a nation because it impairs public services, distorts public spending, disrupts the natural law of the economy, and undermines trust in government. This study aimed to examine the effects of leadership accountability on perceived levels of corruption in procurement departments in the judiciary of Kenya. It made use of the concurrent triangulation design and targeted the population of 278 heads of procurement committees in 278 court stations of the Kenyan judiciary and key informants from six oversight organizations. From this population, a sample of 164 heads of procurement committees was selected using the stratified proportionate random sampling technique. Quantitative data was collected from the heads of procurement committees using questionnaires, while qualitative data were collected by interviewing 12 key informants that were purposefully selected from the six oversight organizations. The study found that leadership transparency has a statistically significant and negative effect on levels of corruption in the procurement departments in the Kenyan judiciary (chi-square (X2) = 42.016, df = 2, sig. =.000). Based on the findings, the study concludes that the transparency of leaders of procurement units reduces levels of corruption in government procurement. The study recommends the formulation of laws, policies, and strategies aimed at improving the transparency of leaders in government procurement departments.

Effect of Leadership Independence on Perceived Levels of Corruption in the Procurement Department in the Judiciary of Kenya

Corruption is a major obstacle to the development of any nation because it distorts markets, encourages crime, discourages investment, creates inequality, and destroys values. The aim of this study was to examine the effects of leadership independence on perceived levels of corruption in procurement departments in the judiciary of Kenya. It utilized the concurrent triangulation design and targeted the population of 278 heads of procurement committees in 278 court stations of the Kenyan judiciary and key informants from six oversight organizations. From this population, a sample of 164 heads of procurement committees was selected using the stratified proportionate random sampling technique, while 12 key informants were selected purposefully. Quantitative data was collected from the heads of procurement committees using questionnaires, while qualitative data was collected by interviewing 12 key informants. Quantitative data was analyzed using descriptive statistics as well as cross-tabulation with the chi-square method. Qualitative data was analyzed using thematic content analysis and presented using illustrative quotes. The study found leadership independence has a statistically significant and negative effect on levels of corruption in the procurement departments in the Kenyan judiciary (chi-square (X2) = 63.384, df = 2, sig. =.000). Based on the findings, the study concludes that leadership independence reduces levels of corruption in government procurement. It recommends the formulation of laws, policies, and strategies aimed at improving the independence of leaders in government procurement departments.

Differences of corruption types in selected Western and central-eastern health systems during the COVID-19 pandemic: a rapid review.

To identify, describe, and classify the cases of health corruption present in selected Western [the Netherlands and the United Kingdom (UK)] and Central-Eastern European (Poland and Slovakia) countries during the COVID-19 pandemic. A rapid review of the literature was conducted, evaluating data from 11 March 2020 to 15 April 2021. Information sources included MEDLINE via WoS, IBSS via ProQuest, Scopus, and gray literature. Thirteen cases were identified across the four countries. The primary type of health corruption in Western European countries was procurement corruption, while misuse of (high) level positions was the most prevalent in Central-Eastern European countries. Actors from central governments were most involved in cases. The rule of law and anti-corruption watchdogs reported most cases in the United Kingdom and the Netherlands, while the media reported cases in Poland and Slovakia. The differences in types of corruption in WE and CEE countries emphasize the need to contextualize the approach to tackle corruption. Thus, further research in preventing and tackling corruption is a vital and necessary undertaking despite the inherent of conducting health corruption research.

Firm performance, imperfect competition, and corruption risks in procurement: evidence from Swedish municipalities

Previous research has shown that corruption risks may distort market incentives in high-risk contexts. However, there is a dearth of evidence on the potential impact of corruption in settings characterized by low corruption and high-quality institutions. Against that background, this paper delves deeper into the alleged consequences of corruption by examining the link between corruption risks in public procurement and the profitability of firms in the Swedish construction industry. We introduce a novel measure of corruption risk based on the share of single bidder contracts that a firm has won. Validity analysis confirms that our measure is correlated with an alternative corruption measure and local tender winners. Our results reveal that firms that win many single bidder contracts have higher profitability than other firms in the sector: 10 percentage points higher single bidding rate firms have a 0.2–0.6-percentage-point higher sales margin. The findings underscore that public procurement corruption risks distort markets and economic incentives, and that this risk is present even in low-corruption contexts such as in Sweden.

Belt and Road Initiative in Developing Countries: Lessons from Five Selected Countries in Africa

The Belt and Road Initiative (BRI) has become a household name for developing countries, especially in Africa. The BRI proposal by Chinese President Xi Jinping was positively received by many countries, including policymakers in China. In response, the Chinese Government committed to investing USD 1 trillion over ten years from 2013 to 2023. As a result, 152 countries signed a cooperation agreement with China to work under the BRI framework. The BRI has played a vital role in addressing the global infrastructures gap through the construction of modern highways, airports, high-speed railways, bridges, power generation (hydropower), and industrial parks. As a result, this has enhanced connectivity and economic growth between Asia, Europe, and Africa. Despite the BRI’s significant role in strengthening trade, infrastructure and investment links between China and other countries, there is limited literature on specific countries’ experience with the initiative. This study, therefore, will advance our understanding of the BRI, especially on the conceptualization of the term; comparative analysis of Africa–China relationships before and after the BRI; the benefits in relation to the “Five Connectivities” and the challenges the BRI is facing in Africa. The article is based on a literature review and case study as research methodologies mainly used the Policies, Projects, Initiatives, and Strategies (PPIS) as a data source. The study focuses on five African countries; Uganda, Kenya, Egypt, Djibouti, and Mozambique. These countries were selected purposefully for analysis because of their experience, long-term relationships with China, and strategic locations. The findings revealed that the BRI lacked a clear description and that it was difficult to distinguish between BRI projects and other regular economic or diplomatic relations. The study also identified four differences between Africa–China relationships before and after the BRI. Furthermore, the findings revealed that the BRI has positively contributed to all five connectivity pillars. However, the major challenges reported concerning the initiative from the various countries were: procurement corruption, low/lack of involvement of stakeholders, high compensation prices, labor violations, increasing debts, and environmental hazards. In conclusion, while the BRI has brought about significant infrastructure development and economic benefits, the project has also experienced some challenges. This study, therefore, contributes to the body of knowledge on China’s Belt and Road Initiative and its impact on African countries, specifically in Uganda, Kenya, Djibouti, Mozambique, and Egypt. The paper then provides conclusions and policy implications as well as future research opportunities in the current body of the literature.

A systematic review of the linkages between corporate governance systems and procurement practices in public procurement entities

Purpose – Corporate governance and procurement corruption has long been recognized as a social problem, but the subject has received scant academic attention in prevailing literature on the management of procurement in Ghana. A systematic review conducted explores how the relationship between corporate governance and procurement could contribute to the effective management of public resources to maximize social welfare and augment Ghana’s economy. Design/methodology/approach – Drawing extensively on existing literature as a secondary data source, this research adopts an interpretivist philosophical stance and inductive reasoning to explore corporate governance and procurement corruption. The approach underpinning this overarching epistemology, adopts a three-step sample selection strategy to identify the range and scope of publications on the phenomena under investigation. Scientific papers were searched manually from Scopus and carefully screened for analysis. Findings –Analysis suggests that corporate governance and procurement require a degree of coordinated change across governmental departments, such as planning, legal and procurement to implement a robust policy and related support systems. Furthermore, it was observed that a portfolio approach to inter-organizational collaboration with different partners (such as the Ministries, Departments and Agencies (MDAs) as well as State Owned Enterprises and Corporations) was not coordinated sufficiently to effectively generate public interest. Albeit each partner has individual own objectives, they ultimately complement one another. A portfolio of different, inter-organizational arrangements enables several complementary instruments and various logics to be used in achieving overall organisational goals and objectives. Originality/value – Novel insight presented provides an invaluable opportunity to: further expand future research into corporate governance and procurement in Ghana; and consequently, provide the premise upon which to build meaningful empirical analysis such as comparing the extent of corruption practices in various sectors of the Ghanaian economy.

Effect of the anti-fraud policy towards reducing public e-procurement corruption using the ability of internal audit forensic accounting techniques

The SPSE e-procurement application has been used to suppress procurement corruption that often occurs in the Indonesian government. However, procurement corruption still occurs, allegedly the cause is due to the existence of a weak anti-fraud policy (AFP) in Indonesian government ministries and agencies. This study aims to prove empirically, whether there is an influence of AFP, on reducing corruption in the public e-procurement system with an approach to improving the health of the e-procurement system through proactive fraud detection with a forensic accounting technique approach. This research uses Quantitative Research Methods, research data is collected through questionnaire instruments, face-to-face interviews, and focus group discussions (FGD) which are carried out in 82 Ministries and agencies in Indonesia in 2022. Sampling using census techniques. The data were analyzed using a Structural Equation Modeling (SEM) approach assisted by the application of Lisrel 8.80. The results showed that anti-fraud policy has no significant effect on proactive fraud detection, anti-fraud policy has a positive and significant effect on reducing public e-procurement corruption, anti-fraud policy indirectly has a positive and significant effect on reducing corruption in public e-procurement through proactive fraud detection.

Guidelines for Creating the Procurement Process Transparency in Industrial Business Sectors

The research was to investigate procurement corruption, an economic crime continuously expanding as a mainstream obstacle to national development. This study is conducting in-depth interviews with 9 experts to create tools used in estimation research and a group discussion of 11 experts was conducted to find consensus on the model of this research. Quantitative data were collected from a survey of 500 executives with a questionnaire and the statistical data were subjected to descriptive, inference, and multivariate analysis.The finding indicated that the guidelines for creating procurement process transparency in industrial business sectors consisted of 4 elements, the most important item of each element were as follows: Internal Control (▁X = 4.39) set up a clear line of command for procurement, Internal Auditing (▁X = 4.39) establish an internal audit unit in an organization with independence and objectivity in its work, Penalty (▁X = 4.38) establish an organization's legal department as an essential mechanism for punishing procurement offenders, and Moral Implantation (▁X = 4.38) conduct business with fairness, honesty and transparency to all stakeholders, including business partners, customers, employees and society. Moreover, the hypothesis test showed that the difference in industrial businesses' sizes revealed that all four elements were significantly different at 0.05.The developed structural equation model analysis showed that it was under the empirical data and passed the SEM evaluation criteria with CMIN-p (0.124), CMIN/DF (1.050), GFI (0.915), and RMSEA (0.010).

Corruption and Public Procurement in Health Sector: The Challenges of Pandemic Era in Greece

The health sector in Greece is considered as one of the most vulnerable sectors with high levels of corruption and appears to be particularly problematic in the provision of health services and in medical supplies procurement processes carried out by public hospitals. Viewed from a systemic-structural perspective, corruption is examined as a phenomenon emerging from the interactions and interconnections between the organized structures of venture capital and the state apparatus. This paper argues that the COVID-19 crisis has produced a breeding ground for potential corruption practices and seem to intensify the unlawful practices especially in procurement processes. The state of exception and the implementation of emergency measures manufacture the conditions that permit the lack of transparency in the transactions between the health care system and the pharmaceutical industry. Applying an integrated theoretical model of state-corporate crime and critical health criminology and drawing on empirical qualitative research, this paper highlights the procurement corruption risks in the health sector during the pandemic era.