An Evaluation of National Competitive Tendering in Local Government Administration in Ghana: the Case of Techiman Municipal Assembly
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Date
2009-08-15
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Abstract
Ghana has since independence been searching for an efficient and effective financial management system that avoids or at least minimises fraud, corruption and other forms of irregularities in the public sector. Both civilian and military governments have made many attempts to instill transparency, accountability and responsibility in public spending. Indeed when fraud, corruption and other forms of irregularities committed by public officers and their collaborators go up, public spending also goes up. Relevant laws to prevent fraud, corruption and other irregularities have been passed by various governments. The laws include the following:
i. The Supreme Military Council Decree, (SMCD) 221 (1979)
ii. Financial Administration Regulation (FAR) (LI. 1234) (1979)
iii. Financial Administration Regulation Decree (FARD) (1979)
iv. Legislative Instalment (L.I 1804) (2003)
v. Financial Administration Act, (Act 654) (2003)
As if these laws were not enough, the 1992 constitution of Republic of Ghana devoted a whole chapter (Chapter!3) for finance, as a foundation to ensure proper financial management in the country. Having come to the realisation that much of public funds are lost through fraudulent public procurements, the public procurement Act, Act 663 (2003) was passed together with Internal audit Agency Act, Act 658 (2003) to improve public financial management system, prevent and punish offences related to fraudulent public procurements. The Public Procurement Act. Act 663 (2003) has identified procurement methods to be followed by Ministries Departments and Agencies (MDAs) as well as Metropolitan, Municipal and District Assemblies (MMDAs). The methods include the National Competitive Tendering which among other methods should he adopted in procurements based on specific thresholds. The Techiman Municipal Assembly mainly adopts the National Competitive Tendering method in procurements. This study has attempted to test and determine whether or not the method actually avoids or prevents or minimises fraud, corruption and other irregularities in procurements. In particular the study has sought to determine if efficiency, effectiveness and transparency exist in public procurements at the Assembly and if to some extent the method is being used as an effective instrument for financial management.
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A Thesis submitted to the I nstitute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters In Business Administration (CEMBA).