factors influencing compliance to procurement regulations...

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT © 2013 Institute of Interdisciplinary Business Research

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FACTORS INFLUENCING COMPLIANCE TO PROCUREMENT

REGULATIONS IN PUBLIC SECONDARY SCHOOLS IN KENYA: ACASE OF

NYAMACHE DISTRICT, KISII COUNTY.

Jane Onyinkwa

School of Human Resource Development,

Entrepreneurship and Procurement Department.

Jomo Kenyatta University of Agriculture and Technology.

P.O BOX 6200-00200, Nairobi, Kenya.

William Masaka Ondieki, Kevin Moindi Omai (Research Assistants)

Abstract

This research dealt with the factors influencing compliance of procurement regulations in

public secondary schools in Nyamache sub-county. Nyamache sub-county was selected

because public schools within the district are worst hit by non-compliance to public

procurement regulations. This study concentrated on three variables; ethics in public

procurement act, knowledge/training and committee‟s awareness as factors deemed to

influence compliance of procurement regulations in public secondary schools in Nyamache

sub-county. This study was conducted through a descriptive survey research design. The

study involved 15 public secondary schools in Nyamache sub-county. This research project

was guided by research questions based on the variables aforementioned. Literature related to

this study was reviewed based on the variables; ethics, staff training and awareness as factors

deemed to influence compliance on procurement regulations in public secondary schools in

Nyamache sub-county. Data was collected by use of the questionnaire and reliability of

research instruments was tested using test-retest technique and validated by experts in

academic research. Stratified random sampling and simple random sampling was used to

select the sample size of 135 respondents. The data was collected and analyzed by descriptive

statistics: simple frequencies and percentages. Data was presented in descriptive form

supported by frequency counts and percentages. From the research findings it can be

concluded that ethics, awareness and training influences the compliances of procurement

regulations in public secondary schools. The following recommendations were made: It is

important to offer ethics education to school tendering committee members in order to ensure

they serve in ultimate objectivity, accountability, and non discrimination. Further research

should be undertaken on the following areas: effects of compliance on quality of goods and

services procured in public secondary schools, challenges facing the enforcement of public

procurement regulations in public secondary schools and challenges facing e-procurement in

public secondary schools.

Key Terms: Compliance of Procurement Regulation, Level of Awareness and Staff

Training.

1.0 INTRODUCTION

1.1 Background of the Study

Worldwide, public procurement has become an issue of public attention and debate, and has

been subjected to reforms, restructuring, rules and regulations. Public procurement refers to

the acquisition of goods, services and works by a procuring entity using public funds (World

Bank, 1995a). According to Roodhooft and Abbeele (2006), public bodies have always been

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big purchasers, dealing with huge budgets. Mahmood, (2010) also reiterated that public

procurement represents 18.42% of the world GDP.

Although several developing countries have taken steps to reform their public procurement

systems, the process is still shrouded by secrecy, inefficiency, corruption and undercutting. In

all these cases, huge amounts of resources are wasted, (Odhiambo and Kamau, 2003).

In developing countries, public procurement is increasingly recognized as essential in service

delivery (Basheka and Bisangabasaija, 2010), and it accounts for a high proportion of total

expenditure. For instance, public procurement accounts for 60% in Kenya (Akech, 2005),

58% in Angola, 40% in Malawi and 70% of Uganda‟s public spending (Wittig, 1999;

Government of Uganda, 2006) as cited in Basheka and Bisangabasaija (2010). This is very

high when compared with a global average of 12-20 % (Frøystad et al., 2010). Due to the

colossal amount of money involved in government procurement and the fact that such money

comes from the public, there is need for accountability and transparency, (Hui et al., 2011).

Consequently, various countries both in developed and least developed countries have

instituted procurement reforms involving laws and regulations. The major obstacle however,

has been inadequate regulatory compliance. De Boer and Telgen (1998) confirm that non-

compliance problem affects not only the third world countries but also countries in the

European Union. This position is further supported by Gelderman et al., (2006) who contend

that compliance in public procurement is still a major issue.

Hui et al., (2011) while analyzing procurement issues in Malaysia established that

procurement officers were blamed for malpractice and non-compliance to the procurement

policies and procedures. Citing Yukl (1989), Gelderman et al., (2006) stipulate that

compliance occurs when the target performs a requested action, but is apathetic about it,

rather than enthusiastic, and puts in only a minimal or average effort. However, as an

organizational outcome, compliance has traditionally been understood as conformity or

obedience to regulations and legislation (Snell, 2004) cited in Lisa, (2010).

For instance in Uganda, a wave of procurement reforms that begun in 1997, culminated into

the enactment of the Public Procurement and Disposal of Public Assets (PPDA) Act 2003,

and regulations 2003. Unfortunately, many central government ministries and agencies have

since then not followed prescribed practices (Agaba & Shipman, 2007). The procurement

audits carried out by the PPDA have revealed that out of 322 contracts audited at the end of

2005, only 7 (2%) were assessed as compliant. Other successive audit checks reveal that

compliance in public procurement in Uganda is still inadequate (PPDA compliance reports,

2009; PPDA Baseline survey report, 2010; PPDA Capacity Building Strategy Report, 2011-

2014; World Bank Country Procurement Assessment Report, 2001) cited in Tukamuhabwa

B. R(2012).

According to Kenyanya et al., (2011), Kenya has undergone significant development in the

past three decades. From being a system with no regulations in the 1960s to a system

regulated by Treasury Circulars in the 1970s, 1980s and 1990s, the introduction of the

Procurement Regulations of 2006 brought new standards for public procurement in Kenya.

Many studies were carried out on procurement before the Public procurement and Disposal

Regulations of 2006 to evaluate the efficiency of the procurement process in existence at the

time, (Kipchilat, 2006). The major findings of the studies were that public procurement was

not operating efficiently and that the state was losing a lot of money through shoddy deals.

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These regulations became effective in Kenya on 1st January 2007 after the gazettement of the

Public Procurement and Disposal Regulations Act 2005. The purpose of this Act is to

establish procedures for procurement and the disposal of unserviceable, obsolete or surplus

stores and equipment by public entities to achieve efficient management of public funds. The

act contains eleven (11) parts. The Principal reason for the enactment of the Act was to have

a legal regime that weeds out inefficiencies in the procurement process, remove patterns of

abuse, and the failure of the public purchaser to obtain adequate value in return for the

expenditure of public funds. However, these objectives have never been fully achieved in

practice, (Wanyama, 2010). Wanyama notes further that key provisions of the Act and the

Regulations are replete with textual weaknesses that have often been abused by procuring

entities. The Regulations do not envisage contemporary market realities hence the need to

continuously revise them to keep pace with these developments.

In a study conducted in Kenya by the PPOA (2007), the introduction of the legal and

regulatory procurement framework; the establishment of the PPOA as an oversight body; the

development of a framework for contract administration and the new appeals mechanism

were among those aspects of the procurement system rated as having been positively affected

by the Regulations. In contrast, the existing institutional development capacity in procuring

entities and functioning of the procurement market were assessed as being among the

weakest aspects of the system. The report noted that although procedures supporting

systematic procurement planning have been established, research showed that these are far

from always being complied with. It was found out, for example, that there was a low share

of procurements that were done through open tendering.

Another study by KPMG International carried out after the introduction of the Regulations, it

was still found out that public procurement still suffers from fraud and misconduct (KPMG,

2008). A study by KACC, also noted that public officials distort the Regulations to restrict

the participation of interested firms in procurement, or still direct the outcome of others.

The introduction of the Regulations almost coincided with the introduction of Free Secondary

Education (FSE) in 2007. The PPDR included public secondary schools among the

institutions whose procurement systems were to be regulated by the Regulations. The Public

Procurement and Disposal Act granted teachers and subordinate staff the power to control the

tendering and procurement process in public schools by setting of Tendering Committees to

oversee the whole process of procurement. This was also aimed at decentralizing the

procurement process which was a preserve of Principals for a long time. The disbursement

and utilization of funds meant for Free Secondary Education (FSE) programmer is subject to

the provisions of the Government Financial Management Act, 2004 which emphasizes on

good financial management in public institutions. The Public Procurement and Disposal

Regulations were supposed to supplement towards this goal by making public procurement

more transparent (PPOA, 2007).

In a study by Kenyanya et al., (2011) found that the established legal and regulatory

framework in pubic secondary schools in Kenya has added some strength to the public

procurement system, weaknesses still exist in the framework. For example, although open

tenders were found to be the preferred method of tendering used by most of the public

secondary schools thus bringing it closer to its intended status as the default method of

procurement, it is clear that the procurement functioning needs to developed further and

considerable effort put into defining strategies for how to make open tendering the main

method of procurement.

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1.2 Statement of the Problem

The aim of the Public Procurement Regulations of 2006 was to promote fairness,

transparency and nondiscrimination in procurement in public institutions with the main aim

of ensuring efficient use of public funds. However, studies reveal that even after the

enactment of the Regulations, there are losses of public funds that can be attributed to public

procurement. A survey carried by the Kenya publishers association on booksellers indicates

how book distributers collude with school principals to embezzle money set aside for free

education in public secondary schools in Kenya (Wanyama, 2010).

Further, studies indicate dissatisfaction among stakeholders brought about by loopholes left

by the Regulations which may be used by dishonest people to make the process inefficient

(Kenyanya, 2011). Compliance levels continue to be low in public entities in Kenya despite

efforts by the Public Procurement Oversight Authority (PPOA) to put in place measures to

improve compliance (PPOA 2007). Procurement audits carried out revealed non –

compliance with procurement regulations in public secondary schools. In Nyamache district,

it has been noted that school tendering committees distort the Regulations to restrict the

participation of interested suppliers in procurement, or still direct the outcome of others

(District Audit report 2010-2011). This study therefore sought to investigate factors

influencing compliance of Procurement Regulations in Public Secondary Schools in

Nyamache district, Kenya.

1.3 Objectives

1.3.1 General Objective

The research intended to assess the influence of compliance on procurement regulations in

public secondary schools in Nyamache district.

1.3.2 Specific Objectives of the Study

This study was guided by the following specific objectives;

1. To establish the influence of ethics on compliance of procurement regulations public

secondary in Nyamache district.

2. To evaluate the influence of level of awareness on compliance of procurement regulations

and procedures in public secondary schools in Nyamache district.

3. To investigate the contribution of staff training on compliance of public procurement in


1.4 Research Questions

This study sought to answer the following research questions;

1. How does committee‟s procurement ethic influence compliance of procurement

regulations public secondary in Nyamache district?

2. How does staff‟s level of awareness influence compliance of procurement regulations in

public secondary schools in Nyamache district?

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3. What the contributions of staff training on compliance of public procurement in public

secondary schools in Nyamache district?

1.5 Justification of the Research

While a lot of attention has been directed toward implementation procedures in acquisition of

goods and services in public secondary schools, little has been done to establish the best

practices in compliance to procurement regulations public secondary schools in Kenya. This

study intends to investigate the factors influencing compliance of procurement regulations in

public secondary schools in Nyamache district. It is intended that the findings of this research

project may be useful to schools in Nyamache district in strengthening the acquisition,

implementation and integration of procurement practices in administration. The study will

also inform government policy with regard to designing changes to streamline the acquisition

of goods and services in educational institutions as set by the public procurement act of 2007

and Ministry of Education. The study also formed a basis on which academic researchers can

do further studies on compliance in public procurement in educational institutions.

1.6 Scope

This study dealt with the factors influencing compliance of the procurement regulations in

public secondary schools in Nyamache district. Nyamache district was selected because

public schools within the district are worst hit by the problem. This study concentrated on

three variables; professional ethics, staff‟s awareness and staff training/knowledge on

procurement procedures as factors deemed to influence compliance of public procurement

regulations in public secondary schools in Nyamache district. This study was conducted

through a descriptive survey research design. The study involved 47 public secondary schools

in Nyamache district. The target population included all the tendering committee members in

public secondary schools. Questionnaires and an interview schedule were used as instruments

to collect data.

1.7 Limitations of the study

A study of this magnitude cannot be possible without limitations. Some of the respondents

might not have been willing to reveal true information needed for the study. This was solved

through explanation of the benefit of the study to the respondents. Some of schools were

located in remote areas this hindered their accessibility. This was solved by sending the

questionnaires through the postal offices.

2.0 LITERATURE REVIEW

2.1 Theoretical Framework

As cited by Defee et al., (2010), good research should be grounded in theory (Mentzer et al.,

2008). In this study was be guided by institutional theory and socio-economic theory. The

institutional theory is the traditional approach that is used to examine elements of public

procurement (Obanda 2010). There is no single and universally agreed definition of

“institution” or “institutional theory”. According to Scott (2004), institutions are composed of

cultural-cognitive and regulative elements that, together with associated activities and

resources give meaning to life. The author explains the three pillars of institutions as

regulatory, normative and cultural cognitive. The regulatory pillar emphasizes the use of

rules, laws and sanctions as enforcement mechanism, with expedience as basis for

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compliance. The normative pillar refers to norms (how things should be done) and values (the

preferred or desirable), social obligation being the basis of compliance. The cultural-

cognitive pillar rests on shared understanding (common beliefs, symbols, shared

understanding).In Kenya, public procurement has is guided by the PPDA Act (2007),

regulations and guidelines which are from time to time issued by the PPDA Authority only

and which must complied with to the latter by all PPOA and providers.

Sutinen and Kuperan (1999) propounded the socio-economic theory of compliance by

integrating economic theory with theories from psychology and sociology to account for

moral obligation and social influence as determinants of individuals‟ decisions on

compliance. According to Lisa (2010) psychological perspectives provide a basis for the

success or failure of organizational compliance. Wilmshurst and Frost (2000) also add that

the legitimacy theory postulates that the organization is responsible to disclose its practices to

the stakeholders, especially to the public and justify its existence within the boundaries of

society. This theory, which focuses on the relationship and interaction between an

organization and the society, provides a sufficient and superior lens for understanding

government procurement system (Hui et al., 2011). From this theory, the perceived

legitimacy of public procurement rules has been identified as one of the antecedents of public

procurement compliance behavior.

2.1.1 The concept of Procurement

Procurement which as defined by the Software Engineering Institute (2008) at Carnegie

Mellon, is a set of activities performed as part of an acquisition effort. It involves process of

acquiring goods, works and services, covering both acquisitions from third parties and from

in-house provides. Public procurement is the acquisition by purchase, rental, lease, hire

purchase, license, tenancy franchise or any other contractual means of goods or services by

the government. (Telgen 1998).

It starts from the identification of needs to the end of service contract or end of useful life of

an asset. Darrel (2002) says the term procurement is used to describe the purchase of goods

and services which are no directly used in the main business of a company. For example a car

manufacturer will procure training courses for employees to attend in order to improve their

skills. However, thinking on procurement, other writers argues that, there are two sides, the

demand side (i.e. where there are users of products who have needs to procure) and the

supply-side which does the production and provision of goods and services to be supplied

(Ngogo 2008).

2.1.2 Public Procurement Systems and Practices across the World

Public procurement is broadly defined as the purchasing, hiring or obtaining by any other

contractual means of goods, construction works and services by the public sector. It is

alternatively defined as the purchase of commodities and contracting of construction works

and services if such acquisition is effected with resources from state budgets, local authority

budgets, state foundation funds, domestic loans or foreign loans guaranteed by the state,

foreign aid as well as revenue received from the economic activity of state. Public

procurement thus means procurement by a procuring entity using public funds (World Bank,

1995 as quoted by Kipchilat, 2006).

The importance of public procurement in terms of size relative to world GDP and world trade

is highlighted by an OECD report (OECD, 2001 quoted by Odhiambo and Kamau2003). In

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this report, the value of the contestable government procurement market was estimated at

over $2 000 billion in 1998. This is equivalent to 7 per cent of world GDP and 30 per cent of

world merchandise trade. In a related study, Trionfetti (2000) quoted by Odhiambo and

Kamau (2003) estimates that the size of public procurement varies between 5 and 8 per cent

of GDP in most industrialized countries. For Middle East and Africa, the magnitude of

central government purchases ranges between 9 and 13 per cent. Kipchilat (2006) quoting a

Comesa report (2004) noted that procurement absorbs 60 percent of government expenditure

and this means that accountability at all levels is important. These figures indicate that public

procurement is important in the economies of both developed and developing countries.

Public procurement has become an issue of public attention and debate in both developed and

developing countries, and has been subjected to reforms, restructuring, rules and regulations.

Public procurement refers to the acquisition of goods, services and works by a procuring

entity using public funds (World Bank, 1995a). According to Roodhooft and Abbeele (2006),

public bodies have always been big purchasers, dealing with huge budgets. Mahmood, (2010)

also reiterated that public procurement represents 18.42% of the world GDP.

Consequently, various countries both in developed and least developed countries have

instituted procurement reforms involving laws and regulations. The major obstacle however,

has been inadequate regulatory compliance. De Boer and Telgen (1998) confirm that non-

compliance problem affects not only the third world countries but also countries in the

European Union. This position is further supported by Gelderman et al., (2006) who contend

that compliance in public procurement is still a major issue.

Hui et al., (2011) while analyzing procurement issues in Malaysia established that

procurement officers were blamed for malpractice and non-compliance to the procurement

policies and procedures. Citing Yukl (1989), Gelderman et al., (2006) stipulate that

compliance occurs when the target performs a requested action, but is apathetic about it,

rather than enthusiastic, and puts in only a minimal or average effort. However, as an

organizational outcome, compliance has traditionally been understood as conformity or

obedience to regulations and legislation (Snell, 2004) cited in Lisa, (2010).

For instance in Uganda, a wave of procurement reforms that begun in 1997, culminated into

the enactment of the Public Procurement and Disposal of Public Assets (PPDA) Act 2003,

and regulations 2003. Unfortunately, many central government ministries and agencies have

since then not followed prescribed practices (Agaba & Shipman, 2007). The procurement

audits carried out by the PPDA have revealed that out of 322 contracts audited at the end of

2005, only 7 (2%) were assessed as compliant. Other successive audit checks reveal that

compliance in public procurement in Uganda is still inadequate (PPDA compliance reports,

2009; PPDA Baseline survey report, 2010; PPDA Capacity Building Strategy Report, 2011-

2014; World Bank Country Procurement Assessment Report, 2001) cited in Tukamuhabwa

B. R(2012).

2.1.3 The Developments Public Procurement System in Kenya

In the past three decades, the public procurement system in Kenya has undergone significant

developments. From being a system with no regulations in the 1960s to a system regulated by

Treasury Circulars in the 1970s, 1980s and 1990s, the introduction of the Procurement

Regulations of 2006 brought new standards for public procurement in Kenya. Many studies

were carried out on procurement before the Public procurement and Disposal Regulations of

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2006 to evaluate the efficiency of the procurement process in existence at the time,

(Kipchilat, 2006). The major findings of the studies were that public procurement was not

operating efficiently and that the state was losing a lot of money through shoddy deals.

2. 1.4 The Public Procurement Regulations of 2006

These regulations became effective on 1st January 2007 after the gazettement of the Public

Procurement and Disposal Regulations Act 2005. The purpose of this Act is to establish

procedures for procurement and the disposal of unserviceable, obsolete or surplus stores and

equipment by public entities to achieve efficient management of public funds. The act

contains eleven (11) parts. Part II of the Act deals with the establishment of bodies involved

in the regulation of public procurement, namely, The Public Procurement Oversight

Authority (PPOA), Public Procurement Oversight Advisory Board, and the Public

Procurement Administrative Review Board.

The PPOA is charged with ensuring procurement procedures are complied with, The Public

Procurement Oversight Board‟s functions include approving the PPOA‟s estimates of

revenue and expenses, and recommending appointment or termination of the Director

General. Part III of the Act deals with the internal organization of public entities as far as

procurement is concerned, for instance, requiring all public organizations to establish tender

committees of not less than 5 members whose secretary must be a fully qualified

professional. Part IV of the Act makes general provisions for procurement by public entities.

It highlights the requirement that each procurement entity shall use the open tendering under

Part V or alternative procurement procedure under Part VI.

The use of alternative procurement procedure is qualified; a public entity may only use

restricted tendering with written approval of its tender committee and with documented

reasons for doing so. All those that qualify for a tender award must have the requisite

professional qualifications, resources and equipment and the capacity to enter legal

agreements. The Part also deals with three aspects of policy; conflict of interest, non

discrimination and giving maximum business opportunities to small and micro enterprises.

This part also outlaws all forms of corruption in procurement; that is to say, payment for

goods and services which are not supplied; if supplied they are sub-standard, defective or

overpriced; purchase of goods in excess of requirements; over-invoicing by contractors;

giving bribes and disclosure of confidential information.

Part V makes provisions for preparation of tender documents, advertisement and invitation to

tender, tender securities, as well as opening of tenders. In addition, it provides for

responsiveness of tenders, evaluation, and notification of award, contracting and extension of

tender validity. Part VI deals with alternative procurement procedures. This part provides the

alternative methods of procurement as restrictive tendering, requests for proposals and

quotations, procedure for proposals and quotations, procedure for low value procurement and

concessioning. Part VII provides administrative review of procurement procedures. It

recognizes that any aggrieved party in a procurement process has a right to seek

administrative review of a tender award. Part IX provides for debarment from participating in

public procurement.

The Director General may, with approval of the Advisory Board, bar a person from

participating in procurement proceedings for up to 5 years. The grounds for such punishment

are the commission of an offence relating to breach of contract, giving false information

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about qualifications and refusal to enter into a written contract. Part X deals with the disposal

of stores and equipment by public entities. Part XI makes miscellaneous provisions for

example that defense and national security organs are required to comply with the Act. In

public secondary schools, procurement matters have been vested in the Schools Tender

Committee whose membership structure is the Deputy Principal who is the Chairman of the

Committee, the person in charge of finance (bursar), who will be the Deputy Chairman, at

least six Heads of Departments including the Matron, and the officer heading the

procurement unit who will be its secretary.

2.1.5 Effects of the public Procurement Regulations in Kenya

The Principal reason for the enactment of the Act was to have a legal regime that weeds out

inefficiencies in the procurement process, remove patterns of abuse, and the failure of the

public purchaser to obtain adequate value in return for the expenditure of public funds.

However, these objectives have never been fully achieved in practice, (Wanyama, 2010).

Wanyama notes further that key provisions of the Act and the Regulations are replete with

textual weaknesses that have often been abused by procuring entities. The Regulations do not

envisage contemporary market realities hence the need to continuously revise them to keep

pace with these developments.

In a study by the PPOA (2007), the introduction of the legal and regulatory procurement

framework; the establishment of the PPOA as an oversight body; the development of a

framework for contract administration and the new appeals mechanism were among those

aspects of the procurement system rated as having been positively affected by the

Regulations. In contrast, the existing institutional development capacity in procuring entities

and functioning of the procurement market were assessed as being among the weakest

aspects of the system. The report noted that although procedures supporting systematic

procurement planning have been established, research showed that these are far from always

being complied with.

It was found out, for example, that there was a low share of procurements that were done

through open tendering. This indicated that most of the procurements were done on an ad hoc

basis, by quotations and direct procurements, thus suggesting a lack of procurement planning

in most of the surveyed government departments. One of the strong points about the

Regulations according to the report by the PPOA was that procurement decision making had

been fully delegated. The Regulation‟s framework provides for a fully decentralized

procurement process, leaving the full responsibility of undertaking procurements to the tender

committees and the procurement unit at the level of the procuring entity.

The Regulations were also meant to ensure that efficient training had been offered to

professionals to serve in procurement. It was also revealed by the study by the PPOA that the

available expertise at the procurement units did not meet the need for specialized

procurement knowledge despite there being steps towards developing a professional

procurement workforce. The overall lack of procurement knowledge remains a major

weakness to the efficiency of procurement operations. Short-term procurement training was

also found to be in short supply, although it was noted that the PPOA is currently offering a

series of sensitization sessions targeting both the public and private sector. On lead time, it

was found out that the laws and procedures do not support timely procurement, contract

execution and payment. For example, there were no legal provisions, procedures and or

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guidelines on the time limits for appropriation of funds, the processing of invoices and

payments.

In a study by KPMG International carried out after the introduction of the Regulations, it was

still found out that public procurement still suffers from fraud and misconduct (KPMG,

2008). In yet another study by KACC, it was noted that public officials distort the

Regulations to restrict the participation of interested firms in procurement, or still direct the

outcome of others. In a survey of public institutions by the KACC in 2007 after the PPDR

had been implemented, it was revealed that procurement had become more transparent and

formal.

2.2 Conceptual Framework

According to Mugenda and Mugenda (2003), a conceptual framework refers to

conceptualization of the relationship between variables in the study and it is shown

diagrammatically. Apart from showing the direction of the study, through the conceptual

framework, the researcher is able to show the relationships of the different constructs that

researcher was to investigate.

e

Independent variables Dependent Variable

Fig 2-2 Conceptual Framework

2.2.1 Ethics and Compliance in Procurement Regulations

Dobler and Burt (1996) define a profession as: “a calling requiring specialized knowledge

and often long and intense preparation including instruction in skills and methods,

maintaining by force of organization or concerted opinion high standards of achievement and

conduct, and committing its members to continued study and to a kind of work to which has

for its prime purpose the rendering of a public service” This definition is echoed by Millerson

(1964) who lists the following essential features of a profession. A profession according to

Millerson has the following essential features; A skill based on theoretical knowledge; A skill

requiring training and education; the demonstration of competence by professional by passing

a test; maintenance of integrity by adherence to a code of conduct; service provided for the

public good and that the profession is organized.

Procurement Ethics

Compliance of Procurement

Regulations in Secondary Schools

Staff Training on Procurement

Procedures

Awareness with Procurement

Regulations`

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Procurement professionals need to acknowledge and devise strategies for managing all these

complex challenges. The professionals must be seen as champions of efficiency and

effectiveness and must acknowledge the challenges and their various forms, and their

sources. The requirements to educate professionals and equip them with new and higher-level

skills have consequently become urgent (Sauber et al., 2008). A skill is the ability either to

perform some specific behavioral task or the ability to perform some specific cognitive

process that is related to some particular task (Peterson and Van Fleet, 2004). However, Lan,

Riley and Cayer, (2005) report that finding, hiring and retaining dedicated, energetic, and

ethical employees with special skills is always hard. While we understand that

professionalism is a key mechanisms for, and primary targets of institutional change, the

precise role of professions and professional service firms in processes of institutional change

remain under-theorized (Hwang & Powell, 2009; Scott, 2008).

2.2.2 Training and Compliance on procurement regulations

According to a study by PPOA (2007) the procurement regulations were meant to ensure that

efficient training had been offered to professionals to serve in procurement. It was also

revealed by the study by the PPOA that the available expertise at the procurement units did

not meet the need for specialized procurement knowledge despite there being steps towards

developing a professional procurement workforce.

The overall lack of procurement knowledge remains a major weakness to the efficiency of

procurement operations. Short-term procurement training was also found to be in short

supply, although it was noted that the PPOA is currently offering a series of sensitization

sessions targeting both the public and private sector. On lead time, it was found out that the

laws and procedures do not support timely procurement, contract execution and payment. For

example, there were no legal provisions, procedures and or guidelines on the time limits for

appropriation of funds, the processing of invoices and payments (KACC 2007).

In a study by KPMG International carried out after the introduction of the Regulations, it was

still found out that public procurement still suffers from fraud and misconduct (KPMG,2008).

In yet another study by KACC, it was noted that public officials distort the Regulations to

restrict the participation of interested firms in procurement, or still direct the outcome of

others. In a survey of public institutions by the KACC in 2007 after the PPDR had been

implemented, it was revealed that procurement had become more transparent, formal and

clearer.

2.2.3 Staff’s awareness and Procurement Regulations

The procurement exercise follows steps according to the PPOA of 2007. These steps must be

observed in order to ensure that all the stakeholders involved in the procurement exercise

obtain fair treatment. The steps include; planning for the required procurement over a given

period, identifying the source of the items, highlighting specifications/initiation of

procurement, determination of procurement procedure, Sourcing (soliciting) offers,

evaluation of offers, post qualification, commencement of contract, contract performance

(delivery) and management, record keeping and accountability, payment and post contract

performance (PPOA, Act, 2007).

Many corporate board members in Africa, especially of state-owned companies, have limited

understanding of their roles, and are usually open to manipulation by management, chairmen,

or principal shareholders. Some are outright incompetent. Non-executive directors in Africa

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need to play any meaningful role in the ensuring compliance. However many simply act as

rubber stamps for decisions taken outside the board (Charles & Oludele, 2003). In this

perspective, compliance arises from a dynamic equilibrium between the various powers of

the state and understanding what their roles are (Fisher 2004). According to De Boer and

Telgen (1998) as quoted by Gelderman et al., (2006), one of the factors causes of non –

compliance with procurement regulations is the level of awareness with the procurement

regulations. De Boer and Telgen (1998). assert that during the early days of the inception of

public procurement regulations in The Netherlands, many municipalities could not comply to

the regulations because they were not familiar with them. Gelderman et al., (2006) confirmed

this position in a survey on compliance with EU procurement directives. On the other hand, it

is possible that those who are familiar with the regulations know it so well that they know

how to beat the loopholes to their advantage. It is worth noting that the ambiguity in the

public procurement procedures may provide a chance for dubious acts including tendering

and discriminate supplier selection which may progress into poor compliance levels.

According to Guy (2000), there are six dimensions though which we can judge the level of

institutionalization of any structure and its ability to adapt to change, including: autonomy,

complexity, coherence, congruence and exclusivity. Implementation of organizational

activities depends on the relationships between and within organizations.

2.3 Summary of Literature and Research Gaps

Whereas previous studies have always looked at compliance and non-compliance of public

procurement procedures not all factors have been dealt with within the institutions of learning

in Kenya. The aim of the Public Procurement Regulations of 2006 was to promote fairness,

transparency and nondiscrimination in procurement in public institutions with the main aim

of ensuring efficient use of public funds. However, studies reveal that even after the

enactment of the Regulations, there are losses of public funds that can be attributed to public

procurement. Further, studies indicate dissatisfaction among stakeholders brought about by

loopholes left by the Regulations which may be used by dishonest people to make the process

inefficient.

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This section deals with the research design, target population, sample and sampling

procedures, data collection instruments ,validity and reliability of the instruments,

procedure for data collection , and data analysis techniques.

3.2 Research design

This study was conducted through a descriptive survey research design. According to

Mugenda, & Mugenda (2003) a descriptive survey is an attempt to collect data from

members of a population in order to determine the current status of that population with

respect to one or more variables. The design investigated the factors influenced compliance

on public procurement regulations in public secondary schools in Nyamache district.

Descriptive survey design was appropriate for study, as it allowed the researcher to use few

projects to explain the influence of professionalism/ethics, training and awareness in

compliance in public secondary schools in Nyamache district. Furthermore a descriptive

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survey research is suitable since it considers issues such as economy of the design, rapid

turnaround in data collection and it‟s suitable for extensive research.

3.3 Target population

These are the individuals to be studied (Mugenda&Mugenda,1999). The study involved 47

public secondary schools in Nyamache district. These comprised of all 423 tendering

committee members of public secondary schools in Nyamache district. The tendering

committee of each school consist of 9 members (deputy principal, head of procurement unit

and 6 heads of departments).

3.4 Sampling Frame

The sampling frame included the list of 47 public schools in Nyamache district. It also

consisted of tender committee members of the 47 schools in the county.

3.5 Sample Size and sample selection

According to Best and Kaln (1998), the ideal sample should be large number to serve as

adequate representatives of the population and small enough to be selected economically, that

is in terms of subject availability. In this research a sample was selected from 423 school

tender committee members. Stratified random sampling was used to stratify the 47 schools in

Nyamache district into three divisions; Nyacheki with 15 schools, Nyamache with 18 schools

and Kionyo with 14 schools. Simple random sampling was used to select 30% of the schools

in each of the three divisions (Nyamache 6, Nyacheki 5 and Kionyo 4) making a sample size

of 135 respondents. This sample size was appropriate according to Gay (1992), who states

that a sample of 10% of the large population is considered minimum while a sample of 20%

may be required for smaller populations.

3.6 Data collection instruments

As advanced by Warwick et al(1975), methods chosen for data collection should provide

high accuracy and convenience of obtaining data from the respondents . In this study, the

researcher used closed-ended and open-ended questions. Questionnaires were used as

instruments to collect data.

3.6.1 Questionnaires

The questionnaires was used to collect written information from literate respondents, and

those quite able to answer items adequately(Mugenda& Mugenda, 1999).In this study

questionnaires were used to collect information on compliance for procurement regulations in

public secondary schools in Nyamache district. The questionnaire, which contained both

closed and open ended questions, formed the main instrument for data collection.

3.6.2 Interview schedules

According to Mugenda & Mugenda (1999) an interview schedule is a set of questions that the

interviewer asks when interviewing. Open-ended interviews were carried out to supplement

the questionnaires. Interview schedules involved face to face meetings with the interviewees.

They were used to collect information from the tendering committee members.

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3.6.3 Validity of instruments

According to Borg and Gall (1989), validity is the degree to which a test measures what it

purports to measure. To enhance validity, the researcher exposed the instruments to experts in

research for judgment. The researcher also conducted a pilot study whereby inappropriate

questionnaire items were discarded, rephrased and or merged. The piloting was conducted in

Nyamache district, respondents from two schools not among the sampled was selected

randomly. The questionnaires were presented to the members of the school tendering

committee members.

3.6.4 Reliability of instruments

According to Mugenda and Mugenda (1999) reliability is a measure of the degree to which a

research instrument yields consistent results or data after repeated trials. Reliability in

research is influenced by random error, of which if it is high, reliability is low. To assess the

reliability of instruments, test-retest technique was used. The research instruments were

presented to the two schools selected for a pilot study the result was recorded, the same

instruments were presented to the same group after two weeks and the results for both tests

were correlated. The scores from the two testing periods were correlated and a reliability

index was found to be 0.875. Reliability index above 0.8 generally indicates good consistency

(Borg &Gall, 1989).

3.7 Data collection procedure

For the purpose of this research, and in order to achieve the objectives both primary and

secondary data was used. The secondary data contributed toward background information,

while primary data was collected by administering the research instruments after sought

permission from the relevant authority, mainly from the Ministry of Higher Education

(department of research) and letter of introduction from Jomo Kenyatta University of

Agriculture and Technology. The researcher had to assure the respondents‟ confidentiality of

the information given which enabled to fix date of data collection. The researcher

administered the questionnaire and conducted interviews schedules to the sampled

participants. The researcher gave adequate time to participants to respond to the

questionnaires.

3.8 Data Processing and Analysis presentation

The data was analyzed by using quantitative approach using descriptive statistics. The

responses that were received from the questionnaires and interview schedules conducted were

organized, tabulated and analyzed using simple frequencies and percentages. Data was

presented in descriptive form supported by means, tables, frequency distributions and

percentages. Researcher used likert scale as parameter to measure the variables. Care was

taken by the researcher to note the number of times view was expressed and the number of

respondents that expressed that view. This formed the basis for drawing conclusions.

4.0 RESULTS AND DISCUSSION

4.1 Introduction

This section presents analysis done in relation to the study objectives and research questions

in the first section of the paper under the topic; “Factors influencing compliance of public

procurement regulations in public secondary schools in Nyamache district”.

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The researcher prepared 135 copies of questionnaire for this study that were issued to 135

respondents. The response rate was 88.88 percent which is a good response rate that one can

depend on to make conclusion and recommendation. According to Hagger et al., (2003), the

researcher should strive to achieve a response rate of 50 percent, 60 percent or 75 percent.

And the non response was 11.11 percent as shown in table 4-1

Table 4-1: Showing Response Rate of Respondents

Response Frequency Percentage (%)

Actual Response 120 88.89

Non response 15 11.11

Total 135 100

4.2 Demographic Information

The researcher used four demographic items in the questionnaire; Age, gender, educational

qualification, marital status and work experience. The respondent‟s responses are as below.

4.2.1 Respondent’s Age

Table 4-2-1 shows that most respondents were in the age group 40-49 comprising 39.2

percent followed by age bracket of 50 and above with 30 percent , the age bracket 30-39 with

26.7 percent and 20-29 comprising 4.1percent this implies that most of the employees are

aged 50 years and below. This gave the implication that the majority were able with enough

experience in matters of [PPDA].

Table 4-2-1 Respondent‟s Age Bracket

Age Frequency Percentage (%)

20-29 5 4.1

30-39 32 26.7

40-49 47 39.2

50 and above 36 30

Total 120 100

4.2.2 Respondent’s genders Table 4-2-2 shows that majority of the respondents were male comprising 73.30 percent

while male were 26.66 percent this implies more males are employed than females.

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Table 4-2-2 Respondent Composition According to Gender

Gender Frequency Percentage (%)

Male 88 73.3

Female 32 26.66

Total 120 100

4.2.3 Respondent’s Educational Qualifications

Table 4-2-3 below shows that the level of education was as follows; none had a certificate,

15.83 percent of the respondents were diploma holders while majority of the respondents

were degree holders 75 percent with 15.8 percent being post graduates while 0.83 percent

were holding other qualification. This gave the implications that majority of tendering

committees that were learnt agrees with [PPDA].

Table 4-2-3 Respondent’s Educational Qualifications

Education Level Frequency Percentage (%)

Certificate 0 0.0

Diploma 10 15.83

Degree 90 75.0

Post Graduate 19 15.83

Others 1 0.83

Total 120 100

.4.2.4 Respondent’s Work Experience

Table 4-2-4 shows the number of years the respondents have worked for the school, 41.7

percent have worked there for below 5 years, 40 percent have worked for the organization

between 5 and 0 years and 19.2 percent have worked for the ministry between 11 and 15

years while 5.8 percent of the respondents have worked for the school above 15 years.

Concurring with PPDR which included public secondary schools among the institutions

whose procurement systems were to be regulated by the Regulations. The Public

Procurement and Disposal Act granted teachers and subordinate staff the power to control the

tendering and procurement process in public schools by setting of Tendering Committees to

oversee the whole process of procurement. This was also aimed at decentralizing the

procurement process which was a preserve of Principals for a long time.

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Table 4-2-4 Respondent’s Work Experience

Number of Years Worked Frequency Percentage (%)

Below five years 50 41.7

Between 5 and 10 years 40 33.3

Between 11 and 15 years 23 19.2

Above 15 years 7 5.8

Total 120 100.00

4.3 Ethics on Compliance of Procurement Regulations

The respondents were asked to answer questions on the influence of ethics on compliance of

procurement regulations in public secondary schools using 7 items in the questionnaire as

shown below.

4.3.1 Findings on how Purchase Requisitions are handled as per the regulations

Table 4-3-1 shows that 4.2 percent strongly agree there is handling of requisition as per the

procurement regulations while 30 percent agree that requisitions are handled following the

regulations, 25 are not sure whether requisition are handled as per the regulations while 35

percent disagrees with 30 strongly disagreeing this means that purchase requisitions are not

handled as per the procurement regulations. The results agree with a study by KACC, which

noted that public officials distort the Regulations to restrict the participation of interested

firms in procurement, or still direct the outcome of others and are as shown in table 4-3-1.

Table 4-3-1: Respondent’s on whether Purchase Requisitions are handled as Per the

Regulations

Response Frequency Percentage %

Strongly Agree 5 4.2

Agree 30 25

Undecided 25 20.8

Disagree 35 29.2

Strongly Disagree 30 25

Total 120 100

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4.3.2: Response on Whether the PPDA Procedures are followed in Schools

Table 4-3-2 indicates that 12.5 percent strongly agree that PPDA procedure are followed 16.7

percent agree that PPDA procedures are followed 20.8 percent are not sure whether PPDA

procedure is adhered to with 40 percent disagreeing that PPDA procedures are followed

while 18.3 strongly disagreeing with the statement this implies that PPDA procedures are

followed. This agrees with Gelderman et al., (2006) stipulate that compliance occurs when

the target performs a requested action, but is apathetic about it, rather than enthusiastic, and

puts in only a minimal or average effort.

Table 4.-3-2: Response on Whether the PPDA Procedures are followed in Schools



Agree 20 16.7

Undecided 25 20.8

Disagree 48 40

Strongly Disagree 22 18.30

Total 120 100.00

4.3.3 Response on whether the procurement regulations followed help in procuring of

quality goods and services

Table 4-3-3 shows that 9.2 percent of the respondents strongly agree that goods and services

procured are of quality, 12.5 percent also agree that the goods and services procured are of

quality while 11.7 percent are undecided 45.8 percent of the respondents disagree goods

procured are of quality while 18.3 percent strongly disagree. Most employee‟s think that

goods and services are being procured are of quality because of the PPDA procedure‟s put in

place, this implies that products procured are of quality.

Table 4-3-3 Responses on whether the procurement regulations followed help in

procuring of quality goods and services



Agree 15 12.50

Undecided 14 11.70

Disagree 55 45.00


Total 120 100.00

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4.3.4 Response on whether weak enforcement measures of procurement law contribute

to unethical practices

According to the results of table 4-3-4 below, 29.2 percent of the respondents thought that

weak enforcement measure of the law contributed to unethical practices with 33.3 percent

agreeing while 4.2 percent were undecided 12.5 percent disagreed and 16.7 percent strongly

disagreed this indicates that weak enforcement measures of the law contributes to unethical

practices. KPMG International carried out after the introduction of the Regulations, it was

still found out that public procurement still suffers from fraud and misconduct, This with

(KPMG,2008). And study by KACC, also noted that public officials distort the Regulations

to restrict the participation of interested firms in procurement, or still direct the outcome of

others.

Table 4-3-4 Response on whether weak enforcement measures of procurement law

contribute to unethical practices in public secondary schools



Agree 40 33.30

Undecided 5 4.20

Disagree 15 12.50


Total 120 100.00

4.3.5 Response on whether moral degradation in the society cause unethical conduct

among school tendering committee members

Results from table 4-3-5 below shows that 34.2 percent of the population strongly agreed that

moral degradation in the society causes unethical conduct with 28.3 percent agreeing while

8.3 percent were not sure with 12.5 percent disagreeing that moral degradation in society

causes unethical conduct and 16.7 percent strongly disagreed this means that the respondents

agree that moral degradation of the society contributes to unethical conduct. This agrees with

Lan, Riley and Cayer, (2005) report that finding, hiring and retaining dedicated, energetic,

and ethical employees with special skills is always hard.

Table 4-3-5 Response on whether moral degradation in the society cause unethical

conduct among school tendering committee members



Agree 34 28.30

Undecided 10 8.30

Disagree 15 12.50


Total 120 100.00

4.3.6 Response on whether unethical practice bidder contributes to non-compliance to

procurement regulations in your school

According to the results in table 4-3-6 below, 38.3 percent of the respondents strongly agreed

that unethical practice of bidder contributes to unethical practice of employees with 26.7

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percent also agreeing while 7.5 percent were undecided. 13.3 percent disagreed that unethical

practice of leader contributes to unethical practice of employees while 15.0 percent strongly

disagreed this gives the implication that conduct of bidder can affect the conduct of school

tendering committee.

Table 4-3-6 Response on whether unethical practice bidder contributes to non-

compliance to procurement regulations in your school



Agree 34 28.30

Undecided 10 8.30

Disagree 15 12.50


Total 120 100.00

4.3.7 Responses on whether schools have ever handled cases of un-ethical practice in

procurement of goods and services

According the results shown in table 4-3-7 below, 79.2 percent of the respondents indicated

that they have handled a case of un-ethical practice in their schools while 28.8 indicated that

they have not handled such cases. Some of unethical practices cited by the respondents

include corruption, favoritism, fraud, extortion and sexual harassment, bribery with the

respondents citing greed, low payment, and lack of effective reporting system as the main

causes of unethical practices. This is in line with a study by KACC (2007) that public

officials distort the Regulations to restrict the participation of interested firms in procurement,

or still direct the outcome of others.

Table 4-3-7 Responses on whether schools have ever handled cases of un-ethical practice

in procurement of goods and services

Responses Frequency Percentage (%)

Yes 95 79.2

No 25 20.8

Total 120 100.0

4.4 Influence of Awareness on Compliance of Procurement Regulations

The respondents were asked to answer questions on the influence of awareness on

compliance of procurement regulations in public secondary schools using 6 items in the

questionnaire as shown below.

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4.4.1 Response on whether awareness level relates to compliance of procurement

regulations in secondary schools

According the results shown in table 4-4-1 below, 79.2 percent of the respondents indicated

that there awareness levels relates to compliance of procurement regulations in secondary

schools while 28.8 indicated that they do not relate. This result agrees with a study by De

Boer and Telgen (1998) that during the early days of the inception of public procurement

regulations in The Netherlands, many municipalities could not comply to the regulations

because they were not familiar with them.

Table 4-4-1. Response on whether awareness level and compliance in procurement

regulations in secondary schools


Yes 95 79.2

No 25 28.8

Total 120 100.0

4.4.2 Response on whether there are guidelines to support the procurement from the

ministry of education

The respondents were asked to state whether there are any guidelines to support the

procurement process from the ministry of education, 70.8 percent of the respondents

indicated that there are guidelines to support the procurement process, 8.4 percent of

respondents indicated that there are no guidelines and 20.8 percent of the respondents were

undecided. The results are as shown by the PPOA (2007), the introduction of the legal and

regulatory procurement framework; the establishment of the PPOA as an oversight body; the

development of a framework for contract administration and the new appeals mechanism

were among those aspects of the procurement system rated as having been positively affected

by the Regulations. The major obstacle however, has been inadequate regulatory compliance.

This is in line with De Boer and Telgen (1998) who confirms that non-compliance problem

affects not only the third world countries but also countries in the European Union. As shown

in table 4-4-2.

Table 4-4-2 Response on guidelines to support the procurement process from the

ministry of education

Response Frequency Percentage

There is a guideline 85 70.8

No guideline 10 8.4

Undecided 25 20.8

Total 120 100.0

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4.4.3 Knowledge of procurement rules and regulations contributes to non-compliance of

procurement regulations in schools According to the results in table 4-4-3 below, 14.2 percent of the respondents strongly agreed

that the knowledge of procurement rules contributes to compliance of procurement

regulations in secondary schools with 6.7 percent also agreeing while 8.3 percent were

undecided. 41.7 percent disagreed while 29.2 percent strongly disagreed this gives the

implication that knowledge of procurement regulations can affect the compliance in school

tendering committees. The results agree with Hui et al., (2011) while analyzing procurement

issues in Malaysia established that procurement officers were blamed for malpractice and

non-compliance to the procurement policies and procedures which are as shown in table 4-4-

3.

Table 4-4-3 Response on knowledge of procurement rules and regulations contributes to

non-compliance of procurement regulations in schools



Agree 8 6.70

Undecided 10 8.30

Disagree 50 41.70


Total 120 100.00

4.4.4 Response on whether the suppliers meet the schools specifications of quality

products

According to the results in table 4-4-4 below, 12.5 percent of the respondents strongly agreed

that the suppliers meet the schools‟ specification of quality products with 8.3 percent also

agreeing while 6.7 percent were undecided, 29.2 percent disagreed while 35 percent strongly

disagreed this gives the implication that majority of suppliers do not meet the schools‟

specifications of quality of products. The results agreed with PPOA. The results are as shown

in table 4-4-4.

Table 4-4-4 Response on whether the suppliers meet the schools’ specifications of

quality products



Agree 10 8.3

Undecided 08 6.7

Disagree 35 29.2

Strongly Disagree 42 35

Total 120 100

4.4.5 Response on whether the members of the tendering committee are familiar with

the procurement procedures and regulations

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According to the results in table 4-4-5 below, 10 percent of the respondents strongly agreed

that the members of the tendering committee are familiar with the procurement procedures

and regulations with 26.7 percent also agreeing while 12.5 percent were undecided, 40

percent disagreed while 10.8 percent strongly disagreed this gives the implication that

majority of the members of tendering committee are not familiar with the procurement

procedures and regulations. This findings concur with Lan, Riley and Cayer, (2005) that

hiring and retaining dedicated, energetic, and ethical employees with special skills is always

hard.

Table 4-4-5 Response on whether the members of the tendering committee are familiar

with the procurement procedures and regulations


Strongly Agree 12 10

Agree 32 26.7

Undecided 15 4.5

Disagree 48 40


Total 120 100

4.4.6 Response on steps followed in schools on procurement of goods and services

According the results shown in table 4.3.6 below, 25 percent of the respondents indicated that

procurement of goods and services is through local shopping, while 58.3 percent indicated

that the process is through competitive bidding, 12.5 of the respondents were undecided and

4.16 percent indicated others. It concurs with [PPDA].The results are as shown in table 4-4-6.

Table 4-4-6 Response on steps followed in schools on procurement of goods and services

Response Frequency Percentage (%)

Local Shopping 30 25

Competitive bidding 70 58.3

Undecided 15 12.5

Others 05 4.16

Total 120 100

4.5 The influence of Training on Compliance to Procurement regulations and

procedures in public secondary schools

The researcher sought to establish the influence of training on compliance to procurement

regulations and procedures in secondary schools. Using fives items in the questionnaires and

the respondent‟s responses are as shown in tables below.

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4.5.1 Responses on whether tendering committee members have ever attended

procurement training workshops/seminar held in the district or the school

The respondents were asked to state whether they have ever attended procurement training

workshops/seminars in their districts or schools, 12.5 percent of the respondents indicated

that they have attended while 87.5 percent indicated that they have never attended. The

results are as shown in table 4-5-1.this gave implication that the majority 87,5 percent have

not attended procurement training workshops contribute to non-compliance to procurement

regulation.

Table 4-5-1 Responses on whether tendering committee members have ever attended

procurement training workshops/seminar held in the district or the school


Yes 15 12.5

No 105 87.5

Total 120 100.0

4.5.2 Response on the number of times they have attended the procurement training

workshops/seminars

The respondents were asked to state the number of times they have attended procurement

training workshops and seminars. 50 percent of the respondents indicated that they have

never attended the procurement training workshops/seminar, 25 percent indicated that they

have attended once while 16.6 percent indicated to have attended 2-5 times and 8.4 percent

indicated to have attended more than five times. This agrees with Lan, Riley and Cayer,

(2005) that hiring and retaining dedicated, energetic, and ethical employees with special skills

is always hard.

Table 4-5-2 Response on the number of times they have attended the procurement

training workshops/seminars

Response Frequency Percentage

Never 60 50

Once 30 25

2-5 times 20 16.6

More than five 10 8.4

Total 120 100

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4.5.3 Response on whether the training/capacity building programmers’ attended meet

the school needs on procurement procedures

The study sought to establish whether training/capacity building programmer attended meet

the school needs on procurement procedures. 4.2 percent of the respondents strongly agreed

that training/capacity building programmers attended meet the school‟s needs on procedures

with 12.5 percent of the respondents agreeing while 4.2 percent were undecided, 50 percent

disagreed and 29.1 percent of the respondents disagreed. This result concurs with PPOA

(2007) that the available expertise at the procurement units did not meet the need for

specialized procurement knowledge despite there being steps towards developing a

professional procurement workforce.

Table 4-5-3 Responses on whether the training/capacity building programmer attended

meet the school needs on procurement procedures



Agree 15 12.5

Undecided 05 4.2

Disagree 60 50


Total 120 100

4.5.4 Responses on whether inadequate training on procurement procedures has

contributed to non-compliance in procurement regulations in schools

The study sought to establish whether inadequate training on procurement procedures has

contributed to non-compliance in procurement regulations in schools. 35 percent of the

respondents strongly agreed that inadequate training contributes to non-compliance in

procurement regulations in schools with 31.7 percent of the respondents agreeing while 12.5

percent were undecided, 15 percent disagreed and 25.8 percent of the respondents strongly

disagreed. The majority 66.7 percent agrees that inadequate training contributed to non-

compliance in procurement regulation .The result is as shown in table 4-5-4.

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Table 4-5-4 Responses on whether inadequate training on procurement procedures has

contributed to non-compliance in procurement regulations in schools


Strongly Agree 42 35

Agree 38 31.7

Undecided 15 12.5

Disagree 18 15


Total 120 100

4.5.5 Suggestions to the improvement of the procurement procedures and regulations in

public secondary Schools

The study sought the suggestions on how to improve the procurement procedures and

regulations. The responses are as shown in table 4-5-5.

Table 4-5-5 Suggestions to the improvement of the procurement procedures and

regulations in public secondary Schools

Suggestions Frequency Percentage (%)

Improve the effects of compliance on quality of

goods and services.

90 75

Improving the challenges facing the enforcement of

public procurement regulations in public secondary

schools

79 68.8

Enhance transparency and accountability 100 83.3

Improve the challenges facing e-procurement in

secondary school

110 91.7

Table 4-5-5, shows that 75 percent of the respondents suggested that the procurement

guidelines should be followed, 68.8 percent suggested that information sharing and

dissemination be improved, 83.3 percent suggested the need for transparency and

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accountability in procurement, 91.7 percent suggested the need to enhance training/capacity

building and resources to committee members, 41.7 percent suggested the need to sensitize

the stakeholders on public procurement regulations and 70.8 percent suggested the need to

enhance professional ethics among school tendering committee members and school

suppliers which agrees with De Boer and Telgen (1998) as quoted by Gelderman et al.,

(2006), one of the factors causes of non – compliance with procurement regulations is the

level of awareness with the procurement regulations. De Boer and Telgen (1998) assert that

during the early days of the inception of public procurement regulations in The Netherlands,

many municipalities could not comply to the regulations because they were not familiar with

them.

5.0 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

Under this section, the researchers summarizes the findings, concludes and recommends as

per the study objectives and the research questions in chapter one. From the study the

following were the level of compliance; 70.8 percent of the respondents indicated that there

are guidelines to support the procurement process, and 58-3 percent indicated that the steps

followed in schools on procurement of goods and services was through a competitive

bidding.

5.2 Summary

The study was conducted to find out the factors influencing compliance of procurement

regulations in public secondary schools in Nyamache district. The study involved 47 public

secondary schools in Nyamache district. These comprised of all 423 tendering committee

members of public secondary schools in Nyamache district. The tendering committee of each

school consists of 9 members (deputy principal, head of procurement unit and 6 heads of

departments). This study was guided by the following specific objectives;

1. To establish the influence of ethics on compliance of procurement regulations public

secondary in Nyamache district.

2. To evaluate the influence of level of awareness on compliance of procurement regulations

and procedures in public secondary schools in Nyamache district.

3. To investigate the contribution of staff training on compliance of public procurement in


5.2.1 The influence of ethics on compliance of procurement regulations in public

secondary schools

The findings revealed that ethics and procurement are closely related and that weak

enforcement of procurement laws has contributed to the unethical practices in public

secondary schools in Nyamache district. Also moral degradation, inadequate/low pay and un-

ethical practice of bidder has been cited as the major contributing factors of non-compliance

to procurement regulations in public secondary schools.

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Some of unethical practices cited by the respondents include corruption, favoritism, fraud,

extortion and sexual harassment, bribery with the respondents citing greed, low payment, and

lack of effective reporting system as the main causes of unethical practices.

5.2.3 The influence of awareness on compliance of procurement regulations and

procedures in public secondary schools

The findings revealed that awareness and procurement regulations are closely related and

most of the public schools have guidelines to support the procurement processes from the

ministry of education however majority of the tendering committee members lack or have

little knowledge (awareness) of the procurement regulations and procedures this has

contributed to non-compliance in public secondary schools in Nyamache district. The

findings also revealed that majority of the suppliers do not meet the schools‟ specifications of

quality products. Majority of public schools embrace competitive bidding in procurement of

goods and services however the process is marred with un-ethical practices such as

corruption, favoritism, fraud, extortion and sexual harassment, bribery and lack of effective

reporting system in selection and awarding of tenders to suppliers.

5.2.4 The Influence of Tendering Committees’ Training on Compliance of Procurement

Regulations in Public Secondary Schools

The findings revealed that majority of the tendering committee members have not attended

any procurement training workshops/seminars. The training/capacity building programmer

attended by committee members do not meet the schools‟ needs on the procurement

procedures. The findings also revealed that inadequate training of tendering committee

members on procurement procedures has contributed to non-compliance of procurement

regulations in public secondary schools.

Other factors discovered in the course of the study included; the effects of compliance on

quality of goods and services procured in public secondary schools, challenges facing the

enforcement of public procurement regulations in public secondary schools and challenges

facing e- procurement in public secondary schools.

5.3 Conclusion

From the above findings it was concluded that ethics, awareness and training influences the

compliances of procurement regulations in public secondary schools. The study

acknowledges the importance of ethics, awareness and training in compliance to procurement

procedures and regulations however; a lot needs to be done to improve ethical conduct,

knowledge of employees on procurement regulations and training because failure to comply

with the regulations school tendering committees and suppliers can lead to major losses for

the government funds. The suppliers to the schools also induce unethical practices like

corrupting the school tendering committee members and therefore strong enforcements of

laws should be implemented. The other factors discovered in field included; improve the

effects of compliance on quality of goods and services. The following new valuables found in

the course of collecting data: Improving the challenges facing the enforcement of public

procurement regulations in public secondary schools. Enhance transparency and

accountability. Improve the challenges facing e-procurement in secondary school.

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5.4 Recommendation As a result of these study findings, the researcher put forward the following

recommendations: It is important to offer ethics education to school tendering committee

members in order to ensure they serve in ultimate objectivity, accountability, and non

discrimination. The organization code of ethics should be well put in place and adhered to; in

order to guide the daily operations of school tendering committee and to provide them with

guiding principles. The school should train tendering committee, suppliers / bidders on the

proper procurement procedures and practices so as to create consistency and to reduce cost.

The PPDA should consistently evaluate and audit performance of schools tendering

committees so as to ensure purchases made are in compliance with the law of procurement.

5.5 Areas for further research

Further research should be undertaken on the following areas: effects of compliance on

quality of goods and services procured in public secondary schools, challenges facing the

enforcement of public procurement regulations in public secondary and challenges facing e-

procurement in public secondary schools.

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