CHAPTER TWO: LITERATURE REVIEW 2.0 Introduction This section critically review literature on the subject of the public procurement from different sources. In addition to this the concept of public procurement was defined and contextualized as it has been debated by different scholars. On the same, literature related to the types, impact, causes and challenges in the fight against corruption was discussed. 2.1 Definition Corruption carries a wide range of definitions. There is no comprehensive and universally and accepted definition of corruption. Generally corruption is referred to as the abuse of power for private gain . Corruption is also defined as the abuse of entrusted power for private gains . Corrupt practice is the offering, giving, …show more content…
Procurement is one of the fundamental links in the supply chain of any organization. If this link is not managed efficiently and effectively, serious downstream challenges abound . Public procurement was a central area of spending where corruption stakes were high and that public procurement represented over 80% of the world's merchandise and commercial services. Public procurement is the function of government that is most prone to corruption, particularly in developing countries, where there is insufficient transparency and competition . Corruption in public procurement takes place at each stage of the procurement process. From the early stages of procurement planning to contract implementation, the procurement process is rife with opportunities for corruption, with evidence suggesting that in environments characterized by a lack of transparency and high monitoring costs, bribery plays a critical role in determining which firms win public contracts. According to Transparency International, the losses associated with public procurement bribery are estimated to exceed $400 billion per year …show more content…
While this impacts negatively on most of the segments of the society, it is suggested that the poor are more vulnerable both in terms of being easy targets for being subjected to extortion, bribery, double-standards and intimidation as well as in terms of being hit by the negative and harsh consequences of corruption on country's overall development processes. So, in addition to the negative impact of corruption, there is also an element of disproportionality and inequality. The circumstances that provide fertile ground for corruption tend to be poverty, bureaucratic inefficiencies and rigidity, and weaknesses in ethical conduct among public officials . The challenges in the fight against corruption include the following: institution incapacity, the ACB a body which is charged with the responsibility of arresting corruption in Malawi is understaffed in terms of legal expertise. Lack of independence, the ACB to proceed with prosecution it must obtain consent from the Director of Public Prosecution
When dealing with corruption, first question to ask or to clarify is what corruption is. NSW Research (2002) describes corruption anything from gaining materialistically by virtue of position (for eg. getting a special discount at stores) to engaging in ‘direct criminal activities’ (eg. selling drugs). Newburn (1999) believes that there is a thin line between the definition of ‘corrupt’ and ‘non-corrupt’ activities as at the end, it is an ethical problem. For common people, however, bribery generalises corruption.
Bribery occurs when money, services, goods, information, or anything else of value is offered with intent to influence a person’s actions, decisions, or opinions of the accuser. Charges can be brought against an individual, whether they offered the bribe or accept it. Bribery and public corruption cases frequently make headlines new stories daily. Bribes can take the forms of gifts or payments of money in exchange for favorable treatment like awards of government contracts (Mince-Didler, n.d.). Government officials tend to gain a huge incentive with bribery while serving their term. Other forms of bribes may include privileges, services, various goods, property and favors. Bribes are always intended to influence or alter the actions of individuals with political and public corruption (Mince-Didler, n.d.).
Corruption, what is it and why it seems to thrive in the world of business…specifically government contracting? The Marriam-Webster dictionary defines “Corruption” as “impairment of integrity, virtue, or moral principle” (vulnerability to bribery); “improper and unlawful conduct intended to secure a benefit for oneself or another” (“corruption,” 2010). All over the world, there are stories of corruption from money laundering, unjustly awarding government contracts, and bribery. Government acquisitions have become increasingly more susceptible to corruption, which inevitably has a bearing on how effective fiscal policy can be. Contracting is the term the government uses to perform government acquisitions; this is the primary way government tax revenues are spent. While corruption can take place in any phase of the contracting process, it seems to be most prevalent during the initial evaluation & selection phase. Other areas of concern include acquisition planning, when decisions are made on how a contract is to be solicited, some acquisitions are set aside as sole source (a specific contractor). Furthermore, abuse can also occur once the solicitation process has been completed and the contractor has been selected. This form of abuse includes lack of performance, renegotiations on contracts, over-billing, and non-compliance just to name a few. To gain a better understanding of the current representation of corruption in government contracting, it would be valuable to take a look at several areas that have had or continue to have a direct impact on government contracting. These areas include the history of government contracting and why it was implemented, the contracting process, a specific corrup...
al 14). The most visible impact of such corruption is the fact that the cost of delivery in the water and sanitation sector rises. This includes operation and maintenance costs (Asís et. al 36). Since corruption is illegal, such activities are often performed ‘behind closed doors,’ where it cannot be observed directly (Asís et.
Of these major ethical risks, existing criminal laws regulate contractors’ offering or receipt of gifts and misuse of government property. With respect to gifts, criminal bribery laws would prohibit a contractor employee’s offering anything of value to a federal employee to obtain favorable treatment, and the Anti-Kickback Act would prohibit a contractor employee from accepting gifts from a potential sub-contractor or other party that are aimed at improperly obtaining favorable treatment under the contract. With respect to misuse of property, traditional criminal laws against larceny and embezzlement would prohibit a contractor employee’s misappropriating public property, theft & fraud, Improper use of Government Property, bribery and influence peddling, divulging confidential information, immoral conduct and federal criminal law prohibits a contractor employee’s misusing or abusing government
In the United States, individuals in all positions of the private sector, public assistance, and government agencies have remained entwined in arrays of corruption. Corruption comes in a variety of forms stated by Wikipedia, which include “bribery, extortion, cronyism, nepotism, patronage, graft, and embezzlement” (Wikipedia). Thus, corruption is a weapon that undermines the credibility of public organizations, attacks the integrity of justice, and damages civilization.
Corruption is the opposite of integrity. It is the practice is of engaging in fraudulent or dishonest behavior when holding a position of authority. It is an abuse of power or authority for personal gains, at the expense of societal gains. This is why corruption is a crime in many jurisdictions. The most common examples of corrupt activities are embezzlement of funds and bribery.
Some studies show that there are other external factors that promotes rent-seeking. One of these determinants is natural resources. A study covering the period 1980 to 2004 and 124 countries, found that natural resources lead to increase in corruption, especially when the democratic institution is weak (Bhattacharyya and Hodler, 2009, p. 608). This is known as the “resource course.” Instead of the state to use its natural resources to further develop and to create sustainable economy, officials in resource-rich countries tend to seek for bribery when awarding contracts. One of the most famous cases of such malpractices is the Brazil Petrobras scandal. In the $2 billion corruption scandal, 54 people were accused of taking bribes
Bribery is wrong, and it would be almost instinctive to point at the benefits of impartially functioning public servants and incorrupt corporations to our democratic society as justification. However, in this imperfect world where bribery is rife in varying degrees, is it possible to express this notion convincingly? Certainly 'because the UK Bribery Act says so' is far less persuasive to a council planning office in Shanghai than in London, and indeed in compliance with section 7 of the Bribery Act 2010 which relates to commercial offences, it is essential that this question is engaged with on a corporate scale and without assertion through dogma. Accordingly, this essay will argue that elements wrong with bribery are inclusive of both moral and economic considerations. Moreover, in conjunction with international mandates, advent of aggressive legislation such as that of the UK Bribery Act 2010 is representative of global efforts to eliminate bribery. Hence, it follows that bribery can never be considered a normal part of business because it is economically unsustainable in the long term.
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
This essay will attempt to explore the relationship between the two from the definitions, causes, consequences and the solutions. Corruption can be defined as the abuse of public power for private gain. (World Bank, 2004) Corruption is attracting a lot of attention around the world, and is a growing international and regional concern. According to Corruption Around the world (Tanzi, 1998), in its end-of-year editorial on December 31, 1995, The Financial Times characterized 1995 as the year of corruption.
Corruption is viewed as one of the world’s biggest problems as it occurs in every part of the world and also hinders the development and good governance of many developing countries, a small group of elites who are largely unaccountable seize new opportunities to be corrupt, these opportunities range from public procurement to nepotism . This essay will discuss how various national integrity systems like parliament, parliamentary
Montesh, M. (n.d.). Conceptualizing Corruption: Forms, Causes, Types and Consequences. Retrieved May 4, 2014, from
Corruption is one of the major issues nowadays and is a clear example and consequence of the actual society and culture. A manifestation of this global phenomenon is the construction industry where corruption is really widespread and interconnected with other industries.
Corruption and fraud is a relevant topic in South Africa and will continue to be so until it is able to be limited. Corruption is committed mainly by people in power as they neglect and take advantage of this power in order to better themselves at the expense of others. Fraud and corruption is the wrongful or criminal deception that results in financial or personal gain. Government officials, police officers and some unexpected individuals such as law officials have been known to commit corruption and fraud. There have been cases of corruption in the 2014 elections and the political parties have seen that it is something the community is concerned over. Each party has addressed this concern and suggested ways in which to limit this corruption. Not only is corruption morally wrong, but it causes trust problems between the community and people in power, the people who are meant to help society. (1)