Corruption in Procurement

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UNIVERSITY OF DAR ES SALAAM BUSINESS SCHOOL|
AN ASSESSMENT OF CORRUPTION IN THE PROCUREMENT PROFESSION IN GOVERNMENT: CASE IN TANZANIA.| |
BY|
BERNARD, HELLEN|
REG. NO. 2009-06-00929 |

RESEARCH PROPOSAL SUBMITTED FOR APPROVAL TO CARRY OUT RESEARCH FOR THE DEGREE OF MASTERS OR BUSINESS ADMINISTRATION.|

Table of Contents
1.0 INTRODUCTION
1.1 background3
1.2 STATEMENT OF THE PROBLEM4

2.o research aim6
2.1 RESEARCH OBJECTIVES6

3.0 RESEARCH QUESTIONS………………………………………………………………………………………………………………………6 3.1 RESEARCH HYPOTHESIS.7

4.0 LITERATURE REVIEW
4.1 CONCEPTUAL LITERATURE…………………………………………………………………………………………………8
4.2 THEORETICAL FRAMEWORK……………………………………………………………………………………………….10
4.3 EMPIRICAL LITERATURE……………………………………………………………………………………………………..12

5.0 METHODOLOGY……………………………………………………………………………………………………………………………….14

REFERENCES………………………………………………………………………………………………………………………………………….17

1.0. INTRODUCTION
1.1 Background
The Tanzania Government has long realized the importance of public procurement to the economic development of Tanzania and hence to the fulfillment of key objectives within the national Poverty Reduction Strategy. To this effect, Tanzania was one of the first countries in Sub-Saharan Africa to enact a law modeled on the UNCITRAL model law. Since 1996, when the first country procurement assessment report (CPAR) was carried out, the Government has been working closely with the World Bank and other development partners to enhance the economy and efficiency of its procurement system and to make it more transparent and accountable. The Government has long acknowledged that there is rampant corruption in Tanzania and has been fighting hard to reduce it. It is estimated that at the national level about 20 percent of the government expenditure on procurement is lost through corruption, mainly through kick-backs and bogus investments that have to be written off. Considering that public procurement accounts for about 70 percent of the entire government expenditure budget, this translates to a loss of TShs 300 billion (USD 300 million) per year, enough to finance the combined annual recurrent budgets of the ministries of health and education. Clearly such a loss is economically unsustainable. Major losses occur in construction and supply contracts, which are the major avenues for corruption, particularly at the local government level. The need for enhancing the transparency of the procurement system cannot therefore be overemphasized. The Government of Tanzania is fully aware that its public procurement is still weak and needs to be strengthened substantially to enable it to ensure that the procurement laws and institutions become effective tools in the efficient and transparent management of public funds.             Strategic management in the public sector begins by looking up toward politics -the current expectations and aspirations of citizens and their representatives and the older political agreements formally enshrined in the legislation that defines public managers' mandates for action. Corruption had been inculcated in the political culture of most underdeveloped countries; while, it still elicits the criticism and opposition of the public, it has nonetheless been accepted as a fact in the political life.            One of the primary areas of corruption is in the procurement process. Grounded on the idea that, the bread and butter of politicians exists in this aspect, the procurement process has been the locus and target of most politicians aiming to get a slice of the cake. In third world countries, this part of the cake proves to be the life of people. The foreign aid given by international organizations like the World Bank and the International Monetary Fund and the government revenue from taxes is easily lost once the budget is distributed to departments and the “purchase” of equipments and...
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