Pocurement

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PROJECT WORK

NAME OF STUDENT:PATRICK NII-BOYE

REGISTRATION NUMBER:07085373

TOPIC:EVALUATION OF THE PUBLIC PROCUREMENT ACT(2003)ACT663 ON THE COST OF ACQUISITION OF GOODS.

(A CASE OF ELECTRICITY COMPANY OF GHANA-TAKORADI)

CHAPTER ONE

1.0. INTRODUCTION
This chapter highlights briefly on essential elements through which the study intends to be conducted. This includes the background of the study, statement of the problem, objectives of the study, the research questions, the significance of the study, the scope of the study, the organization of the study among others.  

1.1   BACKGROUND OF THE STUDY
In the past, public sectors in Ghana used to do their purchases without any procedure, many public officers especially the accountant procured from sources where they could gain personally but not where the organization will have the right material at the right price with the right quantity and delivered at the right time. These non-procedural purchases of materials in the public sectors in Ghana went on for some time until the then government of Ghana, under the leadership of his Excellency the former president John Agyekum Kufuor through the parliament of the republic of Ghana, enacted the six hundred and sixty-third act which was the public procurement act. The Public procurement act (Act 663) is a document that spells out the rules and procedures under which all public sector organizations in Ghana must go through before acquiring goods, works or services worth above a certain minimum. To clarify what public sector organizations are; the 1992 constitution of the republic of Ghana points out the organization that constitutes the public sector. For instance, the Customs Excise and Preventive Services (CEPS), Audit Service of Ghana, The Ghana Commercial Bank, The Agricultural Development Bank, The Ministries, The Electricity Company of Ghana and The 37 Military Hospital just to mention a few. In this case, public organization is an organization operating services of an economic and social character on behalf of government but enjoying an independent entity. The public sector organizations are not privately owned and operated. They are organizations established by the state with the aim of rendering services to the citizens of the country at a subsidized price. Most of these organizations are not profit oriented but rather focused on the provision of services, which if privately rendered will cost high  

1.2. STATEMENT OF THE PROBLEM
Officials (authorities) in the public sector although aware of the public procurement act 2003, do not fully comply with the rules and procedures spelt out by the procurement act to procure for their respective organizations. This suggests that, most public organizations have undermined the procurement act. The consequences however are that, the general public, pressure groups and international donors have tended to accuse the authorities in charge of public organizations of gross mismanagement and embezzlement of national resources due to lack of proper usage and implementation of the public procurement act of the Republic of Ghana, during purchases in these institutions. This study is therefore being conducted to assess the public procurement act 2003 (Act 663) evaluation and its impact on cost of acquisition on goods in the public sector; a case of Electricity Company of Ghana, Takoradi branch.  

1.3. OBJECTIVES OF THE STUDY
To get to the root of the problem stated above,thus “ gross mismanagement and embezzlement of national resources due to lack of proper usage and implementation of the public procurement act of the Republic of Ghana, during purchases in the public institutions”, the researcher seeks to achieve the following objectives; 1.      To identify the impact of the evaluation...
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