DETERMINANTS OF SUCCESFUL IMPLEMENTATION OF ETHICAL PROCUREMENT PRACTICES IN STATE CORPORATIONS (A SURVEY STUDY OF SELECTED STATE CORPORATIONS IN NAKURU TOWN)

Abstract

Lack of adequate procurement legislation as well as insufficient transparency and accessibility of the public procurement market has led to poor performance and diminished trust in the system. Procurement professionals need to acknowledge and devise strategies for managing all these complex challenges. The public procurement is marked with a lot of problems which include lack of transparency, political intrigues, lack of informed staff and many more. Unethical practices in public procurement damages the government organizations reputation, causes financial loss, and undermines the public’s confidence in the governmental structure and management. The purpose of the study was to establish the determinants of successful implementation of ethical procurement practices in state corporations. Specifically the study sought to establish the influence of record management, organization structure, employee skills and tendering process on successful implementation of ethical procurement practices in state corporations in Nakuru Town.The study adopted descriptive research design. The target population of the study was 53 employees derived from procurement, finance and internal audits department from the 5 selected state corporations in Nakuru Town. Since the target population was the less than 100 the study adopted census technique to include all the 53 targeted employees. Primary data was collected by use of structured questionnaires. Descriptive statistics such as percentages, frequencies, measures of central tendencies (mean) and measures of dispersion (standard deviation) was used to describe the characteristics of the target population. Data was presented in form of tables. The findings indicated there is a positive significant relationship between record management and successful implementation of ethical procurement practices as shown by a regression coefficient of 0.241. In addition the findings also indicate that there is a positive significant relationship between organizational structure and successful implementation of ethical procurement practices as shown by a regression coefficient of 0.219. The findings further indicated that there negative significant relationship between employee skills and successful implementation of ethical procurement practices as shown by a regression coefficient of -0.173. Lastly, the findings indicated that there is a positive significant relationship between tendering process and successful implementation of ethical procurement practices as shown by a regression coefficient of 0.201. From the findings the researcher concluded that majority of state corporations have a back-up of all the procurement records. The study further concluded that majority of the members from the procurement department in state corporations have not undergone sensitization training on the new PPAD Act 2015.The study recommended that state corporation ought to adopt modern technology in records management. They should also use software like the e-records for the safety of procurement records. State Corporation should organize training programmes for the procurement officials; this will equip them with the proper skills for effective procurement record management. The researcher suggested that further studies should be conducted on effect of ethical practices on procurement performance.