Methodology

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This section presents the methodological focus that guided the researcher. The specific areas included research design, area of study, sample size, sampling procedure, data collection methods and instruments and data processing and analysis. The section ends with problems to the study.

3.1 Research Design

A descriptive research design was presented; emphasizing both what was raised in the literature and the opinions of respondents about the awareness of the procurement law and detection of malpractices

3.2 Study Area

The study was carried out at Kiruhura district. The place was considered ideal because it is a recently created district with a considerable number of actors-both staff and suppliers.

3.2 Study Population

Employees as well as some suppliers were selected for the study.  The study population was all the employees like top management, middle, and lower management of Kiruhura district management and their suppliers because all the procurements are done in conjunction with suppliers. 60 respondents who included 30 (employees politicians and civil servants) from Kiruhura district local government and 30 suppliers were involved in the study, making a sample size of 60 respondents.

3.3 Sampling Design

The sample design used by the researcher was the purposive sampling technique. This technique was chosen by the researcher to avoid bias in selection of suppliers. Purposive sampling was used for key informants from staff because the respondents had relevant experience and professional training. It also ensured adequate and appropriate information from stake holders in the procurement function at Kiruhura.

3.4 Sample Size

The sample size was 60 which constituted of suppliers and employees (politicians and civil servants).

3.5 Data Collection Instruments

The major instruments for data collection were questionnaires and interview guide. Surveys were just one part of a complete data collection and evaluation strategy. The major method of data collection for the study was the survey, which was done using selected instruments like questionnaires. The questionnaire provided respondents with ample time to comprehend the questions raised and hence, they were able to answer factually.

3.5.1 Questionnaires

The questionnaire was used to collect quantitative data. The researcher administered the questionnaires to management and staff, which were designed basing on study objectives and questions. Respondents who could read and write filled the questionnaires themselves. The questionnaires were close ended and were considered convenient because they were administered to the literate and its anonymous nature fetches unhindered responses.

3.5.2 Interviews

Qualitative data was collected from the informants using interviews. The interview guide was structured. The interviews were held with management and suppliers, and took approximately thirty to sixty minutes. These were noted to be the best tools for getting first hand information /views, perceptions, feelings and attitudes of respondents. Both formal and informal interviews were used to get maximum information from the different respondents to participate in the research.

3.6 Reliability and Validity of data

Data analysis in this study focused on data validity and reliability. To establish the validity of the questions, pre-testing was done amongst the selected categories of respondents. Their comments were incorporated in the final instruments to suit the data requirement of the study. The final amended research instruments were reviewed jointly by the researcher and the supervisor. Reliability was checked using the test –retest practice advocated for by Amin (2005). In other words, the questions were put to course mates and their comments noted, they were then presented to the respondents and their views were compared with those of the course mates. On receipt of the questionnaires, manual editing was done, followed by coding. Frequency count of different variables was done and this gave the number of occurrences and percentages out of total occurrences.

3.7 Sources of Data

Both primary and secondary data was used. Data was mainly from respondents, district documents accessed, and internet and from the published sources of literature.

3.8.1 Primary Data

Primary data is data obtained from direct contact with respondents, through observation and face-to-face interviews. This data, comprised of all the responses achieved through questionnaires, interviews and observations were collected from respondents.

3.8.2 Secondary data

Secondary data is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). This comprised of literature related to procurement law and stakeholder awareness as well as procurement malpractices in relation to the case study. Secondary data was sourced because it yields more accurate information than obtained through primary data, and it is also cheaper

3.9 Data Collection Procedures

Upon receiving the University permission to carry out research, the area of study was visited for purposes of familiarization.  The researcher sought permission with staff and when allowed, to proceed with research, questionnaires were issued and interviews carried out with the selected staff. Documentary evidence from both primary and secondary sources of data was considered; taking account of what was reported procurement law and fraud.

3.10 Data Processing and Analysis

Quantitative analysis of raw data was done. Raw data took a variety of forms, including measurements, survey responses, and observations. Tabular and percentage calculations were used to list questionnaire responses. Analysis and interpretation of the raw data was based on the responses and opinions. Qualitative and Quantitative data analysis techniques were used to manipulate data during the analysis phase to draw conclusions. The method was ideal in providing the theoretical framework which was central in the construction of the study.

3.10 Limitations of the Study

The researcher was hampered by the following problems.

Questionnaire retrieval, leave alone filling it, took a lot of time and patience, which consequently delayed the whole research process. The benefits of such an exercise were explained to the respondents for easy cooperation. This affected the results of the study although adequate contacts were established for this purpose.  A study of this nature involved hoarding of information arising from the desire to hide true procurement and awareness information.

Another limitation was lack of enough money to use in the field. This made the researcher interview a lesser number of respondents.

Another limitation to the study was time schedules mismatch between researcher and supervisor. This was overcome by arranging supervisor-researcher convenient time.

Time constraints by the respondents were overcome by the researcher, who arranged appropriate time with respondents.

CHAPTER   FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.1 INTRODUCTION

The purpose of the study was to establish whether the awareness of the procurement law is effective in detecting fraud at Kiruhura district local government.

The objective of the study were to establish the level of general awareness of the procurement law, establish the impact of level of awareness on fraud detection, identify the Procurement phases that  are prone to fraud, and to determine ways of controlling fraud in procurement at Kiruhura District Local Government.

This chapter presents analysis and interpretation of findings. The analyzed data shows a strong correlation between the variables. The data was analyzed using frequency and percentage tables.

4.2 BACKGROUND INFORMATION

This section presents general information about respondents, this was established by looking at their serving capacity, their duration of service in the district, knowledge of the procurement law, participation in procurement phases, responsibilities they held in the procurement cycle, knowledge about fraud, its forms and detection by committees or individuals, training levels, and their education levels.

4.2.1 Serving capacity of respondents at the district.

The respondents were required to reveal their capacities in which they served the district in order to find out whether they were involved and relevant to the study topic, and results were noted as follows;

Table 1: Showing respondents’ serving capacity at the district

Source: Primary data

Results from table 1 above showed that out of the 60 respondents, 10(17%) were politicians who included LCV chairperson and councilor, speaker, and council members; majority were suppliers; and 20(33%) were civil servants (full time employees) with the district. Results imply that majority respondents were civil servants and suppliers. This implies that such civil servants and suppliers are always involved in the procurement activities at the district so they had enough knowledge about what takes place during procurement at Kiruhura district.

4.2.2      Respondents’ duration of service with Kiruhura district

Respondents were asked to present their length of period they had served the district and different range categories were selected to them where they ticked and recorded as follows; this was done to establish whether respondents had enough knowledge and exposure to the district practices basing on their time of stay with the district.

Figure 1:  Showing how long the respondents had served the district

Source: Primary data

From figure 1 above, the number of respondents who had served the district for less than two years was 10; some had dealt with Kiruhura district for a period between 3-5 years while most of them had served the district for 6-10 years and the district being in existence for less than 10 years means that no respondents had served it for over 10 years. In effect, all respondents had served and had been in transaction with the district for reasonably long time, which gives credibility to their experience and knowledge about the topic of study.

• Respondents views on whether they were well conversant with the procurement law.

To establish the knowledge respondents had about the procurement law, the researcher tested whether they were conversant with the law where the following observations were made.

Figure 2: Showing whether respondents were well conversant with the procurement law.

Source: Primary data

Findings from figure 2 above showed that more than a half of the respondents said they had knowledge about the procurement law, therefore they were conversant with it, as compared to only 15(25%) who said they had no knowledge about the law. In effect, most of the respondents were well conversant with the procurement law, and had vast knowledge and experience in respect to the procurement law.

• Respondents views on whether they have ever participated in any phase of the procurement management cycle

To discover whether respondents were involved in procurement management cycle, the researcher asked them to reveal their participation in the cycle, and below are the responses they presented.

Table 2: Showing whether respondents have ever participated in any phase of the procurement management cycle

Source: Primary data

The researcher found out that majority of the respondents said they had ever participated in different phases of the procurement management cycle, while 10(17%) who said they had never. The position implies that a very big fraction of respondents was involved in procurement activities at the district. Thus they had relevant information about the topic under study.

• Respondents responsibility in the procurement cycle

The researcher further found out respondents’ responsibilities in the procurement cycle by asking them their parts they played with regard to the cycle and the following observations were made.

Table 3: Showing respondents responsibility as far as procurement cycle is concerned

Source: Primary data

The researcher discovered that respondents 5(8%) were members of the contracts committee and evaluation committee each, there was an accounting officer, as well the procurement officer of the district, most of them were suppliers; while 6(10%) were working in the procurement and logistics department. A few were negotiation committee members and contract management staff. In effect, all steps in the procurement cycle were represented and covered in the sample, which gave credibility to the validity of data in the study.

• Respondents views on fraud in procurement at the district.

Respondents were required to reveal if they had ever heard of fraud in procurement at the district. This was done to establish if fraud was their at the district and results were recorded as follows;

Table 4: Showing whether respondents have ever heard of fraud in procurement at the district.

Source: Primary data

Findings from table 4 above indicated that an above average number of the respondents said they had ever heard of fraud in procurement at the district, as compared to some few who said they had never heard of it. The results imply that there was fraud at the district as evidenced by the relatively large number of support to the above position and basing on the fact that Kiruhura is a new district.

4.2.7      Forms of fraud at the district.

Respondents were required of letting the researcher know of the forms of fraud at the district, and different forms were given as recorded bellow; this was done to find out if respondents were well versed with know about fraud at the district.

Figure 3: Showing respondents ideas about how fraud manifests itself at Kiruhura district  

Source: Primary data

Results from the figure above revealed that a larger percentage of respondents said fraud at the district manifested itself in form of bribery, 15(25%) talked of fraud in form of embezzlement; those who identified extortion as a form of fraud at the district were 10(17%); as well as others who said there was favoritism at the district during procurement. Results imply that majority of the respondents knew about the presence of fraud at Kiruhura district as seen from the different forms they identified, thus indicating the level of fraudulent practices at the district to a big extent.

• Detection of fraud by the committee or individuals.

Here respondents were asked to identify whether fraud detection was done by individuals or committees in order to find out their level of involvement in fraud detection at the district, to which they responded as follows;

Table 5: Showing respondents views on whether the committee individuals have ever detected any fraud   

Source: Primary data

The study revealed that majority of the respondents said they had ever detected fraud in procurement at the district, as well as anther few who said they had never. This result implies that a large number of respondents were involved in procurement activities therefore had been able to detect fraud whenever it arose at the district.

4.2.9      Respondents views on training in procurement

The researcher required respondents to note whether they had attended any training in procurement in order to find out if the district was offering training to its staff and employees and even to some suppliers, this was established basing on the results below as were given by the respondents.

Table 6: Showing whether respondents had ever attended any training in procurement.

Source: Primary data

Results from table 9 above indicated that most of respondents said they had ever attended training in procurement, save for a few who said had never had any training. Results imply that respondents including suppliers undertook procurement seriously therefore had to go for training.

• Respondents views on how many times they had training in procurement.

The researcher went ahead to find out the frequency of training at the district by asking how many times such training was provided to them and observations were made as follows;

Figure 4: Showing respondents’ training in procurement.

Source: Primary data

The researcher discovered that 20(33%) of the respondents said they very often had the training, a large number of them said training was often done as well as 12(20%) who reported that training was rarely done. Respondents said whenever procurement was going to be done; the district would first put training workshops to enlighten staff about how to go about it. The suppliers noted they were sensitized on what was required of them through such training workshops at the district. The picture suggests that the district tries to inform suppliers and staff about procurement activities.

4.2.11   Level of education attained by respondents

To find out if respondents were well knowledgeable and reasonable enough, the researcher asked them to reveal their education levels to which they answered as follows;

Figure 5: Respondents’ level of education

Source: Primary data

From the figure 5, results show that 10(17%) of the respondents had masters degrees, most of them were 1^st degree holders, 13(22%) were diploma holders, while 3(5%) of the respondents were below diploma (certificates, A and O-level). From these results, it was observed that majority of the employees and suppliers at Kiruhura district were 1^st Degree holders and masters’ degree holders. This implies that they were more knowledgeable and had more experience about the topic under study.

From the above observations, it was revealed that majority of the respondents had worked with the district for fairly a long period of time, they were well qualified, and were actively involved in procurement activities at the district, which meant they had enough knowledge about procurement practices and were well conversant with the procurement law.

4.3 Level of general awareness of the procurement law.

The first objective was to establish the level of general awareness of the procurement law at Kiruhura district, and below are the study findings:-. This was done by analysing whether respondents had attended any workshops, their roles in the procurement cycle, guidance by the PPDA, deviation from the PPDA, difficulties in interpreting the Act, as well as seeking of interpretation from the authoritative body.

4.3.1 Respondents’ attendance of any workshop on procurement legal frame work

Respondents were asked their views on whether they had ever attended any workshop on procurement legal frame work in order to find out knowledge of respondents about the procurement legal frame work, and they gave the following results.

Table 7: Showing the respondents’ attendance of workshops on procurement legal frame work

Source: Primary data

Results from table 7 above indicated that majority of respondents said they had ever attended workshops on procurement legal frame work, while 15(25%) said had never attended any workshop. Results imply that Kiruhura district uses workshops to sensitize its staff about procurement. Respondents explained that it’s through training and workshops that suppliers and staff get to know more about the legal frame work of procurement.

4.3.2 Respondents roles in the procurement cycle at the district  

By asking respondents of their roles in the procurement cycle, the researcher wanted to identify whether they were relevant to the study, and if all the respondents were involved in the cycle. This was responded to as bellow;

Figure 6: Showing respondent’s views on whether they have served in the following roles at the district.

Source: Primary data

From table 13 above, the study confirmed that respondents 15(25%) had served in the contracts committees of different procurement activities, those who had served as members of evaluation committees were 25(42%), as well 20(33%) who said they had ever served in the negotiation teams. In effect, all the respondents had ever served in relevant sections of procurement, and this means they had enough knowledge about the whole process of procurement.

4.3.3 Respondents views on guidance by the PPDA Act during procurement at the district.

The researcher required respondents to reveal if they were always guided by the PPDA during procurement duties in order to know if they were acting according to the stipulated regulations and guidelines in the Act and regulations of the governing body of all public procurement practices, and they reacted as follows;

Table 8: Showing whether respondents were always guided by the PPDA act and regulations while executing your duties at the district.

Source: Primary data

Findings from table 8 above revealed that most of the respondents said they always guided by the PPDA Act during execution of their duties at the district, where 10(17%) said they were not guided by the Act and regulations. The interviewees said all public procurements in public institutions must be governed by the PPDA Act and regulations, and Kiruhura being one of them means it had to follow the guidelines in that Act. Therefore, these results imply that all procurements at Kiruhura district were done in accordance to the PPDA Act and regulations.

4.3.4 Respondents views on deviation from the PPDA Act and regulation.

Respondents were required to present the frequency of deviation from the PPDA Act during performance of their duties and the following observations were made.

Figure 7: Showing how often respondents deviated from the PPDA Act and regulations.

Source: Primary data

The researcher found out that most of the respondents 40(66%) said rarely deviated from the PPDA Act, 10(17%) said they regularly deviated and another 10(17%) noted that they had never at all deviated from the Act and regulations. Respondents said the PPDA was always followed although sometimes factors like political influence were always present ant therefore led to such deviations from the Act. The suppliers noted there was favoritism and conflict of interest at times and certain suppliers were given first priority and considered first before others during some procurement activities. This suggests that such deviations perpetuate to a lot of fraud in procurement at the district.

4.3.5 Respondents views on difficulties in interpreting the Act and the Regulations.

The researcher asked whether the respondents found difficulties in interpreting the Act in order to find out if they were well versed with all aspects of the Act and if the district was carrying out massive sensitization of the employees about the Act, where different views were given as follows;

Table 9: Showing the respondents’ found difficulties in interpreting the Act and the Regulations

Source: Primary data

Results from table 9 above indicated that more than a half of respondents said they still found difficulties in interpreting the Act and regulations, while 23(38%) said they do not find any difficulties. Results imply an average performance as far as people sensitization on the PPDA guidelines is concerned at Kiruhura district and that the district is not doing enough to educate its staff and suppliers about the knowledge of procurement. The implication is that most of the fraud at the district at the district could be as a result of ignorance of staff and management and suppliers about the application of best procurement practices.

4.3.6 Respondents views on seeking interpretation from the PPDA

The researcher established that respondents always sought interpretation and guidance from the PPDA by asking how often they did so, and their views were recorded as follows;

Table 10: Showing how often respondents often have sought interpretation from the PPDA.  

Source: Primary data

The study confirmed that most of the respondents said they very often sought interpretation from the PPDA, very few reported that they rarely did so, while another 19(32%) noted that they often sought such interpretation from the procurement governing body. Respondents said the in cases of disagreements between different parties; professional guidance was sought from the PPDA which is the overall governing body of all public procurements in the country. This implies that the district tries as much as possible to implement the guidelines of public procurement as stipulated in the PPDA Act though there are still some cases of fraud.

Table 11: Showing the level of general awareness of the procurement law.

Source: Primary data. 

The table 11 results showed that 27(35%) strongly agreed, and majority agreed that public bid opening is done; while very few were not sure. None of the respondents strongly disagreed or disagreed with this position. The respondents explained that opening of bids is supposed to be done publicly according to the PPDA Act. This result implies that Kiruhura district follows the PPDA Act guidelines in carrying procurement

The study also found out that 15(25%) strongly agreed that the process is done in full view of all bidders, most of them agreed and 9(15%) expressed their uncertainty about this fact, while 11(8%) disagreed. These results are an indication that staff at Kiruhura is aware of the guidelines and regulations that govern public procurements throughout the country.

From the data, it was established that majority of the respondent strongly agreed that Bid contents are read out; 24(40%) agreed, contrary to 8(13%) who disagreed. No responses were recorded in strongly disagree and not sure. The results reflect the importance of conforming to the PPDA guidelines and that Kiruhura district was implementing the guidelines.

Further results from the table indicated that 10(25%) of the respondents strongly agreed that contents are stamped by the chairperson, 20(33%) agreed, where as 12(20%), 18(30%) were not sure and disagreed respectively. This above average performance shows that Kiruhura district is aware of the stipulated guidelines and enforces the procurement law.

As to whether withdrawn bids are returned to the bidders, 26(43%) strongly agreed, 18(30%) agreed, while 16(27%) disagreed. There were no respondents who disagreed, or who expressed uncertainty about the matter. It can be observed that when a bid is withdraws from the bidding process, it is marked “withdrawn” and then at the bid opening date it is opened and returned to the owner.

As to whether the chairperson and secretary record and sign the bids, the researcher discovered that majority 22(37%) respondents strongly agreed, 17(28%) agreed, where as 15(25%) disagreed, while very few strongly disagreed.  They explained that in public procurement, when bid opening is done, all bids and records are recorded and signed by the chairperson. This excellent performance by the district shows that Kiruhura district adheres to the PPDA Act and guidelines as spelt out in the Act.

Majority of the respondent agreed that bid opening results are displayed for a month; 13(22%) strongly agreed, and 15(25%) disagreed while another few strongly disagreed and no responses were recorded from not sure. According to the PPDA Act, bid opening results are supposed to be displayed on public notice boards for a certain period depending on the complexity of the procurement being handled. The resulting implication therefore is that the district acts according to the PPDA guidelines and regulations.

On whether bids are safely kept for award evaluation, an average number of respondents strongly agreed, 22(37%) agreed, where as 10(17%) were not sure; and very few disagreed with this position. This means that after bids have been opened, they are kept safely and the next step here is to evaluate them so as a best responsive one is identified and contract award is done. This contributes a lot to the effectiveness of public procurement

In all, the performance of the district in respect to level of general awareness of the procurement was found to be very good as evidenced in areas like public bid opening, reading out of bid contents, returning of withdrawn bids to owners, and safe keeping of bids for evaluation, except a few areas like stamping of bids by the chairperson and displaying of bid opening results which were not adequately supported.

4.4 Impact of level of awareness on fraud detection 

The second objective of the study was to establish the impact of level of awareness on fraud detection at Kiruhura district. This was done by looking at the level of fraud reporting, checking anomalies in the field as well as handling them, respondents’ competence to observe field anomalies at sites and how often they did so, and the following results were given:

4.4.1 Respondents’ ideas on fraud reporting in the district

Respondents were asked their views on whether any cases of fraud been reported in the district in order to establish whether the district was committed to eliminating fraud and the following results were obtained.

Figure 8: Showing whether any fraud cases have been reported in the district.

Source: Primary data

From figure 8 above, it was noted that more than a half of respondents agreed there had been cases of fraud in the district, while 22(37%) said such cases have never been reported in the district. Such results imply that Kiruhura district committed to fraud detection and elimination, however, being a new district, Kiruhura was prone to such cases since the staff could be new and therefore may not be well versed with procurement law and that senior staff could be influenced by high ranking political officers to engage in such fraudulent practices for their personal gains.

4.4.2 Whether respondents check and see anomalies in figures when doing procurements at the district  

Respondents were required to identify if they check and see anomalies in figures during procurements in order to determine their involvement in supervision and monitoring of contract performances at the district with results being given as follows;

Table 12: Showing whether respondents check to anomalies in figures when doing procurements at the district.

Source: Primary data

Findings from table 12 above revealed that a very large percentage of the respondents said they always check to see such anomalies during procurements at the district, where as few said they do not do. Respondents explained that it is through such careful checking that all errors can be detected and solutions determined in accordance with the PPDA Act and regulations, and Kiruhura district PDEs instruct their procurement staff to always check for such anomalies. Such results could be interpreted to mean that most of the procurements at Kiruhura district are done in accordance to the PPDA Act and regulations.

4.4.3 Respondents views on handling anomalies in table 20 above.

Respondents were asked to show how such anomalies were handled in order to find out if they were in line with the public procurement governing body, and different ideas wee raised as follows;

Table 13: Showing how these anomalies handled at the district.

Source: Primary data

From table 13 above, the study discovered that respondents 26(43%) said such anomalies are solved by reporting to the procurement officer of the district, a few of respondents 24(40%) reported that they report to the IGG for the necessary action, as well 10(17%) who said they seek guidance from the PPDA Act. They explained that the above three bodies are the most concerned parties which could offer best help as far as public procurement is concerned. And such results could as well mean that all the respondents knew the right bodies concerned with handling public procurement issues.

4.4.4 Respondents capacity and competence to observe field anomalies at sites during procurement of goods

Respondents were required to identify their capacity and competence to observe such field anomalies in order to establish their level of independence in their actions and that they were not being compromised and influenced by other political leaders with the following reactions being given as below;

Table 14: Showing whether respondents have the capacity and competence to observe field anomalies at sites during procurement of goods.

Source: Primary data

The study revealed that most of the respondents 41(68%) said they had the capacity and competence, while 19(32%) said they did not have such competence to observe field anomalies at sites during procurement of goods. Respondents who disagreed said most of observation is done by the senior staff who are the ones that do site or field visits, thus such anomalies remain a secret to them even when there if fraud in the process. This could further mean that such anomalies may not be observed especially when senior staff and political officers are the ones involved.

4.4.5 Respondents comments on how often they observe field anomalies at sites during procurement of goods

Respondents’ competence and capacity was established basing on how often they observed field anomalies at sites. This showed how they were involved in contract execution and management at the district with views noted as follows;

Figure 9: Showing how often respondents observe field anomalies at sites during procurement of g