PPDA ACT ON REDUCTION OF EMERGENCY PROCUREMENT

INTRODUCTION

1.1 Background to the study

Emergency situations arising from armed conflicts or natural disasters demand animmediate humanitarian response. Typically, thousands of human lives are at risk,infrastructure has collapsed, and state institutions are overwhelmed. The first priority isto identify and meet the affected population’s most urgent needs: food, water, shelter,sanitation, medicine, and protection. Purchase and delivery of the goods and servicesrequired involves an array of different actors, including the affected governments,donors, the United Nations (UN) and other international agencies, military personnel,private contractors, and non-governmental organisations (NGOs).

According to Virginia Department of Emergency Management, 2012 in case of emergency, a contract may be awarded without competitive sealed bidding or competitive negotiation; however, such procurement shall be made with such competition as is practicable under the circumstances. And in this case a written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file.

Emergencies are a phenomenon that human beings have very little control to overcome their occurrence. This according to Tanzania Procurement Journal supplement, 2009  is also recognized under the PPA, CAP 410 and what the Actrequires is “avoidance of emergency procurement whenever possible (Section 45(a)), thus emphasizing on proper procurement planning. This means, there will be cases where emergencyprocurement may have to be carried out. The Public Procurement Regulations provide methods and procedures for carrying out procurement including in emergency situations. Regulation 42 of the Public Procurement (Goods, Works, Non Consultant Services and Disposal of Public Assets byTender) Regulations, G. N. No. 97 of 2005 is a source of many debates on the efficiency of its application when dealing with emergency situation.

The legal frame work (PPDA Act and Regulations) establish the procurement methods under part VI of the PPDA Act and under part IV, division iii of the PPDA Regulations. Section 80 of the PPDA Act also determines competitive procurement as the default method of procurement in Uganda. However a 2007 report on the compliance and performance indicators for the Uganda procurement system indicated that only 33% of total procurements in 2005- 2006 was carried out through open tendering.

It is for this reason that the researcher will investigate the PPDA Act on reduction of emergency procurement.Therefore the subject matter of this research will be to find out; theprocedure followed during emergency procurement, steps taken by government to reduce emergency procurement and also identify challenges faced by PPDA in reducing emergency procurement in Uganda

1.2 Problem statement

In early coordination meetings following the onset of a crisis, corruption risks are rarely on the agenda. However, the potential for corruption to sabotage the best-intentioned efforts cannot be ignored. Corruption reduces the amount of available resources for lifesaving operations, impacts on quality of products and services, and diverts aid from those who need it most. It also has indirect consequences, such as reduced public support for humanitarian action. The misuse of entrusted power for private gain usually involves a payment made to obtain a deviation from the normaldecision-making process.

Therefore the subject matter of this research is to investigate the PPDA Act on reduction of emergency procurement in Uganda.

1.3 Main objective

To examine the PPDA act on reduction of emergency procurement

1.3.1 Specific objectives

1. To examine the procedure followed during emergency procurement in Uganda
2. To establish the steps taken by government to reduce emergency procurement

• To identify challenges faced by PPDA in reducing emergency procurement in Uganda

1.4 Hypothesis/ research questions

1. What is the procedure followed during emergency procurement in Uganda?
2. What are the steps taken by government to reduce emergency procurement?

• What are the challenges faced by PPDA in reducing emergency procurement in Uganda?

1.5 Scope of the study

The study will concentrate on emergency procurement procedures as stipulated in the Public Procurement and Disposal Act (PPDA) which regulates public institutions on procurement for goods and services.

The study’s main point of reference will be on emergency procurement procedure, steps taken by government to reduce emergency procurement.

1.6 Significance/ justification of the study

In Uganda there is no comprehensive study done after the introduction of public procurement act to examine its effect on reduction of emergency procurement by government institutions. The researcher therefore finds it vital to make an in-depth study of the PPDA Act on reduction of emergency procurement so as to provide yet another study source which can be used by other scholars and even various agencies while carrying out further investigation of the related topics.

The researcher hopes that the findings of the study will be used by the government and other policy makers to gain insight on ways of reducing emergency procurement.Furthermore, the findings of the study will enhance the researcher’s career by increasing her experience in research work and enable her to always have a practical approach to solving problem as the procurementcareer path requires.

1.7 Limitation of the study

The researcher faced a problem of inadequate funds given the fact the research exercise was not sponsored by the university.

Some respondents were illiterate. Instead of administering the questionnaire and pick it when the respondents were done fill it, researcher had to read for the respondents, interpret for them and then write down their answer to the various questions.

1.8 Definition of Terms

1.8.1 Public procurement and disposal of public assets act, 2003

An act to establish the public procurement and disposal of public assets authority to formulate policies and regulate practices in respect of public procurement and disposal activities and other connected matters

1.8.2 Emergency

According toUNCHR, 1998 emergency is described as any situation in which life orwell-beingwill be threatened unless immediate and appropriate action is taken, andwhich demandsexceptional measures.

Anemergency is the exceptional and widespread threat to life, health or basic subsistence,that is beyond the coping capacity of individuals and the community(Oxfam GB, 2003).

According to the PPDA act, 2011, emergency situation means a circumstance which is urgent or unforeseeable or a situation which is notcaused by dilatory conduct where—

(a) Uganda is seriously threatened by or actuallyconfronted with a disaster, catastrophe, war or anact of God;

(b) life or the quality of life or environment may beseriously compromised;

(c) the conditions or quality of goods, equipment,buildings or publicly owned capital goods may

seriously deteriorate unless action is urgently andnecessarily taken to maintain them in their actualvalue or usefulness;

(d) an investment project is seriously delayed forwant of minor items; or

(e) a Government programme would be delayed orseriously compromised unless a procurement isundertaken within the required time frame

1.8.3 Procurement

According to the Oxford Dictionary, Procurement is the process of obtaining supplies of something, especially for a government or an organization. It is also the process that is used to deliver construction projects in the construction industry (Ashworth and Hogg, 2000). The Procurement process embraces the following phases: initiation, preliminary design and development, detailed design, contracts and procurement, manufacture and construction, commissioning, operation and maintenance (McCaffer, 2001).

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This section presents a review of the existing literature with regards to the proceduresfollowed during emergency procurement, steps taken by government to reduce emergency procurement. It covers secondary materials related to the conceptual issues as well as definitional and other factors affecting procurement.

2.2 Principles of the Procurement

Bauld and McGuinness (2006) note that the key principles underpinning public procurement are:

1. a) Economy; value for money,
2. b) Ethical Standards,
3. c) Competition,
4. d) Transparency and
5. e) Accountability.

2.2.1 Value for Money

Value for money (VFM) is the most important principle of procurement. VFM in the public sector entails consideration of the contribution to be made to advancing government policies and priorities whileachieving the best return and performance for the money being spent (Bauld and McGuinness, 2006).

Sometimes the government is at liberty to consider other criteria than the lowest price; for example technical capabilities, qualifications of key personnel, and past performance records in awarding contracts to potential suppliers (Cummings and Qiao, 2003). Some of the barriers which need to be overcome in order to achieve VFM are weak governing bodies, politics, tradition, and lack of education and training programmes (Palmer and Butt, 1985). Procurement is a purchasing activity whose purpose is to give the procuring entity or project owner best value for money. For complex purchases, value may imply more than just price, for example, since quality issues also need to be addressed. Moreover, lowest initial price may not equate to lowest cost over the operating life of the item procured. But the basic point is the same: the ultimate purpose of sound procurement is to obtain maximum value for money.

Benchmarking VFM can often be very difficult. VFM is a very broad concept encompassing a range of factors, and it is very important to understand the implications it has for the public sector. Although VFM criteria often seem self explanatory, benchmarking VFM can be difficult where the subject matter is technically complex, requires sophisticated understanding and there is no universally accepted methodology to follow (Bauld and McGuinness, 2006)

2.2.2 Ethical Standards

Ethics is another important principle of government procurement. Purchasing professionals are held to higher standards of ethical conduct than people in other professions, yet some do not even know what is expected of them (Atkinson, 2003). If the workforce is not adequately educated in such matters, this may lead to serious consequences; including, breaches of codes of conduct. According to Atkinson (2003) there are approximately 500,000 professional purchasing people in the United States and only 10 per cent of these have been members of a professional Supply Chain Management Association which trains members in purchasing ethics, and the rest are not even aware that there are ethical andlegal standards involved in procurement.

Recent developments in the United States of America, the United Kingdom, and other developed countries have shown that the practice of making financial contributions to Party funds or to Members of Parliament in order to secure benefits are prevalent in both developed and developing countries (Rege, 2001). However, procurement related corruption tends to be a serious problem in developing countries rather than in developed countries. World Bank studies put bribery at over $1million per year accounting for up to 12 percent of the GDP (Gross Domestic Product) of nations like Nigeria, Kenya, Venezuela (Nwabuzor, 2005) and Sri Lanka. The main cause of corruption is poverty in these regions.

This has resulted in corruption among government procurement officials in developing countries such as Bangladesh, India, SriLanka, Nigeria and Venezuela. There is also a weak enforcement of the rule of law in these regions (Nwabuzor, 2005), and therefore urgent measures are needed to cope with the corruption in developing nations.

2.2.3 Competition

Competitive tendering is the means by which most goods and services are procured. Before moving on it is perhaps best to understand how competition occurs in procurement. For example, in Australia, if the Melbourne Ports Authority is interested in the purchase of Gantry Cranes, the Ports Authority will advertise and call for bids from potential suppliers. In this process there will be bids from major suppliers and a technical evaluation committee would be involved in the decision-making process while a tender board and technical evaluation committee would evaluate whether bids are in accordance with the technical requirements they have stipulated in the tender conditions.

In this process competition occurs. The supplier’s credibility in carrying out previous contracts of this nature, the price and the most competitive bidder will be awarded the tender. The most important information source for suppliers is the tender advertisement and, for the contracting authorities, the bids submitted and provision of inaccurate data will result in misunderstandings and increased costs (Erridge et al, 1999). The better the quality of information provided the less likely that it will result in an unsatisfactory purchase (Erridge et al, 1999, pp. 37-42).

2.2.4 Transparency

The function of transparency is also important in procurement and it refers to openness. Transparencytherefore is an essential aspect of ensuring accountability and minimizing corruption, and has gained prominence in Organizations for Economic Cooperation and Development (OECD) countries, and is particularly associated with the rise of the governance agenda as transparency is a core governance value (Smith-Deighton, 2004). Government procurement is one area where corruption is rampant in both developing and developed bcountries. (Nwabuzor, (2005). The recipients of clandestine payments may not only be the officials who are responsible for decision making but also ministers and political parties. Transparency requiresgovernments to adhere to higher standards of conduct by ensuring that conduct will be open to scrutiny(Smith-Deighton, 2004).The obligation to invite tenders, the transparency of the procedures used inawarding contracts and the right which the agreement would give to aggrieved suppliers to challenge the decisions would restrain both domestic and foreign suppliers from making under-the table payments and deter public officials and political parties from receiving such payments (Rege 2001, pp 485-515).

Transparency in government procurement will provide an assurance for both domestic and foreign investors that contracts will be awarded in a fair and equitable manner. In all markets, a lack of transparency in the sense of absence of information on rules and practices could operate as a barrier to trade and may affect foreign suppliers more than local ones (Arrowsmith, 2003). These rules would also ensure that goods and services are obtained at the most economic prices and thus lead to a reduction in costs.

According to Rege (2001) the most important benefit of transparent and open procedures is the impact which their adoption may have on the level of corruption in countries where it is widespread. Therefore, transparency promotes trust by allowing stakeholders to see and judge the quality of government actions and decisions (Smith-Deighton, 2004). Good procurement establishes and thenmaintains rules and procedures that are accessible and unambiguous. It is not only fair, but should be seen to be fair.

2.2.5 Accountability

The concept of accountability does not only apply to the public sector (Barrett, 2000). The Boards ofprivate sector organizations are also accountable to their stakeholders (Hughes, 2003). Public servants have to take the influence of politics into consideration in the implementation of their duties while the private sector gives more attention to the market mechanism (Stewart, 1999). Accountability, an important principle of government procurement, comes into play at both the national and international levels. At the international level, governments are often involved in trading activities and procure goods and services such as defence equipment, provide or receive aid, and operate diplomatic posts in other nations and the conduct of these activities results in financial risk exposures, and accountability problems.

At the national level public sector managers have to deal with a more competitive environment than has been the common practice in the past. The public is also demanding greater accountability and better service (Gunasekaran, 2005). Therefore, managing the risks associated with the complex competitive environment give rise to accountability problems (Barrett, 2000) as the roles and responsibilities of the participants in the process are not clear. Good procurement holds its practitioners responsible for enforcing and obeying the rules. It makes them subject to challenge and to sanction, if appropriate, for neglecting or bending those rules. Accountability is at once a key inducement to individual and institutional probity, a key deterrent to collusion and corruption, and akey prerequisite for procurement credibility.

Public service agencies strive to maximize overall ‘value for money’ for citizens. This requires consideration of issues such as client satisfaction, the public interest, fair play, honesty, justice and equity (Barrett, 2000; Korosec and Bartle, 2003). Recent theorists also point to the importance of public administration as a moral and ethical concern and recognize that administrative action is permeated by moral choices and are therefore models of not only technical and professional competencies but also of moral behaviour (Schlosser, 2003).

A sound procurement system is one that combines all the above elements. The desired impact is to inspire the confidence and willingness-to-compete of well-qualified contractors, suppliers and consultants. This directly and concretely benefits the procuring entity or project owner and its constituents, responsive contractors and suppliers or consultants, and the donor agency providing the project finance.

2.3 Basic Principles of Public Procurement

Competition and Economy

These principles are not to be considered as existing separate from one another, but rather as existing in close interdependency. That is to say, the EU competition principle derives from the notion that competition among several bidders leads to real market prices and conditions, which in turn in the majority of cases guarantees the public authorities that they are conforming to the principle of economic budgeting.

Transparency

According to (Trepte, 2007) the principle of transparency also serves the above purpose. Transparent processes are meant to ensure that all procurements by public authorities can be reviewed in order to make sure that they conform to the regulations prohibiting discrimination.

This principle goes hand in hand with the principle of competition, as only processes that are transparent can enable true competition and make distortions so apparent as to virtually prevent them. The transparency principle gives way to regulations such as those governing the publication of a tender notice and the public notification of the results.

Non-Discrimination

The principle of non-discrimination is also tightly interwoven with the principle of competition. It calls for equality in the treatment of all of the bidders – and this independent of whether or not they are domestic bidders or bidders from other Member States of the European Union. The latter are to have the same rights as domestic companies to offer, and ultimately to provide their services. All of the bidders are to be treated equally throughout all of the phases of the procurement process, thereby ensuring equal chances for all of them.

Special Support for Small and Mid-Sized Independent Businesses

The German assimilation of European law presents a certain exception to the principle of equal

treatment in the procurement process by its application of the principle of special support for small and mid-sized independent businesses, which consists of breaking down large orders into various “specific and partial lots”. That offers bidders a chance to compete who would otherwise not be able to do so, not being in a position to cover the whole range of services necessary to fulfil the order and/or not having the financial backing to do so. This special support principle allows them to compete for orders for services limited to the special kind they provide and for only a share of the entire project.

According to the PPDA Act 2003, all public procurement and disposal shall be conducted in accordance with the basic princliples set out in sections 44 to 54 of the PPDA Act 2003. That is to say non- discrimination, transparency, accountability and fairness, compettion, confidentiality, economy and efficiency, ethics , preference and reservarion, open competitive bidding, best evaluated bids, public accessibility, publication of opportunities and information.

2.4 Types of Emergency Procurements

The nature of the emergency will determine what pre-award action may be taken: first for an emergency purchase required to protect personal safety or property, efforts should be directed to finding a source and directing the contractor to proceed; however, such procurement shall be made with such competition as is practicable under the circumstances (Code of Virginia, § 2.2-4303F). This does not relieve the agency from negotiating a fair and reasonable price and subsequently documenting the procurement action.

Secondly for other types of emergencies, competition should also be sought to the maximum extent practicable. Vendor’s qualifications may be checked and verification of insurance coverage, if applicable, information on warranty offered, and any other data pertinent to the procurement. An agency may procure materials, equipment or supplies above its delegated authority with the advance written approval of DGS/DPS without requisitioning through DGS/DPS.

2.5 Emergency Procurement Procedure

These procedures aim to enable a more timely response to urgent need for aid in emergency situations while ensuring compliance with the general procurement principles. And according to Emergency procurement varginia chapter 9, the procuring body shouldtake the following steps during emergency procurement of goods and services.

Step 1: assess the nature of emergency

1. Personal safety/property in danger

Locate a source, obtaining as much competition as is practicable and direct vendor to proceed. Agency may exceed delegated authority without DGS/DPS approval.Agency head, or designee, must document and approve basis for actions taken and rationale for vendor selection.Issueaward document. (see Step 7).

1. Other emergencies

Proceed to Steps 2-8.

Step 2: contact vendor

Competition should be sought to the maximum extent practicable. Call, fax, or electronically solicit. Fax back form may be used (Annex 5-I). If phone quote, keep record of item/service description, quote price, delivery terms & times, F.O.B. point, contact name, and quote date. Insure freight and delivery costs are included in determining total cost.

Step 3: Evaluate quotes.

If only one price is received, price reasonableness should be determined (see 4.10).

Step 4: if purchasing service obtain information

If a service purchase, then consider following:

a.) If unsure, verify vendor’s liability insurance if work is to be performed on state owned/leased property.

b.) Verify applicable contractor’s license and note the license number on telephone quote sheet.

c.) Conduct reference checks.

Step 5: award

Select contractor. Urgency may necessitate a verbal order followed by issuing an award document. Obtain all agreements in writing.

Step 6: Document the selection

Agency must document basis for emergency actions taken, and rationale for vendor selection. Document must be signed by Agency head, or designee.

Step 7: posting requirement

Publicly post on the web site for 10 days, stating that contract is being awarded on an emergency basis, identify what is being purchased, the contractor selected, and the date the contract was, or will be, awarded

Step 8: invoice approval

Research and challenge all charges appearing unreasonable. Hold challenged invoice in abeyance, pending final settlement. When invoice is received without complete price agreement, inform vendor that final payment is contingent on determination of price reasonableness of all invoiced charges. If settlement is not reached, advise vendor to process claim in accordance with Vendors Manual procedures.

2.5 Steps to reduce emergency procurement

The United Nations (2004) article 9(2) provided that a procurement system should ensure adequate internal control and risk management. The procurement system should have installed an arrangement of integrated systems that link various functions such as budgeting and planning, procurement procedures and the contract or project implementation process.

Emergency procurement varginia, in many cases, procurement planning can reduce the need for using emergency procedures. Each agency should prepare and keep current a list of local sources of goods and services that might be needed in an emergency. Information on rates and charges should be established and agreed upon in advance. In addition, “on call,” “as needed” annual contracts for various services may be competitively bid to expedite action, ensure adequate support, and reduce the cost of meeting emergency requirements

2.6 challenges faced in reducing emergency procurement

By emphasizing the continued threat to human life, procurement officials can abuse fast-track “emergency” procedures as a cover for corruption. In situations where some agencies are operating under competitive bidding procedures and others are not, corrupt suppliers will naturally align themselves with willing partners from the latter group.

Finally, there is a danger that the inconsistent procurement requirements imposed by different donors – often for the same projects – will cause stretched agency administrations to emphasise correct paperwork over substantive controls.

2.4.3 Challenges in public procurement systems

According to (Stergiou, 2009) large amounts of public funds are expended to purchase goods and services from the private sector and most of the procedures are conducted manually, where two risks are eminent i.e. human error, which exceptionally high considering the numerous processes and movement of documents that stretches over a long time frame and equally potent risk of corruption during the stages of the procurement process. At each stage of the public procurement process, there are particular risks involved;

Stage 1 risks

1. In adequate choices of procedures
2. Lack of adequate assessment and planning
3. Insufficient timeframe preparation
4. Inconsistent practices across the bidders in the first stage

Stage 2 risks

1. The selection of suppliers have inconsistent bidders’ information
2. Conflict of interest situations are prevalent
3. Lack of access to record procedures
4. Biased towards favoured bidders
5. Collusive bidding resulting in incorrect prices

Stage 3 risks

1. Contract administration has insufficient monitoring process
2. No transparency in contracts being awarded
3. There lack of separation of financial duties especially involving the payment process.

Types of corruption schemes prevalent could be classified under 5 main streams namely

1) Kick backs -is where illegal secret payments are made as a return for a favour or a bribe and usually calculated in the form of a percentage, a share, a cut, a commission or a payoff. These include; bias in contractor selection, preferential treatment for certain contractors, contractors allowed to quote higher prices, frequent use of the same contractors and  receiving of regular gifts from contractors

2) Bid rigging: it happens when bidders collude with one another and keep the bid amount at a predetermined level especially in a competitive public tender environment. This intentional manipulation is done by the members of the bidding group who submitted common bids. The interested bidders agree in advance the following details; who would submit competitive bids, at what prices, who would win and how the profits would be shared among the bidders. This process would involve public officials, who are responsible for conducting the tender and who are willing to collaborate with the bidders in the bid rigging fraud. Some of the common red flags of bid rigging according to Ware et al (2007) are;

a.Different bidders submitting similar bidding value

b. The winning bidder delegating or subcontracting part of the contract to the losing bidders

c. Evidence of physical alteration of more than one bid

d. Same handwriting and information content found in the tender documents

e. Apparent connections between bidders

f. Similarities between specifications among the bidders and the winning contractors’ product or services

3) Using ‘front’ or ‘shell companies’: The shell company is an entity created by an employee usually in the name of a spouse, a close relative, a friend or even using a fictitious name, with the intention to commit crime (Ware et al, 2007). Often the shell company proves to be nothing more than a fabricated name and a post office box or mail drop address that an employee uses to collect the fruits of the fraud. Using the shell companies, the corrupt officials could ‘fix’ the tender processes and put artificial pressure on the other bidders in order to ensure that their company would secure the contract being awarded and benefit from it.

4)Excess payments made to legitimate vendors: this occurs when dishonest vendors do the

following; either they submit multiple bills on different contracts or on work orders for work performed, or even though the expense was incurred only once they intentionally submit false bills or they submit duplicate or inflated invoices. A fraudulent public official could collude in this scheme and share in the profits by writing similar work orders under different contracts and accepting the multiple billings. Thus, this would create unnecessary surplus claims to the vendors involved, known as ‘excess payments’

5) Misrepresentation of facts: the bidders or vendors lie about their previous contracts secured or made an exaggeration of their previous experience in order to secure the contract from the government. In this case the public officials conspires with the selected bidder to enable the bidder to earn a contract which in actual fact the bidder would not have won if the rules of the tender had not been modified to the bidders advantage .

Red flags related to this scheme

a.The absence of minutes of the meeting for the process of bid opening by the procuring public official

b. Minutes of the meeting were not verified in the original bidding form by the relevant

authorized committee members and/or by the respective bidders who participated in the

bidding process

c. Excessive number of corrections, such as alterations, amendments and modifications in the bidding form submitted

No stringent follow up by the public procurement officials to ensure that all the information on the documents submitted were authentic and accurate.

The context and consequences of corruption in emergency procurement

The purchases may follow on from long-term agreements with specific firms, based on sound pre-emergency tender procedures describing the cooperation to take place once an emergency occurs. However, many requirements cannot be anticipated, or organized in advance, and rapid acquisitions will often be necessary. Corruption is linked to a host of negative consequences for both beneficiaries and the providers of aid (Lambsdorff, 2006).

When bribery is involved, the contract is not necessarily awarded to the firm offering the best price/quality combination. In addition to affecting the quantity of goods and services, corruption can have a huge impact on quality as well. Some form of business benefit is a main motivation behind bribery, and hence corruption can increase the market power of the best bribers. Higher profits and more contracts enable a firm to augment further its market power through other (honest) mechanisms, such as more extensive advertising or a reduction in prices to squeeze out competitors in certain segments of the market. The ultimate outcome of more market power for one or a few firms will be higher prices for all customers. That is, all donors and agencies will have to pay more for the required products (whether they are involved in corruption or not). Furthermore, as the urgency of an emergency decreases bargaining power anyway, rapid procurement is particularly prone to inflated prices and expenditures (Le Billon, 2005).

However, corrupt procurement officers are not only biased in their choice of supplier, but also in their prioritisation of procurement projects. Bribes will seldom be obtainable in all markets, and a corrupt official may shift the focus of acquisition to sectors where bribes and personal benefits are easier to gain. Besides, if the bribe is calculated as a percentage of the total contract, the corrupt official is likely to exaggerate investments in certain products or services, at the expense of other needs. This could result in the acquisition of too many computers or power generators, or an overstated concern with shelter construction while real priorities lay elsewhere. In addition to the tangible consequences described, corruption can undermine trust in the individual agencies involved, and in the humanitarian system as a whole. Media coverage of corruption may affect the way in which both beneficiaries and the donor public perceive aid providers. Those seeking to discredit particular agencies or interventions can exploit such reports. In some cases, exposure of corruption can lead to reduced donor support (TEC, 2006).

CHAPTER THREE

METHODOLOGY

3.1 Introduction

This chapter provides brief account of how the research will be carried out. The chapter describes among others, study area/location, sampling techniques, sample design, method of data collection, data processing and data analysis.

3.2 Research design

This study will use a descriptive study design to examine the PPDA act on reduction of emergency procurement in uganda. The study design will follow the use of inferential methods at a 5% level of significance and descriptive statistics.

3.3 Study area/ location

Kampala District is situated in the heart of Kampala. Its bordered by Mukono District in the East and Wakiso to the south, north and west. Population: the district has a total human population of close to 1.2 million. Main Town: it is a modernized city and the capital of Uganda. Area: covers an expanse of 197 sq. kilometers. Land and Vegetation: 8.6% of Kampala is open water, 0.04% forest and 8.3% wetland.

According to the provisional results of the 2014 national census, the district had a population of 1,516,210. The Uganda Bureau of Statistics estimated that the population had grown at a rate of 2.02 percent since the last national census in 2002. Kampala District is divided into five administrative divisions; Kampala Central, Kawempei, Nakawa, Makindye , and Lubaga Division

3.4 Data types and sources

The study will use both primary and secondary data. Primary data will be collected from the respondents and this will form a basis for analysis while secondary data will be obtained from the review of previous research articles and journals about the specific aspect under study

3.4 Population

According to (Mugenda, 2009) the population refers to an entire group of individuals, events or objects having a common observable characteristic. Mugenda and Mugenda (2003) defines a target population as that population to which a researcher wants to generalize the findings of a study.  Research will be carried out in the five divisions of Kampala and it will target the officers in charge of maintenance and procurement at each division headquarters.

3.5 Sample size and Sampling technique

With the use of the formula below, we can generate a sample of informed respondents about the three study objectives.

According to Mugenda & Mugenda (2003) for descriptive studies usually a sample of ten percent (10%) of the accessible population is enough.

10 x accessible population

100

= 10 x470

100

= 50

Therefore, the total target population for the research will be 50 respondents and 10 respondents will be from each division with in Kampala.

3.6 Method of data collection

The researcher will use self administered questionnaires to collect data. Key informant interviews will also be carried out in order to get in-depth data relevant to the study. The key informants will be employees in the supplies and maintainace departments with in each division in Kampala. The researcher will limit the number of questions to what she really needs to know and asking only about topics that are relevant to the participants.

3.7 Data processing and analysis

Questionnaires will edited and coded as necessary. This will followed by data entry using Microsoft excel and then exported to Statistical Package for Social Sciences (SPSS version 12 ) for analysis. Also data cleaning was done in the process of data collection, during and after data entry.

Descriptive statistics such as means, percentages and frequency distributions were used to describe data. Presentation of data was done on tables, pie charts and bar graphs.