Research proposal sample
THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ADOPTION ON THE PREVENTION OF PROCUREMENT FRAUD: A CASE STUDY OF NSSF HEADQUARTERS, KAMPALA
CHAPTER ONE
1.0 INTRODUCTION
This chapter provides an overview of the study, including the background, problem statement, purpose, research objectives, research questions, scope, significance, and definitions of key terms.
1.1 Background
Information and Communication Technology (ICT) involves the use of computers, telecommunications, and the internet to send, receive, and manage information (Chaffey, 2007). Globally, ICT is of critical importance, with global spending on IT estimated at US $3.5 trillion, growing at 5% annually and doubling every 15 years. IT costs as a percentage of corporate revenue have increased by 50% since 2002 (Weele et al., 2010). ICT plays a vital role in the Fraud Management Lifecycle, with its effective application being crucial at every stage. Inefficient or inflexible systems, processes, or staff can hinder fraud prevention efforts, while robust ICT resources can significantly enhance the success of fraud management activities (Ernst and Young, 2000). ICT is defined as the automated acquisition, storage, manipulation, control, display, and transmission of data or information (Lysons, 2000).
Transparency International (2006) highlights that unethical practices such as corruption, embezzlement, and fraud are prevalent in developing countries, particularly in East and West Africa, which are among the most corrupt regions globally. However, countries like Singapore and China have made significant strides in reducing fraud. Singapore, for instance, has become one of the least corrupt nations due to strict penalties and strong government commitment to combating fraud. Similarly, China has seen a notable decline in fraud over the past decades.
According to the Association of Certified Fraud Examiners (2009), procurement fraud often involves falsifying documents, non-delivery of paid services, inflating procurement prices, and misrepresenting personal expenses as business expenses. The association notes that procurement fraud is perpetuated by ignoring procedures, rules, and regulations. For example, some procurement officers may simultaneously initiate procurement, select suppliers, and approve vouchers, creating opportunities for fraud. Additionally, suppliers may collude with employees or use relatives to supply goods at inflated prices.
1.2 Statement of the Problem
The National Social Security Fund (NSSF) is a government-mandated savings scheme established in 1985 under the NSSF Fund Act, Cap 222, to provide social security services to employees in Uganda (NSSF Records, 2010). NSSF employs e-procurement systems to enhance efficiency, cost savings, and transparency in procurement. Despite these benefits, the organization has faced significant procurement challenges. For instance, in 2008, NSSF was accused of procurement fraud in the acquisition of a 564-acre piece of land valued at 11 billion shillings, as the procurement process was not publicly advertised (New Vision, 27 October 2008). Furthermore, the PPDA audit report of 2012 raised concerns about irregularities in procurement activities, including the fumigation services contract.
These irregularities persist despite the presence of ICT systems at NSSF. This study seeks to examine whether the adoption of ICT has an impact on minimizing procurement fraud at NSSF.
1.3 Purpose of the Study
The purpose of this study is to determine the impact of ICT adoption on the prevention of procurement fraud.
1.4 Specific Objectives of the Study
The study is guided by the following objectives:
i. To evaluate the effects of ICT systems adoption on the prevention of procurement fraud.
ii. To identify the ICT systems installed at NSSF to detect procurement fraud.
iii. To assess the challenges of adopting ICT systems to prevent procurement fraud.
1.5 Research Questions
The study is guided by the following research questions:
i. What are the effects of ICT systems adoption on the prevention of procurement fraud?
ii. What ICT systems are installed at NSSF to detect procurement fraud?
iii. What challenges are associated with adopting ICT systems to prevent procurement fraud?
1.6 Scope of the Study
1.6.1 Content Scope
The study will assess the effects of ICT adoption on preventing procurement fraud, identify ICT systems used to detect fraud at NSSF, and evaluate the challenges of ICT adoption in fraud prevention.
1.6.2 Geographical Scope
The study will be conducted at NSSF headquarters, located at Plot 95, Kampala Road.
1.6.3 Time Scope
The study will cover the period from February to August 2017.
1.7 Significance of the Study
The findings of this study may assist NSSF’s procurement department in understanding the benefits of ICT in reducing procurement irregularities. Given Uganda’s high corruption levels, as reported by Transparency International (2006), the study may also help the government identify the causes of procurement fraud and enact relevant laws to address the issue. Additionally, the research may provide valuable insights for future researchers on ICT systems used to combat procurement fraud, aiding in the selection of effective systems.
1.8 Definitions of Key Terms
Information and Communication Technology (ICT):
ICT refers to the automated acquisition, storage, manipulation, control, display, and transmission of data or information (Lysons, 2003). It also encompasses the convergence of audio-visual, telephone, and computer networks into a unified system, offering significant cost savings and efficiency (William Melody et al., 1986).
Fraud:
Fraud is the crime of obtaining financial benefits through deception or misrepresentation. It involves intentional deception, concealment, or misrepresentation of facts to cause loss or injury to another party for personal gain (Norman Katz, 1996).
Procurement:
Procurement is the process of acquiring goods, services, or works from external sources. It aims to obtain the best possible cost, quality, and timeliness while ensuring fairness, transparency, and minimizing fraud (Weele et al., 2010). According to the PPDA Act (2003), procurement includes acquisition through purchase, rental, lease, or other contractual means.
Procurement Irregularities:
Procurement irregularities occur when procurement processes are compromised by violations of procedures, influence from high-ranking officials, or bribery-induced decisions (Basheka, 2009). Such irregularities often involve misuse of position for personal or improper gain (Asian Development Bank, 2003).
Procurement Fraud:
Procurement fraud is a deliberate deception intended to influence any stage of the procurement process for financial gain or loss. It can be perpetrated by external contractors, subcontractors, or internal staff (National Fraud Authority, 2011). It includes offering, giving, or soliciting anything of value to influence procurement decisions (PPDA Act, 2003).
