The influence of conflict of interests on procurement performance among procuring entities in Tanzania.

Abstract

This study aimed to assess the influence of conflict of interests on procurement performance among Procuring Entities in Tanzania. Conflict of interests has been a major challenge in procurement because it reduces competition among the bidders in a sense that bidders are given a tender through nepotism, favoritism, person gain. Interview, documentary review and questionnaires were used as the methods in data collection. The Statistical Package for Social Sciences (SPSS) was used specifically for the purpose of analyzing the quantitative, while qualitative data were analyzed through content analysis. The study concluded that Conflict of interest occurs when an employee performing his formal duties, an employee can be -or appears to be - influenced to make a decision that benefits him personally. For instance, receipt of a gift from a vendor by an employee in the procurement department may demonstrate a conflict of interest. The benefit also can be negative, such as a contract withheld from the most suitable vendor because that vendor refuses to compensate the procurement employee. In Tanzania, it is indicated that ward councilors (politicians) and public servants that are totally prohibited to apply for tenders floated by their relevant councils, this is in accordance with section 84 (3) of PPA 2011. The study recommends that our personal preferences, and those of our family, friends and associates, should not interfere with or influence the decisions we make in the execution of our official duties, also, the procuring entity should develop a code of ethics, this means that all organizations should develop a code of ethics for all staff to follow. A code of ethics is a formalized statement containing ethical codes of conduct for the organizations’ members to follow. The Code of Ethics will clearly state what type of behaviour is expected from the members, and what type of behaviour is unacceptable, the study further recommends that the procuring entity should implementing a gift register. Procuring entity should require contracting authorities to put in place a procedure for declarations of absence of conflict of interests, as part of their public procurement procedures. They should give contracting authorities guidance on the declaration procedure, any person involved in one or other stage of public procurement procedures (preparation, evaluation, monitoring, implementation or closure) should sign a declaration and give it to the person in charge of the procurement procedures such as members of the management board, staff contributing to preparing/drafting the tender documents, members of the evaluation committee, experts performing any task connected with preparing the tender documents and/or evaluating the bids.