An Analysis of the effect of procurement fraud on procurement performance of public sector institutions. A Case study of the Ministry of Justice, Legal and Parliamentary Affairs, Zimbabwe.

Abstract

Corruption is attracting a lot of attention around the world, and Zimbabwe’s Ministry of Justice, Legal and Parliamentary Affairs is not an exception. The main and overall objective of the study was to assess the effects of procurement fraud on the performance of Zimbabwean public sector institutions, using the Ministry of Justice, Legal and Parliamentary Affairs as a case study. Ministry officials have been seen engaging in fraudulent procurement activities, meeting their private gain at the expense of institutional efficiency and public trust. Many legitimate suppliers have been disadvantaged in tender processes, losing contracts to politically connected or favored bidders, while fraudulent invoicing and embezzlement have drained public resources. Procurement revenue and efficiency have been persistently compromised, with performance indicators showing significant decline due to rampant bribery, nepotism, favoritism, and extortion. This study seeks to establish the effects of procurement fraud on the Ministry of Justice, to identify various forms of procurement fraud, to investigate causes of procurement fraud, and to develop initiatives and reform measures to curb procurement fraud in Zimbabwe’s public institutions. The study uses a case study research design approach with a sample size of 120 participants. Interviews and questionnaires were used as research instruments to collect data from respondents. Questionnaires were hand distributed and self-administered. Forms of procurement fraud which include bribery, nepotism, embezzlement, fraudulent invoicing, favoritism, and extortion have negatively affected the performance of public institutions. Also, causes of procurement fraud in the Ministry include low salaries, greed and selfishness, lack of ethics, excessive bureaucracy, and lack of transparency. A conclusion reached was that procurement fraud negatively affected the performance of Zimbabwean public institutions as witnessed from decreased efficiency, inflated costs, double awarding of contracts, and poor service delivery. Therefore, the recommendations are that a code of conduct should be put in place, and penalties should be stiffer and non-discriminatory, whistleblowers should report cases of procurement fraud without fear, and civil society organizations should be allowed to access and question procurement information and decisions.