EFFECT OF THE NEW PUBLIC PROCUREMENT ACT ON GOVERNMENT PURCHASE IN NIGERIA

Code No: 380144

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ABSTRACT

This study on the effect of the New Procurement focused on Imo State Ministry of Health Owerri in Imo State. The study used survey design technique. The population of the study consisted of 88 staff from the three divisions in the ministry while Yaro Yamene formular was used to determine the sample size. Both primary and secondary sources of data were used while a 2 and 3 item structured questionnaire was the main instrument of data collection, the research questions were analyzed with simple percentage and frequency table while research hypothesis were tested with chi-square method at 5 percent level of significance. The major findings of the study were that the New Act finds it difficult to prevail in practice because of the corrupt system made up of officers who only seek for their self enrichment instead of value for money in the award of contracts and that Act has not been fully implemented. It was concluded that the new Procurement Act has the potentials of transforming the present mishaps in government purchases if fully implemented in practice ands was recommended that the various agencies, ministries, departments and functionaries should embrace the submission of the New Procurement Act and put it into practice for better accountability.

CHAPTER 1

CHAPTER ONE
1.0 INTRODUCTION
This chapter which introduces the subject matter of this research work â€œthe effect of the New Public Procurement Act on Government Purchaseâ€ focuses on the following sub-headings as background of the study, statement of problem, objective of the study, research question, statement of hypothesis, significance of the study, scope of the study, limitations of the study and definition of terms. These areas are critically x rayed below:
1.1 BACKGROUND OF THE STUDY
The government of Chief Olugesun Obasanjo approved the conduct of the Countryâ€™s Procurement Report (CPR) between 1999 and 2000. The report made several recommendations resulting in the setting up of the Budget Monitoring and Price Intelligence Unit (Due Process). The administrative implementation of a due process mechanism in the procurement of goods, works and services, and the enactment of the Public Procurement Act 2007, which was passed by the National Assembly in May 2007 and signed into law by Late President Yarâ€™Adua on 4th June, 2007.
Before 2007, there was no statutory provision that directly regulated the award of public contracts in Nigeria and this resulted to an avenue by which government, functionaries rewarded their friends and cronies and by which they too amassed wealth. The extent of corruption in the procurement system and its effect on the economy made the federal government to commission the World Bank in 1999 in collaboration with some private sector specialist, to review the countryâ€™s public sector procurement structure, including the existing, legal framework, organizational responsibilities and capabilities and present procedures and practices and how they made differ from formal rules and procedures.
The report of the review was presented with certain recommendations and however, on the 4th of June the then president, Umar Musa Yarâ€™Adua signed into law the new Public Procurement Act (PPA) which is the first procurement law in the countryâ€™s history.
However, the Act (PPA) is expected to be binding on all government agencies, ministries, department and parastatals, who engage in government purchase or purchase for public usage, hence the apt essence of this research work.
The Ministry Of Health Owerri dated back to 1976 when Imo State was created. The ministry in 1977 moved to its permanent site in Orlu Road Secretariat Owerri. Today the ministry is operating from the New Secretariat in Port Harcourt Road in New Owerri. The ministry has three divisions namely: Medical division, pharmacy division and public health division. The number one man responsible for policy and decision making as well as all actions of the ministry is the Honorable Commissioner of Health, in the person of Doctor Obi Njoku, the inline of authority is the permanent secretary, Doctor John Ihebrenme. The ministry is divided into eight (8) department namely, public health/primary health care, nursery service, vector control laboratory service, administration and finance planning search and statistic, accounting, drug administration and medical services department. The supply division is attached to the department of administration and financed under the supply section. There are principal store officers, higher store officers, store officers, store keepers and store attendants.