Public Procurement Corruption: Types, Approaches, and Collusion or Rigging.
Keywords:
Public Procurement, Corruption, Types, GhanaAbstract
Corruption in public procurement is inevitable. Some officials and firms see procurement as a means of enriching their pockets. It is becoming complex and sophisticated by day. Practitioners in public institutions can perform their duties well if they are guided by set of rules and principles that regulate what they do. Highly skilled and trained procurement professionals with good morals are required in public institutions to help trace and fight corruption. The paper aims at reviewing literature on the types of collusion or rigging practices and the approaches to defining corruption in procurement. The objective of this paper is to identify the types of tender collusion and rigging practices and approaches to defining corruption in procurement. The study reviews relevant literature which revealed that the most destructive type of procurement corruption is systemic corruption. It does not involve one person but a group who work together to exploit genuine firms. This type of corruption stifles competition and can lead to the selection of a wrong firm. The review further revealed that, corruption occurs in public procurement when there is violation of law, norm and procedures governing a procurement process for private gain.
References
Aidt, T. S. (2003). Economic analysis of corruption: A survey. The Economic Journal, 113, 632-
doi: 10.1046/j.0013-0133.2003.00171.x
Amundsen, I. (1999). Political Corruption: An Introduction to the Issues. WP 1999:7. Bergen:
CMI. Retrieved from: www.cmi.no/publications/file/1040-political-corruption.pdf (Accessed 2013 June 11).
Azfar, O. (2007). Performance Accountability and Combating Corruption. Washington, DC:
World Bank Publications.
Bajari, P., & Ye, L. (2003). Deciding between competition and collusion. The Review of
Economics and Statistics, 85(4), 971-989.
Begovic, B. (2005). Corruption: concepts, types, causes, and consequences. Washington DC:
Center for International Private Enterprise.
Bryan, R.E. (2012). The cost of corruption. UK: Tearfund.
Byrne, E. (2007). The moral and legal development of corruption: nineteenth and twentieth
century corruption in Ireland. PhD. University of Limerick.
Campos, J.E., & Pradhan, S. (2007). The many faces of corruption: tracking vulnerabilities at
the sector level. Washington, DC: The International Bank for Reconstruction and Development/World Bank.
Campos, N. F., & Estrin, S., & Proto, E. (2010). Corruption as a barrier to entry: theory and
evidence. IZA DP No. 5243. IZA, Bonn.
Chowdhury, J. (2008). The basics of bid rigging. India: CUTS International.
De Graaf, G. (2007). Causes of corruption: towards a contextual theory of corruption. Public
Administration Quarterly, 31(1), 39-86. Retrieved from: http://unpan1.un.org/intradoc/groups/public/documents/un-dpadm/unpan049603.pdf (Accessed 2014 January 13).
Ely, C., & Scott, I. (2007). Essential study skills for nursing. Edinburgh: Elsevier.
Froystad, M. & Heggstad, K. K. and Fjeldstad, O-H. (2010). Linking procurement and political
economy. Norway: CMI.
Garoupa, N., & Klerman, D. M. (2010). Corruption and private law enforcement: theory and
history. Review of Law and Economics, 6(1), 75-96. Retrieved from:
http://law.usc.edu/assets/docs/Klerman_Corruption.pdf (Accessed 2014 April 11).
Gilbert, M. (2011). Contract matters: procurement ethics/business and ethics. New Zealand:
Genesis.
Glaeser, E., & Goldin, C. (Eds.). (2006). Corruption and reform: lessons from America's
economic history. Chicago: University of Chicago Press.
Graycar, A. and Sidebottom, A. (2012). Corruption and control: a corruption reduction approach.
Journal of Financial Crime, 19(4), 384-399.
Hardell, L., & Walker, M.J., & Walhjalt, B., & Friedman, L.S., & Richter, E.D. (2007). Secret
ties to industry and conflicting interests in cancer research. American Journal of Industrial Medicine, 50(3) 227-233. Retrieved from: http://onlinelibrary.wiley.com/doi/10.1002/ajim.20357/abstract;jsessionid=D59589E8831605BD0D7E541D8A15CC4F.f03t01 (Accessed 2014 November 23).
Heggstad, K. K., & Frøystad, M. (2011). The basics of integrity in procurement. U4 issue
October 2011No 10. Bergen: U4 Anti- Corruption Resource Centre.
Heggstad, K., & Frøystad, M., & Isaksen, J. (2010). The basics of integrity in procurement: A
guidebook. Bergen: CMI.
Iimi, A. (2013). Testing lowballing strategy in rural road procurement. Rev Ind Organ, 43, 243-
Iyanda, D. O. (2012). Corruption: definitions, theories and concepts. Arabian Journal of
Business and Management Review (OMAN Chapter), 2(4), 37-45.
Jain, A. K. (2001). Corruption: a review. Journal of Economic Surveys, 15(1), 71-116.
Johnston, M. (1998). Fighting systemic corruption: social foundations for institutional reform.
The European Journal of Development Research, (10), 85-104.
Khan, M.M. (1997). Political and administrative corruption: concepts, comparative experiences
and Bangladesh case. Bangladesh: Transparency International. Retrieved from http://www.cdrb.org/journal/2003/1/1.pdf> (Accessed 2015 February 18).
Kwasnica, A. M. (1999). The choice of cooperative strategies in sealed bid auctions. Journal of
Economic Behavior & Organization, 42(2000), 323–346.
Lawal, G. (2007). Corruption and development in Africa: challenges for political and economic
change. Humanity and Social Sciences Journal, 2(1), 1-7.
Marshall, A. (1995). Lowballing and contracting out: is it really a problem? Australia: The
Centre for Independent Studies.
Myint, U. (2000). Corruption: causes, consequences and cures. Asia-Pacific Development
Journal, 7(2), 33-58.
Ocheje, D. (2001). Law and Social Change: A socio-legal analysis of Nigeria’s corrupt practices
and other related offences Act 2000. Journal of African Law; (45), 173-195.
OECD (2010). Collusion and corruption in public procurement. Paris: Organisation for
Economic Co-operation Development.
O’Rourke, P.J. (1993). Determinants of Corruption: A Survey,
[http://dissertations.ub.rug.nl/FILES/faculties/feb/2008/h.s.gunardi/02_c2.pdf%26embedded=true], (Accessed 2013 April 17).
Peters, J. G., & Welch, S. (1978). Political corruption in America: a search for definitions and a
theory, or if political corruption is in the mainstream of American politics why is it not in the mainstream of American politics research? The American Political Science Review, 72, 974-984.
Petticrew, M.A. (2001). Systematic literature reviews from astronomy to zoology: Myths and
misconceptions. British Medical Journal, 322(7278), 98-101. Retrieved from: http://www.bmj.com/cgi/contact/full/322/7278/98. (Accessed 2015 May 17).
Petticrew, M.A., & Roberts, H. (2006). Systematic reviews in the social sciences. Oxford,
Blackwell.
Porter, R. H., & Zona, D. J. (1993). Detection of bid rigging in procurement auctions. Journal of
Political Economy, 101(3), 518-38.
Rose-Ackerman, S., & Søreide, T. (Eds.). (2011). International Handbook on the Economics of
Corruption. (Vol. 2.). UK: Edward Elgar Publishing Ltd.
Rose-Ackerman, S. (1978). Corruption: A study in political economy. New York: Academic
Press.
Seldadyo, H. & De Haan, J. (2006). The determinants of corruption: A literature survey and new
evidence. Finland: EPCS.
Shabbir, G., & Anwar, M. (2007). Determinants of corruption in developing countries Hamburg.
Hamburg: Hamburg Institute of International Economics (HWWI).
Shell International Ltd, 1999. Dealing with Bribery and Corruption: A Management Primer.
London: Shell International Ltd. Retrieved from http://www.info.worldbank.org/etools/docs/library/35970/mod03.pdf (Accessed 2015 June 16).
Smith, R. (2006). Conflict of interest: how money clouds objectivity. Journal of the Royal
Society of Medicine, 99(6), 292-297.
Svensson, J. (2005). Eight questions about corruption. Journal of Economic Perspectives, 19(3),
-42.
Timmins, F., & McCabe, C. (2005). How to conduct an effective literature review. Nurs Stand,
(11), 41-47.
Transparency International (2006). Handbook for Curbing Corruption in Public Procurement.
Berlin: Transparency International. Retrieved from: http://unpcdc.org/media/141128/ti%20handbook.pdf (Accessed 2013 April 10).
UN (2013). United Nations Procurement Manual. United Nations.
Zafarullah, H. (1987). Public Administration in the first decade of Bangladesh: some
observations on trends and development. Asian Survey, (27), 459-476.
Downloads
Published
How to Cite
Issue
Section
License
By submitting and publishing your articles in the African Journal of Applied Research, you agree to transfer the copyright of the Article from the authors to the Journal ( African Journal of Applied Research).
