THE PLACE OF ETHICS AND INTERGRITY IN

PROCUREMENT DECISION: THE NIGERIA

EXPERIENCE.

A PH.D SEMINAR PAPER

PRESENTED BY:

AFORKA EMMANUEL CHUKWUDI

(PG/SSC/9709575)

SUPERVISORS

DR. J.T. AKINMAYOWA

&

DR. S.O. UNYIMADU

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT SCIENCES

UNIVERSITY OF BENIN
BENIN CITY
July 2011
 TABLE OF CONTENTS

TABLE OF CONTENTS 1

ABSTRACT 2

INTRODUCTION 3-6

THE CONCEPT OF ETHICS AND INTEGRITY 7-11

SOME POPULAR THEORIES & PRINCIPLES OF ETHICS 12-13

THE PROCUREMENT CONCEPT 14-15

BACKGROUND OF PUBLIC SECTOR PROCUREMENT REFORMS THE NIGERIA EXPERIENCE 16-20

DUE PROCESS AND PROCUREMENT REFORMS: AIMS 21-22

CHARTING PROCUREMENT STRATEGIES 23-24

PROCUREMENT ETHICS AND PROCUREMENT INTEGRITY 25-27

CODE OF CONDUCT FOR PUBLIC OFFICERS INVOLVED WITH PROCUREMENT 28-30

PROFESSIONALIZING PROCUREMENT IN A CHANGING WORLD 31-34

THE WAY FORWARD 35-38

CONCLUSION 39-40

REFERENCE 41-44

1|Page
 ABSTRACT
Public procurement and professional conduct require adherence to the established
public procurement systems, procedures, rules and regulations as there is no substitute
to being professional and ethical in our procurement conduct. Our personal integrity
and professional conduct reflects positively in our government and cultivates
confidence/trust to the cooperating partners and the citizens. The procurement
function in the present global environment is a cross-disciplinary function which
requires the interaction of several disciplines in order to attain optimum efficiency.
Procurement deals with value exchange in relation to goods, works, services and
infrastructures. Procurement policy ensures that goods, works and services are
provided in an honest, competitive, fair and transparent manner that delivers the best
value for money outcome whilst at the same time, protecting the reputation of the
organization.

2|Page
 INTRODUCTION
Nigeria faces crises not only of development and governance but also crises of

ethical referents capable of providing guiding principles for politics and business.

Predatory habits of political and administrative office-holders manifest themselves

in the proclivity towards plundering state resources and extracting illegal payment

from citizens. Fraudulent behaviours is also basic in private sector and manifest

itself on a number of frauds which ranges from cutting costs, spending corporate at

shareholder money on personal expenses, manipulating financial records for

personal needs, to corporate frauds such as granting of unauthorized overdrafts and

loans, forged cheques, posting fictions credit, fraudulent transfer and withdrawal

outright they, suppression of cash/cheques advances for fraud, bogus investment

guarantees, financial market frauds and money laundering that are meticulously

planed and intricate in their execute in (Babalola 2005).

Negative processes in both politics and business are gathering momentum and were

in effect created crisis situation and because of this, the country is forced to realize

that it cannot afford to maintain a total absence of ethical referents as an influencing

factor in the conduct of public affairs and operation of private sector.

Thus, rethinking the ethos which informed the operation of the socio-economic and

political system in the country because imperative and that is why debate on

development has shifted from technicism and economics to a quest for purpose and

ethical referents. (Muhammed & Umar 2008).

3|Page
Various governments have reacted to the growing incidences of unethical

behaviours by setting up agencies to investigate and punish identified cases.

Examples of such bodies include (EFCC) and the Independent Corrupt Practices

Commission (ICPC). Enactment of the Public Procurement Act 2007 and setting up

of the Bureau of Public Procurement is pent of effort the current administration has

put in place to minimize unethical behaviours especially in the procurement

decisions.

People perform their roles within complex systems called organizations and the

study of organizational behaviour focuses a people within it content of the

organizations analyzing and understanding what they do, how they do it and that

factors that affect their behaviour with the aim of providing basic for human

resources policies and practices which will lead to improved organizational

capability (Egonmwan 2008).

Business Moral and ethical dilemma as well as the search for ways to minimize

unethical behaviour has been in existence since the early Socialization. For example,

the Jewish Talmud written almost 1500 years ago documents how secretaries

should handle national resources to ensure high integrity (Katanen, 2003).

Similarly, current events in organizations and nations have highlighted the alarming

level of unethical accessions made daily by individuals that are source of concern to

governments, and stakeholders in the organizations.

Ethical behaviour can be defined either as behaviour that maximizes happiness and

minimizes harm or as behaviour that is motivated by principles of duty.

4|Page
Unethical behaviour it typically with counsel by a single bad apple, but is rather

the outcome of complex interactions between individuals, groups and organizations.

While behaving unethically may have some short-term benefit for an organization,

in the long-term, it may harm stakeholders support (Armstrong 2009).

Procurement is the acquisition of appropriate goods/services at the best, possible

total lost of ownership to meet the needs of the purchaser in terms of quality,

quantity, time and location. Government procurement also called procurement of

goods, works and services on behalf of a public authority, such as a government

agency (Wekipedia the free encyclopedia). In order to prevent fraud, waste,

corruption or local protectionism, the law of most countries regulates government

procurement more or less closely and usually requires the procuring authority to

issue public tenders if the value of the procurement exceeds certain threshold

(Afemikhe 2009).

Nearly all the sectors of the Nigerian socio-economic systems are in disarray. The

communication, education, health, power generation, agriculture, roads and

manufacturing systems are worst of today than the colonial masters are after

independence (Lawal, 2008). An empirical study conducted by Kaufmen et al (2005)

revealed the extent of corruption in Nigeria before the major reforms. About 70% of

the firms surveyed reported the need for bribes to obtain trade permits, about 83

percent paid bribes to obtain utility services, about 65 percent paid bribes when

paying taxes, an estimated 90 percent paid bribes during procurement and 70

5|Page
percent of the firms acknowledge the need to bribe judges for favorable decisions

(Okonjo-Iweala & Osaato-Kwando 2004).

The modern Nigeria is thus exist in an age of unrealized dreams and disillusionment

in the face of corruption, selfish pursuits, crimes, economic sabotage, greed,

disorderliness, political violence, insecurity loss of life and property, loss of integrity

and unethical practices (Lawal 2008). Desirable Nigerians, however, will prefer a

nation characterized by discipline and ethical integrity. Ethical virtues and integrity

command a pride of place in catalogue of self responsibilities which Nigeria requires

to bring about sustainable growth and development.

What is ethics? Has Nigeria lost her integrity and national ethics? What are

attempts made to restore such integrity and ethics especially in the procurement

decisions? To what extent are these efforts effective? How does a procurement ethic

affect procurement generally?

The purpose of this paper is therefore to discuss theoretically, and to some extent

empirically the place of ethics in procurement decisions in Nigeria. The 1 st part of

the paper examined the meaning/concept of ethics and procurement. The 2nd part

X-rayed the historical background of public sector procurement reforms in Nigeria

and the theoretical frame work of ethics. The 3rd part looked at the factors militating

against ethics in Nigeria where the fourth part discussed the ethical dilemma facing

public servants/and or professionalizing procurement in a changing world. The

concluding part dealt with the starching Nigeria economy and the way forward.

6|Page
 THE CONCEPT OF ETHICS AND INTEGRITY
Ethics are moral principles or beliefs about what is right or wrong. These beliefs

guide individuals in dealings with other individuals and groups (Jones, George &

Hile 2000). Ethics and morality are closely related, strictly speaking, however, the

term refers not to morality itself but to the field of study, a branch of inquiry, that

has morality as the subject matter. In this sense, ethics is equivalent to moral

philosophy.

Ethics or moral philosophy is the systematic philosophical study of moral domain

which involves systematizing, defending and recommending concepts of right and

wrong behaviour. It seeks to address questions such as how a moral outcome cam

be achieved in a specific situation (applied ethics), how moral values should be

determined (normative ethics), what moral people actually abide by (descriptive

ethics) what the fundamental nature of ethics or morality is, including whether it

has any objective justification (meta-ethics), and how moral capacity or moral

agency develops and what its nature is (moral psychology). Brilton, E. (2008).

Akammu, (2009), described ethics as a discipline that deals with the concept of good

and evil as well as with moral duty. He further stated that ethics refers to moral

principles or practices and that moral relates to the principle of right and wrong

or conforming to a standard of right behaviour. Who then determines right

behaviour? It could be any of the following:

i. The society,

ii. The government,

7|Page
 iii. God,

iv. Basic human nature.

The Longman Oxford Advanced Learners Dictionary defines integrity as the

strength and firmness of character of principle, honesty, trustworthiness the state of

being whole and undivided and completeness.

Alexander Pope in his essay on man declares that an honest man is the noblest

work of God and other tempted to equate integrity with honesty. This may be

limited and to some extent inaccurate perhaps the best approach is to define

integrity as essentially moral courage; the will and willingness to do what are knows

one ought to do (Solomon 1992).

Maintenance of integrity and ethics make an institution to be proactive rather than

reactive and as clearly remarked by Watson (1963) such institution will generate

great drive and effectiveness, because people know that they doing the right thing,

attract high caliber of people more easily and develop better and profitable relations

with the stakeholders.

The basic components of integrity as stated by Kolade (1999) include:

i. Honest: (freedom from deceit, self deception and offence)

ii. Purity: (freedom from adulteration, corruption etc.)

iii. Sincerely: (freedom from duplication of speech & action)

iv. Completeness: (being fulfilled highly skilled.)

v. Wholeness: (being healthy in mind, body, spirit, moral, taste, attitude etc)

8|Page
 vi. A craving for ideals: (not just standards which comes to mind)

vii. Acting on any matter in total submission to the will of God.

Hence as individuals, groups and society, integrity should not be considered as part

of our attitude that we demonstrate on special occasions as Muslims or Christians,

but as a way of life that consistently reflects our commitment to its belief and values

(Lawal 2008).

May people tend to equate ethics with their feelings? But being ethical is clearly not

a matter of following ones feelings. A person following his or her feelings may

refrain from doing from what is right. In fact, feelings frequently deviate from what

is ethical (Velasque, Andre, Shanks & Meyer 1987). Ethics should not be identified

with religion, though most religions, of course, advocate high ethical standards. Yet

if ethics were confined to religion, then ethics would apply only to religious people.

But ethics applies as much to the behaviour of atheist as to that of the saint.

Religions can set high ethical standards and can provide intense in situations for

ethical behaviour. Ethics, however, cannot be confined to religion nor is it the same

as religion. (Velasque et, al 1987).

Furthermore, being ethical is also not the same as following the law. The Law of ten

incorporates ethical standards to which most citizens subscribe. But laws, like

feelings, can deviate from what is ethical. The pore civil war slavery laws in Nigeria

are grotesquely an obvious example of laws that deviate from what is ethical. In the

same vain, being ethical is not the same as doing whatever society accepts in any

society, most people accept standards that are, in fact ethical. But standards of

9|Page
behaviour in society can deviate from what is ethical. Lack of societal consensus on

many issues makes it impossible to equate ethics with whatever the society accepts.

An entire society can be ethically corrupt. For example, the Nigerian Police Force is a

good example of a morally corrupt system, for some people, abortion is ethical but

to many other, it is not. (Lawal 2008).

From the fore going, what then do we consider as ethics? Ethics (from the Latin

ethica from the Ancient Greek, rik mora philosophy from the adjective of ethos

custom, habit), a major branch of philosophy, is the study of values and customs of

a person or group. It covers the analysis of and employment of concepts such as

right and wrong, good & evil

and responsibility (Wikipedia 2011) it is divided into three primary areas: Meta-

ethics (the study of concept of ethics); normative ethics (the study of the concept of

how to determine ethical values) and applied ethics (it is study of the use of ethical

values).

In this paper, ethics would be considered from the broad perspectives. First ethics

refers to well based standards of right and wrong that prescribe what humans right

to do, usually in terms of rights, obligations, benefits to society, fairness, or specific

virtues.

Ethics for example, refers to those standards that impose the reasonable obligations

to refrain from rape, stealing, murder, assault, slander and fraud. Ethical standards

also include those that enjoin virtues of honesty, compassion and loyalty.

10 | P a g e
Secondly, ethics refers to the study and development of ones ethical standards to

ensure that they are reasonable and well-founded. As stated earlier, feelings, laws

and social norms can deviate from what is ethical. Thus, ethics means then the

continuous effort of studying our moral beliefs and our moral conduct and striving

to ensure that we, and these institutions we help to shape, live up to standards that

are reasonable and solidly based.

11 | P a g e
 SOME POPULAR THEORIES & PRINCIPLES OF ETHICS
There are basically four schools of ethical thoughts providing explanations for the

establishment of moral principles Osaze 1983 classified them as

I. Empirical Theory: This theory claims that ethics are derived though human

experience and are conceived by general agreement.

II. Rational Theory: This theory claims that it is through reason that people

determine what is good or bad and that these determination of logic are

independent of experience.

III. The intuitive Theory: This theory suggest that ethics are not derived from

experience or reason, rather people (humans) automatically possess an

understanding of what is right or wrong i.e. something similar to natural

moral law.

IV. Revelation Theory: This states that God tells man what is right or wrong

through such medium as the Quaran or Bible.

Managers in organizations have to compete over information, influences and the

potential for conflict in selecting the ends as well as the mean to the end. One major

challenge that they face with request to ethics social responsibility that there is no

black & white and distinction between ethical and unethical behaviours as it all

depends on several factors such as the intent for engaging in the behavior, culture,

the influence of external factors on behavior etc. thus the question has always been

what criteria or principle should guide ethical conducts & behavior. Abdullahi

(2008) argued that philosophies and other scholars have identified several general
12 | P a g e
principles that should guide ethical conducts. However, these principles have now

been distilled to three as follows:

a. Utilitarianism: This principle suggests that plans and actions should be

evaluated by their consequences and therefore, what is ethical should

produce greatest good for the greatest number of people. It advocates that

while considering alternatives for decision making of taking any action, one

should choose its opinion providing the highest degree of satisfaction to those

affected. One of the criticisms against this principle is that it occasionally

results in unethical choices, actions or behaviours as morality is judged by

results, not by means to attaining these results.

b. Deontology or individual rights. This principle is based on the belief that

every person has certain rights that entitled to behave in a certain way. Such

rights include freedom of movement, right to life, conscience, physical

security, freedom of speech, fair trial, and freedom from torture and therefore

any action or behavior that infringes on these rights is unethical. A major

problem with this principle is that certain individual rights may conflict with

others.

c. Distributive Justice: The principle demands that decisions, actions or

indecisions or even reactions should be guided by the principle of fairness,

equity and impartiality. It emphasize on the ethical value of equity and

fairness.

13 | P a g e
 THE PROCUREMENT CONCEPT
Procurement is and economic activity that seeks to allocate scarce funds among

alternative uses. Organizational funds are scarce in the sense that every amount

spent on a good or service is a sum. The scarcity of fund therefore, forces both

private and public sector organizations etc to make sacrifices, economies, and seek

best value for money in their procurement action. All other things being equal,

maximizing competition among potential vendors of goods and services should lead

to downward pressure on costs and thereby yield the best value. (Afemikhe 2011).

As stated earlier, procurement is the acquisition of goods and/or services at the best

possible total cost of ownership, in the right quality and quantity at the right price,

in the right place and from the right source for the direct benefit or use of

individuals, companies or government which is generally carried out through a

contract. Procurement more often than not involves a bidding process in which the

bidders or vendors quote their prices and the purchasers agree to place an order for

the lowest possible responsive bid. The procurement procedure usually commences

when the purchaser starts to look for bidders in the market. (Afemikhe 2011).

Public procurement thus is the process whereby public sector organizations acquire

goods, services and works from third parties. It includes much that supports the

work of government and ranges from routine items (e.g. stationary, furniture,

computers or printed forms), to complex areas (e.g. construction, power plants, rail

network, private initiative projects, airports, fighter jets for the air force, or support

to major change initiatives (Wikipedia). Government procurement activities

therefore cover the following

14 | P a g e
 I. Goods: Supply of raw materials or commodity made available for

general use.

II. Services: Being the provision of labour/and or knowledge-based

expertise.

III. Engineering or works: Being provision of a combination of goods

and services including buildings and engineering infrastructure

arranged for the development and provision of an assets or

refurbishment of an existing assets. (Afimikhe 2011).

15 | P a g e
BACKGROUND OF PUBLIC SECTOR PROCUREMENT REFORMS THE
NIGERIA EXPERIENCE
Public procurement is the process by which government, departments or agencies

purchase goods and services from private sector. It takes place at both national and

regional level and the procurement process will usually be subjected to specific

rules and policies covering how the relevant decisions are made. Depending on the

local laws, the relevant government officials will have to follow a set of system for

public procurement.

Stansbury (2009) states that public procurements or contracts are supply service or

public works contracts into which governments and it parastatals, state

agencies/enterprises and other contributing authorities who are in public domain

as defined in the procurement legislation of a country, enter with external suppliers,

consultants into contracts for execution of goods, works or services as the case may

be.

On assumption of office in May 1999, the then President Olusegun Obasanjo

observed that the timetested approach in conducting government business had

degenerated to such an extent that the Public Service Rules, Financial Regulations

and Ethics and Norms of the Service were jettisoned either due to sheer ignorance

or for selfish reasons. Again, Chief Obasanjo noted that transparency in government

procurement was necessary to usher in a great and dynamic economy to ensure a

just and egalitarian society (Ekpenkhio, 2003).

To this end, the government commissioned the World Bank in collaboration with

some Nigerian private sectors specialists to undertake studies of the financial

16 | P a g e
systems and general procurement related activities. Specifically the World Bank was

requested to assist the Nigerian government with a process of enthroning efficiency,

accountability, integrity and transparency in government procurement and financial

management systems. The clear objective was and still is to reduce the scope of

corruption in public procurement and so improving the efficiency in the

management of Nigerias public expenditures. At the end of the exercise, two

reports, namely the Country Report on the Financial Systems and the Country

Procurement Assessment Report were produced. The comprehensive review of the

countrys public procurement system covered the existing legal framework.

Organizational responsibility and capabilities within government present

procedures and practices; the reliability of government accounting systems and

effectiveness of budgeting systems in directing reasons for intended purposes.

According to Ekpenkhio, (2003) the Country Procurement Assessment Report

(CPAR) identified five major weaknesses in the society procurement systems in

Nigeria namely:

(i) that Nigerian lacks a modern law on public procurement and permanent

oversight body to provide guidance and monitor purchasing activities,

(ii) that the financial (Control and Management) Act, 1958 together with the

financial regulations which set basic rules for managing public

expenditure have gaps, deficiencies and faulty implementation of existing

regulations on procurement (e.g. lack of permanent arrangements for

17 | P a g e
 control and surveillance) which create opportunities for bribery and

corruption,

(iii) That due to inflation and lack of regular adjustments on the thresholds of

the approving limits of the Tender Boards; their authorization were

constantly being eroded resulting in abuses, prominent among which is

splitting of contracts.;

(iv) That there was proliferation of Tender Boards which were prevented by

the private sector as sources of delays and non transparency. In addition,

these Tender Boards appeared to have limited mandates with power to

decide contracts de facto resting with the permanent security and the

Ministers/Commissioners;

(v) That customs system and procedures were cumbersome and major causes

of delay in clearing goods and hence a source of complain; and

(vi) That procurement is often carried out by staffs that substantially lack

relevant training.

Ekpenkhio (2003), further stated that the main recommendations of CPAR which

were aimed at correcting the identified weakness in the procurement environment,

focused on six main areas, viz:

(a) The need for a procurement law based on UNCITRAL (the United Nations

Commission for International Trades Law Model,)

18 | P a g e
 (b) The need to establish a Public Procurement Commission (PCC) to serve as

the regulatory and oversight body on public sector procurements;

(c) The revision of key areas of the Financial Regulation to make them more

transparent;

(d) The streamlining of Tender Boards and strengthening their functional

authority including powers to award contract,

(e) A critical need to rebuild procurement and financial management capacity

in the public sector; and

(f) A comprehensive review of the business related to export, import and

transit regulation, procedures and practices.

Following from the foregoing, the Bureau of Public Procurement (BPP) was

established in 2007 after the signing into law of the enabling Act by the then

President Umaru Musa Yaradua. The Bureau developed through the former office of

Budget Monitoring and Price Intelligence Unit (BMPIU), established in 2001 by

former President Olusegun Obasanjo. The Bureau emerged because of the need to

check the often abuse of rules and standards in the award and execution of public

contracts in Nigeria. The abuses were evident in over-invoicing, inflation of contract

costs, proliferation of white-elephant projects and diversion of public funds through

all kinds of manipulations of the contract system (Ezeh, 2009).

The implication of these lapses in the countrys procurement system over the years

was the abandonment of government projects after large sums of money have been

19 | P a g e
paid out to contractors from public funds. Above all, it brought about endemic

corruption, poor services delivery, poverty and denial of social amenities to the

people.

The vision of BPP, therefore, is to restore transparency, competition, competence,

integrity and value for money in the award and execution of public contracts in

Nigeria. The BPP, thus, implements a procurement reform agenda that uses what

can be called due process mechanism to restore and maintain openness,

competition, budgetary discipline, optimal costs, and efficient projects

implementation in a planned and coordinated framework (Ezeh, 2009).

20 | P a g e
 DUE PROCESS AND PROCUREMENT REFORMS: AIMS
The public sector plays a crucial role in national development given its

responsibilities for the day-to day running of the affairs of government, the delivery

of public and other services and the execution, monitoring and evaluation of

government programmes. Some of the goals of the current public sector reforms

are; (National Planning Commission 2004:87) to:

i. Tackle corruption and improve transparency in public

Accounts of government agencies and joint venture oil

Companies.

ii. Reduce waste and improve efficiency of government expenditure; and

iii. Enhance economic coordination.

iv. Achieving the goals of the current public sector reforms is the Due

Process/Public Procurement Reforms.

The aims of the Due Process and Procurement Reforms are:

a restoring sanity in the conduct of government business (extant public service

rules, financial regulations, norms and ethics of service had been jettisoned),

b eliminating contract inflation, project abandonment and non-execution and

frivolous expenditure.,

c restoring value for money as the fundamental principle of public expenditure,

d fighting corruption,
21 | P a g e
e improving plan-budget link,

f ensuring proper technical and financial preparation of projects, and

g introducing transparency and competition into tendering and bidding

processes for contracts (advertisement in newspapers and now, publishing in the

Tenders Journal) (National Planning Commission, 2004).

The strategies adopted in the due process reform include:

(i) Enactment of Public Procurement Act, 2007.

(ii) Establishment of Public Procurement Commission (PPC)

(iii) Establishment of Budget Monitoring and Price Intelligence Unit (BMPIU)

/Due Process Office/ Bureau of Public Procurement (BPP) to carry out

regulatory, certification, monitoring and other functions. (Public

Procurement Act 2007)

22 | P a g e
 CHARTING PROCUREMENT STRATEGIES
Good procurement system has common objectives. These objectives are to satisfy

customers, attain best value for money, achieve efficiency, protect integrity and

ensure transparency. Others are to establish uniformity, promote competition and

build in accountability (Kim and Jin, 2009).

Satisfying customers entails the involvement of technical office in the

solicitation and award processes such as the procurement planning committee, on-

time delivery of conforming goods/services through proper contract administration

and ability to hold a contractor accountable for performance through required

warranties/guarantees for suitability of goods and materials and adequacy of skills

in service provision.

On the other hand, attaining best value for money involves the promotion of

competition, and making contract costs in line with government estimates, within

budget, and on-schedule, while achieving efficiency requires procurement planning

and implementation through a rationalized and consistent set of procurement

procedures, single point of entry for contractors to learn about procurement

opportunities, requiring only necessary information from them, uniform proposal

submission requirements and standard of contracts across Ministries, Department,

and Agencies, (MDAS) and Bureau of Public Procurement (BPP) and issue of having

threshold amount for BPP review (Borma, 2009).

Kim, and Jin (2009) argued that protecting integrity means having a code of conduct

for procurement officials, dissemination of public information about how contracts

23 | P a g e
are awarded and administered, public verification of upcoming procurements,

awards, and rulings on protests, disqualifications of entries and refusals of officials

where a conflict of interest exists, maintenance of a debarment list.

In ensuring transparency, the factors involved include effective, wide and early

advertising of upcoming procurement opportunities and disclosure of clear

prequalification and bid evaluation procedures and criteria, disclosure of

justifications for non-competitive awards by procuring entities, actual public

opening of bids, publication of award, debriefing of disappointed bidders,

participation of Non Governmental Organizations and Civil Society Organizations

(NGOs/CSOs) on procurement committees and access to information. Freedom of

Information Act and Discovery of Procurement-related Documents (Kim and Jin,

2009).

In building accountability, it is imperative to observe the following rules, namely;

have the right to challenge/appeal against the bidding process, the existence of

debriefing procedures, and quick dispute resolution, clear accountability for

decision making, guarantying bidders enforceable right of review when Procuring

Entities break the rules, ensuring regular BPP and other government audits, meet

record keeping requirements, and providing past performances feedback on

contractors. (Grundy 2005)

24 | P a g e
 PROCUREMENT ETHICS AND PROCUREMENT INTEGRITY
Davis, (1997), has stressed that those involved in the public procurement

process should adopt a suitable code of ethics (CODEE) requiring all relevant

personnel to behave in accordance with strict ethical rules in discharging their

duties in the procurement field. This is in recognition that good working

relationships between buyers and suppliers are essential to the delivery of a quality

public service while it is acknowledged that ethical standards must be maintained at

all times and by all parties. The purpose of the CODEE is to set appropriate

boundaries for ethical behaviour to be adhered to by all those involved in the

procurement process. In particular, personnel directly engaged in procurement or

in a position to influence decisions on contract awards to any extent, should be

required formally to commit themselves to adhere to the in-house code of ethics.

These codes of ethics as drawn up and implemented should therefore address at

least the following areas; gifts, hospitality, sponsorship, conflict of interest,

confidentiality and anti competitive behaviour (Akanmu, 2009).

Gifts or financial rewards of any significance may under no circumstances be

offered, accepted or solicited. Procurement officers in order that they are to be

compromised, may not accept gifts from contractors or contractor personnel.

Procurement officials must never solicit hospitality. Travels and/or

accommodation expenses may never be accepted from or paid for by contractors or

consultants.

25 | P a g e
 Procurement officials must refrain from using either personal position or

organizations resources for gain. All forms of personal interest in contracting or

consulting organizations other than publicly quoted companies or personal

relationship which would give rise to conflict of interest must be disclosed to

management in writings.

In maintaining confidentiality in the procurement process, the following rules must

apply: all information relating to tender process must be treated in the strictest

confidence, disclosure of competitors information in particular to another is strictly

prohibited, after award of contract, information may only be provided in accordance

with BPP Act All confidential information must be properly safeguarded. (Lumpa

1996)

Contractors, consultants and MDAS must not engage in any practice which distorts

or is likely to distort fair and open competition. Guidelines, rules and policies do not

make the people honest; they only work the pathway we should follow. Each person

must make his/her own decisions, based on his/her own values and courage.

It is only when we make ethical behaviour a reflex action that is as natural as

breathing that will we truly possess integrity (Akanmu, 2009). But can we proudly

say that integrity works in Nigeria? Integrity is not easy. It does not allow us to take

shortcuts. It may mean accepting a short-term sacrifice to create a long-term

benefit. Integrity can sometimes even make us temporarily unpopular but when we

encourage and support each other in making the right decisions, integrity is no

longer difficult. It becomes the norm that we all follow and the bound that holds us

26 | P a g e
together. In organizations, be it public or private, it is up to each and every one of us

to create a place where we can proudly say integrity works here especially in

procurement processes.

27 | P a g e
 CODE OF CONDUCT FOR PUBLIC OFFICERS INVOLVED WITH
PROCUREMENT
Part XI, Section 57, sub-section (2) of the public procurement Act, 2007 provides

that all public officers involved in public procurement must be governed by

principles of honesty, accountability, transparency, fairness and equity and shall by

sub-section (3) of the same section subscribe to an oath.

All Pubic Officers are therefore expected to perform their duties in strict compliance

with the following Code of Conduct:

1) They shall wear their identity cards at all times while executing their

functions.

2) They shall comply with lawful directives issued by the Accountng Officer,

Chairperson of the Tenders Board or any relevant authority or its

representative.

3) Public Officers shall not grant press interviews or comments on any

procurement proceedings unless where it is essential and with the approval

of the Accounting Officer or Chairperson of the Tenders Board.

4) No Public Officer shall wear any apparel which

a. Reflects affiliation with a Bidder or Service Provider partaking in the

procurement proceedings.

b. In any way canvasses for a Bidder or Service provider to win the

procurement proceedings.

28 | P a g e
 5) No Public Officer shall participate in any function or activity that could lead to

the perception of a leaning or being favourably disposed towards a Bidder or

Service provider.

6) A public Officer shall not accept any gift, offer of employment, favour or any

other benefit, item or service that can be quantified in monetary terms from

any Bidder, Service provider, or any person involved in the procurement

proceedings.

7) Public Officer shall display strict impartiality in the course of discharging

their duties in the procurement proceedings and shall at no time indicate or

express any statement capable of public incitement.

8) Public Officers shall desist from doing anything that compromises the

integrity of the procurement proceeding.

9) A Public Officer shall decline in serving in a procurement process if any of the

Bidders or Service Providers engaged in the procurement proceedings is

related to him by blood, marriage or grant relationship or where the success

of a particular Bidder or Service Provider in the Proceedings will confer a

pecuniary or other advantage on him.

10) Public Officers shall not create a source of personal or organizational

revenue or advantage by inordinately using public knowledge which comes to

him in the course of discharging his duties.

11) All Public Officers shall take reasonable steps to be factual and

substantiate information to be used in their procurement report.

29 | P a g e
 12) A breach of this Code of Ethics may amount to a violation of the Public

Procurement Act 2007.

30 | P a g e
 PROFESSIONALIZING PROCUREMENT IN A CHANGING WORLD
In a changing world, procurement has become recognized as the most strategic

function for a government in the present global environment just as it is inextricably

tied to economic growth. Procurement deals with values exchange in relation to

goods, works, service and infrastructure (Rose, 2009). Hence, procurement is now

viewed as more strategic function that deals with development tool for the

achievement of social, industrial and environmental objectives, transactional versus

whole life cycle issues; complex, and complicated procurement methodologies, and

including e-procurement.

Procurement has shifted from administrative to more strategic function. It is no

longer viewed as a transaction. Instead, it is being viewed as something that occurs

over the whole life cycle. Efficiency in procurement function must, therefore,

necessitate proper systems and capacity building at each level. Further more,

domestic sovereignty over procurement system is slowly being eroded with trade

agreements, international trade bodies and newer regimes are demanding more

open procurement while the courts are now more aggressive to protecting the

rights of bidders. There is also straightened anti-corruption and access to

information regimes both domestically and internationally including multiplicity of

legal texts (Rose, 2009).

However, it is important to note that procurement as a development tool helps in

the provision of infrastructure, works, goods and services. It also enhances

economic growth and development, as it encourages sound procurement processes

and yields direct investment. It needs also to be underlined that sound procurement
31 | P a g e
system must be anchored on certain basic tenets and these include, overarching

public procurement policy, strong systems and institutions to monitor and enforce

policy and sophisticated cadre of professional skills in the art and services of

procurement. Nevertheless, sound procurement system must be run by

procurement professional because procurement profession requires more than an

understanding of the rules (Rose, 2009).

According to Rose (2009), the procurement professionals must be guided by the

procurement cycle while performing their functions. This cycle has ten stages, and

which include: identifying needs, determining procurement method, tender call

drafting, issuing tender call, submission of tenders, evaluation of tenders, selection

of suppliers, contract execution, contract performance and management, and

assessing performance. In being guided by the professional cycle, however, the

professional procurement of fair will be performing the following functions:

(1) Strategic procurement planning

(2) Drafting and preparation of Tender Documents including instructions

to bidders and terms and conditions of contract.

(3) Managing disclosure duties throughout the procurement cycle.

(4) Advising on compliance and interpretation of tender rules, bid

evaluation and award on high risk projects.

(5) Handling bid protests/complaints.

32 | P a g e
 (6) Specific RFP (Request for Proposal) management in high risk projects

including risk mitigation in RFP process.

(7) Business integrity management and ethical decisions

(8) Negotiation of Public/Private Partnership (PPP) and Private Finance

Initiative (PFI).

(9) E-Procurement, including advice on transactional issues in e-tendering,

e-Auctions, procurement cards, digital certificates etc.

(10) Alternative dispute resolution and litigation services for the

management of procurement disputes.

(11) Evaluation and revising of existing procurement rules, processes and

procedures to conform to international best practice.

(12) Performance of procurement risk assessment.

(13) Performing procurement fraud Audits

(14) Efficient management of freedom of information, requests under the

new access to information regime being implemented globally.

(15) Review, audit and report on the effectiveness and efficiency of the

procurement function.

(16) Contract negotiation and administration

(17) Strategic supply chain management

33 | P a g e
 (18) Value engineering; and

(19) Whole life cycle costing, financing models for P3 structures

It is pertinent to note that procurement function in the present global environment

is a cross-disciplinary function requiring the interaction of several disciplines in

order to attain optimum efficiency. Again a common, transferable body of

knowledge is critical for the procurement function. As the strategic nature of the

function of procurement and the need to enhance the profile of the procurement

practioner became recognized, more and more training and professional

associations have developed e.g. CIPS UK (Chartered Institute for Procurement

Supplies). (afrmikhe 2011)

34 | P a g e
 THE WAY FORWARD
Public procurement has been defined as a social science of planning, soliciting and

acquisition of go0ds and non consulting services, works and consulting services for

the public through government system and a public procurement practitioner is

employed by the government public service to work for and on behalf of the public,

using public funds with public trust.

Public procurement and professional conduct requires: honesty and trustworthy,

truthfulness, fairness and transparency, consistency, confidentiality, confidence of

know-how (i.e. professional advice and guidance) and accountability. It also

involves adherence to the established public procurement systems, procedures,

rules and regulations. Thus, there is no substitute to being professional and ethical

in our procurement conduct. Your personal integrity and professional conduct

reflects positively on our government and cultivates confidence/trust to the co-

operating partners and the Nigerian citizens. (Lumpa 1996)

Procurement is not just purchasing and supply, therefore, moral courage is required

from procurement officials, oversight authorities (like BPP) and the leadership in

procurement procedures. Let the law (therefore) be the shield to do the right thing.

Note that the Public Procurement Act 2007 requires well-trained procurement

cadre officials, moral character, good judgment and leadership. These will help

reduce corruption while at the same time, increasing and improving services and

service delivery and the quality of life for all Nigerians. (Afemikhe 2011)

35 | P a g e
The idea of public procurement is essentially a fundamental driver of any serious

anti-corruption protocol, rule or administration and the concept arises from the

push by citizens to enthrone transparency and integrity to maximize good

governance, prudent management of public resources and minimize or remove

wastes entirely from the contract process. The ideas of individual integrity, anti-

corruption and procurements are dialectically interwined with each concept feeding

and sustaining one another. The Public Procurement Act 2007 is a new policy and

the implementation of the procurement reforms as contained in the Act has

continued to generate fears, debates and concerns in some quarters, which

represents a documentary challenge to all Nigerians. However, with determination

and collective efforts, the challenges of today can become the reality of tomorrow.

Thus, the significance of organizational behaviour is that all managers and Human

Relation Specialists are in the business of influencing behaviour in direction that

will meet the business needs. A managers job is to use the tools of organizational

behaviour to increase effectiveness, efficiency and transparency in the procurement

of goods, works and services for the citizenry using the available resources in order

to achieve value for money. And for the best practices to be met in procurement in

Nigeria, there must, amongst other things, be high ethical standards.

Organizational behaviour is about people as they work together. All people in

organization are concerned with improving organizational behaviour. From the

Clerk, the Machinist to the Manager or Director, work with people and through such

interaction, influence behavioral quality of life in an organization. The managers

representing the administrative or management system, use organizational

36 | P a g e
behaviour to improve people i.e. organization relationships such that a suitable

working climate is created, people are motivated, harmonious working relationship

is created between organization members on the one hand, and the external

environment on the other hand, and where people become more effective persons

(Egonwan, 2008). Appropriate work environment will promote creativity and

innovation on the part of workers that will lead to better tomorrow.

However, organizational behaviour places emphasis on human side of organization

consisting of people, people being the great potential in organization that can be

developed better than it is at the moment. But organizational behaviour will not

abolish conflicts and frustration in the organization. Improved organizational

behaviour will not solve unemployment and corruption; it will not make up for our

deficiencies. It cannot substitute for poor planning, inept organization or shoddy

controls. It is only one of many systems operating within a larger system. (Wood,

1995)

Like in any field of learning, there exist the possibility of misuse of the knowledge

and techniques of organizational behaviour by unethical leaders to manipulate

people, e.g. through knowledge of motivation or communication which can be used

for selfish ends without regard to human welfare. These suggest that leaders in

position should develop a high sense of social responsibility and open

communication and participatory system i.e. transparency, and inclusion. Ethical

leaders also need ethical followers to succeed and if we believe in these, then own

public procurement would be better for all. (Wright & Snell 1995)

37 | P a g e
38 | P a g e
 CONCLUSION
There is a link between organizational behaviour and public sector procurement.

This is because public procurement uses due processes mechanism with procedures

to be followed. Public sector procurement has also a legal backing with the

enactment of Public Procurement Act 2007. Therefore, all organizational behaviour

managers and procurement professionals, contractors, consultants and all

stakeholders need to behave well in order to increase productivity and other

performance variables. There is also the need to have purpose of creating a surplus

even when we talk about non-profit organizations and agencies in the public sector.

Therefore, management ethics come into play to know the dos and the donts.

Appropriate challenges have to be coped with and it is only when they are coped

with, that prospects become bright. All in all, there is a positive relationship

between organizational behaviour and public procurement and vice versa.

A successful Procurement should equally Best Practice Project & Programme

Management techniques and discipline to the procurement process, and ensure that

a strong leadership, governance arrangements and scrutiny are in place. It should

define a procurement strategy with dear options, deliverables, objectives, outputs or

outcomes at the start, and ensure the interest of the MDAS and the contractors are

aligned. Most importantly, successful procurement should allocate risks optionally

between the authority and supplies with the risks carried by the parity best placed

& manage them while focusing on while-life costs and with evaluation of bid

proposals from a qualitative, as well as quantities perspective.

39 | P a g e
Finally a good public procurement system is are that delivers value for money,

fairness, transparency, accountability, that is free of corruption, fraud, waste and

abuse. The Constance of continuous, focused, and targeted training programmes as

thus essential to enhance procurement staff capacity to plan, manage and monitor

the procurement process effectively. Thus there is need for a co-coordinated

equipment, to procurement if the government is to continuously achieve best value

in the use of public trade ant the co-ordinate is better provided try the prurean of

public procurement.

40 | P a g e
 REFERENCE
Akanmu, J. (2009). Ethics and Integrity in Public Procurement a Paper Presented

at 1st National Procurement Forum, Transcorp Hilton Abuja, BPP 29 30 June.

Armstrong, M. (2009). Armstrong Hand Book on HRM Practice. 11th Edition, London

and Philadelphia.

Davis, K. (1981). Human Behaviour at Work: Organizational Behaviour (6th Edition),

New York: McGraw-Hill.

Egonwan, J.A. (2005). Organizational Theory and Behaviour. Benin City: Theddy

Graphic Venture.

Ekpekhiois, S.A. (2003.) Public Sector Procurement Reform: The Nigeria experience, A

paper presented at the Regional Workshop on Procurement Reforms and

Transparency in Government Procurement for Anglophones African Countries in

Tanzania Jamy.

Federal Republic of Nigeria, Procurement Procedures Manual for Public

Procurement:

http:/www.nigeriafirst.org/docs/bpp/procureemntproceduremanualpdf

Ezeh E.M. (2009). Fighting corruption through best practices a paper presuited at

1st National Procurement Form Helmed at Transcorp Hilton Hotel Abuja. (29 th & 30th

June).

41 | P a g e
Ezeh E.M. (2009) The Reformed Public Procurement System: Issues, Opportunities

& Challenges a paper presented at the workshop or Budget Implementation,

Monitoring and Evaluation (Budget Officing of Nigeria) 30th March.

Gale Encyclopedia of Small Procuress: Govt, Procurement:

http//www.consures.com/topic/govt.procurement: downloaded (26/1/2011 at

11.00am.

Lumpa, K. (1996) Public Sector Perfomance Management. Now & for Future The

Asia Prusmas Forming August.

Grundy T. (2005) Implementing Strategic Change: CA Practical Guide for Prissiness,

Kogan Page Wed.

Huczynski A.A & Buchanan D.A. (2007) Organizational Behuror. 6th zehhi FT

Prentice Hall, Harlow.

Wood J. (1995) Mastering Management, Organizational Behuror, Fire and Tiwes,

Mastering Management Suplement.

Ivancevich, J.M.; Konopaske R., and Matteson, M.T. (2008) Organizational Behaviour

and Management. 8th Edition, New York: McGraw Hill/Irwin.

Kim Phan and Jin Jin (2009). Fighting Corruption through Best Procurement

Practices presented at 1st National Procurement Forum held at Transcorp Hilton

Hotel, June.

42 | P a g e
Mohr, .L.B. (1980). Experiencing Organizational Behaviour the Limits and Possibility

of Theory and Receand, Jessey-Bass San Francisco C.A.

Nicolopapa (2010). Up date 17th July.

Rose Margaret (2009) Professionalization Procurement in a Changing World a

paper presented at 1st National Procurement Forum held at Transcorp Hilton Abuja,

29 30th June.

Serge, A. and Waner, M (eds) (1997). The Hand Book of Organizational Behaviour,

London: Thomson Business Press.

World Bank: Nigeria Country Procurement Assessment Report.

http://go.worldbank.org/BHEVEXJ2EO

Wikepedia the Free Encyclopedia

Ulrich, D. & Lake D. (1990) Organization Capability: Compeering from the insid out,

Wiley, New York.

Wright P.M. & Snell, S.A (1998) Towards an untying framework for exploring fit

and flexibility in strategic human resources management, Acaccing of Management

pevious 23(4) PP 756-77.

Public Procurement Act 2007 Bureau of Public Procurement (BPP), State House,

Abuja.

43 | P a g e