CONTRIBUTION OF PROCUREMENT AUDITING IN

ENHANCING PLANNING AND IMPLEMENTATION OF

PROCUREMENT IN TANZANIA

By
JANUARY KINUNDA

A Dissertation Submitted to the School of Business in Partial of the

Requirements for the Degree of Masters of Science in Procurement and Supply
Chain Management of Mzumbe University

2020
 CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for
acceptance by the Mzumbe University a dissertation entitled contribution of
procurement auditing in enhancing planning and implementation of
procurement in Tanzania in Partial of the requirements for award of the Master’s
Degree of Science in Procurement and Supply Chain Management of Mzumbe
University.

___________________________
Major Supervisor

___________________________
Internal Examiner

__________________________
External Examiner

Accepted for the Board of MUDCC

____________________________________________________
PRINCIPAL, DAR ES SALAAM CAMPUS COLLEGE

i
 DECLARATION AND COPYRIGHT

I, January Kinunda, declare that this dissertation is my own original work that all
reference sources have been accurately acknowledged and reported, and that it has
not been presented and will not be presented in any other university for similar or
any other to obtain an academic qualification.

Signature

Date

©2020
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf,
on intellectual property. It may not be reproduced by any means in full or in part,
except for short extracts in fair dealings, for research or private study, critical
scholarly review or discourse with an acknowledge, without the written permission
of Mzumbe University, on behalf of the author.

ii
 ACKNOWLEDEGEMENT

The researcher would like to express profound gratitude and appreciation to those
who contributed their immense valuable support, directly or indirectly towards the
successful completion of this work. Also the researcher would like to appreciate the
contribution from my wife Maria Mligo and supervisor Dr. Maige Mwasimba for
his supervisory role.

He greatly acknowledges the time, resources and other assistance from my

colleagues Eng. George Haule, Eng. James Pilly, Mr. Michael Malabeja, Mr.
Emmanuel Kisweka for the support during the whole study period. Moreover, would
like to appreciate the contribution from all respondents in the study area for their
kindness and great cooperation during the whole period of data collections. They
have been a very critical link in facilitating accomplishment of the study.

Special acknowledgement goes to the researcher`s family for their kindness and
moral support during the study period. Further appreciation should be extended to all
my colleagues who advised me in one way or another during the preparation of this
report.

iii
 DEDICATION

This work is dedicated to my parents (Theodora Mapunda and Kandidus Kinunda)

and to my lovely wife Maria for courage and support in my activities.

iv
 ABBREVIATION

ANOVA Analysis of Variance

CAG Controller and Auditor General
LGA Local Government Authority
LGAs Local Government Authorities
MDAs Ministry, Department and Agencies
NAOT National Audit Office of Tanzania
No. Number
PA Public Authority
PAA Public Audit Act
PEs Procuring Entities
PPA Public Procurement Act
PPA Public Procurement Act
PPRA Public Procurement Regulatory Authority
STD.DEV Standard Deviation
URT United Republic of Tanzania

v
 ABSTRACT

This study was to assess the contribution of the procurement audit in procurement
planning and implementation in Tanzania. It involved a sample size of 6 Procuring
Entities (PEs) from a target population of 46 PEs. Data were obtained by the
questionnaire, and documentary review. The quantitative data were analyzed by
descriptive statistics, regression model, and qualitative data were analyzed by
explanation building process. The study revealed that, compliance accountability had
negative and significant effect on procurement planning and implementation.
Recommendations issued by auditors contributed to the improved compliance in
awarding and contract administration and auditors adequately assess compliance to
public procurements in tendering, selection awarding and contract administration.
Also, it was revealed that performance accountability had positive effect on
procurement planning and implementation, but it was not statistically significant
relationship. Auditors adequately assess aspects of performance accountability; and
recommendation issued contributed to the improved delivery of right items and
services, timely delivery of procured goods or services and procurement at fair and
reasonable price.

Furthermore, it was revealed that transparency had positive and significant effect on
procurement planning and implementation. Auditors sufficiently inform relevant
stakeholders about the results of the audit, and audit recommendations contributed to
the improved transparency in the procurement particularly in the planning and
implementation stages of procurement.

Therefore, it is recommended that policy makers should make the best methodology
to approach the procurement audits in order to achieve procurement performance of
the organization. Formulation and cultivation culture of performance in terms of
appropriate accountable procedures, structures and systems for procurement that
would provide appropriate direction for the organization.

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 TABLE OF CONTENT

CERTIFICATION ...................................................................................................... i
DECLARATION AND COPYRIGHT .................................................................... ii
ACKNOWLEDEGEMENT ..................................................................................... iii
DEDICATION........................................................................................................... iv
ABBREVIATION ...................................................................................................... v
ABSTRACT ............................................................................................................... vi
LIST OF TABLES .................................................................................................... xi
LIST OF FIGURES ................................................................................................. xii
CHAPTER ONE ........................................................................................................ 1
PROBLEM SETTING............................................................................................... 1
1.1 Introduction ............................................................................................................ 1
1.2 Back Ground of the Study ...................................................................................... 1
1.3 Statement of the Problem ....................................................................................... 3
1.4 Research Objectives ............................................................................................... 5
1.4.1 General Objective ............................................................................................... 5
1.4.2 Specific Objectives ............................................................................................. 5
1.5 Research Questions ................................................................................................ 5
1.5.1 General Questions ............................................................................................... 5
1.5.2 Specific Questions .............................................................................................. 5
1.6 Significance of the study ........................................................................................ 6
1.6.1 Procuring Entities................................................................................................ 6
1.6.2 Policy Makers ..................................................................................................... 6
1.6.3 General Public ..................................................................................................... 6
1.6.4 Other Researchers ............................................................................................... 6
1.6.5 Researcher ........................................................................................................... 6
1.7 Organization of the Report ..................................................................................... 6
CHAPTER TWO ....................................................................................................... 7
LITERATURE REVIEW ......................................................................................... 7
2.1 Introduction ............................................................................................................ 7
2.2 Definition of Concept and Terms .......................................................................... 7
vii
2.2.1 Audit ................................................................................................................... 7
2.2.2 Procurement Audit .............................................................................................. 7
2.3 Concepts of the Study ............................................................................................ 9
2.3.1 Key elements of an Effective Public Sector Audit Activity ............................... 9
2.3.2 Legal framework for Planning and Implementation of Public Procurement in
Tanzania ............................................................................................................. 10
2.3.3 Compliance Accountability in Public procurement ........................................ 14
2.3.4 Performance Accountability in Public Procurement ......................................... 14
2.3.5 Transparency in Public Procurement ................................................................ 15
2.4 Theoretical Review .............................................................................................. 16
2.4.1 The Cognitive Dissonance Theory.................................................................... 16
2.4.2 Agency Theory on Performance Accountability .............................................. 17
2.4.3 Theory of Inspired Confidence ......................................................................... 18
2.5 Empirical Literature Review ................................................................................ 18
2.6 Conceptual Framework ........................................................................................ 24
2.7 Research Hypotheses ........................................................................................... 25
CHAPTER THREE ................................................................................................. 27
RESEARCH METHODOLOGY ........................................................................... 27
3.0 Introduction .......................................................................................................... 27
3.1 Type of the Study ................................................................................................. 27
3.2 Study Area ........................................................................................................... 27
3.3 Target Population ................................................................................................. 27
3.4 Sample and Sample Techniques .......................................................................... 28
3.4.1 Sample............................................................................................................... 28
3.4.2 Sampling Procedures......................................................................................... 28
3.4.3 Sample Size ....................................................................................................... 29
3.5 Types and Sources of Data .................................................................................. 30
3.5.1 Types of Data .................................................................................................... 30
3.5.2 Source of Data................................................................................................... 30
3.5.2.1 Primary Data .................................................................................................. 30
3.5.2.2 Secondary Data .............................................................................................. 30

viii
3.6 Data Collection Method ....................................................................................... 31
3.6.1 Documentary Review ........................................................................................ 31
3.6.2 Questionnaires ................................................................................................... 31
3.7 Reliability and Validity of Data ........................................................................... 32
3.7.1 Data Reliability ................................................................................................. 32
3.7.2 Data Validity ..................................................................................................... 32
3.8 Variables and their Measurement ........................................................................ 32
3.9 Data Analysis Method.......................................................................................... 33
3.9.1 Data Management ............................................................................................. 33
3.9.2 Data Analysis Method....................................................................................... 34
CHAPTER FOUR .................................................................................................... 35
PRESENTATION OF THE FINDINGS ............................................................... 35
4.1 Introduction .......................................................................................................... 35
4.2 Response Rate ...................................................................................................... 35
4.3 Demographic Part ................................................................................................ 36
4.3.1 Working Experiences ........................................................................................ 36
4.3.2 Gender ............................................................................................................... 37
4.3.3 Level of Education ............................................................................................ 38
4.3.4 Categories of Respondents ................................................................................ 38
4.4 Compliance in the Public Procurement Planning and Implementation ............... 39
4.5 Performance Accountability on Procurement Planning and Implementation ...... 43
4.6 Transparency in the Public Procurement Planning and Implementation ............. 47
4.7 Procurement Planning and Implementation ......................................................... 49
4.8 Inferential Statistics ............................................................................................. 50
4.8.1 Assumptions of Regression Analysis ................................................................ 50
4.8.1.1 Normality and Outliers .................................................................................. 51
4.8.1.2 Multicollinearity ............................................................................................ 52
4.8.2 Regression Analysis Testing ............................................................................. 52
4.8.2.1 Model Summary............................................................................................. 53
4.8.2.2 Analysis of Variance (ANOVA) .................................................................... 53
4.8.2.3 Regression Coefficients ................................................................................. 54

ix
4.8.3 Summary of Hypothesis Testing ....................................................................... 56
CHAPTER FIVE ..................................................................................................... 58
DISCUSSION OF THE FINDINGS ....................................................................... 58
5.1 Introduction .......................................................................................................... 58
5.2 Compliance Accountability in Planning and Implementation of Procurement ... 58
5.3 Performance Accountability in Planning and Implementation of Procurement .. 60
5.4 Transparency on Public Procurement Planning and Implementation .................. 61
5.5 Procurement Planning and Implementation ......................................................... 63
CHAPTER SIX ........................................................................................................ 65
SUMMARY, CONCLUSIONS AND POLICY IMPLICATIONS ..................... 65
6.1 Introduction .......................................................................................................... 65
6.2 Summary of the Finding ...................................................................................... 65
6.2.1 Compliance in Procurement Planning and Implementation ............................. 65
6.2.2Performance Accountability in Procurement Planning and Implementation..... 66
6.2.3 Transparency in Procurement Planning and Implementation ........................... 66
6.3 Conclusion of the Study ....................................................................................... 67
6.3.1 Compliance in Procurement Planning and Implementation ............................. 67
6.3.2 Performance Accountability in Procurement Planning and Implementation.... 68
6.3.3 Transparency in Procurement Planning and Implementation ........................... 68
6.4 Recommendations of the Study ........................................................................... 69
6.4.1 Recommendation to Policy Markers ................................................................. 69
6.4.2 Recommendation to Procuring Entities ............................................................ 69
6.4.3 Recommendation to National Audit Office (NAOT) and Public Procurement
Regulatory Authority (PPRA).................................................................................... 69
6.5 Limitation of the Study ........................................................................................ 69
6.6 Area for Future Studies ........................................................................................ 70
REFERENCE ........................................................................................................... 71
APPENDICES .......................................................................................................... 79
Appendix One: Research Questionnaire .................................................................... 79

x
 LIST OF TABLES

Table 3.1: Categories of Respondents from PEs and NAOT ..................................... 29

Table 3.2: Measurement of Variable ......................................................................... 33
Table 4.1: Response rate ............................................................................................ 35
Table 4.2: Working Experience ................................................................................. 36
Table 4.3: Gender ....................................................................................................... 37
Table 4.4: Level of Education .................................................................................... 38
Table 4.5: Categories of PEs and National Audit Office of Tanzania ...................... 39
Table 4.6: Descriptive Statistics on Compliance Accountability .............................. 40
Table 4.7: Descriptive Statistics on Performance Accountability ............................. 44
Table 4.8: Descriptive Statistics on Transparency ..................................................... 47
Table 4.9: Descriptive Statistics on Procurement Planning and Implementation ...... 49
Table 4.10: Descriptive Statistics .............................................................................. 51
Table 4.11: Multicollinearity ..................................................................................... 52
Table 4.12: Model Summary ..................................................................................... 53
Table 4.13: ANOVA .................................................................................................. 54
Table 4.14: Regression Coefficients .......................................................................... 55
Table 4.15: Summary of the Hypothesis .................................................................... 57

xi
 LIST OF FIGURES

Figure 2.1 Planning and Implementation of Public Procurement in Tanzania ....... 12

Figure 2.2 Relationship of key Stakeholders on Planning, implementation and
auditing of public procurement practices in Tanzania ............................ 13
Figure 2.3 Conceptual framework of the study ........................................................ 25
Figure 4.1: Trend Analysis on Compliance Accountability from 2009/10-2018/19 . 41
Figure 4.2: Trend Analysis on Compliance of Procurement Planning, Tendering and
Contract Administration from 2009/10-2018/19 .................................... 42
Figure 4.3: Trend Analysis on Performance Accountability from 2009/10-2018/19 45
Figure 4.4: Trend Analysis on Performance of Appropriates of Tendering, Contract
and Supervision, and Quality of Work Executed from 2009/10-2018/19
................................................................................................................. 46
Figure 4.5: Trend Analysis on Procurement Transparency from 2009/10-2018/19 .. 48

xii
 CHAPTER ONE
PROBLEM SETTING
1.1 Introduction
This chapter contains background of the study, statement of the problem, research
objectives both general and specific objectives, research questions, significant of the
study, scope of the study, and organization of the study.

1.2 Back Ground of the Study

Auditing is a foundation of any public sector by providing an independent option on
the way state resources are allocated and managed to achieve the desired objective
(Guidance, 2012). Its assist the state to determine any wrong doing in relation to
public resource, in provide advice and foreseen any possible obstacles in that might
affects public sectors and citizens at all (ibid).

Prior 1980s, literature highlighted that states and public sector at all did not value
Supreme Audit Institutions (SAIs) and External Auditors can play a vital role for
achievement and failures of public sectors (Goddard and Malagila ,2015). I n the
previous years, developing countries were forced to increases service delivery and
required to answer on the use of resources (Boex & Martinez-Vazquez, 2006;
Everett, Neu, & Rahaman, 2007; Rahaman, 2009) as cited by ibid.

Currently, public audit sector has adopted concept of efficiency and effectiveness
aimed on emphasizing on transparency and accountability in scarce public resource
allocated for service delivery to the citizens (Jayasinghe, Nath and Othman, 2015).
Tanzania recognized by role played by National Audit Office in ensuring
accountability, service delivery and fight against mismanagement of public sector
resources (Kelsall, 2003; NAOT, 2007; Ryoba, 2006) as cited by (Goddard and
Malagila, 2015).

Kenneth and Rick (1998) revealed that auditing is the economy way of promoting
transparency and truthiness of the way government operations., and it support the

1
government to improve performance. It contributes to the government on the
adherence of existing laws and regulations in regards to the public sectors (ibid).
Hence, Public sector auditing is crucial tool that provide assurance of good
governance practices in long term. Audit assist assess the way public resources have
been used and prevent mismanagement, abuse, fraudulent practices and corruption
for public officials. This provide and promote Government trust to the normal
citizens, partner like foreign investors and taxpayers (Wisdom, 2017).

Large percent of Gross Domestic Product (GDP) throughout the world is planned
and executed through public procurement, its recommended to ensure Public
Procurement is working properly (Plaček, Ochrana, Schmid, Nemec, and Půček,
2020).). Larger portion of public expenditure after salaries, is approximately between
15% - 20% of state expenditures, and up to 70% in developing countries and its
concluded that public procurement is a key weapon for assess government principals
of good effective governance (Thai, 2001; World Bank, 2012) as cited by (Bawole
and Adjei-Bamfo ,2019).

In Tanzania, Public Audit Act No.11 of 2018 has empowered Controller and Auditor
General (CAG) to ensure all public expenditures is done properly and for the
intended purpose taking on board economy, efficiency and effectiveness for each
transaction. Section 26(b, c) require CAG to evaluate and examine the public
procurement process and procedure are undertaken; compliances of public
procurement laws and regulation. Also, section 28 of the same audit require CAG to
conduct performance audit in public entities.

In addition, Public Procurement Regulatory Authority is assigned to undertake

procurement, contract and performance audit (Public Procurement Act No.9 [PPA]
,2011) section 9(1) (I). This effort was taken due to the fact that large proportion of
government expenditure is done through procurement, it needs to be assessed
properly.

2
1.3 Statement of the Problem
For the period of ten-year performance of public procurement has raised alert to
various stakeholders from experts, researchers and academicians due to
unsatisfactory performance in the execution of procurement functions, which cost the
organization in achieving its goals (Kakwezi & Nyeko, 2019). In recent years there is
great concern in relation to the way public funds are mismanaged by public officials.
Due to this, auditing is highly needed as the third eye in order to enhance
transparency and accountability to the public and private sector as well (Wisdom,
2017).

Public procurement is a powerful lever for achieving economic, environmental,

technological, and social goals. In recent years, the amount of procurement
expenditure has been increasing, and with it, so has public demand for greater
transparency and efficiency. Despite its importance and the greater attention being
paid to public procurement, global information about the public procurement market
is still scarce (Organization for Economic Co-operation Development [OECD]
,2019).

Its estimate that, public sector spends about US$ 28 trillion in world market whereby
US$ 8.5 trillion estimated to be spend in procurement public, however in both
developed or developing countries public achieve less than expected (Oliver, 2018).
Public procurement has changed from operating functions to strategic one as a key
component to increase efficient to the societies (Brunette, Klaaren and Nqaba, 2019).
Procurement practitioners and supply chain professionals face difficult matters when
making procurement decisions (Brown et al., 2013; Malatesta, 2015) as cited by
Baldus and Hatton (2019).

Planning for undertaking procurement function is crucial for effective

implementation of procurement function. Failure to plan properly it might affect
effective implementation of procurement especially in contract awarding and
administration (Popa, and Ispas, 2019). Current procurement practices recommend
on anticipating, planning and developing analytical techniques that enable assess

3
clear inputs needed; reducing cost; sustainability of supply; and inventory planning
(Williams, Lau and McCue, 2018).

The importance of procurement plan is well understood by for effective execution of

procurement functions (Basheka,2009). Section of 49(1) PPA obliged public entities
to prepare annual procurement plan in order to unplanned procurement;
consolidating similar requirement from various departments in order to achieve value
for money associated with consolidate procurement; and linking planned budget and
procurement expenditures. Procurement planning is a process which involves needs
identification and allocations of resources for implementations (Van, 2009) as cited
by Mutoro, Makokha and Namisonge (2018).

Poor procurement planning is identified as one of obstacles toward achieving

development goals in Africa. It has been known that, most of African countries less
prioritize effective management of public resources (Basheka, 2004) as cited by
Mutoro, Makokha and Namisonge (2018). Procurement plan is prepared and
approved in line with budget for the specific public sector which implies the state
commitment on the allocation of public resources.

Necessary control for ensuring effective implementation of procurement activities is

to ensure that, every organization is prepared on how identified procurement will be
handled in order to achieve key principles in public procurement such as
accountability, value for money and transparency (ibid).

Public Sector Performance auditing play important role in assessing whether the
government spend public resources economy, efficiently and effectively by checking
the public operations activities (Umor, Zakaria and Sulaiman, 2016). Follow up is
recommended to be conducted by auditors in order to reassess the extent to which the
proposed action has been address, failure to do so the value of audit will not be
known (ibid). Since the use of public procurement laws and procedures is required
public procurement spending, it is a key control for assuring the efficiency and
effectiveness for each public procurement transaction(OECD, 2019).

4
It has been recommended that, strong commitment for good governance in the
execution of public procurement is highly needed (Jacob, 2017). In order to achieve
this, the research will to assess contribution of procurement auditing in enhancing
procurement planning and implementation.

1.4 Research Objectives

1.4.1 General Objective
The main research objective was to assess contribution of procurement auditing in
enhancing planning and implementation of procurement in Tanzania.

1.4.2 Specific Objectives

The study was guided by the following objectives:
(i) To identify effect of compliance accountability in planning and implementation
of procurement in Tanzania.
(ii) To determine effect of performance accountability in planning and
implementation of procurement in Tanzania.
(iii) To illustrate effect of transparency in planning and implementation of
procurement in Tanzania.

1.5 Research Questions

1.5.1 General Questions
Do the audits conducted contribute effective planning and implementation of
procurement in Tanzania?

1.5.2 Specific Questions

The study used the following specific questions:
(i) To what extent does compliance accountability enhance planning and
implementation of procurement in Tanzania?
(ii) To what extent does performance accountability enhance planning and
implementation of procurement in Tanzania?
(iii) How does transparency improved planning and implementation of procurement
in Tanzania?
5
1.6 Significance of the study
The study is important to the researcher, National Audit Office of Tanzania (NAOT),
Public Procurement Regulatory Authority (PPRA), Procuring Entities (PEs) and
Researcher as elaborated hereunder.

1.6.1 Procuring Entities

The study can help PEs to improve the procurement planning and implementation in
order to facilitate economy, efficient and effectiveness in public procurement.

1.6.2 Policy Makers

The study can assist policy makers when thinking on improvement public
procurement systems and practices in Tanzania.

1.6.3 General Public

The study informs the public on the way procurement audit play a vital role in
improving planning and implementation of procurement activities.

1.6.4 Other Researchers

The study will help other researchers to avoid repeating the same study and focused
on area identified by researcher for further studies.

1.6.5 Researcher
The study is compulsory requirement as partial fulfilment for award of Master of
Science of Procurement and Supply Management.

1.7 Organization of the Report

This report contains six chapters; where by chapter one involves overview of the
study, statement of the research problem, research objectives and significant of the
study, chapter two consist of literature review under this there is theoretical review,
empirical review, conceptual frame work and research hypotheses; chapter three
involves research methodology; chapter four presentation of finding; chapter five
analysis and discussion; and chapter six includes summary, conclusions and policy
implications.

6
 CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter present definition of concepts and terms, theoretical and empirical
reviews and research gap on the impact of auditing in procurement planning and
implementation. This part presents different ideas and concepts from books, journal
and published audit reports relating to the study and finally, conceptual framework
and research variables for clear understanding of research.

2.2 Definition of Concept and Terms

This part describes the key terms used in the study such as audit, procurement audit,
contract audit, performance audit, compliance audit, accountability, transparency,
auditing process and procurement process.

2.2.1. Audit
Audit is defined as independent assessment of financial information in order to
provide a conclusion and recommendation (National Board of Accountant and
Auditing (NBAA), 2010). Likewise, Balwani (2012) has defined audit as formal
inspection of entity’s transaction undertaken by an independent entity or person. For
the case of Tanzania, National Audit Office of Tanzania (NAOT) is an independent
department established for undertaking various kind of audit as well as Public
Procurement Regulatory Authority (PPRA).

2.2.2. Procurement Audit

Procurement audit is defined as independent examination of procurement process in
order to provide an opinion on whether public procurement is conducted public
procurement principle (PPA, 2011 section 9(1)(i)). Also, is defined as project review
process whereby different procurement contracts are reviewed to ascertain to what
extent their implementation is done completely and appropriate as required by public
procurement principles. (Project Management Knowledge (PMK), n.d).

7
2.2.2.1 Compliance Audit
Is defined as an independent examination of an organization operations to determine
whether is conducted in line with applicable statute such as policies, laws,
regulations, guideline and manuals govern the certain operation (African
Organization of Supreme Audit Institute-English Speaking Countries (AFROSAI)-E,
2017). For example, in area of public procurement compliance audit can be done to
assess whether is done in accordance which applicable public procurement laws and
regulations.

2.2.2.2 Contract Audit

Is defined as independent examination during the implementation of awarded
contract in order to ascertain whether contract is implemented as per contractual
terms and condition in place (PPA, 2011 section9(1)(i)). Quality, cost and time is
highly assessed in this kind of audit so as to be assure whether it has implemented as
per agreed quality, cost and time.

2.2.2.3 Performance Audit

Is defined as kind of audit aimed at assessing if the way government undertake its
functions efficiency, effectiveness and economy targeting addressing performance
problem (International Standard of Supreme Audit Institute (ISSAI) 3000, 2004).
This is modern kind of audit in Tanzania the first performance audit report was
tabled in 2008. Basically performance audit focus on:

 Economy
Focus on using minimal costs in acquiring or implementing a certain project, in
terms of money, time and man power (AFROSAI-E, 2013).

 Efficiency
Focus on getting the best out of the existing resources, it assesses productivity by
looking relationship between input and output (AFROSAI-E, 2013).

8
  Effectiveness
Focus on assessing whether the intended objective is attained or not (ibid).

2.2.2.4 Forensic audit

This is kind of audit targeting on prevention and detection of malpractices such as
fraud, embezzlement and corruption and suggesting legal proceeding to be
undertaken (Public Audit Act (PPA), 2008).

2.3 Concepts of the Study

Public audit in Tanzania is recognized in the Constitution of United Republic of
Tanzania,1977 as amended, Public Finance Act (PFA), Public Audit Act (PAA) 2008
as amended and in Public Procurement Act (PPA) 2011 as amended. The
aforementioned statutes have empowered Controller and Audit General (CAG) and
Public Regulatory Authority (PPRA) to under audit in area of public procurement.
CAG is empowered to conduct compliance audit, forensic audit performance audit
and any other audit as deemed necessary (PAA, 2008). Likewise, PPRA is
empowered to undertake procurement audit, contract audit, performance audit and
investigation (PPA, 2011)

2.3.1 Key elements of an Effective Public Sector Audit Activity

According to Guidance (2012), in order for public sector audit to achieve the desired
goals of promoting accountability, transparency, equity and appropriate action of
public officials at least should have the following attributes.

Organization Independence: Auditor is required to perform assignment

independently with undue influence. In Tanzania, Constitution and public audit act
has empowered Controller and Auditor General (CAG) to exercise its power without
been interfered with anybody. Likewise, Public Procurement Act has empowered
CAG and Public Procurement Regulatory Authority to perform audit assignment
independently.

Formal Mandate: In order to perform audit function, auditor should have legal
mandate to do so. For the case of Tanzania, CAG is mandate to undertake audit in
9
Constitution of United Republic of Tanzania and in public audit act. Public Audit
Act empower CAG to undertaken various kind of audit including auditing of
procurement transaction.
Unrestricted Accesses: In order to be able to issue audit report, an audit is supposed
to be provided with all necessary information. In Tanzania, Public audit act and
public procurement act has empowered unrestricted access to any records needed
during auditing.

Competent Staff: An audit is required to be carried by qualified staff with

appropriate professional in order to grantee quality audit report produced.

Professional audit Standard: Any audit is guided by standards accepted standards, in

order to streamline the auditing process.

Objective staff: Any audit should have specific audit object in order to enable auditor
to provide his opinion. For example, the objective of regulatory audit, performance
audit and forensic audit differ each other.

Sufficient fund: In order for any auditor to perform its assignment well, it needs to be
financial well. For example, in Tanzania Public Audit Act require CAG to be
provided with fund needed to execute his function.

2.3.2 Legal framework for Planning and Implementation of Public Procurement

in Tanzania
Plan and implementation of public procurement in Tanzania is governed by:
i. Public Procurement Act No.7 of 2011, Public Procurement (Amendment) Act
no.5 of 2016;
ii. Public Procurement Regulation GN 446 of 2013 and Public Procurement
(Amendment) Regulation GN.333 of 2016 as amended from time to time;
iii. World Bank Guidelines for Procurement, 2017 for World Bank financed
projects;
iv. Guidelines issued by Public Procurement Regulatory Authority (PPRA); and
v. Any other bilateral agreement plan and execution of certain project.
10
Planning and implementation of public procurement consist of various stage as
indicated in figure 2.1, in each stage Controller and Auditor General (CAG) and
Public Procurement Regulatory Authority (PPRA) are require to examine whatever is
done.

11
Figure 2.1: Planning and Implementation of Public Procurement in Tanzania

Source: Modified version of Procurement Procedures issued by PPRA & CAG,2020

In each stage of planning and implementation in figure 2.1 various stakeholders are
involved. The relationship between the identified stakeholders are demonstrated in
figure 2.2.

12
Figure 2.2 Relationship of key Stakeholders on Planning, implementation and
auditing of public procurement practices in Tanzania

Public Procurement Controller and

Regulatory Auditor General
Authority (PPRA)

Monitor Monitor
performa performa
nce of nce of
PEs PEs
&PPRA
ACCOUNTING OFFICER (AO)

P u b l i c P r o c u r e m e n t

R e g u l a t o r y
Submit award decision to AO
A u t h o r i t y ( P P R A )
Reports
TENDER BOARD (TB)
to AO

Inspection and
receiving Submit Awards Recommendations to TB
Committee

PROCUREMENT MANAGEMENT UNIT(PMU)

Within
PE
Submit reports to PMU
Evaluation &
User negotiation committee
Department
Initiate requirement, inputs to
specification and evaluation

Source: Modified version of key Organ in Public Procurement by CAG &

PPRA,2020

13
2.3.3 Compliance Accountability in Public procurement
Cambridge dictionary accountability is a situation whereby one part is responsible
for the decisions made and require to answer for the factor attributed for the
decisions made. Lonsdale, Wilkins and Ling, T(Eds) (2011) highlighted that,
accountability is a heart of public administration in democratic state. Its key tools
adopted by citizens to controls government leaders and official entitled to under
activities on their behalf. In order improve performance of public secondary schools
it require to highly comply with the stipulate procurement laws and regulations
(Sikolia & Muthini, 2019).

Weak monitoring and supervision public procurement contribute Procuring

Entities(PEs) fail to comply in public procurement laws and regulations World Bank
report, 2013 as cited by Dza and Dzandu,2019. By having practices of checking
whether there is compliance of public procurement laws and regulations, it forces
procurement staffs to strive to ensure compliances in each procurement transactions
(Hui, Othman, Omar, Rahman & Haron, 2011). The tendency of oversighting and
reviewing are important in ensuring good practices in managing procurement
practices (ibid).

According to section 48 (4-5) of PPA (2011) highlighted that Accounting Officer,

and procurement practitioners will be accountable for not comply with the
requirement stated in Public Procurement Act and Regulations.

2.3.4 Performance Accountability in Public Procurement

The performance of public procurement is highly influenced with the managerial
experience of procurement practitioners (Changalima & Ismail, 2019). Procurement
practitioners are empowering to make decisions all matters relating to public
procurement with spend about 75% of government expenditure(ibid).

The audit objective focus on monitoring management activities in order to assess

management performance for the interest of owner and other stakeholders such as

14
debtors (Colbert & Jahera, 1988). For public sector monitor government activities
for the benefit of public or citizens and other with interest on the state.

According to (Mrope, 2018) there is direct relationship between compliance with

stipulate public procurement laws and regulations with the entered performance of
public procuring entities. section 4A (3) of Public Procurement (Amendment) Act
No.5 of 2016, require Procuring Entities to strive to achieve the highest standard of
equity during execution of procurement by taking into equality, fairness and need to
obtain value for money for each procurement undertaken (PPA, 2011).

2.3.5 Transparency in Public Procurement

Public procurement process should be transparency to all key stakeholders especial
during the tender advertisement to contract awarding so as to promote equality and
fair participation in public procurement (Chrysostom, 2019).

According to section 63 of PPA (2011) acknowledge transparency as one of basic

principle of all procurement and disposal in order to achieve the intended objective.
Public audit is a key weapon for encouraging transparency in expending of public
resources in order to generate confidence to the citizens on the efficiency and
effectiveness of public expenditures. Transparency provide confidence on the people
trusted to execute, however, the key aim of public audit should focus on providing
sufficient and reliable evidence (Heald and Rodgers, 2018). It has been reported that,
for about 40% of citizens trust government on expenditure undertaken (ibid).

Public audit informs the citizens on the how efficiency and effective the government
spend on scarce resource in place. Audit activities contribute to enhance credibility
of financial information presented by public to citizens (Ajao, Olamide and
Temitope, 2016).

15
2.4 Theoretical Review
This part provides theoretical concepts of compliance accountability, performance
accountability; and transparency in procurement plan and implementation.

2.4.1 The Cognitive Dissonance Theory

According to theory of cognitive dissonance, introducing severe laws and require
people to follow stated procedures it creates conflicts between states of mind and
requirement, the essence of compliance is highly needs in order to forces people to
comply with the laydown procurement procedures (Chikwere, Simon, Dza and
Dzandu, 2019).

Cognitive dissonance theory, further highlighted that, when individual had two or
more thoughts that disputes each other for example law require to comply and state
of mind do not want to comply, you need to force compliance by close oversighting
(Hinojosa, Gardner, Walker, Cogliser, and Gullifor, 2017).

According to Andy (2002) public audit standards require more to be done than only
to issues opinion truth and fair presentation of financial statement. The main
objective of Public audit is to provide assurance about the public entries existing
internal control and adherence with laws and regulation. Currently, public sector
audit is very technical and complex because it assesses various matters such as public
procurement related matters.

Likewise, according to policeman theory, in 20th century the principal role of auditor
is to search, discover and avoiding fraud, currently the main focus of audit is to
ascertain whether financial information provided is in line with the stipulated
standards (Hayes et al, 2005 as cited by Ittonen (2010). However, this police theory
views of 20th century is most applicable to forensic audit, the theory assumes that
there is presence of fraudster in the organization which needs to employ forensic
audit in order to detect and prevent further occurrence (Enofe, Omagbon and
Ehigiator, 2015).

16
What is done by PPRA and NAOT is to enforce PEs to comply with Public
Procurement Acts and Regulation either you like or not. The law requires PEs to
comply from planning phase of procurement to contract closure. In each there is
strictly procedure which require PEs to adhere for it. In case of non-compliance there
is strictly sanctions set aside.

For the sake of ensuring compliance, the theory of Cognitive dissonance is required
to be applied by public procurement oversight organs like PPRA and NAOT. PPRA
and NAOT, undertake compliance, performance and contract audit: and regulatory,
finance, performance and forensic audit respective among other thing aimed to assess
compliance of public procurement act and regulation.

2.4.2 Agency Theory on Performance Accountability

Kunz and Pfaff (2002) explained agency theory as intended to address conflict of
interest between principal and agency. For case of Public Audit sector, Principal is
citizen and agent is government. So, principal do not trust agent, so he decided to
have external independent auditor in order provide an independent opinion on the
way agent act. Public audit is a pivot for promoting transparency and trust for
financial information provided.

Agency model assume that, no agent is honest, agent need to be monitored in its
performance and actual output need to be measured by independently organ
(International Cooperation Organization [ICA], 2005). The level of monitoring and
performance measurement it depends on the degree of trust based on previous action
and recent performance trend. Trusting agent, it jeopardizes public interest on
ensuring agent perform as expected.

When management and workers have self-interest rather than for principal interest, it
become difficult for agent to provide valid information for the actual performance of
an entity (Bendickson., Muldoon, Liguori, Davis, 2016). Auditor will be able to tell
the principal the actual performance of entity in line with the agreed standard.

17
This theory is relevant; it supports audit function as it assessing performance of
entrust people or organs to executive a certain function on their behalf. For NAOT
and PPRA audit public entities to assess perform as expected by public or citizens.

2.4.3 Theory of Inspired Confidence

According to theory of inspired confidence, the need for audit is attributed by
participation of third parties toward achieving the certain goal (Limperg 1932 as
cited by Ittonen, 2010). Due to possibility conflict of interest and hiding some crucial
information relating to compliance and performance, an auditor is requiring to
provide assurance on the information provided.
The theory suggests that, audit is obliged to meet expectation of public party.
According to Tanzania Public Audit Act and Regulation require Controller and
Auditor General to Publicly release audit reports to public once tabled in the
parliament of United Republic of Tanzania.

2.5 Empirical Literature Review

This section shows similar studies in relation to role of auditing in planning and
implementation of procurement activities. It shows both local and foreign empirical
studies. The researcher reviewed studies from Kenya, Ghana, Nigeria, Croatia and
Indonesia as shown hereunder:

Jembe and Wandera (2019) conducted study on Effect of procurement audit on the
procurement performance of non-governmental organizations in Kenya. the study
aimed to answer the following specific objectives: to assess the impact of
procurement accountability; to determine effect of complying to procurement
guideline; and to assess the impact of procurement transparency on the procurement
performance of Compassion Kenya.

The research aimed to find out the factors that attribute the questionable performance
despite of conducting procurement audit in Compassion of Kenya. The study
adopted descriptive approach. The expected population to be used during the data
collection was 106. The study finds out there was positive relationship between
18
independent variables; procurement accountability; transparency, conformance with
procurement performance.

The study openly indicated that procurement accountability was highly forced by
procurement performance. The study emphases that, there was direct correlation
between procurement audit and transparency, accountability and accountability. The
research concluded that, there was positive relationship between variables used in the
research. The positive relationship was attributed by well-structured organization,
respect of professionalism by recruiting experts in area of procurement, well
prepared annual procurement plan in line with stipulated statutory and top
management support in procurement professional.

The research concluded that, management and other stakeholder to provide capacity
building to procurement practitioners on accountability, transparency and
conformance in relationship with procurement audit for the whole organization.
Also, the researcher concludes that, management should strive to ensure that,
organization culture focus on adherence of stipulated laws and regulations; and
conformance.

Chikwere, Simon, Dzandu and Dza (2019) conducted research on the Compliances
Issues with Public Procurement Regulations in Ghana, the research aimed to address
the following specific objectives: to assess the level of compliances of public
procurement in Ghana; and causes of non-compliances with existing regulation
govern public procurement in Ghana. Probability sampling was adopted, whereby
simple random was used to form sample of 100 people involved in procurement from
government entities in Ghana.

The researcher adopted descriptive and inferential statistics approach for analyzing
collected data. The study noted that, there is improvement in compliance of public
procurement law in Ghana despite of difference in management system and contract
management approach among entities. The study highlighted that familiarity with

19
public procurement law(p-value=0.020) was inversely related, practitioner’s
incompetence(p-value=0.023), Political influence(P=0.000), weak monitoring(p-
value=0.010) were key significant attributes for the non-compliance with the
established laws, regulation and guidelines govern public procurement in Ghana.

The research concluded that, the level of compliance with public procurement is at
average. Familiarity with legal framework and having strict law and regulation has
negative relationship with compliances. Staff competences, poor monitoring and
political influences highly attributed to non-compliances of existing legal frame of
public procurement in Ghana. The study recommended that, other research should be
undertaken to determine the other factors that attribute to non-compliance as to
enable decision marker to establish governance arrangement that address the
noncompliance issues in Ghana.

Mahacek, Sebo, Vcev (2018) on the study of audit of public procurement efforts and
review of recommendations in the Republic of Croatia. The study aimed to assess the
progress made by audited entities in the implementation of issued recommendation in
the previous public procurement performance audit; and the impact of
implementation of issued recommendation in efficiency and effectiveness of public
procurement.

The study focus on the procurement performance audit reports conducted by Croatia
Supreme Audit office. Three companies were sampled for public procurement
performance reports tabled from 2011-2013; another three companies for reports
tabled from 2013-2015; and one company for reports tabled from 2012-14. The study
noted that, the implementation status of the issued recommendation was satisfactory.
Study realized that, the overall performance of the companies has improved
efficiency of public procurement practices and there is improvement of business
operations of companies.

The study concluded that, entities can significantly improve performance by

addressing recommendation issued by public procurement performance audit. It has
20
contributed to the achievement of the overall organization goals. The study
recommended that, monitoring the implementation of issued recommendation to the
entities where audit conducted it point out the significance and contribution of audit
in business operation, promoting transparency, and accountability.

Odia (2014) on the study of Performance auditing and public sector accountability in
Nigeria, the study focus on the role Supreme Audit Institutions (SAIs) in enhancing
public sector accountability in Nigeria. The study realized that, empowering SAI
legislative mandate, improvement SAI capacity in term of finance and human
resources, improved internal control and conducting performance audit, can promote
public accountability in Nigeria.

The study recommends to the amendment of 1999 constitution of Nigeria and other
legislative framework so as to strengthen SAI mandate to undertake contemporary
issues in auditing like performance audit. Also, Auditor General interest should be
safeguarded for independence purpose.

Harahap and Primanda (2019) on study of analyzing internal control of procurement

government in Indonesia. The objective of the study is to assess the mechanism of
procurement of goods and services; and identify the weakness of existing internal
controls in procurement. The study only focus on control adopted in public
procurement of goods and services. The researcher adopted case study approaches
and descriptive analysis in data analysis.

The study reviewed that, there is general procurement notice has not been prepared
and implementation of general procurement plan cannot be assessed. In overall
procurement is done in compliance the applicable laws, however, there is still some
weakness in internal controls especially in procurement budget and on application of
direct procurement method.

Mirigi and Moronge (2019) on study on the Role of procurement on performance of

public hospitals in Nairobi County, Kenya. Study aimed to assess contribution of
21
supply chain risks, inventory control, total quality management and monitoring and
evaluation on the performance of public hospitals.

The study noted that correlation coefficient between variables was 0. 871.This
implies that, much efforts needs to be done in auditing procurement in public
hospitals so as to reduce risk associated with stock out, supplier failures, failure of
hospital perform. The study recommends to improve auditing on electronic inventory
system.

According to Mwarizo (2013) on the study of contribution of procurement audit in

enhancing ethical and complaint procurement practices in Tanzania. The study aimed
to examine the extent to which procurement audit improved compliance with best
public procurement practices, legislation and obtain value for money in each
procurement transaction.

The research adopted case study approach and focusing on all procurement and
supply chain management at Sokoine University of Agriculture (SUA). It used
interviews, questionnaires, observation and document reviews during data collection
phase. The study compares procurement practices prior and after procurement audit
recommendation.

The study noted weakness in ethical practices and complain relating to procurement
matters, Low accountability procurement practitioners on ensuring timely payments
to suppliers, contractors and service providers despite of several efforts employed by
SUA. Also, the study noted weakness in preparation of details specification which
effect quality of procured items.

The researcher concluded that, there is great improvement in the way procurement is
undertaken at SUA after procurement audit recommendation issued. The level of
compliance has increased and complaints have reduced. The study recommended
procurement practitioners should be accountable to suppliers and service providers to
ensure payment is timely paid, to ensure all recommendation issued during Audit is
implemented, capacity building to procurement practitioners should be conducted.
22
A study on management of bulk procurement of government vehicles in Tanzania
was conducted by Conducted by CAG (2018). The aim of the study was to assess
whether bulk procurement system of government vehicles conducted by considering
cost, duration, quantity and specification as per expected usage of vehicle. Data were
collected from Ministry of Finance and Planning; and Government procurement
service Agency (GPSA), covering procurement of four financial years.

Study found out that, there was not separate plan for bulk procurement of
government vehicles, GPSA framework agreement with vehicle suppliers did not
provide best price value, GPSA did not conducted research market price of vehicles
and keep update records, delivery of ordered vehicles, delivery of vehicles contrary
to the agreement, and inadequate monitoring of bulk procurement of vehicles.

The study concluded that, GPSA do not perform well as expected in relating to
delivery time, price, delivery ordered quantities and specification was limited due to
internal and external factors. The study recommended that, develop organization
strategies relating to key performance indicators on vehicles bulk procurement
system, establish standard time for vehicle delivery, to establish threshold of vehicle
prices, wide scope of manufacturer of vehicles, report to ministry of finance and
planning on matters relating to bulk procurement.

CAG (2013) on the report of performance audit on management of procurement of

information and communication technology equipment in public sector in Tanzania.
The audit objective was to assess the extent to which the procurement of ICT
equipment, is monitored and evaluated by the Public Procurement Policy Division
(PPPD) and Government Procurement Service Agency (GPSA). The study focus on
the way specification is prepared by Procuring Entities (PE’s), the way quality and
cost are achieved in procurement process and way monitoring and evaluation is
undertaken by entitled entities.

Data was collected from GPSA, PPPD and for six (6) sampled ministries. Interview
and document review was used in data collection, covering information for three
financial years from 2009/10 to 2012/13. The found out that, existence of weakness
23
on needs identification, no coordination of needs and development of specification,
lack of inspection for delivery ICT equipment, overpricing as compared to pricing
threshold set by GPSA, weak monitoring and evaluation by PPPD.

The study concluded that, there is weak management of procurement of ICT from
needs identification to quality control and assurance. The study recommended that,
procuring entities should ensure needs assessment for the ICT equipment planned to
be procured, Standard specification should be developed, should control price and
inspect ICT equipment whenever delivery.

CAG (2014) undertaken a study on cost control in public procurement, the study
focus on the procurement of air ticket and construction of public building. Data were
collected from four (4) ministries and from seven (7) Local Government Authorities
(LGAs). Data were collected through interview, document review, focus group
discussions and site visit. The study noted that, in procurement of air ticket and
construction there is unrealistic plan and estimates of needs, over pricing, delays of
payment and weak controls. The study concluded that, procuring entities should
strive to attain minimal cost in procurement of air ticket and in construction of public
building.

Various researcher local and international have various matters relating to

procurement audit and auditing in general, However, there is not researcher
conducted in assessing the role of procurement audit in planning and implementation
of procurement in Tanzania.

2.6 Conceptual Framework

Conceptual framework is a structured framework which shows the relationship
between independent and dependent variables to be used by researcher in achieving
its objective (Chakraborty, 2009 as cited by Mrope, 2018). Figure 2.3 presents three
independents variable which have effect on planning and implementation of
procurements.

24
 Figure 2.3 Conceptual framework of the study

Procurement Compliance
Accountability
 Compliance in planning
 Compliance in Tendering Enhanced
 Compliance in contract Planning and
administration Implementation
of Procurement
Procurement Performance  Achievement
Accountability in desired

 Economy procurement

 Efficiency goals

 Effectiveness  Cost and time

efficiency

Procurement Transparency
 Factual clearance
 Content of reports
 Publications of reports
 Accessibility of reports and
recommendation

Independent Variables Dependent Variable

Source: Researcher Own Construct, 2020

2.7 Research Hypotheses

As result of literature review, establishment of research gap and developing research
objectives, research hypotheses have been developed. According to McDonald
(2014), null hypothesis (H0) is statement you want to validate your argument. It
usually things go as expected; and alternative hypotheses (H1 ,H2 ,H3,) things
contradict with expectation. For the sake of addressing research objectives, the

25
following three (3) null hypotheses was developed and tested by using statistical
techniques.
H01 Compliance accountability has no statistically significant effect on planning and
implementation of procurement;

H1 Compliance accountability has statistically significant effect on planning and

implementation of procurement;

H02 Performance accountability has statistically significant effect on planning and

implementation of procurement;

H2 Performance accountability has statistically significant effect on planning and

implementation of procurement;

H03 Transparency has no statistically significant effect on planning and

implementation of procurement; and

H3 Transparency has statistically significant effect on planning and implementation

of procurement.

Multiple Linear Regression analysis was used in testing of the hypothesis on the all
specific objectives. The regression analysis was conducted with the view of
establishing statistical relationship between the independent and dependent variables.
Since there were three continuous independent variables and one continuous
dependent variable.

During statistical testing when probability (P-value) is greater than 0.5, then accepted
null hypothesis (H0) and reject alternative hypothesis (H1) (McDonald,2014).

26
 CHAPTER THREE
RESEARCH METHODOLOGY

3.0 Introduction
Research methodology systematically way used to solve the research problem
(Kothari, 2004). The research methodology consists of type of study, study area,
population of the study, data collection method, sample and sample size, sampling
procedure, area of study, reliability and validity, data management and analysis that
will be used by the researcher.

3.1 Type of the Study

This study used multiple case research design. Multiple case design is a research
designed which use more than one case study to be involved in data collection, it
involves using various of information (Brink, 2018). This design enabled researcher
to obtain information from different cases for the same scenario. Information
collected through multiple case study provided clear picture for all categories of
procuring entities. This enable the researcher to conclude and issue recommendations
which can address the overall problem. Research design is well understood as a logic
plan of how to conduct a research.

3.2 Study Area

Mugenda (2008) study area is place where data was collected. this study will focus
on procurement in public sectors. According to PPA (2011) as amended, public
procurement is undertaking by PEs and regulated by PPRA and audited by National
Audit Office of Tanzania (PAA, 2008).

3.3 Target Population

The study population focus for 46 PEs reported by PPRA to have procurement of
more than 20 billion within (PPRA, 2015/16; 2016/17; 2017/18 and 2018/19) and
NAOT. PEs with procurement volume above 20 billion have complexity and large
number of procurement activities. It provided clear picture on planning and
implementation of procurement activities. For PEs target population focus on
27
officials or members from procurement management unit (PMU) and tender board
(TB), and Management (Accounting Officer and Internal Auditor) and for NAOT
focus on auditors who audits (External Auditors) sampled PEs.

3.4 Sample and Sample Techniques

The study included Procurement Officials and Tender Board Members from selected
PEs; and Auditors from NAOT. The study used the following sample and sample
size.

3.4.1 Sample
A sample is a subject of the population. It comprises of some members selected
from it. In other words, some, but not all, elements of the population would form the
sample (Saunders and Thornhill, 2009). The sample of the study involved employees
from the Procurement Management Unit (PMU) and TB members from PEs and
Auditors from NAOT.

3.4.2 Sampling Procedures

Sampling is the process of selecting a sufficient number of elements from the
population, so that a study of the sample and an understanding of its properties or
characteristics would make it possible for us to generalize such properties or
characteristics to the population elements (Saunders and Thornhill, 2009). For the
purpose of this study, stratified sampling was used for sampling PEs, from a target
population of 46 PEs. PEs was group into their respective categories as per PPRA.
Those categories were LGA, MDA and PA. After categorization, random sampling
was done as per sample size. Simple random sampling was used in order to provide
equal chance for each PE

Vocational Education Training Authority (VETA), Tanzania Electricity Supply

Company Limited (TANESCO), Ilala Municipal Council (IMC), Ministry of Works
and Ministry of Education Science and Technology (MoEST) were selected.
For selecting respondent to be distributed with research questionnaires, incidental
sampling was used for questionnaire method of data collection. Any staffs from
28
PMU, tender board and management; and external auditors from National Audit
Office of Tanzania (NAOT) were randomly selected.

3.4.3 Sample Size

The study sample size was 100 respondents from six sampled PEs and NAOT.
Respondents were selected at a confidence level of 0.95 given that:

The sample size (n)= N/(1+Ne2), whereby

N= is a targeted responded from a target population which is 135

e= is a standard error which is constant of 0.5.
= 135 / (1+135(0.05)2
=100.
Therefore, the distribution of sample size is shown in table 3.1. Sample size consist
of PMU staff, Tender Board (TB) and Management. Management consist of Internal
auditors and Accounting Officer, because most of TB are part of management except
internal auditor and accounting officer. The distribution of respondent attributed by
number of staff and role played in planning and implementation of procurement
activities.

Table 3.1: Categories of Respondents from PEs and NAOT

Distribution
Targeted Sampled PMU TB Management External
Category Respondent size staff Members auditors
1 -
LGA 15 10 5 4
4 -
MDA 36 30 15 11
60 47 26 13 8 -
PA
- 13
NAOT 24 13 - -

Total 135 100 46 28 13 13

Source: Research Construct, 2020

29
3.5 Types and Sources of Data
3.5.1 Types of Data
The study collected quantitative data through structured questionnaire and published
statistical information obtained through reviewing annual performance evaluation
reports from PPRA. According to Creswell (2009) quantitative data avoids biasness,
limit alternative explanation and simplify generalization and reproductions of
finding.

3.5.2 Source of Data

In order to get reliable data, the study used both primary and secondary data sources
of information. From primary data, several data collection techniques namely
questionnaire were employed. Secondary data were collected through; library search
from published materials.

3.5.2.1 Primary Data

Primary data are those data that was collected from source (Busch, De Maret, Flynn,
Kellum, Meyers, & Saunders, 2005). Those are data collected by the researcher
specific to address research problem (Hox & Boeije,2005). For the purpose of this
study, primary data was collected through questionnaire for officials involved in
procurement and audit. Study used structured questionnaire to obtain information
relating to compliance accountability, performance accountability, transparency,
planning and implementation of procurement. Also, questionnaire was used to get
information in regards to recommendation issued by auditors. Interview was no
conducted due to epidemic of COVID 19.

3.5.2.2 Secondary Data

Secondary data are those data that was collected from published sources such as
reports, articles, journal, newspapers (Hox & Boeije,2005). Secondary data were
obtained from documentation available in libraries, study review of other authors on
the same issues in the study, internet and websites. For the purpose of this study,
secondary data will be collected from published reports, newspaper and journal in
regards to public procurements and procurement auditing.
30
Among other published secondary data, the study used Annual evaluation
performance reports (APER) issued by PPRA, for the period of ten (10) year from
2009/10 to 2018/19. The study collected statistical information from APER relating
to compliance of public procurement requirements for LGA, MDA, and PA. Also,
information about performance of PEs in regards to value for money. Furthermore,
the study information relating to effectiveness of planning and implementation of
procurement activities. This enable the researcher to get overall trend of compliance
and performance issues; and planning and implementation of procurements.

3.6 Data Collection Method

Data consists of information, statistics, records, numbers and figures. Has been
categorized into primary and secondary data. The study collected both primary and
secondary data. The researcher used documentary and questionnaire data collection
methods for obtaining the intended information as follows:

3.6.1 Documentary Review

The study used documentary review to collect secondary data. A number of
documents including official published reports in relation to the planning and
implementations of procurement was collected and reviewed. This method enabled
researcher not only to understand the magnitude of the problem but also to
triangulate data collected through questionnaires. Document review support validate
other information collected.

3.6.2 Questionnaires
The questionnaire was used to collect information from procurement staffs worked at
public procurement in each categories of procuring entities and to Auditors at
National Audit Office of Tanzania (NAOT) who conduct audit. Questionnaire
prepared a way that enable to collect information needed. Closed questionnaire was
used. The research used online survey questionnaire for targeted population. This
method was enable for easily capturing information due to Corona Virus 2019

31
(COVID 19) (Kothari, 2004). The researcher distributed the questionnaire to 100
respondents. These are employees in public procurement and Auditors at NAOT.

Questionnaire was used to collect information related to procurement staffs involved

in planning and implementation of procurement, compliance and performance
accountability and transparency in procurement.

3.7 Reliability and Validity of Data

The study used different techniques in order to ensure reliability and validity of data
as shown hereunder.

3.7.1 Data Reliability

Reliability occurs when instrument used by researcher may provide the same results,
if the same test repeated under the same situation (Hair, Black, Babin and
Anderson,2014). The questionnaires were pre-tested through pilot study to ascertain
reliability of instrument in collecting required information for the study.

3.7.2 Data Validity

Validity refers to the degree of success of an instrument in measuring what it is set
out measure so that differences in individual scores can be taken as representing true
references in the characteristics under study, also noted that validity is the extent to
which instruments capture what they purport to measure (Kothari, 2004).

3.8 Variables and their Measurement

This study adopted nominal and ordinal type of scale. The proposed measurement
scale is simple in data analysis as compared to other measurement scales.
Measurement scales facilitate data analysis, as all variables are assigned to a specific
domain (Hair et all,2014). Measurement scales enabled to detect variation between
depend and independent variables for both numeric and numeric variables as showed
on table 3.2.

32
Table 3.2: Measurement of Variable
Variable Indicators Scale of Measurement
Procurement Compliance compliance in: Multiple choice
Accountability procurement plan;
Tendering; and
contract administration
Procurement Performance Delivered performance in term Multiple choice
Accountability of:
Quantity;
Quality; and
Time.
Procurement Transparency Multiple choice
Publications of reports
Accessibility of reports and
recommendation
Publication of procurement
information
Planning and implementation Proper planning as result of Likert Scale
of procurement audit;
Proper implementation of
procurement plan as result of
audit;
Public officials accountable as
results of audit
Improved transparency in
procurement as result of audit
Improved performance of
procurement as result of audit
Source: Researcher,2020

3.9 Data Analysis Method

3.9.1 Data Management
Data processing involved, editing, coding, tabulation which was used as a key factor
in the whole process of the research (Kothari, 2004). This was done in order to make
research well communicated. Data was edited when entering data in Statistical
package for Social Science (SPSS) version 16 as analysis tool for primary data.
33
Likewise, codification of the data was done in order to smoothen data analysis and
avoid mixing of data during the data analysis. Also, secondary data used Microsoft
excel version 2016 as analysis tool.

3.9.2 Data Analysis Method

According to Kothari (2004) data analysis refers to the computation of a certain
measure along with searching for pattern of relationship that exists among data
group. The study analyzed quantitative primary data obtained through questionnaire
through descriptive statistics, linear regression and linear multiple regression. For
secondary data obtained through reviewing PPRA reports, was analyzed by trend
analysis for a period of 10 years.

The study, descriptive statistics was used for preliminary data analysis, presentation
of the characteristics of the respondents and analysis for all objectives.

Inferential statistics was used to determine the conclusions extended beyond the
immediate findings provided by descriptive statistics. The method applied to go
through inferential statistics in this study involved linear multiple regressions in the
testing of the hypothesis on the all specific objectives.
The regression model for the study was:
Y= β0+ β1X1+ β2X2+ β3X3 + ε
Whereby;
Y=Dependent Variable (effective planning and implementation of
procurement)
Beta(β) is the constants
β0, β1, β2, β3 are coefficients
X1=Compliance accountability
X2=Performance accountability
X3=Transparency
ε=Error Term

34
 CHAPTER FOUR
PRESENTATION OF THE FINDINGS

4.1 Introduction
This chapter presents and analyzes the study data obtained from the administration of
questionnaires. Information was gathered from employees in Public entities (LGA,
MDA, and PA) and NAOT familiar to undertakings the contribution of procurement
auditing in the public procurement planning and implementation. Therefore, this
chapter contains descriptive statistics that analyzes the characteristics and
information of respondents on specific objectives, as well as regression analysis for
testing hypotheses.

4.2 Response Rate

Data for this study was obtained from 100 respondents sampled from management
and employees in Public entities (LGA, MDA, and PA) and NAOT as expressed in
details in chapter three. This part shows the response rates based on the
questionnaires were distributed as shown below:

Table 4.1: Response rate

Frequency Percent

Procurement/Supplies Officer 46 46.0

Auditors( External Auditors) 13 13.0

Tender Board (Chairperson and Member) 28 28.0

Management( Accounting Officer and Internal Auditors) 13 13.0

Total 100 100.0

Sources: Field’s data (2020)

The response rate in table 4.1 above was very fine at 100 percent (100) out of 100
which included: the management and the employees who replied to the distributed
questionnaire. 100 questionnaires were submitted, and all 100 questionnaires were
completed and returned, providing the analysis with good answers. According to
Mugenda and Mugenda (2003), a response rate of 50 percent is satisfactory, 60
35
percent is fine, 70 percent is really fine and above. Accordingly, the response rate of
different respondents in different categories is given in Table 4.1: Procurement
department were 46, auditors were 13, tender board were 28, and management were
13 which made 100 respondents sample size of this study but all respondents were
asked the same questions.

4.3 Demographic Part

This section reflects the general background information of the questionnaire
respondents. Unit of analysis of this study were the management and employees of
the Procuring Entities (PEs) and NAOT. It was necessary to assess a characteristic of
the respondents because they evaluate critical features regarding the applicability of
procurement auditing in PEs. The respondent's characteristics included the working
experience, gender, education level and categories of PEs.

4.3.1 Working Experiences

The study aimed to determine the respondents’ working experience in procuring
entity. It was done by questioning the number of years the respondents have been
working in the entities. Table 4.2 below indicate that (14)14% of the respondents had
0-4 years’ experience, (49)49% had 5-9 years working experience, (23)23% had 10-
14 years of working experience, and (14)14 % of respondents had more than 15 years
of working experience.

Table 4.2: Working Experience

Frequency Percent

0- 4 14 14.0

5– 9 49 49.0
10– 14 23 23.0
15 + 14 14.0

Total 100 100.0

Sources: Field’s data (2020)

36
Working experience was determined to ascertain the level of knowledge and
understanding on procurement audit concepts. This is because performance and
undertakings of various aspects of procurement auditing depend among other things
on frequency of the practice which leads to doing things right. Therefore, the finding
confirms 86% of the respondents had above 5 years of working experience thus
could provide essential information regarding procurement auditing.

4.3.2 Gender
Gender is socially constructed roles and relationships between men and women, thus,
respondents in this study included both males and females as shown in table 4.3.

Table 4.3: Gender

Frequency Percent

Male 73 73.0

Female 27 27.0

Total 100 100.0

Sources: Field’s data (2020)

It has been revealed in table 4.3 above that both males and females engaged in
answering questions; hence (73)73%) and (27)27% of respondents were males and
females respectively. Generally, males rather than females participate in most formal
business activities, so based on field data indicates that many public entities workers,
particularly at NAOT, are males. In relation to the analysis, the researcher had to
analyze the gender of the respondents in order to see whether women were given the
opportunity to engage as national targets in different sectors to enable women to
participate in national growth. Even though, it seems that males are more than
females, but they are not bad because they surpass half of males, which means that in
various aspects, females are now involved in national development. According to
different literature including TMWA (2011), showed clearly the majority of male are
the one who takes higher positions in public entities. In that regard getting a higher
number of male than female has just showed true representation of the sample and it
does not affect the collected data.
37
4.3.3 Level of Education
The study considered the level of education among the PEs sampled and NAOT
management and employees since it is normally believed that higher education
enables employees as well as management to be capable and understand properly
their responsibilities.

Table 4.4: Level of Education

Frequency Percent

Diploma 6 6.0

first degree 81 81.0

Post graduate 13 13.0

Total 100 100.0

Sources: Field’s data (2020)

In the table 4.4 above, the results indicated that high percentage composition of
respondents (6)6% of respondents have diploma, (81)81% of respondents have
bachelor degree, and the rest, (13)13% have post graduate. This means that most
employees are holder of bachelor degree, and they have enough expertise in the field.
Procuring Entities (PEs) and NAOT does provide also different programs and
essential training to their employees on their related function, however, making it
easy for them to handle their obligations effectively and to become competent while
conducting their activities.

Moreover, level of education for this study was essential to determine familiarity,
knowledge and understanding of the study which imply that the respondents had the
necessary knowledge to understand to respond to the questionnaire on different
aspects of procurement auditing functions.

4.3.4 Categories of Respondents

The study aimed to determine the categories of PEs. It was done by questioning their
procuring entities categories Table 4.5 below indicate that (30) 30% of the
respondents were Ministry, Department and Agency, (47) 47% were Public authority

38
and other bodies, (10)10% of respondents were Local Government Authority,
(13)13% of respondents were from NAOT.

Table 4.5: Categories of PEs and National Audit Office of Tanzania

Frequency Percent

Ministry, Department and Agency 30 30.0

Public Authority and Other Bodies 47 47.0

Local Government Authority 10 10.0

National Audit Office of Tanzania 13 13.0

Total 100 100.0

Sources: Field’s data (2020)

Categories of procuring entities were determined to ascertain the awareness and level
of knowledge and interaction of employees with the auditing department. This is
because the performance of auditing activities in procurement relies on knowledge
and interaction with the procurement function.

4.4 Compliance in the Public Procurement Planning and Implementation

The researcher assessed the compliance in the public procurement planning and
implementation. This is the first specific objective of the study. Under this objective,
the researcher addressing a number of questions related to the study objective where
the respondents ranked their response in a scale of 1-5, whereby this was analyzed by
descriptive statistics to compute mean scores and standard deviation of the study
variables for primary data refer table 4.6.

39
Table 4.6: Descriptive Statistics on Compliance Accountability
Std.
N Mean Deviation

Recommendations issued by auditors contributed to the improved compliance

100 3.64 .969
accountability in awarding and contract administration

Auditors adequately assess compliance accountability to public procurements

100 3.58 1.224
in tender awarding and contract administration

Recommendations issued by auditors contributed to the improved compliance

100 3.18 1.209
accountability in tendering and selection phase of procurement

Recommendations issued by auditors contributed to the improved compliance

100 3.17 1.101
accountability in the planning phase of procurement

Auditors adequately assess the compliance accountability to public

100 3.10 1.210
procurements in tendering and selection phase of procurement

Auditors adequately assess compliance accountability to public procurements

100 2.88 1.076
in planning phase of procurement

Valid N (listwise) 100

Sources: Field’s data (2020)

According to Kilangi (2012), a mean score below 2.5 denoting the low level of
agreement while a mean score of 2.5 to 3.4 denoting moderately agreed and a mean
score above 3.4 highly agreed. Mean score 0 to 2.5 denoting that respondents did not
agree upon the given statements, 2.6 to 3.4 denoting that respondents moderately
agreed upon the given statements and 3.5 to 5.0 denoting that respondents highly
agreed upon the given statements.

From the table 4.6 above, the findings indicated that the respondents highly agreed
recommendations issued by auditors contributed to the improved compliance in
awarding and contract administration, and auditors adequately assess compliance to
public procurements in tender awarding and contract administration with (Mean =
3.64, Std.dv = 0.969), and (Mean = 3.58, Std.dv = 1.224) respectively.

However, other respondents moderately agreed that recommendations issued by

auditors contributed to the improved compliance in tendering and selection phase of

40
procurement, recommendations issued by auditors contributed to the improved
compliance in the planning phase of procurement, and auditors adequately assess the
compliance to public procurements in tendering and selection phase of procurement
with (Mean = 3.18, Std.dv = 1.209), (Mean = 3.17, Std.dv = 1.101), and (Mean =
3.10, Std.dv = 1.210) respectively.

Furthermore, the rest respondents moderately agreed that auditors adequately assess
compliance to public procurements in planning phase of procurement with (Mean =
2.88, Std.dv = 1.076).

Also, for the first objective researcher assessed compliance of planning and
implementation of procurement as results of procurement audit, where this was
analyzed through trend analysis for a period of ten years refer Figure 4.1.

Figure 4.1: Trend Analysis on Compliance Accountability from 2009/10-2018/19

Source: PPRA Annual Performance Evaluation Reports from financial year 2009/10-
2018/19

From figure 4.1 indicates that, the compliance accountability for LGAs has increased
from 50 percent to more than 70 percent for a period of 10 years. Likewise, the
41
performance of MDAs and PA have increased from above 50 percent to above 70
percent. From figure, showed that, performance of LGA is always less that, the
performance of MDAs and PA except for financial year 2017/18. Also, the
performance PA was at middle between LGA and MDA except for 2017/18 where its
performance was below the performance of LGA and MDA.

Also, the researcher analyzed trend of compliance in planning and implementation of

annual procurement planning, tendering and contract administration from 2009/10-
2018/19 through trend analysis as showed in figure 4.2.

Figure 4.2: Trend Analysis on Compliance of Procurement Planning, Tendering

and Contract Administration from 2009/10-2018/19

Source: PPRA Annual Performance Evaluation Reports from financial year 2009/10-
2018/19

42
Figure 4.2 indicates that, compliance in proper planning and implementation of APP
increased from40 percent to above 60 percent for the period of 10 years. However,
for financial year 2015/16 it was above 80 percent.
Also, figure 4.2 indicates that, compliance in appropriateness of tendering has
increased from above 70 percent in 2011/12 to above 80 percent in 2018/19.
However, in 2015/16, the compliance in appropriateness in tendering was below
70percent.

In addition, compliance in appropriateness of contract administration and supervision

has increased from 50 percent in 209/10 to 80 percent in 2018/19. Despite increases,
it dropped in 2013/14 and started to increases.

4.5 Performance Accountability on Procurement Planning and Implementation

The researcher assessed the performance accountability in the public procurement
planning and implementation. This is the second specific objective of the study.
Under this objective, the researcher finds out by addressing a number of questions
were asked related to the study objective where the respondents ranked their
response in a scale of 1-5, whereby this was analyzed by descriptive statistics to
compute mean scores and standard deviation of the study variables. The analysis was
conducted as follows;

43
Table 4.7: Descriptive Statistics on Performance Accountability
Std.
N Mean Deviation

Auditors adequately assess aspects of performance accountability during

100 4.11 .723
tender award process and contract administration

Recommendations issued by auditors contributed to the improved delivery of

100 3.81 .907
right items and services

Auditors adequately examine prices offered by service providers in the

100 3.60 1.082
procurement of goods, works and services

Auditors adequately examine right items, amount and timely delivery of

100 3.58 .997
procured goods or services

Recommendations issued by auditors contributed to the improved ability of PE

100 3.42 1.017
to assess price offered and award the tenderer with the lowest evaluated price

Valid N (listwise) 100

Sources: Field’s data (2020)

According to Kilangi (2012), a mean score below 2.5 denoting the low level of
agreement while a mean score of 2.5 to 3.4 denoting moderately agreed and a mean
score above 3.4 highly agreed. Mean score 0 to 2.5 denoting that respondents did not
agree upon the given statements, 2.6 to 3.4 denoting that respondents moderately
agreed upon the given statements and 3.5 to 5.0 denoting that respondents highly
agreed upon the given statements.

From the table 4.7 above, the findings indicated that the respondents highly agreed
auditors adequately assess compliance to the aspects of accountability during tender
award process and contract administration, and recommendations issued by auditors
contributed to the improved delivery of right items and services with (Mean = 4.11,
Std.dv = 0.723), and (Mean = 3.81, Std.dv = 0.907) respectively. These are followed
by other respondents who highly agreed that auditors adequately examine prices
offered by service providers in the procurement of goods, works and services, and
auditors adequately examine right items, amount and timely delivery of procured
goods or services with (Mean = 3.60, Std.dv = 1.082), and (Mean = 3.58, Std.dv =
0.997) respectively. Furthermore, the rest respondents moderately agreed that
44
recommendations issued by auditors contributed to the improved ability of PE to
assess price offered and award the tenderer with the lowest evaluated price with
(Mean = 3.42, Std.dv = 1.017).

Also, for the second objective researcher assessed performance accountability of

planning and implementation of procurement as results of procurement audit, where
this was analyzed through trend analysis for a period of ten years refer Figure 4.3.
The researcher used secondary data from PPRA annual evaluations performance
reports in regards to value for money findings.

Figure 4.3: Trend Analysis on Performance Accountability from 2009/10-

2018/19

Source: PPRA Annual Performance Evaluation Reports from financial year 2009/10-
2018/19

From figure 4.3 indicates that, the performance accountability for LGAs has
increased from 60 to 80 percent for a period of 10 years. Likewise, the performance
of MDAs and PA have increased from above 60 percent to above 80 percent. From
figure, showed that, performance of LGA is always less than, the performance of
MDAs and PA. Also, the performance PA was high compared to LGA and MDA in
financial year 2015/16.

45
Also, the researcher analyzed trend of compliance in planning and implementation of
annual procurement planning, tendering and contract administration from 2009/10-
2018/19 through trend analysis as showed in figure 4.4.

Figure 4.4: Trend Analysis on Performance of Appropriates of Tendering,

Contract and Supervision, and Quality of Work Executed from 2009/10-2018/19

Source: PPRA Annual Performance Evaluation Reports from financial year 2009/10-
2018/19

Figure 4.4 indicates that, performance accountability on effectiveness of tendering

increased from above 70 to 80 percent for the period of 10 years. However, for
financial year 2013/14 dropped to above 60 percent.

Also, figure 4.4 indicates that, performance accountability on contract administration

has slightly increased from above 70 percent in 2009/10 to above 80 percent in
2018/19. However, in 2012/13, the compliance in appropriateness in tendering was
below 70 percent.

46
furthermore, performance on quality of work executed or items or service offered
increased from above 70 percent in 2009/10 to above 80 percent in 2018/19.
However, it dropped in 2014/15.

4.6 Transparency in the Public Procurement Planning and Implementation

The researcher assessed the transparency in the public procurement planning and
implementation. This is the third specific objective of the study. Under this objective,
the researcher finds out by addressing a number of questions were asked related to
the study objective where the respondents ranked their response in a scale of 1-5,
whereby this was analyzed by descriptive statistics to compute mean scores and
standard deviation of the study variables. The analysis was conducted as follows;

Table 4.8: Descriptive Statistics on Transparency

Std.
N Mean Deviation

Auditors sufficiently inform relevant stakeholders about the results of the audit 100 3.90 .980

Audit recommendations contributed to the improved transparency in the

procurement particularly in the planning and implementation stages of 100 3.81 .982
procurement

Auditors adequately assess the aspect of transparency in procurement process 100 3.77 .993

Auditors adequately assess the aspect of transparency in the contract

100 3.51 1.000
administration

Valid N (listwise) 100

Sources: Field’s data (2020)

According to Kilangi (2012), a mean score below 2.5 denoting the low level of
agreement while a mean score of 2.5 to 3.4 denoting moderately agreed and a mean
score above 3.4 highly agreed. Mean score 0 to 2.5 denoting that respondents did not
agree upon the given statements, 2.6 to 3.4 denoting that respondents moderately
agreed upon the given statements and 3.5 to 5.0 denoting that respondents highly
agreed upon the given statements.

47
From the table 4.8 above, the findings indicated that the respondents highly agreed
auditors sufficiently inform relevant stakeholders about the results of the audit, and
audit recommendations contributed to the improved transparency in the procurement
particularly in the planning and implementation stages of procurement with (Mean =
3.90, Std.dv = 0.980), and (Mean = 3.81, Std.dv = 0.982) respectively. These are
followed by other respondents who highly agreed that auditors adequately assess the
aspect of transparency in procurement process, and auditors adequately assess the
aspect of transparency in the contract administration with (Mean = 3.77, Std.dv =
0.993), and (Mean = 3.51, Std.dv = 1.000) respectively.

Also, for the third objective researcher assessed performance accountability of

planning and implementation of procurement as results of procurement audit, where
this was analyzed through trend analysis for a period of ten years refer Figure 4.4.

Figure 4.5: Trend Analysis on Procurement Transparency from 2009/10-

2018/19

Source: PPRA Annual Performance Evaluation Reports from financial year 2009/10-
2018/19

48
Figure 4.5 indicates that, trend for publishing procurement award information has
declined from above 80 percent to below 40 percent. Also in 2017/18, below 30
percent of PEs did not submit procurement awards information for publications.

4.7 Procurement Planning and Implementation

The procurement planning and implementation was the dependent variable of the
study. In this part the respondents were asked to indicate the level of agreement in
different performance measures. Under this section, the researcher addressed number
of questions asked related to the study objective where the respondents ranked their
response in a likert scale of 1-5 where 1 stand for strongly disagree, 2 stand for
disagree, 3 neutrals, 4 stand for agree and 5 stand for strongly agree and applied
descriptive statistics to compute mean scores and standard deviation of the study
variables. Table 4.9 below denotes mean and standard deviation of the performance
variable as follows:

Table 4.9: Descriptive Statistics on Procurement Planning and Implementation

Std.
N Mean Deviation

Procurement implementations reach its goals as a result of procurement audit 100 3.99 .847

Procurement processes are transparent and open to all suppliers, contractors

100 3.82 1.009
and/or consultants as a result of procurement audit

Poor procurement plan occurs due to inefficiency procurement Audit 100 3.74 .991

Procurement planning is effectively implemented as a result of procurement

100 3.70 1.049
audit.

Public procurement officials are accountable to what they are dealing with
100 3.62 1.153
suppliers, contractors and/or consultants as a result of procurement audit

Valid N (listwise) 100

Sources: Field’s data (2020)

According to Kilangi (2012), a mean score below 2.5 denoting the low level of
agreement while a mean score of 2.5 to 3.4 denoting moderately agreed and a mean
score above 3.4 highly agreed. Mean score 0 to 2.5 denoting that respondents did not
agree upon the given statements, 2.6 to 3.4 denoting that respondents moderately
49
agreed upon the given statements and 3.5 to 5.0 denoting that respondents highly
agreed upon the given statements.

From the table 4.9 above, the findings indicated that the respondents highly agreed
procurement implementations reach its goals as a result of procurement audit, and
procurement processes are transparent and open to all suppliers, contractors and/or
consultants as a result of procurement audit with (Mean = 3.99, Std.dv = 0.847), and
(Mean = 3.82, Std.dv = 1.009) respectively.

These are followed by other respondents who highly agreed that poor procurement
plan occurs due to inefficiency procurement audit, procurement planning is
effectively implemented as a result of procurement audit, and public procurement
officials are accountable to what they are dealing with suppliers, contractors and/or
consultants as a result of procurement audit with (Mean = 3.74, Std.dv = 0.991),
(Mean = 3.70, Std.dv = 1.049), and (Mean = 3.62, Std.dv = 1.153) respectively.

4.8 Inferential Statistics

This part was conducted to determine the conclusions extended beyond the
immediate findings provided by descriptive statistics. The method applied to go
through inferential statistics in this study involved linear multiple regressions in the
testing of the hypothesis on the all specific objectives.

4.8.1 Assumptions of Regression Analysis

The general objective of this study was to assess the contribution of procurement
auditing in the public procurement plan and implementation. In assessing three
independent variables (compliance, accountability, and transparency) on the
procurement planning and implementation were measured using 1-5 point Likert
scales. The regression analysis was conducted with the view of establishing
statistical relationship between the independent and dependent variables. Since there
were three continuous independent variables and one continuous dependent variable,
the study adopted Multiple Linear Regression analysis.

50
Notwithstanding before running multiple regression models, it was important to test
sensitive and fundamental assumptions of multiple regression models. According to
Pallant (2006), there are three assumptions of multiple regression analysis. These
include normality, outlier and multi-co linearity.

4.8.1.1 Normality and Outliers

The study applied analysis of skewness and kurtosis values to assess data normality
and the presence of outliers, where the skewness and kurtosis values not greater than
3 and 10 respectively as suggested by Kline (2015), indicated the absence of outlier
problem. The normality tests were performed on three independent multi-
dimensional variables, which were compliance, accountability, and procurement
planning and implementation as dependent variable. See table 4.10;

Table 4.10: Descriptive Statistics

N Skewness Kurtosis

Statistic Statistic Std. Error Statistic Std. Error

Accountability 100 -.920 .241 2.624 .478

Compliance 100 -.219 .241 -.148 .478

Planning 100 -1.259 .241 2.653 .478

Transparency 100 -1.477 .241 3.311 .478

Valid N (listwise) 100

Sources: Field’s data (2020)

In the table 4.10 above, the outcome of the findings indicated that accountability had
negative skewness with a value of -0. 920 and positive kurtosis 2.624, compliance
had value of -0.219 for skewness and kurtosis -0.148, planning had value of -1.259
skewness and kurtosis 2.653, and transparency had a negative skewness with a value
of -1.477 and kurtosis 3.311. The information presented narrates that all variables
were normally distributed; therefore, it was safe to assume that this assumption was
met.

51
4.8.1.2 Multicollinearity
According to Bryman and Bell (2007), multicollinearity test aims to ensure that the
independent variables are weakly related to each other (r < 0.90). This study used
VIF and tolerance factors to test the problem of Multicollinearity. According to
Pallant (2005), the acceptable range not to violate the assumption of multicollinearity
is that the VIF must be less than 10(<10) and greater than 0.2(>0.2) for Tolerance
measure. See table 4.11;

Table 4.11: Multicollinearity

Collinearity Statistics

Model Tolerance VIF

Performance accountability .670 1.492

Compliance Accountability .985 1.015

Transparency .664 1.507

a. Dependent Variable: Planning and implementation

Sources: Field’s data (2020)

On the information presented on table 4.11above, it clearly showed that all variables
had tolerance value greater than 0.2 and VIF value less than 10 which means there is
no multicollinearity problem for both variables; accountability had
(Tolerance=0.670, VIF=1.492), compliance had (Tolerance=0.985, VIF=1.015), and
transparency had (Tolerance=0.664, VIF=1.507). Therefore, it was safe to assume
that this assumption was met.

4.8.2 Regression Analysis Testing

The study conducted a multiple regression analysis to determine the relationship
between the independent variables and dependent variable. The regression equation
was Y= β0+β1X1+β2X2+ β3X3 + ε

Where by

Y=Dependent Variable (effective planning and implementation of procurement)

measured in five Likert scale.
52
Beta(β) is the constants

β0, β1, β2, β3 are coefficients

X1=Compliance accountability

X2=performance accountability

X3=Transparency

ε =estimated error in the model

4.8.2.1 Model Summary

The table 4.12 below presents the model summary which demonstrates the
relationship between independent variables and the dependent variables.

Table 4.12: Model Summary

Change Statistics

R Adjusted R Std. Error of the R Square F Sig. F

Model
R Square Square Estimate Change Change df1 df2 Change

1 .437a .191 .166 3.44103 .191 7.562 3 96 .000

a. Predictors: (constant), Performance accountability, compliance

accountability, and transparency
b. Dependent variable: Planning

Sources: Field’s data (2020)

From the above findings, the correlation coefficient (R) which measures the
relationship between the independent variables and the dependent was 0.437 or
43.7% which indicates strong relationship between the two. On the other hand, the
R- squared was 0.191 illustrating that the chosen predictors explain the dependent
variable by 19.1%. This implies on the other hand, 80.9% of non-explained
predictors are accounted by aspects that are not used in this model.

4.8.2.2 Analysis of Variance (ANOVA)

Analysis of variance was carried out as shown on table 4.13 below. The outcome of
the analysis includes the sum of squares, degree of freedom (df), mean square,
regression and residual values obtained from regression analysis. The interested
53
value in the ANOVA table was the P-value that exemplifies an indication of whether
the model is significant or insignificant where to be significant the P-value must be
(p < 0.05).

Table 4.13: ANOVA

Model Sum of Squares df Mean Square F Sig.

Regression 268.606 3 89.535 7.562 .000a

Residual 1136.704 96 11.841

Total 1405.310 99

a. Predictors: (Constant), Transparency, Compliance, and Accountability

b. Dependent Variable: Planning and

implementation

Sources: Field’s data (2020)

From table 4.13 above, the regression sum of square was 268. 606.The F-static
which is computed by regression mean square divided by residual mean square was
7.562 which illustrate the overall significant of the model. Degree of freedom (df),
was 3.00. Statistically, the overall model/relationship was significant with
significant value P-value =0.000, whereas (p < 0.05). For this result, it worthy
concluding the regression model fit the data where, the predictors had contributions
in the procurement planning and implementation.

4.8.2.3 Regression Coefficients

Another output when running regression analysis is the regression coefficient table
that provides the values of regression equation for predicting dependent variable
from the independent variables. From table 4.14 of the regression coefficient below,
the estimated coefficients (standardized coefficient) depicted by beta value indicate
how much the “Scores” varies due to variation of any independent variable while
holding other independent variables (predictors) constant.

54
Table 4.14: Regression Coefficients
Standardized
Unstandardized Coefficients Coefficients t Sig.

Model B Std. Error Beta

e (Constant) 15.051 2.684 5.608 .000

Performance
.082 .110 .083 .739 .461
accountability

Compliance
-.174 .072 -.225 -2.437 .017
accountability

Transparency .360 .138 .294 2.612 .010

a. Dependent Variable: Planning and

implementation

Sources: Field’s data (2020)

i. Performance Accountability on the Procurement Planning and

Implementation

From table 4.14 of regression coefficient above, indicated that every unit change of
performance accountability by (0.082) effects positively the procurement planning
and implementation by (0.083) with significant value of (P<0.739). Therefore, the
analysis showed that the relationship was not statistically significant since the p-
value was 0.739 which was greater than 0.05. The alternative hypothesis was
rejected; while null was accepted because of positive value.

ii. Compliance Accountability on the Procurement Planning and

Implementation

From table 4.14 of regression coefficient above, indicated that every unit change of
compliance by (-0.174) effects negatively the procurement planning and
implementation by (-0.225) with significant value of (P<0.017). Therefore, the
analysis showed that the relationship was statistically significant. The alternative
hypothesis was accepted; while null was rejected because of significance value was
less than 0.05.

55
 iii. Transparency on the Procurement Planning and Implementation
From table 4.14 of regression coefficient above, indicated that every unit change of
accountability by (0.360) effects positively the procurement planning and
implementation by (0.294) with significant value of (P<0.010). Therefore, the
analysis showed that the relationship was statistically significant since the p-value
was 0.010 which was less than 0.05. The alternative hypothesis was accepted; while
null was rejected because of significance value was less than 0.05.

4.8.3 Summary of Hypothesis Testing

The study objective was to determine the contributions of the procurement auditing
in the public procurement planning and implementation. To achieve the general
objective, the study was guided by three hypotheses which were subjected to
statistical tests to determine validity of the research objectives so as to accept or
reject the hypothesis.

The findings show that two alternative hypotheses were accepted and only one null
hypothesis was accepted. Specifically, the findings indicated that: transparency was
found that had positive and significant effect on the procurement planning and
implementation with (B-value=0.360, Beta=0.294 and P =0.010). However,
compliance accountability was found that had negative and significant effect on the
procurement planning and implementation with (B-value=-0.174, Beta=-0.225 and P
=0.017). On the other hand, performance accountability was found that had positive
effect on the procurement planning and implementation but not statistically
significant with (B-value=0.082, Beta= 0.083, and P=0.739). Table 4.15 below
summarizes the findings.

56
Table 4.15: Summary of the Hypothesis
Hypothesis Model Coefficient P- Conclusion
Value
H01 Performance accountability has Accepted.H01
statistical significant impact on planning
and implementation of procurement
H1 Performance accountability has no Multiple P=0.739>0.05
statistical significant impact on planning regression Rejected H1
and implementation of procurement. model

H02 Compliance accountability has Rejected H02

statistical significant impact on planning
and implementation of procurement Multiple P=0.017<0.05
H2 Compliance accountability has no Regression Accepted H2
statistical significant impact on planning model
and implementation of procurement.

H03 Transparency has statistically

significant impact on planning and Rejected H03
implementation of procurement Multiple
H3 Transparency has no statistical Regression P=0.010<0.05 Accepted H3
significant impact on planning and model
implementation of procurement

Sources: Field’s data (2020)

57
 CHAPTER FIVE
DISCUSSION OF THE FINDINGS
5.1 Introduction
In this chapter findings from the study were discussed. The main objective of this
study was to analyze contribution of procurement auditing in enhancing procurement
planning and implementation in Tanzania and specific objectives of the study were;
i. To identify effect of compliance accountability in planning and
implementation of procurement in Tanzania.
ii. To determine effect of performance accountability in planning and
implementation of procurement in Tanzania.
iii. To outline effect of transparency in planning and implementation of
procurement in Tanzania.

5.2 Compliance Accountability in Planning and Implementation of Procurement

The intention of the researcher was to identify the effect of compliance
accountability in planning and implementation of procurement in Tanzania. After
descriptive statistics analysis conducted see table 4.6, the researcher revealed the
respondents highly agreed recommendations issued by auditors contributed to the
improved compliance in awarding and contract administration with (Mean = 3.64,
Std.= 0.969). This agree with that of Doherty and Horne (2012), asserted that
realistic and constructive audit recommendation improve the public administration
and performance of public sector agencies.

Also respondents highly agreed that auditors adequately assess compliance to public
procurements in tender awarding and contract administration with (Mean = 3.58, Std.
= 1.224). The researcher noted that auditor in tender awarding they ascertain,
whether the lowest responsive bidder was awarded the contract or not and the reason
for the decision. The award process including notification for award and subsequent
signing of contracts has been in accordance with the requirements of sections of the
PPA2011 and Regulations. Award contracts have been submitted to PPRA for
publication in its website and journals as per Regulation. Also contracts were
implemented in accordance with the terms and conditions of the contracts.
58
Addition other respondents moderately agreed that recommendations issued by
auditors contributed to the improved compliance in tendering and selection phase of
procurement with (Mean = 3.18, Std. = 1.209). Because tendering process is ‘rarely’
or ‘never’ fair and that on average procurement contracts involve unofficial
payments of around 10% of contract value. Gichio (2014) asserted that public
procurement is characterized by malpractices such as over invoicing, inadequate
documentations, mismanagement of construction projects and that favoritism in
public procurement may occur even in a non-corrupt society.

Therefore, the recommendations issued by auditors reduce this malpractices and

improved compliance in tendering and selection phase of procurement.

Further other respondents agree that recommendations issued by auditors contributed

to the improved compliance in the planning phase of procurement, and auditors
adequately assess the compliance to public procurements in tendering and selection
phase of procurement with (Mean = 3.18, Std. = 1.209), (Mean = 3.17, Std. = 1.101),
and (Mean = 3.10, Std. = 1.210).

However, the research revealed that organization found difficulty and lack of
responsiveness to follow-up the recommendations issued by auditors, because of the
weak monitoring and supervision. This agree with that of World Bank report (2013),
proposal that weak monitoring and supervision public procurement it makes
Procuring Entities (PEs) fail to comply in public procurement laws and regulations.
Further the auditors could not provide realistic recommendations that can be done in
short or medium terms.

As a result, the PPRA recommendations to the LGA, MDA, and PA from year to
year do not change. This finding concur with that of Septiana (2017), asserted that,
Indonesian State Audit Institution could not provide realistic recommendations that
can be done in short or medium terms by audited, which lead recommendations from
year to year do not change.

59
Furthermore, descriptive analysis shows that compliance accountability has not
significant relationship in planning and implementation of procurement see table
4.14. However, trend analysis shows that, compliance accountability is increasing as
result of procurement. This may be, because widespread lack of compliance with the
set of procedures that are designed to support fairness and transparency, achieve best
value, and manage risks. These weaknesses resulted in errors ranging from missing
documents to more serious issues such as awarding a contract to a bidder that clearly
did not meet one of the mandatory requirements. This agrees with Thai (2009),
observed that one of the obvious controversies about procurement management is
lack of consensus including within reform agendas, about what public procurement
entails or its strategic significance.

5.3 Performance Accountability in Planning and Implementation of

Procurement
The intention of the researcher wanted to determine the effect of performance
accountability in planning and implementation of procurement. After descriptive
statistics analysis conducted see table 4.7, the result revealed that the respondents
highly agreed that, auditors adequately assess compliance to the aspects of
accountability during tender award process and contract administration with (Mean =
4.11, Std. = 0.723), also recommendations issued by auditors contributed to the
improved delivery of right items and services (Mean = 3.81, Std. = 0.907).

This indicated that procurement auditing have yield better results in terms of
profitability, growth and business development. This was in line with Shah (2007)
asserted that sound audits can help reinforce strong corporate governance, risk
management and internal control at firms, thus contributing to financial performance.

Further auditor examines prices offered by service providers in the procurement of

goods, works and services with (Mean = 3.60, Std. = 1.082), in order to confirm that
the bid firm’s offer (in this case the bid price and terms) were considered acceptable
and reasonable. Also auditors adequately examine right items, amount and timely
delivery of procured goods or services with (Mean = 3.58, Std. = 0.997). The

60
researcher noted that auditor audit this area so as to ensure the organization purchase
goods and services of the right quality at the most cost effective price, in the most
economic quantities, and ensure that they are available when needed.

Thus, all public procurement of goods and services including works, must be based
on value for money, having due regard to propriety and regularity. This was in line
with Kiama (2014), studies stating that when evaluating a bid, the public sector entity
obtains best value and is not limited solely to purchase price and life-cycle cost
considerations, but may also consider environmental and social factors, delivery,
servicing and capacity of the bidder to meet criteria as stated in the bid received.

However, in this study, the analysis shows that performance accountability had a
significant relationship in procurement planning and implementation see table 4.16.
This may be, because the procurement outcomes were determined by the extent to
which the department has actually managed to achieve the key procurement
objectives of making available the required goods, works and services of the right
Quality, at the right Time and at the right Price/Cost.

The procurement department is required by the procurement law to plan the entity’s
procurement. Non adherence to the procurement plan is most likely to result in non-
availability, partial or untimely delivery of the required supplies with its associated
consequences. As advocated by Kakwezi and Nyeko (2010), only when the
procurement function is planned, that it is easy to measure its performance.

5.4 Transparency on Public Procurement Planning and Implementation

The intention of the researcher wanted to know the effect of transparency in planning
and implementation of procurement. After descriptive statistics analysis conducted
see table 4.8 the respondents highly agreed auditors sufficiently inform relevant
stakeholders about the results of the audit with (Mean = 3.90, Std. = 0.980). The
researcher noted that since transparency in the public procurement is about
information, then it can fairly to say that procuring entities must avail to its key
stakeholders all information relating to process, decision and management of
procurement contracts.
61
Also, the researcher revealed that, the trend of publishing procurement awards
information is declining yearly. There is improvement in this aspects. This implies
that, PEs are reluctant to publish procurement information and limit public to know
what is going in public procurement.

The best way to do this is through publication of the said information in the media as
required by Reg . 10 (1- 2) of the Public Procurement Regulations, 2013. This
supported by OECD (2007), asserted that publication of information is vital as it
creates confidence to the citizens who are the tax payers and who would like to know
how their money is spent. Also supplemented by Herea (2013), said that it is through
publication of information relating to its activities that the entity actually interacts
with the society in which it operates.

Kaspar and Puddephatt (2012), reported that its essence, transparency encourages
open competition, discourages corrupt dealings and other malpractices which impede
accountability.

Also, the result indicate that audit recommendations contributed to the improved
transparency in the procurement particularly in the planning and implementation
stages of procurement with (Mean = 3.81, Std. = 0.982). This study indicate that
procurement audit is as an independent review and systematic examination of the
procurement and disposal records with a view to verifying whether procurement and
contracting processes are followed and to recommend measures to address any
compliance gaps identified and hence improve compliance. The oversight body plays
an enforcement role to ensure that procurement activities of the procuring entities are
periodically reviewed and monitored as outlined under section 9 (I) (i- iii) of the
Tanzanian Public Procurement Act (PPA) No. 9 of 2011.

Addition, other respondents highly agreed that auditors adequately assess the aspect
of transparency in procurement process, and auditors adequately assess the aspect of
transparency in the contract administration with (Mean = 3.77, Std. = 0.993), and
(Mean = 3.51, Std. = 1.000). This indicate that from the Tanzanian public
procurement practices, assessment of the performance of procurement departments in
62
the public sector entities is conducted through the auditing exercise. Usually the
auditing is conducted by the country’s public procurement oversight body or
commissioned consultants on their behalf [PPA, 2011, Sect 9(1) (b) and 9(1) (i)].

However, in this study, the analysis shows that transparency has positive significant
in planning and implementation of procurement see table 4.16. This may be, because
the publication of procurement opportunities through the general procurement
notices and invitations to tenders, publication of annual procurement plans and
publication of contracts awards and prices paid. These agree with Regulations 10 (1)
– (3) require all information relating to particular procurement made available to the
general public through publication.

5.5 Procurement Planning and Implementation

The researcher was interested to assess the level of agreement in different
performance whereby procurement planning and implementation was the dependent
variable of the study. After descriptive statistics analysis conducted see table 4.9, the
findings indicated that the respondents highly agreed procurement implementations
reach its goals as a result of procurement audit with (Mean = 3.99, Std. = 0.847).
This finding supported by Ochonma (2015), urged that the effectiveness and
efficiency can be increased by having targets of procurement processes and activities
within the procurement cycle, measuring the procurement performance assists in cost
reduction, quality improvements, increased profitability and assured supplies.

Addition, the result indicate procurement processes are transparent and open to all
suppliers, contractors and/or consultants as a result of procurement audit with (Mean
= 3.82, Std. = 1.009). This encourages open competition, discourages corrupt
dealings and other malpractices which impede accountability. Further the study
considered publication of information, existence of procurement audits internal and
external and management follow ups and actions as the basic elements and evidence
of transparency in the procurement process.

Further the result indicate, procurement planning is effectively implemented as a

result of procurement audit with (Mean = 3.70, Std. = 1.049). These findings agree
63
with that of Mutoro et al (2018), asserted that satisfactory profits for sustainability
can be attained through well executed procurement plan. They further identify the
main factors that influence procurement that is clear procurement strategy, effective
management information and control systems. It also supported with that of Mrope,
(2018) who purported that adopting an effective and efficient procurement system
improves the performance of the procurement department and its entity as well and
the auditing of the same assists in better decision making and strategizing.

64
 CHAPTER SIX
SUMMARY, CONCLUSIONS AND POLICY IMPLICATIONS

6.1 Introduction
This chapter composes the summary of the entire study which exemplify in a short
brief what was the study about, conclusions based of the study objectives,
recommendation based on the lesson learned and proposes area for further study.

6.2 Summary of the Finding

This study was guided by the general objective which was to assess the contribution
of the procurement audit in public procurement planning and implementation. In
reference with this general objective, the study specifically examined effect of
compliance accountability in planning and implementation of procurement in
Tanzania, effect of performance accountability in planning and implementation of
procurement in Tanzania, and effect of transparency in planning and implementation
of procurement in Tanzania.

The study adopted multi research design involving more than one case study; LGA,
MDA, PA and NAOT, and the unit of analysis that suited this study composed the
management and employees working in procuring entities (LGA, MDA, and PA) and
NAOT, and have interaction with the outsourcing activities. Data were obtained
through administration of the questionnaire as primary methods and secondary
method was used as well. The obtained quantitative data were analyzed by
descriptive statistics to compute frequency and percentage, and mean scores and
standard deviation as well as regression model, and qualitative data were analyzed by
explanation building process and all the analyzed data was presented and a
discussion based on objectives.

6.2.1 Compliance in Procurement Planning and Implementation

The findings indicated that the respondents highly agreed recommendations issued
by auditors contributed to the improved compliance in awarding and contract
administration and auditors adequately assess compliance to public procurements in

65
tender awarding and contract administration. Other respondents moderately agreed
that recommendations issued by auditors contributed to the improved compliance in
tendering and selection phase of procurement, recommendations issued by auditors
contributed to the improved compliance in the planning phase of procurement,
auditors adequately assess the compliance to public procurements in tendering and
selection phase of procurement, and auditors adequately assess compliance to public
procurements in planning phase of procurement. However, through regression
model, the researcher revealed that compliance had negative and significant effect on
procurement planning and implementation, because of (B-value=-0.174, Beta=-0.225
and P =0.017).

6.2.2Performance Accountability in Procurement Planning and Implementation

The findings indicated that the respondents highly agreed auditors adequately assess
compliance to the aspects of accountability during tender award process and contract
administration, and recommendations issued by auditors contributed to the improved
delivery of right items and services. Other respondents highly agreed also that
auditors adequately examine prices offered by service providers in the procurement
of goods, works and services, and auditors adequately examine right items, amount
and timely delivery of procured goods or services. Moreover, the rest respondents
moderately agreed that recommendations issued by auditors contributed to the
improved ability of PE to assess price offered and award the tenderer with the lowest

evaluated price. However, through regression model, the researcher revealed that

accountability had positive effect on procurement planning and implementation but,

it was not statistically significant relationship because of (B-value=0.082, Beta=
0.083, and P=0.739).

6.2.3 Transparency in Procurement Planning and Implementation

The findings indicated that the respondents highly agreed auditors sufficiently inform
relevant stakeholders about the results of the audit, and audit recommendations
contributed to the improved transparency in the procurement particularly in the
planning and implementation stages of procurement. Other respondents highly
agreed also that auditors adequately assess the aspect of transparency in procurement
66
process, and auditors adequately assess the aspect of transparency in the contract

administration. However, through regression model, the researcher revealed that

transparency had positive and significant effect on procurement planning and

implementation, because of (B-value=0.360, Beta=0.294 and P =0.010).

6.3 Conclusion of the Study

The principle objective of this study was to assess the contribution of the
procurement audit in the procurement planning and implementation. In reference
with this general objective, the study specifically examined the effect of compliance
accountability in planning and implementation of procurement in Tanzania, effect of
performance accountability in planning and implementation of procurement in
Tanzania, and effect of transparency in planning and implementation of procurement
in Tanzania. Both primary and secondary data were collected. After considering the
result from both quantitative and qualitative data, insightful conclusion was derived
that are based on the study objectives as follow:

6.3.1 Compliance in Procurement Planning and Implementation

The study concludes that compliance had negative and significant effect on
procurement planning and implementation. However, the researcher revealed that
procuring entities follow recommendations issued by auditors contributed to the
improved compliance in awarding and contract administration and auditors
adequately assess compliance to public procurements in tender awarding and
contract administration. Other respondents moderately agreed that recommendations
issued by auditors contributed to the improved compliance in tendering and selection
phase of procurement, recommendations issued by auditors contributed to the
improved compliance in the planning phase of procurement, auditors adequately
assess the compliance to public procurements in tendering and selection phase of
procurement, and auditors adequately assess compliance to public procurements in
planning phase of procurement. For trend analysis made through secondary data, the
researcher concludes that, compliance accountability in aspect of procurement plan
and proper implementation as results of procurement audit is increasing at decreasing
rate.
67
6.3.2 Performance Accountability in Procurement Planning and
Implementation
The study concludes that performance accountability had positive effect on
procurement planning and implementation, but it was not statistically significant
relationship. However, the respondents highly agreed auditors adequately assess
compliance to the aspects of accountability during tender award process and contract
administration, and recommendations issued by auditors contributed to the improved
delivery of right items and services.

Other respondents highly agreed also that auditors adequately examine prices offered
by service providers in the procurement of goods, works and services, and auditors
adequately examine right items, amount and timely delivery of procured goods or
services. Moreover, the rest respondents moderately agreed that recommendations
issued by auditors contributed to the improved ability of PE to assess price offered
and award the tenderer with the lowest evaluated price.

Also, for trend analysis made through secondary data, the researcher concludes that,
performance accountability in aspect of procurement plan and proper implementation
as results of procurement audit is increasing at decreasing rate.

6.3.3 Transparency in Procurement Planning and Implementation

The study concludes that transparency had positive and significant effect on
procurement planning and implementation. However, the respondents highly agreed
auditors sufficiently inform relevant stakeholders about the results of the audit, and
audit recommendations contributed to the improved transparency in the procurement
particularly in the planning and implementation stages of procurement. Other
respondents highly agreed also that auditors adequately assess the aspect of
transparency in procurement process, and auditors adequately assess the aspect of

transparency in the contract administration.

Moreover, for trend analysis made through secondary data, the researcher concludes
that, transparency in aspect of procurement plan and proper implementation as
results of procurement audit is decrease at increasing rate.
68
6.4 Recommendations of the Study
In order to research problem, the study recommend the following:

6.4.1 Recommendation to Policy Markers

a) Policy makers should review tools used procurement auditing in order to
yield better results towards compliance and performance accountability; and
transparency in procurement undertaken;

b) Policy makers should review approaches used in making follow of the issued
procurement audits recommendation in order to avoid repetitive issues raised
by Auditors.

6.4.2 Recommendation to Procuring Entities

Procuring Entities should develop procurement operating procedures procurement
procedures that will requires all people who makes decision or directing procurement
to be done to be accountable for such procurement.

6.4.3 Recommendation to National Audit Office (NAOT) and Public

Procurement Regulatory Authority (PPRA)
The study recommends to NAOT and PPRA to issue recommendation that real
address the root cause of the problem.

6.5 Limitation of the Study

In the course of this study the researcher encountered the following limitations.

Lack of cooperation to some of respondents, some respondents that were contacted

did not provide support during data collection. Some respondents had no time to read
and provide answers. To solve this challenge, the researcher made good and
comprehensive follow up.
However, time given to conduct this study by Mzumbe University was very limited.
It was very difficult to accomplish the study within the given time limited without
self-initiative. The challenge was dealt by the researcher by working hard to cope
with the deadline for submission.
69
6.6 Area for Future Studies
This study portrayed the contribution of the procurement audit in procurement
planning and implementation. The study adopted three specific objectives; the effect
of compliance accountability in planning and implementation of procurement in
Tanzania, effect of performance accountability in planning and implementation of
procurement in Tanzania, and effect of transparency in planning and implementation
of procurement in Tanzania.

However, the researcher revealed that compliance had negative and significant effect
on procurement planning and implementation, accountability had positive effect on
procurement planning and implementation, but it was not statistically significant
relationship, and transparency had positive and significant effect on procurement
planning and implementation, however for secondary data, trend of publishing
procurement awards decisions has declined for a period of ten years. According to
these results, the researcher allows future academicians to conduct the same study on
the other organization specifically on the second objective and third objective for
secondary data to validate the findings.

70
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 APPENDICES

Appendix One: Research Questionnaire

Dear Respondent,

Kinunda, January is a student at Mzumbe University - Dar Es Salaam Campus

undertaking a Master’s of Science in Procurement and Supply Chain Management
(MSc PSCM). This questionnaire is intended to collect information on the study
titled “Assessing contribution of procurement auditing in enhancing planning and
implementation of procurement in Tanzania”.

Kindly, help him in this research study by filling out the questions in this
questionnaire. Your responses will be treated as confidential by the researcher and
will solely be used for this study case. I promise that all provided information will be
used for this study only and that data will be analyzed and interpreted objectively.

Section A: Profile of the Respondent

1. Work Experience

1. 0 - 4
2. 5 – 9
10– 14
3. 15 +

2. Gender
1. Male
2. Female

3. Level of Education

1. Certificate
2. Diploma
3. First Degree
4. Post Graduate (e.g. Masters or PhD)

79
4. Occupation

1. Procurement/Supplies Officer
2. Auditor
3. Else

5. Position in the entity or organization

1. Procurement/Supplies Officer
2. Director/Head of PMU
3. Tender Board (Chairperson and Member)

6. Category of Procuring Entities

1. Ministry, Department and Agency

2. Public Authority and Other Bodies
3. Local Government Authority
4. Independent Department (e.g. Audit Office, etc)

Section B: Assessment of Compliance in the Public Procurement

1. Are auditors adequately assessing compliance to public procurements in

planning phase of procurement?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

2. Are recommendations issued by auditors contributed to the improved

compliance in the planning phase of procurement?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

80
3. Do auditors adequately assess the compliance to public procurements in
tendering and selection phase of procurement?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

4. Are recommendations issued by auditors contributed to the improved

compliance in tendering and selection phase of procurement?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

5. Do auditors adequately assess compliance to public procurements in tender

awarding and contract administration?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

6. Are recommendations issued by auditors contributed to the improved

compliance in awarding and contract administration?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

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Section C: Assessment of Compliance to the aspects of accountability in the
performance of procurement

1. Are auditors adequately examined right items, amount and timely delivery of
procured goods or services?

1. Strongly agree ( )
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ( )

2. Are recommendations issued by auditors contributed to the improved delivery

of right items and services?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

3. Do auditors adequately examine prices offered by service providers in the

procurement of goods, works and services?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

4. Are recommendations issued by auditors contributed to the improved ability

of PE to assess price offered and award the tenderer with the lowest evaluated
price?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

82
 5. Do auditors adequately assess compliance to the aspects of accountability
during tender award process and contract administration?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

6. Are recommendations issued by auditors contributed to the improved

compliance to the aspects of accountability during tender award process and
contract administration?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

Section D: Transparency in procurement

1. Do auditors adequately assess the aspect of transparency in procurement

process?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

2. Do auditors adequately assess the aspect of transparency in the contract

administration?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ()

83
 3. Do auditors sufficiently inform relevant stakeholders about the results of the
audit?

1. Strongly agree ()
2. Agree ( )
3. Neutral ( )
4. Disagree ( )
5. Strong disagree ( )

4. Do audit recommendations contributed to the improved transparency in the

procurement particularly in the planning and implementation stages of
procurement?

1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strong disagree

Section E: Implementations of procurement planning and its functions

Statement 1 2 3 4 5
strongly agree Neutral Strongly disagree
agree Disagree
Procurement implementations
reach its goals as a result of
procurement audit
Poor procurement plan occurs
due to inefficiency procurement
Audit
Procurement planning are
effectively implemented as a
result of procurement audit.
Public procurement officials are
accountable to what they are
dealing with suppliers,
contractors and/or consultants as
a result of procurement audit
Procurement processes are
transparent and open to all
suppliers, contractors and/or
consultants as a result of
procurement audit

84