Public procurement principles compliance and value for money in the procurement process of Uganda’s local governments: a case of Tororo district local government

Abstract

This study sought to examine the relationship between compliance with public procurement principles and value for money in the procurement process, considering Tororo District Local Government as a case study. The study specifically examined the relationship between an entity’s compliance with public procurement principles and value for money in the public procurement process, evaluated the relationship between public procurement principles compliance and institutional factors and assessed the mediating effect of institutional factors in the relationship between an entity’s compliance with the public procurement principles and value for money in the procurement process. The study was guided by Principal Agency theory and institutional theory. The study used a case study survey design collecting only quantifiable data. The study population included 128 respondents with a sample of 96 respondents and only 51 questionnaires were returned constituting 53% of the response rate consisting of Accounting Officer, Contracts Committee members, procurement and Disposal Unit staff, User Departments, and evaluation committee. The study found a weak but positively significant relationship between transparency compliance and value for money (r = 0.292*, p = 0.038), there was a moderate but positively significant relationship between accountability and value for money (r=0.549**, p=0.000), there was a moderate but positively significant relationship between competition and value for money (r=0,441**, p=0.001), still, a weak but positively significant relationship existed between confidentiality and value for money (r=0.330*, p=0.018). There was a mediating effect of institutional factors on the relationship between an entity’s compliance with the public procurement principles and value for money in the procurement process. The study recommends that Tororo District Local Government should ensure that the PDU follows or adheres to the public procurement principles while undertaking the procurement process and failure to comply with them should result into punishments to all those involved. Members of the procurement department and those involved with the procurement function should be taken for training courses, workshops and conferences to boost, remind and educate them about the impact of either failure or success in complying with public procurement principles. Also, the members of the PDU should be trained on the ethical principles and code of ethical conduct that they have to adhere to if they are to enable the local government to attain value for money.