Adinyira, E; Agyekum, K; Manu, P; Mahamadu, A M and Olomolaiye, P (2022) Lessening procurement deviations using procurement post reviews: Evidence from Ghana. Journal of Financial Management of Property and Construction, 27(2), pp. 199-219. ISSN 1366-4387
Abstract
Purpose: Multilateral aid agencies generate most of their funds from taxpayers, and therefore, it is necessary to ensure that recipients or borrowers use the funds for the intended purposes. The World Bank is one of the major multilateral aid agencies that fund infrastructure projects in developing countries. Like other multilateral aid agencies, the World Bank uses oversight instruments/auditing tools to manage procurement risk on their funded projects. However, empirical insight about the effectiveness of these auditing tools is limited. This paper aims to assess the effectiveness of one of such multilateral aid agencies' auditing tools (i.e. World Bank’s procurement post review [PPR]) in procurement risk mitigation on funded projects in a developing country context. Design/methodology/approach: The study is based on secondary data obtained from the World Bank PPR reports carried out in the 2014, 2015 and 2016 financial years. Five projects with the highest loan amounts and five with the lowest loan amounts for the three-year period were selected from the 24 active World Bank projects during the time of the study. A purposive sampling technique was used to select a representative sample from a list of contracts under the 10 projects. Findings: The results of the analysis showed a clear decline in the number of both major and minor deviations over the three-year period while an increase in the number of contracts with “No Deviation”. The study therefore concludes that procurement risk experienced a decline amongst the World Bank projects in Ghana where post reviews were carried out on yearly basis. Originality/value: The study identifies the need for more frequent PPR and makes a case for the need to investigate whether PPR is a superior auditing tool compared to the other tools.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Ghana; procurement post review; procurement risk; world bank |
| Index terms: | evidence, developing country context, methodology, agency, risk mitigation, developing country, effectiveness, infrastructure project, purposive sampling, Ghana, World Bank, secondary data, deviation |
| Subjects: | evaluation and assessment methods, data collection methods, financial and cost management, institutional frameworks, research methods, performance management, Geography, development economics, financial risk, socioeconomic context, sociology, infrastructure and transport systems |
| Topics: | International Construction, Quality Management, Governance, Cost Management, Engineering Principles, Research Practice, Geographical Context |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here