Impediments to Implementation of the Procurement Audit Recommendations in the Public Sector in Tanzania: Challenges and Solutions

Masoud Yussuf; Nashon E Masunya; Eliakim C Maswi; Magoti Harun; Vera Sikana; Zuwena Nkwanya; Joseph Salula; Happiness Mgyabuso; Suma Atupele Mwanjwango; Magai Maregesi

doi:10.47814/ijssrr.v7i5.2119

Masoud Yussuf Public Procurement Regulatory Authority (PPRA), Capacity Building and Advisory Services Directorate, Research and Documentation Section, Box 2865 Dodoma, Tanzania
Nashon E Masunya Public Procurement Regulatory Authority (PPRA), Capacity Building and Advisory Services Directorate, Research and Documentation Section, Box 2865 Dodoma, Tanzania
Eliakim C Maswi Public Procurement Regulatory Authority (PPRA), Director General office, Box 2865 Dodoma, Tanzania
Magoti Harun Public Procurement Regulatory Authority (PPRA), Capacity Building and Advisory Services Directorate, Research and Documentation Section, Box 2865 Dodoma, Tanzania
Vera Sikana Public Procurement Regulatory Authority (PPRA), Capacity Building and Advisory Services Directorate, Research and Documentation Section, Box 2865 Dodoma, Tanzania
Zuwena Nkwanya Public Procurement Regulatory Authority (PPRA), Capacity Building and Advisory Services Directorate, Research and Documentation Section, Box 2865 Dodoma, Tanzania
Joseph Salula Public Procurement Regulatory Authority (PPRA), Directorate of Corporate Social Services, Human Resource and Administration Section, Box 2865 Dodoma, Tanzania
Happiness Mgyabuso Public Procurement Regulatory Authority (PPRA), Directorate of Corporate Social Services, Planning section, Box 2865 Dodoma, Tanzania
Suma Atupele Mwanjwango Public Procurement Regulatory Authority (PPRA), Monitoring and Compliance Directorate, Box 2865 Dodoma, Tanzania
Magai Maregesi Public Procurement Regulatory Authority (PPRA), Director General office, Zonal offices Box 2865 Dodoma, Tanzania

DOI: https://doi.org/10.47814/ijssrr.v7i5.2119

Keywords: Audit Findings; Audit Recommendations

Abstract

The study investigates impediments that hinder the implementation of audit recommendations in the public sector and suggests suitable recommendations. The study employs a semi-structured interview method to gather data from stakeholders involved in public procurement. These stakeholders are from 51 procuring entities, which include Ministries, Departments and Agencies (MDAs), Parastatals (PAs), and Local Government Authorities (LGAs). This study sampled and interviewed a total of 51 employees. The individuals included in this group are procurement officers, accounting officers, tender board members, internal auditors, engineers, information and communication technology experts, transport officers, legal officers, and finance managers from the selected procuring firms. The data has been analyzed through the technique of content analysis. The study found that the insufficient implementation of audit recommendations in Tanzanian procuring entities is due to ineffective monitoring mechanisms for implementing the recommendations, insufficient resources needed to carry out the recommendations, and a lack of commitment among stakeholders in the organizations to implement the recommendations. The study suggests that the oversight bodies should establish an effective monitoring mechanism to ensure the implementation of the audit recommendations, the government should ensure that the procuring entities possess the resources to carry out audit recommendations. Additionally, procuring entities must demonstrate a strong commitment to executing the audit recommendations.

References

Aikins, S.K., (2012). ‘Determinants of Auditee adoption of audit recommendations: Local government Auditor’s perspectives’, Journal of Public Budgeting, Accounting & Financial Management 24(2), 195–220. https://doi.org/10.1108/JPBAFM-24- 02-2012-B002.
Budiman, M. A. (2021). The effect of audit opinions, implementation of audit recommendations, and findings of state losses on corruption levels within ministries and institutions in the Republic of Indonesia. Journal Tata Kelola Dan Akuntabilitas Keuangan Negara, 7(1), 113-129.
Chiang, C., & Northcott, D. (2010). The audit consideration of environmental matters: Best practice or business as usual? Pacific Accounting Review, 22(3), 199-223. https://doi.org/10.1108/01140581011091675.
Dain, N., & Rahmat, M. M. (2017). Factors influencing public sector auditees on implementing audit recommendations. Journal Pengurusan, 51, 195-207.
Gendron, Y., Cooper, D.J. & Townley, B., (2007). ‘The construction of auditing expertise in measuring government performance’, Accounting, Organizations and Society 32(1/2), 101–129. https://doi.org/10.1016/j.aos.2006.03.005.
Fakie, S., (1999). ‘The role of the office of the auditor-general in South Africa’, Unpublished Masters Dissertation, Durban.
Ibrahim, M.O, Baker, T. & Doyle, S., (2014). ‘Grappling with Section 404, Internal Auditor’, Institute of Internal Auditors Journal 5(2), 57–61.
Korje, B.G., (2016). ‘Assessment of implementation of audit recommendations in public sectors in Oromia Regional Government Public Institutions (2003–2006 E.C.)’, The International Journal of Business & Management 4(2), 21–32.
Matlala, L. S., & Uwizeyimana, D. E. (2020). Factors influencing the implementation of the auditor general’s recommendations in South African municipalities. African Evaluation Journal, 8(1), 1-11.
Matto, M. C. (2017). Analysis of factors contributing to poor performance of procurement functions in local government authorities: empirical evidence from audit reports, European Journal of Logistics, Purchasing and Supply Chain Management, 5(3), 41-52.
Rendon, J. M., & Rendon, R. G. (2016). Procurement fraud in the US Department of Défense: Implications for contracting processes and internal controls. Managerial Auditing Journal, 31(6/7), 748–767.
Steagall, M. (2004). Perceptions of California superintendents, district-level administrators, principals, and teachers regarding the curriculum management audit as a catalyst for instructional change and improved student achievement. PhD Diss. Retrieved from UMI. (3139744).
Tajudeen, A. (2013). The effects of cashless policy of Government on corruption in Nigeria. International Review of Management and Business Research 4 (3) pp. 682-690.
United Republic of Tanzania (2022). Controller and Auditor General Audit Report 2021/2022, National Audit Office: Dar es Salaam, Tanzania.
United Republic of Tanzania (2022). Public Procurement Regulatory Authority Annual Performance Evaluation Report for 2021/22 financial year.
United Republic of Tanzania (2022). Public Procurement Regulatory Authority Annual Evaluation Report for 2021/22 financial year.
Van Acker, W., Bouckaert, G., Frees, W., Nemec, J., Lawson, C., Matel, A., Savulescu, C., Monthubert, E., Nederhand, J. & Flemig, S. (2015). Mapping and analyzing the recommendations of ombudsmen, audit offices and emerging accountability mechanisms. European Union’s Seventh Framework Programme: 1-224.
Wadesango, N., Chinamasa, T., Mhaka, C., & Wadesango, V. O. (2017). Challenges, faced by management in implementing audit recommendations: A literature review. Risk Governance & Control: Financial Markets & Institutions, 7(4).
Wilkins, P., (1995). Performing auditors?: assessing and reporting the performance of national audit offices-a three country comparison’, Australian Journal of Public Administration 54(4):421–430. https://doi.org/10.1111/j.1467-8500.1995. tb01154.x.
Yusof, N. A. Z. M., Haron, H., Ismail, I., & Chye, O. H. (2019). Independence of internal . audit unit influence the internal audit capability of Malaysian public sector organizations. KnE Social Sciences, 1230-1253.
Yussuf, M., Tonya, E., & Mohamed, S. (2022). The effect of internal auditing on procurement performance in parastatal organizations of Tanzania. Business Education Journal, 11(1). http://www.cbe.ac.tz/bej.