Public procurement procedures often are complex. Transparency of the processes is limited, and manipulation is hard to detect. Few people becoming aware of corruption complain publicly, since it is not their own, but government money, which is being wasted. Procurement of goods, works and other services by public bodies alone amounts on average to between 15% and 30% of Gross Domestic Product (GDP), in some countries even more. So is there a need for the civil society to focus on monitoring procurement. The answer is yes! Governments spend significant public resources on procurement. In fact, the OECD estimates that in non-OECD (i.e., developing) countries, procurement by all levels of government typically constitutes about 4.5 percent of the total gross domestic product (OECD, 2006). Each year, developing countries spend an astounding US $820 billion on procurement-related transactions. These expenditures are critical to enabling governments to deliver goods and services to citizens, but they are also extremely vulnerable to corruption. Yet civil society organizations have rarely addressed the issue (Transparency International 2006).
Defining Procurement
According to the Organization for Economic Cooperation and Development (OECD), “procurement is the process of:
- Identifying what is needed;
- Determining who is the best person or organization to supply this need; and
- Ensuring what is needed is delivered to the right place, at the right time, for the best price and that all this is done in a fair and open manner” (OECD, 2006).
Procurements can be made by governments, private companies, or individuals. Typically they use detailed contracts when placing large and expensive orders.
In yet another definition by Transparency International “Procurement” refers to the acquisition of consumption or investment goods or services, from pencils, bed sheets and aspirin for hospitals, gasoline for government cars, the acquisition of car and truck fleets, equipment for schools and hospitals, machinery for force account use by government departments, other light or heavy equipment or real estate, to construction, advisory and other services from the construction of a hydroelectric power station or expressway to the hiring of consultants for engineering, financial, legal or other advisory functions. |