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Procurement Function In The Public Sector

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EXAMINING THE FACTORS AFFECTING EFFECTIVE DELIVERY OF PROCUREMENT FUNCTION IN THE PUBLIC SECTOR; THE CASE OF VOLTA RIVER AUTHORITY BY JAMES OPARE (PG8894813) A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION JULY 2015 DECLARATION I hereby declare that this submission is my own work towards the Executive Masters Of Business Administration and that, to the best of my knowledge, it contains no material previously published by another person nor material which has been accepted for the award of any other degree of the University, except where due …show more content…

Nevertheless, it is worth noting that for the function to accomplish its targets accurately, it has to be effectively managed. Previous studies show that the delivery of the procurement function is affected by innumerable factors. The objective of this research was to examine the factors affecting effective delivery of the procurement function in the public sector with a focus on the Volta River Authority (VRA), Akosombo. The specific objectives guiding the study involved identifying and evaluating the procurement processes and procedures, examining the effects of Public Procurement Act, 2003 (Act 663) on the procurement function, identifying the challenges in executing procurement activities and evaluating the effects of buyer-supplier relationships on procurement function. A mixed method research was employed for the study. The main instruments used were interviews and questionnaires to explore the opinions of the key VRA registered suppliers, Procurement Department, Real Estate Department, Health Service Department and Hydro Generations Department of VRA. The study findings show that VRA has a clear procurement processes and procedures which most of the employees are familiar with and adhere to and also its processes and procedures are in line with the Public Procurement Act 2003(Act 663). However, it was revealed that, delay in supplier’s payment, lower level of Public Procurement Act threshold; excessive bureaucracy and poor supplier-buyer relationship strongly affect effective delivery of procurement function at VRA. The study thus, recommends that the Government should consider reviewing Public Procurement Act especially the approvals threshold to reflect the current market trend and VRA suppliers should be paid promptly. The study also recommends that, consideration should be made on improving buyer-supplier

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