A framework for the implementation of ethical procurement practices in the South African public sector : the case of City of Tshwane Municipality

Abstract

The study focuses on the implementation of ethical procurement practices in the South African public sector, specifically examining the case of the City of Tshwane Municipality. The background of the study shows that governments use procurement as a major economic activity that contributes significantly to the global economy's Gross Domestic Product (GDP). However, it highlights the susceptibility of public procurement to corruption, emphasizing the need for ethical frameworks to curb unethical practices. The research problem stems from the City of Tshwane Municipality's history of negative press due to illegal procurement practices, resulting in unfavorable audit outcomes, declining service quality, and financial concerns. The study aimed to address this issue by proposing a framework for ethical procurement practices, focusing on enhancing transparency, accountability, and trust within the public sector. To answer the research question of how the City of Tshwane can improve ethical procurement practices, the study adopted the qualitative approach where n=10 in=depth semi-structured interviews were conducted amongst staff in different sections of the municipality's procurement department. Thematic analysis was used in data analysis. The key identified themes were corrupt procurement practices, manifestation of nepotism and factors for ethical procurement implementation and these formed the basis for analysis and reporting. Conclusions drawn from the study highlight systemic factors significantly contributing to corrupt procurement practices, including lack of transparency, personal interests overriding integrity, and inadequate oversight. Fraudulent activities such as bid rigging and inflated pricing were identified, along with the impact of nepotism on supplier selection. The study emphasizes the importance of transparency, ethical training, strict oversight, a culture of accountability, and due diligence in fostering ethical conduct. Based on the findings, recommendations were made to refine policies, implement training initiatives, allocate resources for scrutiny, and promote a cultural shift towards transparency and ethical behavior within the organization. Future research is suggested to explore whether an integration of technological solutions (such as blockchain or AI) in procurement processes can be introduced to enhance transparency and help stem fraudulent activities.