- CHAPTER ONE
This chapter will look into ethical considerations in materials management and procurement practices in the Ministry of Finance and other related institutions, the statement of the problem, objectives of the study, research questions, scope and limitation of the study.
1.1 Background Of The Study
The Ministry of Finance derives its mandate from the Constitution of Kenya, Cap VII Sections 99-103 which provides for proper budgetary and expenditure management of government financial resources. In addition, Parliament, over the years has enacted 49 Acts to which the Ministry of Finance is a custodian thereby adding more responsibilities to the Ministry. The Treasury is the nerve centre of all financial transactions in the public service and its policy initiatives have a major impact on the Kenyan economy. The personal integrity of the public financial management system is therefore crucial hence the Ministry of Finance staff carry a heavy fiduciary responsibility in their daily work. They have an ethical responsibility and also the responsibility to set a good example.
Procurement for goods, works and services in Kenya is a key pillar in the economic cycle of undertaking business and supporting service delivery by Government departments and private enterprises to their respective customers and stakeholders. To promote ethical standards in procurement practices and material management, the enactment of the Public Procurement and Disposal Act 2005 and Regulations to operationalise the same was a definite step in creating an enabling legal framework to promote the efficiency and transparency in public procurement. This is a major improvement from previous practices in which, among others, many of the suppliers awarded business, often failed to perform due to mismatch between size of contracts and capacity of suppliers to perform.
Public officials should adhere to business...