The extent of success enjoyed in implementing a formal structure to ensure municipal procurement is carried on in an ethical as well as an effective manner is a matter of some debate.
As might be expected, some devices have been more successful than others. Too often in the area of ethics, it is assumed behaviour will be ethical provided it is carried out in strict accordance with governing policies and procedures, and provided the right forms are correctly completed at the right time.
Some would disagree with this concept.
Every municipal employee should know the rules and follow the rules, but a person should not be a slave to the rules, for no rule could have been drafted with a mind to every possible situation.
Mindless adherence to form and procedure, with little regard to the substantive ethical concerns that underlie them can often be counter-productive.
Although legal regulation and prohibition may provide the clearest guidance as to what is permitted and what is banned, no legislative scheme will ultimately prove successful unless there is a pervasive commitment across the entire municipal organization to adhere to and maintain high ethical standards in procurement.
Strong guidance from the top down, not only in the form of preaching ethical behaviour, but more importantly in the visible display of ethical behaviour, is essential to secure and display a general and dedicated commitment to high ethical standards at all levels of municipal government.
In contrast, the display of an indifferent attitude by elected officials and senior officers within a municipal corporation towards ethical concerns – particularly where coupled with apparent breach of such standards – is almost certain to encourage lukewarm support for ethical standards on the part of the public administration generally and widespread breach of those ethical standards (legal or otherwise) to which lip service is paid.
If nothing else, where senior management and elected officials are seen to behave in an improper way, there is likely to be confusion on the part of more junior staff as to what is permitted and what is not permitted.
Most importantly, a municipality’s commitment to high ethical standards must be evidenced by the implementation of an effective and integrated scheme of internal control to encourage compliance.
Clear statements of the ethical principles to be applied in procurement should be given.
Proper training should be provided to guide employees as to what the municipality expects of them.
Other key requirements include:
Formalization of procedures that must be followed to ensure procurement in accordance with those principles;
implementation of investigative tools to monitor compliance;
a policy of requiring adherence to procedures and principles;
effective, timely and fair enforcement mechanisms where breaches of principles or procedures are detected;
fostering a recognition on the part of all staff that adherence to formal principles and procedures is the minimum standard of conduct expected of municipal employees; and
incorporating proper recognition for adoption of proper business practices into promotion and remuneration decisions.
Often the control mechanisms associated with public procurement are based upon worthy principles, but suffer from overreliance on a procedure or rule-based approach.
A system of form filling and checks and balances may have some merit, but can result in a great deal of wasted time.
It may also create a false sense of security.
Because such procedures are in place, there may be insufficient attention paid to the risk and corrupt activity that is shielded from detection by the procedural system.
Worse yet, a rigid system may expose the municipality to commercial risks (and consequent costs) that exceed those that stems from possible corruption.
It follows that a sound procurement process must avoid the tendency to address the risk of unethical behaviour solely by shoving bits of paper around.
Stephen Bauld is a government procurement expert and can be reached at swbauld@purchasingci.com. Some of his columns may contain excerpts from The Municipal Procurement Handbook published by Butterworths.
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