Analyses and evaluation of irregularities in public procurement in India

Abstract

Public procurement is prone to corruption, which in the global construction market alone accounts for an estimated US$340 billion per year. There is a growing need for procurement systems to be able to fight corruption and improve the effectiveness, efficiency, fairness and transparency of public procurement. A comprehensive list of irregularities in public procurement is derived from irregularities observed during technical vigilance inspections by experts and reported cases. The research involved a questionnaire survey, Delphi method and an empirical investigation of the dynamics of irregular practices in public procurement. The survey revealed the top 15 most frequent irregularities. The irregularities have been classified under five categories: transparency, professional standards, fairness, contract monitoring and regulation and procedural irregularities. The ranking of these categories reveals that transparency is the key factor requiring prime attention. The other categories are of nearly equal importance. A framework for good procurement is developed and actions proposed under five categories to curb corruption in public procurement. The framework and the irregularities can be related systematically to various aspects of combating corruption, and hence should fulfil the urgent need of policy‐makers, professional staff, regulators and consumers.