Assessment of Effectiveness of Public Procurement Process : The case study of Ministry of Finance and Economic Affairs In Tanzania

Abstract: Presence of a free market economy has strongly increased competition among companies, this case has led them to find new techniques on how to sell their products or services while public sector have stopped engaging in business by privatizing their production companies. Nowadays in developing countries, all government expenditure depending fully in private sector for products or services, a good example is within stationery items, construction of roads, cleaning works, transportation and so forth. These procurements have been associated with many scandals such as favourism in awarding of procurement contracts to some companies. Therefore, there is need for developing countries to rectify and control ministerial tender board acts in awarding contracts that will ensure fair competition, transparency and accountability by establishing good corporate governance codes. The aim of this thesis is to assess efficiency and effectiveness of Public Procurement Process as case study in the Ministry of Finance and Economic Affairs of Tanzania.This study has targeted interviews and observation which have shown there is ineffective of the public procurement process that are injected by the public procurement Act No. 21 of 2004 and others are caused by inadequate budget to pay suppliers on time, limitation of skills and knowledge to the ministerial staffs and PMU staffs. Furthermore, researchers have recommended that there is a need to amend the public procurement Act No. 21 of 2004 and accommodate some key points that will enhance efficiency and effectiveness of the procurement process that will increase revenue collection and emphasing training of user PMU staffs. However, this Act is not panacea – solution of everything but it must be dynamic to accommodate new issues as it will be raised new techniques and principles that will insure accountability and efficiency on procurement.