Public Procurement is an “overall process of acquiring goods, civil works and services which includes all functions from the identification of needs, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration through the end of a services’ contract or the useful life of an asset. In Fiscal year 2021/2022, 6546 number PE’s were audited with Budgetary amount of NRs 7.13 Trillion, the Irregularity was 119 Billion means 1.68%. Such a huge amount of Irregularity was done by PE’s without following proper method provisioned in law. The OAG 60th annual Report 2022, CIAA yearly report of f/y 2021/2022, PPMO Annual Report 2022 have mentioned various problems in public procurement practice. The main objective of this study shall be the factors affecting implementation of public procurement practices in Ilam. A widespread literature review shall be done and design the questionnaire. A questionnaire-based survey shall be used to get the factors and problems affecting implementation of public procurement practices. The methodological approach firstly includes the collection of a data from the questionnaire. The next step includes the creation of an appropriate database in SPSS, RII to accommodate all relevant data for analysis. The major findings of the study shall be factors affecting implementation of public procurement. The major findings were like Misuse of power Effective auditing system to improve financial management, procurement management and promote good governance, responsibility, accountability and effective public service delivery. Level of ICT infrastructure is not effective and sufficient to embrace e-procurement, Public entities are expected to provide excellent service in an effective and transparent manner, Officials involved in procurement must not make improper use of their position, Preparation and implementation of a job description (TOR) including work responsibilities of all the employees, Fair and equitable decisions are made in accordance with the law, rules and guidelines, and conditions of contract by procurement officials, Regular reviews or audits vii of procurement processes ensure principles of procurement, Implementation of procurement process according to the planned monetary values/estimated costs, the planned time of delivery/delivery schedules and the prescribed procurement method, Need identification and prioritization is done before making the plan and Budget approval is obtained for the required items/works before purchase, Transparency affects the effective implementation of public procurement processes. The second specific objective of the research was to find the problems of effective implementation of public procurement practice in Ilam district. The major top three problems in public procurement were lack of Procurement Management Information system (PMIS), Lack of Assessment of necessity of the works, Lengthy procurement procedures, bureaucratic hurdles, and delays in decision-making contribute to project delays and cost overruns, affecting the timely delivery of services. The third specific objective was to suggest possible corrective measures in improvement of public procurement practice. The major top three corrective measures were Invest in training and professional development programs for procurement officials to enhance their skills in procurement planning, contract management, negotiation, and ethical conduct, Enhance the capacity and independence of oversight bodies such as the Public Procurement Monitoring Office (PPMO) to effectively monitor procurement activities, investigate complaints, and enforce compliance with procurement rules, Implement anti-corruption measures, including strict enforcement of laws against bribery, collusion, and fraud in procurement. Strengthen whistleblower protection mechanisms to encourage reporting of corrupt practices.

Keywords

Public Procurement, Financial Management, Good Governance, ICT Infrastructure, Job Description (TOR), Budget Approval, Transparency etc.

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