The Impact of Integrated Financial Management Information Systems on Procurement Process in Public Sector in Developing Countries—A Case of Zambia

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DOI: 10.4236/ojbm.2020.82062    2,548 Downloads   6,363 Views  Citations

ABSTRACT

Progressive governments around the world aim at having efficient Public Finance Management in order to efficiently manage resources and maximize opportunity costs associated with Public Procurement. The Government of Zambia has introduced Integrated Financial Management Information Systems (IFMIS) to monitor how ministries, departments and other state agencies spend funds on a real-time basis in order to improve budget implementation. The objectives of IFMIS are to attain transparency, reduce financial leakages and accountability in the way Government resources are being spent. Data were collected from seventy-five (75) respondents from the Ministry of Finance, Ministry of Works and Supply and the Anti-Corruption Commission. Data were analysed using Social Package and Social Sciences (SPSS) version 20 and Microsoft Excel. The study revealed that there is a significant negative relationship between IFMIS and transparency, reduced financial leakages and efficiency and speed. The study thus concluded that IFMIS has not enhanced transparency, reduced financial leakages, enhanced efficiency and speed. The study recommended that vendors and citizens should have access to the system to enhance transparency. Furthermore, the study recommended for code restructuring of the system to make it more proactive rather than reactive in order to improve budget adherence, reduce misappropriation and misapplication of funds. In conclusion, the study further recommended procurement processes be carried on the system only and eliminate the duplication of work on paper.

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Muwema, T. and Phiri, J. (2020) The Impact of Integrated Financial Management Information Systems on Procurement Process in Public Sector in Developing Countries—A Case of Zambia. Open Journal of Business and Management, 8, 983-996. doi: 10.4236/ojbm.2020.82062.

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