Procurement audit and accountability of public sector institutions, a case of Kampala city council authority

Abstract

The study examined the role of procurement audit in enhancing accountability in Uganda’s public sector, focusing on Kampala Capital City Authority (KCCA). It was guided by three specific objectives: to assess how transparency of bid price evaluations enhances accountability in KCCA procurement processes; to evaluate how monitoring and supervision of contractors affect accountability; and to establish the effect of internal audit mechanisms in ensuring financial accountability. The study was underpinned by Agency Theory, which explained how procurement audit reduced information asymmetry between agents and principals, and Institutional Theory, which showed how accountability practices were adopted in response to regulatory and legitimacy pressures. A descriptive and correlational case study design was employed. The target population of 110 participants included staff in the procurement and disposal unit, internal audit unit, finance department, and selected contractors. A sample size of 86 respondents was computed using Slovin (1960) formula and selected using purposive, and simple random sampling techniques. Data was collected through structured questionnaires, interviews, and documentary reviews. Quantitative data was analyzed using descriptive statistics and Pearson correlation analysis, while qualitative data was analyzed thematically. The correlation results revealed that procurement audit had a significant positive relationship with accountability, though with varying strengths. Transparency of bid price evaluations showed the weakest but significant relationship with accountability (r = 0.327, p = 0.024), indicating that openness promoted accountability but was inconsistently enforced. Monitoring and supervision of contractors showed a moderate positive relationship (r = 0.412, p = 0.004), meaning that stronger supervision practices improved accountability, though less effectively than audits. Internal audit mechanisms showed the strongest positive relationship (r = 0.767, p = 0.000), demonstrating that regular audits, compliance checks, and corrective actions were most effective in ensuring accountability. The study concluded that while all three mechanisms enhanced accountability, internal audit mechanisms were the most decisive, followed by monitoring and supervision of contractors, and lastly transparency in bid price evaluations. It was recommended that KCCA management should reinforce audit independence and resourcing, enforce corrective action on audit findings, and institutionalize strict contractor monitoring. The Procurement and Disposal Unit should improve transparency through full disclosure of bid prices and criteria, PPDA should intensify oversight, and civil society organizations should demand access to procurement reports to strengthen public accountability.