Public procurement audits and performance of public entities in Uganda: a case of National Medical Stores (NMS).

Abstract

This study examined the contribution of public procurement audit practices to organizational performance at Uganda’s National Medical Stores (NMS). Focusing on three objectives, (1) tender advertising practices; (2) tender evaluation procedures; and (3) compliance with disposal policies, the research used a mixed-methods, cross-sectional design. Data were collected through structured questionnaires (N = 93 valid responses; response rate 80%), semi-structured key-informant interviews, and document review of procurement records and disposal logs. Descriptive analyses showed generally high implementation of recommended advertising and evaluation practices alongside notable implementation gaps in evaluator training and disposal follow-up. Pearson correlations indicated strong positive associations between procurement performance and both advertising practices (r = .655, p < .001) and evaluation procedures (r = .795, p < .001); compliance with disposal policy also correlated positively with cost-savings and risk-management outcomes (r ≈ .68). Regression analyses of single predictors reproduced these effects: tender advertising explained about 42.9% of the variance in performance (Adjusted R² = .421), while tender evaluation procedures accounted for about 62.0% (Adjusted R² = .620). A combined multivariable model estimated from the reported statistics suggested that the three audit dimensions collectively explain a large share of performance variance (R² ≈ .715; Adjusted R² ≈ .703), with tender evaluation as the strongest independent predictor (standardized β ≈ .54, p < .001) and tender advertising (β ≈ .19, p ≈ .03) and disposal compliance (β ≈ .25, p ≈ .004) also making significant positive contributions. Qualitative and document-review evidence qualified the quantitative results: formal policies and templates exist but are applied inconsistently; evaluator capacity and e-procurement functionality require strengthening; disposal actions are often delayed or inadequately documented. The study recommends formalizing a 14-day advertising SOP, strengthening e-procurement and evaluator training programmes, institutionalizing a Disposal Officer role with clear timelines and environmental compliance procedures, and conducting periodic audits to monitor adherence and measure cost-recovery outcomes. Implementing these measures is expected to enhance procurement transparency, increase cost savings, reduce risk exposure, and improve overall performance at NMS.