CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The post-Cold War era partly experienced challenging debates and concerns on numerous perspectives, theories and ‘deep’ differences in opinion (ranging from policies to strategies and approaches) on various dimensions of development. The aim has been to arrive at concrete recommendations for action (Szirmai 2005: 43). The concept of development can be traced after 1945, when Harry Truman made a global call to improve the lot of more than half of the world’s population living in destitute and poverty in ‘primitive societies. To salvage the poor and improve their living conditions, Truman proposed what he called ‘democratic fair dealing’. By this Truman meant a society where nations would respect the rights of men; where all men have a right to freedom of thought and expression and opportunity to share and participate in the common good. According to him, democracy alone can provide the vitalizing force to stir the people into triumphant action. By this he meant according a voice to local peoples in deciding their own affairs. This Trumanian framework also suggests that politics and economics could work together to achieve development and political freedoms.

However, African states were not so concerned with the issue of development at that time because everywhere, they were involved in liberation struggles and wars of independence from their colonizers. But upon attainment of independence, most African states designed and implemented multispectral strategies aimed at improving conditions germane to their multiethnic societies. These strategies were usually based on ‘Five-Year Development Plans’ that set targets to be achieved in each sector of the economy. Unfortunately, these ‘Five-Year Development Plans’ were designed and implemented most often by Paternalistic, One Party and military regimes. The result has been the near absence of some basic services in some rural communities such as schools, health centers, good water supply, and better road networks. Hence, in order to create a balance in development between urban and rural areas, ‘many of these governments felt that substantial state intervention was required to achieve greater equity and poverty alleviation in rural areas’ (Potter et al. 2004:452;).

Public contracts are widely seen as the main drivers of development in most developing societies and a vital solution for adequate infrastructure widely recognized to be holding back economic growth in most of developing countries (Shadmanov, 2015:110). To this effect, the government is perceived as a key policy maker in the development of infrastructures as their compliance with the duration of payment of enterprises’ bills largely determines the performance of construction enterprises in the domain of infrastructural development, especially in emerging economies (Srinivasarao, 2013:45). This is particularly the case of Africa where the desire for increase in infrastructure is widely felt and the construction enterprises’ activities contribute in improving the overall performances of construction industries across Sub Saharan African countries in general and the CEMAC countries in particular (Anugwo et al., 2017:10).

Road infrastructure is a vital factor in the development of an area. It does not only serve as a tool to improved accessibility into an area, but also as a business ability to provide goods and services. It is Classified as the oldest and most used mode of transport in the world (Jean Paul, 2017:90).

Road infrastructure has made the human society to become attractive and modern. It is more advanced, sophisticated and accessible in the developed world and at an improved state in the developing world. A popular statement holds that; “where a road passes, development follows”. This statement’s validity has been verified from local, national and international levels to be true. This is seen from the advancement of economic growth in Britain, USA, Germany, France and several developed countries as exchange of goods and services and access to jobs have enabled people to move (Matt Rosember, 2018:56). Improvements in road infrastructure in South Africa, Nigeria, Ghana, Egypt as well as Algeria and Morocco make these countries to be the economic giants in Africa (Claudia et al., 2015:39). Road infrastructure from all indication leads to the economic growth of an area and as such Road infrastructure in Cameroon is an essential factor in the transformation of an area. It has orientated the spatial, economic and social development of several towns and regions in the country (Fofiri Nzossie, 2012:98).

Al-Rahmani (1988:57) and Braddon (2012:90) believe that for Third World countries to gain economic independence there is a vital role to be played by productive investment in public infrastructure. In developing countries, public infrastructure stimulates economic dynamics, and through its diverse activities it promotes economic growth (Rojas-Ramirez & Molina-Vargas, 2018:97). Therefore, if more and higher quality of infrastructure is available, then productivity will be higher and the average production costs will drop (Aschauer, 1990:90). However, the absence of infrastructure constitutes an obstacle to the implementation of development policies as well as the achievement of higher levels of sustainable growth (World Bank, 1994:46)

Apparently, the road has not only become a catalyst in the amelioration of the standard of living to many unemployed Cameroonians, but has also become a factor of spatial construction to some, and deconstruction to others. Such is the case with the Ngaoundere-Touboro-Moundou road infrastructure (Fofiri Nzossie, 2012), the Douala-Boumnyebel-Yaoundé road infrastructure as well as the Yaounde-Makenene-Bafoussam road infrastructures (Caroline Dominguez and Vivian Foster, 2011), in Cameroon.

Corruption remains a significant impediment to national development across various nations, particularly in developing countries like Cameroon. The nexus between public contracts, corrupt practices, and national development is particularly pronounced in sectors such as infrastructure, where large sums of public funds are allocated.

Cameroon has been characterized by systemic corruption that permeates various levels of government and public service delivery. According to Transparency International’s Corruption Perceptions Index (CPI), Cameroon consistently ranks among the most corrupt countries globally (Transparency International, 2023). The prevalence of bribery, embezzlement, and mismanagement of public resources has undermined efforts toward sustainable development.

The historical context of corruption in Cameroon can be traced back to its colonial past and has evolved through successive regimes. The post-independence era saw a consolidation of power that often-sidelined accountability mechanisms, leading to widespread graft (Njeuma & Nguiffo, 2019). This environment has fostered a culture where corrupt practices are normalized within public procurement processes.

Public contracts are essential for facilitating infrastructure development, which is critical for economic growth and national development. In Cameroon, road construction projects represent a substantial portion of public expenditure aimed at improving connectivity and access to markets. However, these projects have frequently been marred by allegations of corrupt practices.

The legal framework governing public contracts in Cameroon includes the Public Procurement Code established in 2004 and revised several times thereafter. Despite these regulations intended to promote transparency and competition, implementation remains weak due to inadequate oversight mechanisms (Mouelle & Tchouakeu, 2020). Consequently, many contracts are awarded based on favoritism rather than merit.

A corrupt practice manifests itself in various forms within the road construction sector in Cameroon. Common practices include bid rigging, where contractors collude to inflate prices; kickbacks paid to officials for contract awards; and substandard work resulting from cost-cutting measures taken by contractors who siphon off funds meant for quality assurance (Akam & Ngwa, 2021).

These corrupt practices not only inflate project costs but also compromise the quality of infrastructure developed. Poorly constructed roads lead to increased maintenance costs over time and hinder economic activities by limiting access to markets and services (World Bank Report on Infrastructure Development in Africa, 2022).

The implications of corruption within public contracts extend beyond financial losses; they significantly affect national development outcomes. Inadequate infrastructure hampers economic growth by limiting trade opportunities and reducing foreign investment attractiveness (African Development Bank Group Report on Economic Growth in Central Africa, 2023).

Moreover, corrupt practice erodes public trust in government institutions and diminishes citizen engagement with governance processes. When citizens perceive that their leaders prioritize personal gain over collective welfare, it leads to disillusionment with democratic processes (Ndiaye & Tchamyou, 2023).

Focusing specifically on road construction projects within the South West Region provides insights into how these dynamics play out locally. Several high-profile projects have been scrutinized for alleged corruption involving local officials and contractors.

For instance, the Limbe-Douala highway project faced numerous delays attributed not only to technical challenges but also allegations of misappropriation of funds meant for project completion (Cameroon Tribune Report on Infrastructure Projects Review, 2023). Such cases exemplify how corrupt practices can derail critical infrastructure initiatives that are vital for regional development.

Project owners complain about lengthy procedures in the award and initiation of public contracts, institutional overload and acting as speed brakes in the under-consummation of public budget incompliance with the fiscal calendar. This lengthy and under consummation has been the brain behind the current reform of the public contracts code in order to seek better solution.

 Wendy & al. (2007) look at the relationship between public procurement and good governance. They deduce that effective procurement practices provide government with a means of bringing about socioeconomic and environmental reforms meanwhile malpractices within public procurement are a major source of corruption and financial loss.

Similarly, Beyegue (2010) noticed that the form of public policy in recent years has brought some elements of improvement compared to the previous state but questions if the multiplication of organs and procedures is likely not to generate complexity. The incompetence of the committee members, the presence of immense external pressure to manipulate the process and the lack of follow up as well as insufficient motivation remained major challenges to be address in developing countries (Adusei & Awunyo 2015).

1.2. Statement of the Problem

Cameroon has faced numerous challenges regarding governance and public sector management. The road construction sector is critical for national development as it facilitates trade, enhances mobility, and improves access to essential services. The Southwest region of Cameroon has been identified as an area where road construction projects are essential for enhancing connectivity, economic growth, and overall national development. However, the processes surrounding public contract awards in this sector often raise questions regarding transparency, efficiency, and their impact on sustainable development. Therefore, In-spite of the government aim to contract durable roads that will serve citizens, due to corrupt practices in the award of public contracts, national development is affected negatively.  However, even though, this sector has been marred by allegations of corruption, mismanagement, untimely duration of projects, cost overruns and inefficiencies that undermine its potential contributions to economic growth, it is evident given that officials concerned with public contracts on road construction in Cameroon demand kickbacks from contractors in exchange for awarding contracts or facilitating project approvals, thereby reducing the actual amount of money spent on a given road. Contractors collude with government officials to inflate project costs or engage in bid-rigging practices, Funds allocated for road construction diverted for personal gain or mismanaged due to lack of oversight. Thus, reducing the quality of roads constructed.

From this background, this study is confronted with the problem of resolving issues on national development, specifically regarding public contract awards and the quality and quantity of road construction in the Southwest region.

1.3. Research questions

1.3.1 General research question

The General research question is to what extent has the award of public contracts impacted national development in Cameroon?

1.3.2 Specific research questions

The research is guided by three specific research questions;

1. What is the effects of corrupt practices on the number of bids received for road construction projects in the South West Region of Cameroon?
2. To what extent do corrupt practices in public contracting affect cost overruns in relation to road contracts in Cameroon?
3. What role does government policy play in shaping project duration outcomes for road construction?

1.4. Research Objectives

This research will be guided by the following study objectives;

1.4.1. General Objective

The general objective of this study is to examine the extent to which the award of public contract impacts national development in Cameroon

1.4.2. Specific Objectives

In specific terms, this research will be guided by the following objectives;

1. To identify the effects of corrupt practices on the number of bids received for road construction projects in the South West Region of Cameroon
2. To examine the extent to which corrupt practices in public contracting affect cost overruns in relation to road contracts in Cameroon
3. To assess the role government policy, play in shaping project duration outcomes for road construction