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International Journal of Mechanical Engineering and Technology (IJMET)

Volume 10, Issue 03, March 2019, pp. 1431-1440. Article ID: IJMET_10_03_144
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=3
ISSN Print: 0976-6340 and ISSN Online: 0976-6359

© IAEME Publication Scopus Indexed

CAUSES OF NON-COMPLIANCE WITH PUBLIC


PROCUREMENT ACT, 2007 AMONG FEDERAL
AND STATES TERTIARY INSTITUTIONS IN
PROJECT DELIVERY IN SOUTHWEST,
NIGERIA
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle
Department of Building Technology, Covenant University, Ota, Ogun state, Nigeria.

ABSTRACT
The procurement system in Nigeria is known to be bedeviled with mismanagement
and corruption. The scenario prompted the enactment of Public Procurement Act,
(PPA) 2007 which regulates all procurement of projects made with public funds. The
Act was enacted to be complied with by both the federal and state governments together
with Ministries, Departments and Agencies (MDAs) in their procurement of goods,
works and services. Studies however, have shown that compliance with the Act by the
various procurement entities is affected by diverse challenges. This study investigates
and compares the various causes of non-compliance with the PPA, 2007 among two
prominent categories of government sponsored tertiary institutions in Southwest,
Nigeria namely; Federal Tertiary Institutions (FTIs) and State Tertiary Institutions
(STI). A questionnaire survey research approach which involved a field survey of
Federal and state Tertiary Institutions in Southwest, Nigeria was carried out. In all, 44
Higher Education institutions comprising 17 federal tertiary institutions and 27 state
tertiary institutions were used for the study. The perception of the institutions’
Procurement Officers on the problems associated with the implementation and
compliance with the provisions of the Act and their consequences were sampled using
structured questionnaires.The results revealed that unfamiliarity with the provisions of
the Act, poor record management, unprofessionalism, inadequate organizational
incentives and media publicity were the major causes of non-compliance.
The study concluded that there is need for understanding of the Act by the parties
involved in the implementation of the Act in both the FTIs and STIs in Southwest,
Nigeria for effective compliance. The study recommended among others, trainings in
form of conferences, seminars and workshops to the procurement officers of the
institutions for better and improved compliance with the Act.
Keywords: Public Procurement Act, Construction procurement, University,
Polytechnic, College of Education, Higher Education Institution.

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Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria

Cite this Article Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I.
Fagbenle, Causes of Non-Compliance with Public Procurement Act, 2007 among
Federal and States Tertiary Institutions in Project Delivery in Southwest, Nigeria,
International Journal of Mechanical Engineering and Technology, 10(3), 2019, pp.
1431-1440.
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=3

1. INTRODUCTION
Public procurement refers to the overall process of acquiring, purchasing or obtaining materials,
services or properties from outside a government, governmental agencies, ministries,
departments or extra ministerial department (PPDC, 2012). The process is usually guided by
different laws or regulations in all the nations of the world. The regulation guiding public
procurement in Nigeria is referred to as the Public Procurement Act, 2007 (BPP, 2007). The
regulatory authorities for the monitoring and implementation of the Act are the Bureau of Public
Procurement (BPP) and the National Council on Procurement (NCP). The Act was enacted in
2007 as a regulatory framework for all public procurement in Nigeria. It stipulates clear cut
procedures for achieving competitiveness, credibility, accountability and transparency in all
procurement financed with public funds. However, several years after the enactment,
compliance with the Act is still a major challenge (Ayangade, Wahab and Alake, 2009; Wahab,
2014; Hyancinth & Yibis, 2017). PPDA 2006 reported that non-compliance with set
procurement process, performance and procedure has led to irregular and subjective decisions
and that such decisions had resulted into costly consequences for most public entities, and the
country at large.
Federal Tertiary Institutions (FTIs) and State Tertiary Institutions (STIs) are two levels of
institutions owned by the federal and state governments respectively. They have three
categories of tertiary institutions each namely: Universities, Polytechnics and Colleges of
Education. These institutions with the help of funds obtained from their internally generated
revenues, allocation from governments, as well as grants from several organizations and
Agencies like Tertiary Education Trust Fund (Tetfund), World Bank, UNESCO, among others,
procure several projects. Such projects include classrooms, hostels, lecture theatres, studios,
workshops, laboratories, among others. The tertiary institutions from these two levels of
governments are part of government MDAs expected to comply with the PPA, 2007 in all their
procurement activities. The two levels of government in Southwest Nigeria have 44 Public
Tertiary Institutions (JAMB, 2016). These institutions increased in population as a result of
yearly students’ enrolment as well as the corresponding staff recruitments. Resulting from this,
an enormous capital outlay is required in terms of physical infrastructural developments. In
view of their enormous infrastructural capital projects requirement and the attendant
contributions to success and development of the institutions and the nation in general, this study
seeks to examine the causes of non-compliance with the procurement Act, 2007 among the
Federal and State Tertiary Institutions in Southwest Nigeria, with a view to comparing the effect
of the causes of non-compliance with the Act among the two levels of government sponsored
tertiary institutions.

2. REVIEW OF LITERATURE
Tertiary institutions in Nigeria refer to the post-secondary section of the national education
system which comprises of Universities, Polytechnics and Colleges of Education. Its
contribution to the advancement of education and economic development of the nation cannot
be over emphasized (Okpareke, 2007). They are involved in the procurement of diverse

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Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle

construction projects for different purposes ranging from classrooms, offices, recreation,
residences among others.
Procurement processes in public organizations are done by rules, regulations and Acts.
These regulations seek to check corruption and also to ensure that award of contract is based
on competition and not on favoritism. This is because of the contribution of public procurement
to the economic development of the nation. It constitute between 15-30% of the Gross Domestic
Product, GDP (Transparency International, 2006). Public procurement is so significant that it
cannot be over emphasized as it involves a very huge financial commitment. It accounted for
about 20% of government expenditure globally (Mlinga, 2009). The practice of public
procurement dated back to 2400 and 2800 BC and has a great impact on economies of
developed and developing nation and requires prudent management (Thai, 2009).
Good governance has been traced to existence of clear and unambiguous procurement
policies and practices. This ensures a reduction of cost and timely results in government
transactions. Poor practices on the other hand lead to waste and delays and are often the cause
of allegations of corruption and government inefficiency (BPP, 2011). Efficient, effective and
professional application of public procurement regulations can contribute towards sound
management of public funds (Hunja, 2003). Past government in Nigeria before the year 1999
experience periods of frauds, corruption and many unwholesome procurement practices. This
was attributed to prolonged military rule and absence of statutory laws upon which public
procurement are based (Musa, Success & Nwaogu, 2014; Kareem,Asa & Lawal 2014 ).
In attempt to address this issue, the Nigeria government established the Budget and Price
Intelligence Monitoring Unit (BMPIU) popularly called ‘Due Process’ in 2001 to implement
public procurement reforms as one of the transparency pillars in the overall federal government
economic reform programmes (BPP 2001). This name was later changed to Bureau of Public
Procurement (BPP) with the enactment of Public Procurement Act 2007 (Kareem, et al 2014).
After the enactment of the Act the challenges remain that of compliance, however the questions
remain as what are the likely causes of non-compliance with the Act among the tertiary
institutions owned by the two levels of government and their attendant effects? The answers to
these questions is expected to assist the two levels of government, the BPP as well as the two
categories of tertiary institutions to achieve the objectives of the procurement Act and ensure
good procurement practice. This study therefore seeks to provide the required solutions needed
to achieve the objective.

3. RESEARCH METHODOLOGY
In order to achieve the objectives of this study a field survey was carried out. The study area
consists of six states in the southwest Nigeria namely; Lagos, Ogun, Oyo, Osun, Ondo and
Ekiti.. The population of the study comprises of two subjects namely; 44tertiary institutions
divided into 17 Federal Tertiary Institutions (FTIs) and 27 State Tertiary Institutions (STIs) in
southwest Nigeria and 44 completed building projects done by the institutions in the year 2016.
The project with the highest value procured by each institution in 2016 was selected by
purposive sampling technique to make a sample size of 44 projects. Procurement officer of each
institution who was either a builder, architect, engineer or quantity surveyor was adopted as the
respondents of the study. To assess the causes of non-compliance with PPA, 2007 respondents
were requested to indicate the scale that represented the effect of each cause of non- compliance
with the Act in their institutions on a 5-point Likert Scale; very low = 1, low = 2, moderate =
3, high = 4, and very high = 5.
Structured questionnaires administered to the respondents of the study and collected by
trained research assistants were used as instrument for collection of data for the study. The
instrument was first validated by lecturers in the Department of Building Technology, Covenant

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Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria

University, Ota, Ogun state and by some consultants who were postgraduate students in the
Department before the field survey. The reliability of the instrument was determined by
analysing the Crombach alpha coefficient, values of the items or questions in the instrument.
The Crombach alpha coefficient for the instrument ranges from 0.703-0.911. The Crombach
alpha coefficient indicated that the instrument was reliable

4. RESULTS AND DISCUSSIONS


4.1. Characteristics of the Respondents
To provide an understanding of the respondents of the study, their characteristics were
investigated as a background to the results. For the investigation, nine (9) characteristics of the
respondents were selected. The characteristics are: respondents’ sex, marital status, age,
experience in construction, highest academic qualification, professional qualification,
professional status and position in the institution.
The distribution of the respondents over the sub-variables of characteristics is analysed
using percentage. The results are presented in Table 1.

Table 1 Descriptive result of the characteristics of the respondents of the study


Characteristics N % Characteristics N %
Respondent Gender Respondent Marital Status
Male 37 84.1 Single 0 0
Female 7 15.9 Married 44 100
Divorce 0 0
Widow 0 0
Total 44 100 Total 44 100
Respondent Age Respondent experience in Construction
1 - 16years 0 0 1 - 10years 18 40.9
17 - 32years 1 2.3 11 - 20years 13 29.5
Above 32 years 43 97.7 Above 20 years 13 29.5
Total 44 100 44 100
Respondent Highest
Respondent Professional Qualification
Academic Qualification
OND 1 2.3 NIOB 19 43.2
HND 7 15.9 NIQS 13 29.5
BSc. 9 20.5 NIA 1 2.3
PGD 1 2.3 NSE 8 18.2
MSc 25 56.3 NATE 2 18.2
PHD 1 2.3 NITD 1 2.3
Total 44 100 44 100
Respondent Professional
Respondent Position in the Institution
Status
Licentiate 2 4.5 Technical Officer 13 29.5
Associate 5 11.4 Professional 26 59.1
Graduate 16 36.4 Deputy Director 3 6.8
Corporate 14 31.8 Director 2 4.5
Fellow 7 15.9
Total 44 100 Total 44 100
N = No of Respondents, NIOB = Nigeria Institute of Building, NIQS = Nigeria Quantity
Surveying, NIA = Nigeria Institute of Architecture, NSE = Nigeria Society of Engineers, NATE
= Nigeria Association of Technological Engineers, NITD = Nigeria Institute of Technical

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Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle

Table 1 reveals the respondent characteristics which shows that male respondents constitute
majority 84.1%, while the female respondents constitutes the minority 15.9% the result widely
reflects the nature of construction industry as it is widely dominated by men across the world.
Table 1 further reveals that the respondents belong to the working class age group. It further
reveals that the respondents were all married. The table further shows that the respondents fall
within the short (1–10yrs), medium (11–20yrs) and long (above 20yrs) years’ of experience in
construction. 96% of the respondents sampled being graduates distributed into; HND 15.9%,
BSc 20.5%, PGD 2.3%, MSc 56.8%, and PhD 2.3% as their highest academic qualifications
and all are professionally registered. Table 1 further reveals that respondents are all members
of professional bodies of different status distributed into; Graduates 36.4%, Corporate 31.8%,
Fellows 15.9%, 4.5% and Associates 11.4%. Table 1 also shows the respondents’ position in
their institutions distributed into; Professionals 59.1%, Technical Officer 29.5%, Deputy
Directors 6.8% and Directors 4.5%. The results of the respondents background shows that their
characteristics were adequate to participate in the study.

4.2. Characteristics of the Respondents’ Institutions.


As a way of understanding the institutions sampled in the study, their characteristics were
investigated. Seven characteristics of the institutions were investigated altogether. These
characteristics are; institution category, ownership, number of students enrolment, number of
staff employed, location of the institutions, nature of the location and the year of establishment
of the institutions. The data collected were analysed using percentage. The results were
presented in Table 2

Table 2 Descriptive result of the characteristics of the respondents’ institution of the study
Characteristics N % Characteristics N %
Institution Category Ownership
University 17 38.6 Federal 17 38.6
Polytechnic 17 38.6 State 27 61.4
College of Education 10 22.7 Total 44 100
Total 44 100
Number of Student Enrolment by the
Number of Staff Employed
respondent Institution
1 – 1000 (Small size) 5 11.4 1 – 250 ( Small size) 8 18.2
1001 – 10000 (Medium size) 26 59.1 251 – 500 ( Medium size) 12 27.3
Above 10000 (Large size) 13 29.5 Above 500 ( Large size) 24 54.5
Total 44 100 Total 44 100

Nature of the Location of


Location of Institution
respondents' Institution
Lagos 10 22.7 Urban 27 61.4
Ogun 10 22.7 Rural 17 38.6
Oyo 6 13.6 Total 44 100
Ondo 6 13.6
Year of Establishment of
Ekiti 4 9.1 Respondents' Institution
Osun 8 18.1 Before 1979 14 31.8
Total 44 100 1979 – 1983 11 25.2
After 1983 19 43.2

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Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria

Total 44 100
N = number of respondents, % = percentage
Table 2 reveals that the institutions sampled were drawn from three categories namely;
Universities, Polytechnics and Colleges of Education. Universities constituted 38.6% of the
institutions sampled, while Polytechnics constituted 38.6%, colleges of Education constituted
22.7% of the institutions. The result shows that the study sample was fairly distributed over the
three categories with none of the three categories constituting the majority. The table also shows
that the PTIs were either owned by Federal or state governments with the Federal government
owned institutions constituted 45% of the PTIs while the State owned institutions constituted
the majority with 54.5% of the PTIs. The table further reveals that the respondent’s institution
student’s enrolments were either low (1-100), medium (100-10000) or dense (above 10000)
population. The respondents with medium population of students constituted the majority with
59.1% of the institutions student enrolment, the dense population category constituted 29.5%
of the respondents, while the low student’s population category constituted 11.4% of the study
sample. Table 2 also shows that the staff employments by the respondents institutions were
classified into low, medium and high in the range of (1-250), (251-500) and above 500
respectively. The institution with high staff employment constituted the majority 54.5% of the
respondents, while the medium employee institutions’ categories constituted 27.3%. The
increased number of students and staff in the institutions is an indication of the need for increase
procurement of construction projects by the institutions. Table 2 further shows the distribution
of the study sample into states with Lagos and Ogun States having the highest number of tertiary
institutions of 27.7% each, while Osun State constitutes 18.1% with Oyo and Ondo states
having the same number of tertiary institutions of 13.6% each. The table further reveals that
the institutions were either established before the first republic 1979, during the first republic
1979-1983 and after the first republic 1983.

Causes of non-Compliance with PPA, 2007 by PTIs


Twenty selected causes of non-compliance with PPA, 2007 by PTIs classified into internal and external
causes were investigated. Respondents were requested to indicate the scale that represented the effect of
each selected factor on non-compliance with PPA, 2007 by their institutions on a 5- point Likert scale as
follows; very low =1, low =2, moderate=3, high =4 and very high =5. Data collected were analysed using
Mean Score (MS).The effect of each factor on non-compliance with the PPA, 2007 was measured using the
following ratings; very low= (1.00-1.49), low= (1.50-2.49), moderate (2.50-3.49), high= (3.50-4.49) and
very high= (4.50-5.00). The effects are analysed using Mean Score (MS). The results are presented in
Table 3.

Table 3. Causes of non-compliance with PPA 2007 by Federal Tertiary Institutions(FTIs)

FTIs STIs
N MS Rk Eff N MS Rk Eff

Unfamiliarity with the provision of the 20 4.0 1 H 24 3.6 2 H


Act
Record management 20 3.8 2 H 24 3.6 2 H
Professionalism 20 3.7 3 H 24 3.6 4 H
Corporate Governance 20 3.7 3 H 24 3.2 13 M
Organisation Incentive 20 3.6 5 H 24 3.7 1 H
Time Factor 20 3.6 5 H 24 3.2 13 M
Organisational Culture 20 3.5 7 H 24 3.4 7 M

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Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle

Media Publicity 20 3.5 8 H 24 3.6 4 H


Corruption 20 3.3 9 M 24 3.0 15 M
Non employment of procurement
20 3.2 10 M 24 3.5 6 H
officer
Enforcement 20 3.2 11 M 24 3.3 10 M
Political Interference 20 3.0 12 M 24 3.4 7 M
Delay caused by the provisions of the
20 3.0 13 M 24 3.4 7 M
Act
Cost of compliance with the
20 3.0 13 M 24 3.0 15 M
provisions of the Act
Sponsorship of the project 20 3.0 13 M 24 3.3 10 M
Difficulty in complying with the
20 2.9 16 M 24 2.8 18 M
provisions of the Act
Irrelevant Provisions 20 2.9 17 M 24 2.5 20 L
Provision not the duty of procurement
20 2.8 18 M 24 3.1 17 M
team members
Risks in complying with the
20 2.8 19 M 24 3.3 12 M
provisions of the Act
Non-availability of document 20 2.7 20 M 24 2.8 18 M
N= No. of Respondents, MS = Mean Score, Rk = Rank, Eff = Effect

5. DISCUSSION OF FINDINGS
From Table 3, it could be seen that there are eight major causes of non-compliance with PPA
2007 by FTIs namely; unfamiliarity with the provisions of the Act, records management,
professionalism, corporate governance, organizational incentives, time factor, organizational
culture and media publicity. All these factors have high effect on non-compliance with the Act
while the remaining twelve causes have moderate effect on non- compliance with the Act. The
table also reveals that the least causes of non-compliance with the Act by FTIs are; difficulty
in complying with the provisions of the Act, irrelevant provisions of the Act, provisions
considered not to be the duty of procurement team members, risks in complying with the
provisions of the Act, and non- availability of documents.
The table also reveals that there are six major causes of non-compliance with PPA 2007 by
STIs namely; unfamiliarity with the provisions of the Act, records management,
professionalism, organization incentives, media publicity and non-employment of procurement
officer. These causes of non-compliance all have high effect on non-compliance with the Act.
The remaining fourteen causes have moderate effect on non-compliance with the Act. Table 3
further reveals that the least causes of non-compliance with the provisions of the Act by STIs
are; irrelevant provisions, non- availability of documents, difficulty in complying with the
provisions of the Act, and provisions not the duty of procurement team members.
Whereas non-employment of procurement officers have moderate effect on non-
compliance with the Act by FTIs, it is considered as having high effect on non-compliance with
the Act by STIs. The implication of this is that the STIs require the employment of qualify
procurement officers trained in the implementation of the Act, this will ensure that the
procurement process is being handled by competent person with adequate knowledge of the
Act. Time factor and organizational culture have high effect on non-compliance with the Act
by FTIs, whereas, these have moderate effect on non-compliance with the Act by STIs. The
implication of time factor is that some of the institutions believe that the time taken to go

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Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary
Institutions in Project Delivery in Southwest, Nigeria

through the various procedures involved in compliance with the Act is too long and it
constitutes a sort of delay to the commencement of the project work.
Unfamiliarity with the provisions of the Act, records management, professionalism,
organizational incentives and media publicity are the five major causes of non-compliance
common to both FTIs and STIs and these causes have high effect on non-compliance with the
Act. Familiarity implies adequate knowledge of the Act for which they are required to comply
with. Adequate knowledge is always required for compliance, this agrees with the view of
Gelderman et al (2006) and Rossi (2010) that compliance with formal elements is an indication
of possession of the knowledge of the rules and that public purchaser will comply with the rules
regarding a system if they perceive the rules as being clear. Records management of
procurement proceedings is very important if the objective of the procurement process of
ensuring accountability is to be met. Professionalism requires that both the FTIs and the STIs
require more employment of procurement officers who are professional in the construction
profession. The will ensure that they are capable of handling procurement matters and are able
to interpret and implement procurement regulations appropriately. Provision of incentives to
the procurement officers as well as staff in the procurement department could go a long way in
ensuring better performance, eliminate or at least reduce temptation for corruption in the
procurement practice and hence achieving more compliance. The result also shows that media
publicity constitute one of the major causes of non-compliance with the procurement Act with
high effect. Both the FTIs and the STIs are government institutions headed by accounting
officers that have tenure of office, the fear of publication or exposure of their misdeeds or
wrongdoing will make them to ensure compliance with the Act.

6. CONCLUSION AND RECOMMENDATIONS


The study has been able to identify those causes of non-compliance with PPA, 2007 among the
State and Federal tertiary institutions in southwest, Nigeria and subsequently their effects. This
will assist the managements of the various categories of institutions under the two levels of
governments to take necessary actions in order to forestall further contravention of the Act
which may produce the wrath of government as well as their other sponsoring organizations on
them.
The study compares the causes and effect of non-compliance with public procurement Act,
2007 among Federal and State sponsored tertiary institutions in southwest Nigeria. It was
discovered that there are five major causes of non-compliance with the Act that are common to
these category of institutions and that the effect of such causes are high. These causes include
unfamiliarity with the provisions of the Act, records management, professionalism,
organizational culture and media publicity. Corporate governance, time factor and
organizational are causes that contributes major causes among the federal institutions. These
three causes have high effect with the FTIs but moderate effect with the STIs.
The study recommended regular trainings, workshops, seminars, and conferences on
interpretation and implementation of the procurement Act by the state and federal governments
for parties involved in the implementation of the procurement Act. Understanding of the
provisions of the acts will assist in the compliance during the procurement process in the two
categories if the institutions. These institutions should ensure good record keeping of both the
past and current procurement proceedings this will prevent destruction of valuable documents
which encourage corruption during the implementation of the provisions of the Act.
Procurement officers employed for procurement in any discipline will perform better when the
professionals in that particular field are employed for the purpose, hence employment of
procurement officer in the construction discipline should be construction professionals. Regular
publications as well as issuance of procurement documents to these institutions will assist them

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Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle

in compliance with the provisions of the Act. The Bureau of Public Procurement as the
regulatory body should ensure the publication of the names of institutions as well as the
executives of the institutions that refused to comply with the Provisions of the Act. This will
serve as a way of enforcing compliance with the Act in these institutions.

ACKNOWLEDGEMENT
The authors acknowledge the article processing charges paid by Covenant University for the
Open Access of this publication.

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Institutions in Project Delivery in Southwest, Nigeria

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