The government is introducing sweeping reforms in the public procurement process to tackle the billions of cedis lost annually through malfeasance, Deputy Minister for Finance, Thomas Nyarko Ampem, has revealed.
In a keynote speech during the National Procurement and Supply Conference, Mr. Nyarko Ampem referenced a report by the Ghana Institute of Procurement and Supply (GIPS) that found the nation loses approximately GH¢2.36 billion annually to procurement violations. Ghana travel guide
He referred to this as a waste of money that could be invested in constructing hospitals, schools and climate-resilient infrastructure.
Why are we spending more on inefficiencies and violations than on the most vulnerable in our society? Procurement inefficiencies deprive us of the possibilities to create employment opportunities and expand access to basic services," said the Deputy Minister.
He added that irregularities such as unauthorized procurements, unequal evaluations, poor supervision, and unclear specifications intended to favor some suppliers are prevalent.
These, he alerted, undermined development and public confidence.
To reverse the trend, he said, government had amended the Public Procurement Act to mandate commencement certificates and budgetary provisions as prerequisites of all central government-funded procurement.
The Ministry of Finance has also set up a PFM Compliance Division to enforce compliance with the assistance of the Ghana Electronic Procurement System (GHANEPS).
Mr. Nyarko Ampem also announced that the Cabinet is considering the Procurement Practising Bill, which will professionalize procurement, verify malpractices and include sustainability and anti-corruption safeguards.
"This legislation will enhance standards and give procurement the strategic priority it deserves," he further said.
He also pointed out that the reforms are based on President John Mahama's economic reset agenda and are consistent with the 24-Hour Economy Programme, which has focus on local production, green procurement, and job creation.
The Deputy Minister appealed to procurement practitioners to utilize technology, apply existing legislation, and place value-for-money first.
"Every insistence on local content builds industries that have the ability to compete on the continent and internationally," he said.
The conference was conducted under the theme "Transforming Public Procurement for Sustainable Development: Policies, Practices and Pathways."
credit: GNA