Gov’t moves to curb GH₵2.36bn loss in public procurement
The government has announced a broad overhaul of the public procurement system aimed at stopping the GHS2.36 billion lost each year through irregularities and inefficiencies.
Speaking at the National Procurement and Supply Conference, Deputy Finance Minister Thomas Nyarko Ampem cited a Ghana Institute of Procurement and Supply (GIPS) report that revealed the staggering losses.
He called the figure a “drain on resources that should be building hospitals, schools and climate-resilient infrastructure.”
“Why are we spending more on inefficiencies and infractions than on the most vulnerable in our society? Procurement inefficiencies rob us of opportunities to create jobs and expand access to critical services,” the deputy finance minister said.
Mr Nyarko Ampem pointed to unauthorised procurements, inconsistent bid evaluations, weak supervision and vague specifications designed to favour certain suppliers as rampant problems eroding public trust and delaying development projects.
To address these issues, government has amended the Public Procurement Act, making commencement certificates and budgetary allocations mandatory prerequisites for all central government-funded procurements.
The Ministry of Finance has also created a PFM Compliance Division to enforce adherence through the Ghana Electronic Procurement System (GHANEPS), designed to enhance transparency and track transactions digitally.
In addition, Cabinet is reviewing a Procurement Practising Bill that would professionalise procurement, introduce anti-corruption and sustainability safeguards, and ensure the profession receives the “strategic importance it deserves,” the Deputy Minister said.
Mr Nyarko Ampem emphasised that these reforms align with President John Mahama’s economic reset agenda and the 24-Hour Economy Programme, which prioritise local production, green procurement and job creation.
He urged procurement professionals to embrace technology, enforce existing laws and focus on value-for-money, adding:
“Every insistence on local content builds industries that can compete across Africa and beyond.”
The conference, themed ‘Transforming Public Procurement for Sustainable Development: Policies, Practices and Pathways,’ underscored the need for procurement and supply-chain professionals to partner with government in enforcing reforms that can redirect billions of cedis towards social and economic development.
