Parliament has passed the Public Procurement Authority Amendment Bill 2025 to promote budgetary discipline and curb financial commitments beyond approved allocations.
The newly passed legislation is expected to reinforce financial accountability, ensuring that government contracts are backed by available funds before they are awarded.
This move is seen as a significant step towards promoting transparency and accountability in public procurement processes in Ghana.
The new legislation mandates written authorization from the Finance Minister, Dr Cassiel Ato Forson, for all government-funded procurements.
According to Dr Forson, the amendment aimed to address the critical challenge of accumulating financial arrears due to the practice of awarding contracts without ensuring the availability of funds for payment.
“Mr. Speaker, one of the critical challenges that have contributed to the accumulation of arrears is the practice of awarding contracts without ensuring the availability of funds for payment,” he stated on the Floor of Parliament on Friday.
The Finance Minister emphasised that the government had directed that all procurement funded by the central government must be accompanied by written authorization from the Minister responsible for Finance.
“Mr. Speaker, to address this, the government, as part of the 2025 Budget measures, has directed that all procurement funded by the central government must be accompanied by written authorization from the Minister responsible for Finance,” Dr Forson told Parliament.
GNA
