Parliament has passed the Public Procurement Authority Amendment Bill 2025, introducing a key reform that mandates written approval from Finance Minister Dr. Cassiel Ato Forson for all government-funded procurements.

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This new measure is designed to reinforce fiscal discipline and prevent expenditures that exceed approved budgetary allocations.

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The amendment addresses past concerns where contracts were awarded without sufficient financial backing, resulting in accumulated arrears. By enforcing this requirement, the government aims to improve oversight and ensure that procurement decisions align with available resources.

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Speaking in Parliament, Dr Ato Forson emphasised the necessity of the reform, stating: “Mr Speaker, the object of the Bill is to amend the Public Procurement Act (Act 663) to introduce a requirement for commitment authorisation to accompany all government-funded procurement.”

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He underscored the importance of this change in maintaining financial discipline within public sector spending.

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He further highlighted how previous procurement practices had contributed to financial challenges, explaining: “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.”

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“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 authorisation from the Minister responsible for Finance.”

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About the Public Procurement Authority Amendment Bill 2025

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The Public Procurement Authority Amendment Bill 2025 is an important piece of legislation aimed at improving accountability and transparency in Ghana's public procurement system. It introduces a requirement for written authorization from the Minister for Finance before government-funded contracts are awarded.

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This change ensures that the contracts are financially backed and helps prevent the accumulation of arrears caused by commitments made without available funds. Additionally, the bill promotes better budgetary discipline by aligning procurement decisions with approved financial resources.

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