The Ghana Institute of Procurement and Supply (GIPS) warns that Ghana’s new Value for Money Act will not achieve its goals without a law to professionalise public sector procurement practices. The Institute states that the recently approved legislation is crucial for enhancing transparency, accountability, and efficiency in using public funds. However, GIPS argues its impact hinges on the competence, ethics, and professional standards of the procurement officers implementing government spending decisions.
GIPS President, Dr. Simon Annan, explained that the Value for Money Act creates a robust framework for overseeing planned government expenditure. This framework could significantly reduce waste, excessive spending, and inefficiencies in public procurement. Dr. Annan stressed that oversight alone is insufficient if procurement practices remain weak, poorly regulated, or open to unqualified individuals. The Act is expected to boost financial discipline across state institutions through stronger checks and balances. It will also promote the sensible use of public funds by ensuring contracts go to those offering quality, good service, and overall public benefit.
This warning from GIPS arrives when procurement irregularities frequently appear in Auditor-General reports and parliamentary accountability hearings. Public procurement remains a vulnerable area in Ghana’s financial management system. Common issues include inflated contract prices, poor value for money, weak contract management, and misuse of sole sourcing. Other problems involve unapproved commitments, inadequate documentation, and abandoned or delayed projects. GIPS believes that addressing these weaknesses requires both tighter legal controls and a properly regulated professional class of procurement practitioners.
The Value for Money Act establishes an independent Value for Money Office and should become effective next year. This law aims to ensure that public spending decisions undergo closer inspection before taxpayer money is committed to projects, contracts, and other procurement activities. GIPS welcomed the Act, calling it consistent with international best practices in managing public expenditure. Ghana's government has introduced significant legislation in recent years to improve public financial management. These measures align with broader efforts to enhance fiscal responsibility and reduce corruption across various sectors.
GIPS maintains that Ghana must take a further step by passing the Procurement Practising Bill, which is awaiting Cabinet consideration. This proposed Bill aims to formalise Ghana's procurement profession by setting clear standards, accreditation requirements, and oversight for procurement and supply chain professionals. If passed, the Bill would help enforce professionalism and ethical conduct among those responsible for procurement decisions in government. GIPS argues that licensed and certified procurement professionals could apply technical standards better, resist undue pressure, improve contract evaluation, and strengthen accountability for public funds.
Dr. Annan stated that the Value for Money Act and the Procurement Practising Bill should be viewed as complementary reforms. He believes that together, these laws will strengthen value-based procurement. They will provide greater oversight and ensure the involvement of qualified, licensed, and certified procurement professionals with the right expertise. Dr. Annan reiterated that while the Value for Money Act creates the oversight structure, its successful implementation depends heavily on the quality of procurement practices within public institutions. This makes the passage of the Procurement Practising Bill a vital next step for stronger procurement governance in Ghana.