Ghana President Promises Review of Public Procurement Practices

President John Dramani Mahama has indicated a commitment to review public procurement practices, specifically the reliance on sole sourcing for contracts under the government’s ‘Big Push’ infrastructure program. This follows an investigative report highlighting concerns over transparency and cost efficiency.

The President acknowledged that while sole sourcing is legally permissible, competitive tendering remains the preferred method for ensuring value for money. This response was made during an engagement with civil society organizations, as reported by Franklin Cudjoe, Founding President of the IMANI Centre for Policy and Education.

This concern about procurement practices is not new. Research by IMANI and the Africa Centre for Energy Policy examined approximately 1,000 public contracts over a nine-year period before the current presidency. This research found that 95% of these contracts did not meet basic procurement standards. This suggests a systemic issue in how public contracts are awarded in Ghana.

The President has called for an inquiry into the ‘Big Push’ contracts. He has also promised to prioritize competitive bidding for future projects. This could lead to a shift from current practices where contracts are often subject to political and personal connections, affecting sectors like insurance.

Similar issues were raised in 2014 concerning the insurance sector, where the President intervened to reaffirm principles of merit and competition. The current situation suggests a recurrence of this challenge. The President’s willingness to address these issues marks a potential step towards systemic reform in public sector procurement, extending beyond infrastructure to other sectors.