President John Dramani Mahama has announced steps to alter Ghana’s Public Procurement Act in response to growing complaints over sole-sourcing practices associated with the government’s Big Push infrastructure development.
The Fourth Estate’s recent exposé, which examined the procurement procedures involved in the awarding of significant road contracts, preceded the ruling.
Widespread public discussion over accountability, transparency, and value for money in government expenditure has been triggered by the report.
In response, President Mahama stated that although single sourcing is allowed by law in certain situations, it shouldn’t be the default choice. He emphasised that the most dependable method for obtaining fair prices and guaranteeing the effective use of public monies is still open and competitive tendering.
He revealed that in order to thoroughly examine the accusations, his office has asked The Fourth Estate for the complete report. In order to direct government action, the Ministry of Roads and Highways has also been instructed to submit a comprehensive response.
Mahama declared that the Public Procurement Act will be amended to restrict the use of single sourcing as part of efforts to strengthen oversight.
He pointed out that the reforms are meant to ensure value for money in public spending and encourage openness.
Additionally, the President directed the Ministry of Finance to expedite the creation of an Independent Value for Money Office.
To guarantee strict adherence to accountability norms, this committee will perform thorough evaluations of all sole-sourced contracts.
Mahama reiterated his stance, stating that sole sourcing should only be used in certain situations and guaranteeing that civil society organisations will be included in the development of the suggested law changes.
In order to improve social responsibility, he also urged stakeholders to keep a close eye on budget implementation and public initiatives.
In the meantime, the Big Push initiative is under more scrutiny as a result of The Fourth Estate’s discoveries.
The research states that 81 out of 107 road contracts, valued at over GH¢73 billion, were given through sole sourcing, while the remaining 26 contracts, valued at over GH¢8 billion, were acquired through selective tendering.
This indicates that more than 90% of the money allotted to road construction under the program has so far been committed through non-competitive procurement techniques, according to Sulemana Braimah, Executive Director of the Media Foundation for West Africa.
He used the restoration of the Dodo Pepesu–Nkwanta route as an example when speaking on JoyNews’ Newsfile show.
The road was re-awarded for restoration at a cost of GH¢804 million, or more than €63 million, after it was first built in 2016 by a Burkinabe contractor through a competitive international procurement at a cost of €25.9 million with finance support from the European Union.
The rapid increase in cost has prompted major questions about value for money and procurement integrity, prompting civil society organisations to demand greater transparency in the awarding of public contracts.
The intended modifications to the procurement law represent a significant policy shift by the government in its efforts to address these concerns, restore public trust, and increase accountability in the management of national infrastructure projects.
Source: newsthemegh.com