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Government seeks to amend Procurement Act to limit sole-sourcing

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By Amoako Kwame

President John Mahama has revealed plans to amend the Public Procurement Act, introducing new restrictions on single-source contracts. The move is part of a broader government strategy to improve transparency and ensure that state-funded projects deliver maximum value for money.

Speaking at a dialogue with Civil Society Organizations(CSO’s) at the Jubilee House, the President emphasized that sole-sourcing should only be used in extreme cases, promising to consult with stakeholders to ensure the new rules effectively safeguard public funds

“It is precisely for such situations that I announce that government will introduce amendments to the Public Procurement Act to limit single sourcing in order to promote greater transparency and ensure proper value for money for the money we spend on projects.” President Mahama stated

The President also directed the Ministry of Finance to accelerate the launch of the Independent Value for Money Office. Following upcoming legislative changes, this new office will conduct rigorous reviews of all single-source procurements to ensure maximum efficiency and accountability.

CSO’s like Transparency International Ghana have historically advocated for these types of amendments to ensure that full contract details are published proactively to prevent corruption. The proposed amendment has gained strong support from anti-corruption groups for its focus on fiscal discipline. If ratified, it will be a cornerstone of modern procurement reform, reshaping the award process for all public-sector contracts.

In March 2025, Parliament passed the Public Procurement Authority Amendment Bill 2025, which was specifically designed to curb financial arrears and ensure that contracts are only awarded when funds are officially authorized.

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