Parliament passes 2025 Amendment to Public Procurement Act

Parliament has approved the Public Procurement Authority Amendment Bill 2025. This reform requires written authorisation from Finance Minister Dr. Cassiel Ato Forson for all government-funded procurements.

The aim is to enhance fiscal discipline. It will also prevent financial commitments that exceed budget allocations.

This amendment addresses concerns about past procurement practices. Contracts were often awarded without sufficient financial backing, leading to arrears.

By implementing this requirement, the government wants to strengthen oversight. It ensures procurement decisions align with available resources.

In Parliament, Dr. Ato Forson stressed the need for this reform. He said, “Mr Speaker, the object of the Bill is to amend the Public Procurement Act (Act 663). This introduces a requirement for commitment authorisation for all government-funded procurement.”

He highlighted how previous practices harmed financial discipline in public spending. He explained, “One critical challenge contributing to arrears is awarding contracts without ensuring funds are available.”

To tackle this issue, the government has mandated that all central government procurements require written authorisation from the Finance Minister as part of the 2025 Budget measures.