Home Politics Gov’t Saves Gh¢800m …As It Ends Sole-Sourcing In Procurement

Gov’t Saves Gh¢800m …As It Ends Sole-Sourcing In Procurement

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 By Frank Amponsah 

Minister of State in charge of Public Procurement, Madam Sarah Adwoa Safo has disclosed that government has in its first years in office been able to save the nation from losing a whooping sum of Gh¢800 million Ghana Cedis would have been lost to sole sourcing.

Giving some statistics, she revealed that in 2016 under the PPA where sole-sourcing was done 622 tenders were received whilst 597 were approved with 25 rejected.

Same in 2017; 394 tenders were received and 223 approved whilst 171 was rejected.

Meanwhile, under the restrictive tendering in 2016, 592 tenders were received, 587 approved and 5 rejected.

“In 2017; 346 was received and 167 was approved, whilst 179 was rejected,” she noted.

Sarah Adwoa Safo (MP) was speaking at a Stakeholders’ meeting in Accra for the final review of the 30% of 70% Local Content Policy for Public Procurement.

According to her, the President Nana Akufo-Addo places much importance to the protection of the Public purse using procurement rules, and practices hence the establishment of her office to ensure that the state gets value for money when it comes to issues of procurement.

She noted that State resources go waste through improper procurement practices, that is why the President has adopted the mantra; ‘Ghana Beyond Aid’ believing that if right policies are implemented a lot of savings would be made towards the development of the nation.

She also stated that unnecessary delays of government projects are contributing factor to loss of revenue which hitherto people especially contractors were taking advantage of, to get huge sums of money from government as judgement debts.

Madam Safo added “With this database, the citizenry could at any given time, assess the performance of all the contractors to know who is doing well and who is doing badly”.

Sarah Adwoa Safo also said that there was an effort to harmonize the Public Procurement Acts (Act 663) and the Public Procurement (Amended) Act (Act 914) for easy reading and referencing, explaining that, Public Procurement in collaboration Public Procurement Authority (PPA) and Attorney General Department was going to check on corruption associated with sole sourcing.

She reiterated her commitment to end wanton abuse of sole sourcing, adding that ‘the ultimate is to ensure value for money through audit’.

The Public Procurement Act, Act 663 of 2003 was introduced to sanitise government procurement procedures and make it less prone to corruption.

She said the NPP believes in empowering the local private sector and will pass legislation to require that at least 70% of all government taxpayer-financed contracts and procurements be executed by local corporate entities.

In addition, the NPP through this policy is requiring that 30% of the required 70% be sourced from entities owned by women, persons with disability, and those established under the Youth Enterprise Fund (YEF).

Per the scope of application of the policy, all procurement units/departments must ensure that all procurement activities apply the 30% of the 70% local content policy, all entities must have a database of suppliers, contractors, and consultants who fall within the target group, contractors, suppliers, consultants must show proof of the policy, all entities must ensure that targeted groups are sufficiently trained on the policy, must ensure that they have 30% of the 70% policy in their procurement plan, and must ensure that they have 30% of the 70% local content policy.

Madam Safo who doubles as the Member of Parliament (MP) for Dome-Kwabenya Constituency in the Greeter Accra noted that out of this 70%, 30% of the contracts or projects has to be awarded to Persons with Disability (PWDs), women and those in youth employment programme.

This, according to her was in line with one of the key campaign promises of the New Patriotic Party (NPP) government to give the youth, PWDs and women at least 30 percent of contracts and projects.

On his part, Senior Minister Yaw Osafo Marfo who chaired the stakeholders’ meeting said most Ghanaians underrate the subject of procurement and that about 65% of our budget is spent on procurement.

He averred that diligence and integrity is relevant to save the nation from losing huge sums of money.

Osafo Marfo said the 30% of 70% Local Content Policy for Public Procurement will enable the state secure funds and boot growth.






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