The new Chief Executive Officer of the Public Procurement Authority, Agyenim Boateng Agyei, has given indication that the introduction of electronic system in the award of government and public contracts will start by June this year.
The system is expected to help reduce corruption, by increasing transparency of tendering processes, improve coordination between ministries and agencies to develop uniform standards, and increase competition between private sector firms for public sector contracts.
The nation lost a great deal of funds through blatant abuse of the procurement process under the previous Mahama-led National Democratic Congress government, which witnessed unprecedented awards of huge contracts through sole-sourcing.
A research conducted by the Danquah Institute indicated that the country had lost over US$1.93 billion through soul-sourced contracts since 2010.
According to the think tank, its findings suggested that an estimated 65% savings could have been made if those deals had been subjected to competitive tendering.
Last year alone, the previous Mahama-led administration blew over GHC223 million on 93km cocoa roads, all of which were awarded through sole-sourcing.
The Ghana Ports and Harbours Authority was also alleged to have committed the nation to a loss to the tune of about GHC5 billion as result of sole sourcing of contracts.
In order to avert a reoccurrence of these kinds of avoidable loss to the state, President Nana Akufo-Addo, his maiden State of the Nation Address, reiterated that his administration would strictly adhere to the procurement law, as part of the determination to protect the public purse.
“Mr. Speaker, my government will enforce the procurement law. We will insist on open and competitive bidding for power capacity procurement. This will not only reduce the cost of power projects and ensure value for money, but will also address the problem of unplanned procurement,” he said
According to the new CEO of the Public Procurement Authority, they will be conducting audit of companies that do not ordinarily submit their procurement processes for the necessary action to be taken on them.
Mr Boateng Agyei disclosed this when Vice President Mahamudu Bawumia paid a visit to his office yesterday.
Dr Bawumia said the Nana Akufo-Addo-led NPP government was delighted with the move to introduce electronic system of procurement in the award of government and public contracts.
The Vice President explained that the arrangement formed part of efforts to bring transparency into governance and the fight against corruption.
<<Print>>