Ghana Tightens Procurement Compliance as Breaches Cost an Estimated GH¢2.36 Billion a Year

Ghana is tightening procurement compliance over spending that accounts for an estimated 50% to 70% of national expenditure, with Finance Minister Cassiel Ato Forson warning that weak compliance and abuse could undermine the value of public investment.

Ghana’s public procurement system is facing renewed scrutiny as government moves to strengthen compliance controls over spending that accounts for an estimated 50% to 70% of national expenditure, amid concerns about waste and financial losses from procurement breaches.

Finance Minister Dr Cassiel Ato Baah Forson has urged procurement officers to enforce the rules strictly, warning that weak compliance, inefficiency and abuse could undermine the value of public investments in roads, schools, health facilities and other development projects.

The Scale of Exposure

The scale of the exposure is significant. Ghana’s 2026 national budget appropriation stands at GH¢357.21 billion, meaning that procurement decisions influence a substantial share of public resources and determine how much infrastructure and public services the country receives for its expenditure.

Addressing the 12th Public Procurement Forum in Accra on Monday, in a speech delivered on his behalf by Samuel Arkhurst, Coordinating Director (Technical) at the Ministry of Finance, Dr Forson said procurement requirements must be treated as essential safeguards rather than bureaucratic formalities.

The warning comes against the background of estimates that Ghana loses approximately GH¢2.36 billion annually through procurement breaches, according to figures cited by Deputy Finance Minister Thomas Nyarko Ampem at the launch of the Ghana Institute of Procurement and Supply’s 2025 report.

Such losses represent resources that could otherwise support infrastructure delivery, improve public services or reduce pressure on government finances.

The Legal Framework

Dr Forson said government had reviewed the procurement framework to strengthen transparency and ensure that every cedi of limited public resources was used efficiently to achieve national development objectives.

He pointed to the Public Procurement Act, 2003 (Act 663), as amended by Act 1279, as part of the legal framework designed to address weaknesses in previous arrangements, tighten controls and promote value for money in public transactions.

However, he stressed that legislation and administrative tools would deliver results only when procurement officers and other stakeholders applied them consistently.

The Minister said government could not secure the full benefits of procurement reforms without active cooperation, transparency, accountability and shared responsibility across public institutions.

Sanctions and Commitment Authorisation

The Public Procurement Authority (PPA) has also warned that failure to comply with procurement laws could attract serious sanctions.

Frank Mante, Chief Executive Officer of the PPA, said breaches of the law carried penalties, including imprisonment under Section 92, particularly in cases where procurement was undertaken without the required commitment authorisation from the Minister for Finance.

He urged heads of public institutions to obtain the necessary approvals before commencing procurement processes, stressing that the choice of competitive or other approved procurement methods must ultimately deliver value for money.

The requirement for commitment authorisation is particularly important because it links procurement decisions to the availability of public funds and the government’s ability to meet financial obligations arising from contracts.

Implications for Suppliers

For businesses supplying goods, works and services to government, stronger enforcement could also affect how public contracts are awarded and implemented.

Clearer compliance requirements can improve confidence in procurement processes, while delays or irregular approvals may expose suppliers to uncertainty over contract execution and payment.

The forum, held under the theme “Deepening Compliance for Public Procurement Efficiency, Transparency and Effectiveness,” brought together procurement practitioners and other stakeholders to discuss implementation challenges and reforms.

Mr Mante said the engagement provided an opportunity for the Authority to hear concerns from practitioners and respond through improvements to the procurement system.

The Test Ahead

The broader challenge is to ensure that tighter controls translate into measurable savings, better quality infrastructure and more reliable public services. With procurement influencing such a large share of national spending, even modest improvements in compliance could release significant resources for development.

For government, the test will be whether enforcement reduces procurement losses and ensures that public contracts deliver the quality and economic value expected from the national budget.

The arithmetic is unforgiving. If GH¢2.36 billion is lost annually to breaches, that sum exceeds the entire allocation for several major infrastructure programmes and is equivalent to roughly 0.7 per cent of GDP — a figure that would materially improve Ghana’s fiscal position if recovered.

Quick Facts

Ghana’s public procurement accounts for an estimated 50% to 70% of national expenditure, against a 2026 budget appropriation of GH¢357.21 billion, with estimated annual losses from procurement breaches of about GH¢2.36 billion, according to figures cited by Deputy Finance Minister Thomas Nyarko Ampem.

Finance Minister Dr Cassiel Ato Baah Forson, speaking through Samuel Arkhurst at the 12th Public Procurement Forum, called for procurement requirements to be treated as essential safeguards, citing the Public Procurement Act, 2003 (Act 663) as amended by Act 1279.

PPA Chief Executive Frank Mante warned that breaches carry penalties including imprisonment under Section 92, particularly where procurement proceeds without commitment authorisation from the Minister for Finance. The forum was held under the theme “Deepening Compliance for Public Procurement Efficiency, Transparency and Effectiveness.”

Source: Accra Street Journal

Last Updated on November 11, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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