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

This measure aims to enhance fiscal discipline and prevent financial commitments exceeding approved budgetary allocations.

The amendment seeks to address concerns over past procurement practices, where contracts were awarded without adequate financial backing, leading to the accumulation of arrears.

By implementing this requirement, the government intends to strengthen oversight and ensure that procurement decisions align with available resources.

Speaking in Parliament, Dr Ato Forson emphasised the necessity of the reform, stating: “Mr Speaker, the object of the Bill is to amend the Public Procurement Act (Act 663) to introduce a requirement for commitment authorisation to accompany all government-funded procurement.”

He underscored the importance of this change in maintaining financial discipline within public sector spending.

He further highlighted how previous procurement practices had contributed to financial challenges, explaining: “Mr Speaker, one of the critical challenges that have contributed to the accumulation of arrears is the practice of awarding contracts without ensuring the availability of funds for payment."

"To address this, the government, as part of the 2025 Budget measures, has directed that all procurement funded by the central government must be accompanied by written authorisation from the Minister responsible for Finance.”