Parliament has approved the Public Procurement Authority Amendment Bill 2025, which introduces an important reform requiring written authorization from the Finance Minister, Dr. Cassiel Ato Forson, for all government-funded procurements. This amendment aims to promote budgetary discipline and prevent financial commitments that exceed approved allocations.
Explaining the necessity of the reform on the floor of Parliament, Dr. Ato Forson stated: “Mr. Speaker, the object of the Bill is to amend the Public Procurement Act (Act 663) to introduce a requirement for commitment authorization to accompany all government-funded procurement.” He highlighted concerns over previous procurement practices that have led to financial arrears, saying:
“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 authorization from the Minister responsible for Finance.”
The newly passed legislation is expected to reinforce financial accountability, ensuring that government contracts are backed by available funds before they are awarded.
