Ghana PPA: MMDAs Must Boost Procurement Compliance Amid New Thresholds

• The Ghana Public Procurement Authority (PPA) urged public institutions, particularly MMDAs, to strictly comply with the Public Procurement Act for transparency and efficiency.
• Recent amendments increased procurement thresholds for heads of entities from GH₵100,000 to GH₵800,000 for goods, aiming to expedite processes.
• Despite increased thresholds, compliance with Sections 17 and 18 of the Act remains mandatory, and Section 65(9) requires informing unsuccessful tenderers of reasons for failure.
• The PPA encourages GHANEPS registration to reduce human interference and widen participation in tendering.
• Breaches of procurement regulations, including failure to obtain Ministry of Finance commitment authorization, will incur sanctions.

He concluded by urging all procurement practitioners and public officials to perceive compliance not merely as a legal obligation but as a fundamental professional responsibility owed to the Ghanaian populace.

The Ghana Public Procurement Authority (PPA) recently issued a strong directive to public institutions, particularly Metropolitan, Municipal and District Assemblies (MMDAs), emphasizing the critical need for strict adherence to the Public Procurement Act Ghana. This call, articulated by Mr. Frank Mante, the Chief Executive Officer of the PPA, underscores the authority's commitment to fostering transparency, efficiency, and ensuring optimal value for public funds. The directive was a central theme at the 2026 Public Procurement Forum, an annual event held in Accra, which convened procurement professionals, MMDAs representatives, and other key stakeholders.

A significant development discussed at the forum involved the recent Ghana procurement thresholds increase, which aims to expedite procurement activities for public entities. These amendments, prompted by concerns raised during the previous year's forum, have substantially raised the spending limits for heads of entities. Specifically, the threshold for procuring goods has been elevated from GH₵100,000 for entities in categories A and B to a new limit of GH₵800,000, now applicable across categories A, B, and C.

This adjustment is designed to empower institutions to undertake smaller procurement activities more swiftly, reducing the necessity to refer every transaction to entity tender or review committees. However, Mr. Mante explicitly cautioned that these revised thresholds do not in any way diminish the obligation of public institutions to comply fully with the Public Procurement Act. He specifically referenced Sections 17 and 18 of the Act, which outline the mandatory procedures for procurement activities exceeding specified thresholds, reinforcing that the legal framework remains paramount regardless of the increased spending limits.

Beyond the adjustments to spending limits, the Ghana Public Procurement Authority is also intensifying its efforts to bolster transparency and accountability within the procurement landscape. Mr. Frank Mante detailed the authority's commitment to ensuring that all procurement decisions, especially those involving competitive tendering and single-source procurement, are thoroughly justified and open to public scrutiny. A key aspect of this drive for accountability is the strict enforcement of Section 65(9) of the Public Procurement Act, which mandates that unsuccessful tenderers must be provided with clear reasons for their failure, thereby fostering a more equitable and transparent bidding environment.

In a move to further reduce human interference and broaden participation, the PPA is actively encouraging private sector operators to undertake GHANEPS registration Ghana and become proficient with the Ghana Electronic Procurement System (GHANEPS). This digital platform is designed to allow suppliers and contractors, including those located outside the capital, Accra, to submit tenders electronically. The system promises to significantly reduce travel costs and logistical burdens, thereby widening the pool of potential participants and enhancing the efficiency of the procurement process.

The PPA's CEO, Mr. Frank Mante, issued a stern warning regarding the serious repercussions for breaches of procurement regulations, emphasizing that such infractions attract significant sanctions. A critical area of concern highlighted was the failure to secure commitment authorization from the Ministry of Finance before initiating procurement activities, which can lead to severe penalties. While acknowledging the logistical and human resource challenges that impact the PPA's ability to conduct nationwide monitoring, Mr. Mante clarified that the authority relies on a multi-pronged approach, including training initiatives, investigations, internal audit units, and the Auditor-General, to identify and address non-compliance.

Reinforcing this message, Mr. Samuel Arkhurst, the Coordinating Director, Technical, at the Ministry of Finance, speaking on behalf of Dr. Cassiel Ato Forson, the Finance Minister, also urged strict adherence to procurement regulations. He underscored that the effective management of public resources is indispensable for national development. Mr. Arkhurst commended the PPA for organizing the annual forum, noting it fulfills the authority's mandate under Section 3 of the Public Procurement Act, 2003 (Act 663), as amended. He concluded by urging all procurement practitioners and public officials to perceive compliance not merely as a legal obligation but as a fundamental professional responsibility owed to the Ghanaian populace.

Lawyers advising public institutions or MMDAs in Ghana must ensure their clients are fully compliant with the Public Procurement Act, especially regarding the recently increased procurement thresholds and the PPA's renewed emphasis on transparency, accountability, and adherence to specific sections like 17, 18, and 65(9). Compliance officers should review internal procurement processes to mitigate risks of sanctions for non-compliance, such as failing to obtain Ministry of Finance commitment authorization.

Source: Original reporting via Ghanaian Times.