Public procurement - 50% of national budget

Takoradi, April 4, GNA - Mr Agyenim Boateng Adjei, Chief Executive Officer of Public Procurement Authority (PPA), on Friday said Ghana's total Public Procurement expenditure for 2006 was GH¢1.78 billion, up from GH¢1.4 billion in 2005.

Speaking at a one-day seminar for Higher National Diploma Students of the Takoradi Polytechnic, Mr Adjei said Public procurement accounted for 50-70 percent of the national budget.

The Seminar was under the theme: "Purchasing and Supply, A Competitive Tool To Strategic Development".

Mr Adjei said government's overall procurement policy was centred on procuring the items it needs under a fair and competitive tendering process.

The policy was also to guard against corruption and achieve value for money.

"Public Procurement provides business opportunities and could be used as an important instrument of government policy to facilitate social and economic development," Mr Adjei said, adding that it was a vehicle to achieve job creation, promotion of fair labour conditions and use of local labour.

He noted however that majority of practitioners involved in public procurement lacked the requisite professional expertise and knowledge of the law governing it.

He said to address this, short-term training modules had been developed for practitioners.

Mr Adjei said many local small and medium enterprises do not participate in public procurement due to a perception that government is a slow payer and difficult to work with.

He said local suppliers, contractors, architects and engineers lacked adequate capacity to participate in tenders advertised internationally and locally particularly when values are big. Mr Alexander Akrofi, Chairman of the chartered Institute of Purchasing and Supply (CIPS), Ghana, said HND qualification in purchasing and supply should not be equated with a first degree of the Universities.

"HND in purchasing and supply is a professional qualification while a first degree is an academic qualification," he held. Mr Akrofi said the CIPS was working with government to establish "Career path for procurement professionals in the public and civil services".