Ghana’s Parliament has passed the Public Procurement Authority Amendment Bill 2025, introducing a critical reform that mandates written approval from Finance Minister Dr. Cassiel Ato Forson for all government-funded procurements.

The amendment aims to reinforce fiscal discipline, prevent budget overruns, and ensure that government contracts align with approved financial resources.

Addressing Parliament, Dr. Ato Forson emphasized the necessity of the reform, stating:

“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 has directed that all central government-funded procurements must receive written authorisation from the Finance Minister before contracts are awarded.

Key Provisions of the Bill
Mandatory Ministerial Approval: All government-funded procurement must be authorized in writing by the Finance Minister before execution.

Enhanced Fiscal Oversight: Prevents government agencies from committing to contracts without sufficient financial backing.

Improved Accountability: Ensures procurement decisions align with approved budgets, reducing financial mismanagement and arrears accumulation.

The bill marks a significant step in promoting budgetary discipline and transparency in Ghana’s public sector spending.