- Value For Money Act Alone Will Not Fix Procurement Breaches – GIPS Warns
The Ghana Institute of Procurement and Supply has warned that Ghana’s new Value for Money Act will not deliver its intended impact unless it is supported by a law that professionalises procurement practice across the public sector.
The Institute says the newly assented legislation is a major step towards improving transparency, accountability and efficiency in the use of public funds, but its success will depend on the competence, ethics and professional standards of the procurement officers responsible for implementing public expenditure decisions.
GIPS President, Dr Simon Annan, said the Value for Money Act provides a stronger oversight framework for planned government expenditure and could help reduce waste, excesses and inefficiencies in public procurement.
However, he argued that oversight alone would not be enough if procurement practice itself remains weak, poorly regulated or exposed to unqualified actors.
“The Value for Money legislation is expected to improve fiscal discipline across state institutions by introducing stronger checks and balances. It will further promote the prudent use of public funds by ensuring that contracts are awarded on the basis of quality, service delivery and overall public benefit,” Dr Annan said.
The Value for Money Act establishes an independent Value for Money Office and is expected to come into effect next year.
The legislation is designed to ensure that public spending decisions are subjected to stronger scrutiny before taxpayer funds are committed to projects, contracts and procurement activities.
GIPS welcomed the law, describing it as consistent with international best practice in public expenditure management.
But the Institute insists that Ghana must go a step further by passing the Procurement Practising Bill, which has been readied for Cabinet consideration.
The proposed Bill seeks to formalise Ghana’s procurement profession by establishing clear standards, accreditation requirements and oversight arrangements for procurement and supply chain practitioners.
According to GIPS, the Bill would help enforce professionalism and ethical conduct among those responsible for procurement decisions across government institutions.
Dr Annan said the Value for Money Act and the Procurement Practising Bill should be treated as complementary reforms.
“Together, these laws will help strengthen value-based procurement by providing greater oversight and supporting the use of qualified, licensed and certified procurement professionals with the appropriate expertise,” he said.
He added that the Value for Money Act creates the oversight structure, but the quality of implementation will depend heavily on procurement practice within public institutions.
“The Value for Money Act establishes an oversight framework, but its success will depend on the quality of procurement practice across the public sector. This makes the passage of the Procurement Practicing Bill a critical next step in strengthening procurement governance in Ghana,” Dr Annan noted.
The warning comes at a time when procurement-related breaches continue to feature prominently in Auditor-General reports and parliamentary accountability hearings.
Public procurement remains one of the most vulnerable areas in Ghana’s public financial management system, with recurring concerns over inflated contract prices, poor value for money, weak contract management, sole sourcing abuse, unapproved commitments, poor documentation and abandoned or delayed projects.
For GIPS, addressing those weaknesses requires not only tighter legal checks but also a properly regulated professional class of procurement practitioners.
The Institute argues that licensed and certified procurement professionals would be better positioned to apply technical standards, resist undue pressure, improve contract evaluation and strengthen accountability in the use of public funds.
The case for a procurement practising law is therefore rooted in implementation.
Even the strongest oversight mechanism can be undermined if those responsible for preparing procurement documents, evaluating bids, managing contracts and advising accounting officers lack the necessary competence or professional obligations.
The proposed law is expected to introduce a clearer framework for who can practise as a procurement professional, what qualifications are required, and what ethical standards must be observed.
It could also provide a basis for disciplinary action against practitioners who violate professional standards or contribute to procurement irregularities.
For Ghana, the passage of the Procurement Practising Bill could deepen reforms aimed at improving fiscal discipline and restoring public confidence in state spending.
Public procurement accounts for a significant share of government expenditure, making it one of the most important channels through which public resources are converted into roads, schools, hospitals, equipment, infrastructure and services.
When procurement fails, the cost is felt not only in wasted money but also in delayed development, poor service delivery and weakened trust in government.
GIPS believes the combined effect of the Value for Money Act and the Procurement Practising Bill would strengthen public financial management, improve the integrity of procurement processes and promote better use of public resources.
The Institute also reaffirmed its commitment to supporting reforms that improve procurement practice in Ghana and urged stakeholders to work together to ensure the effective implementation of the new legislation.
Dr Annan cautioned that the passage of laws, by itself, would not be enough to guarantee better outcomes.
“Legislation alone will not deliver the intended outcomes. The effectiveness of these reforms will ultimately depend on the capacity, competence and ethical conduct of the professionals responsible for implementing them across government institutions,” he said.
The warning places renewed pressure on government to move quickly on the Procurement Practising Bill as a necessary companion to the Value for Money Act.
For fiscal observers, the debate highlights a central challenge in Ghana’s public financial governance: laws can create oversight, but professional discipline and enforcement determine whether public funds are actually protected.
The Value for Money Act may strengthen scrutiny of government spending, but without a regulated procurement profession, GIPS fears the country could continue to face the same implementation weaknesses that have long undermined public procurement.
The Institute’s message is therefore clear: Ghana’s value-for-money reform will be judged not only by the existence of a new office or law, but by whether qualified, licensed and ethical professionals are empowered to manage procurement decisions across the public sector.
