Public Procurement Review Software

A Corruption Prevention Tool for Public Procurement Regulatory Authorities

Tackling corruption at its source

Public Procurement Corruption in Ghana  

Various studies emphasized the link between the efficiency of the national procurement system and the achievement of development goals.  The magnitude of resources involved in public procurement in Ghana is estimated at over 17 percent of GDP and around 80 percent of  tax revenue (World Bank, 2007). Transparent and efficient public procurement system offers  numerous benefits including value for money, encouraging investment, innovation,  and reduction of corruption.  In addition to reducing costs and ensuring cost-effective  delivery of services, infrastructure, and public goods, good management of public resources through an effective procurement system also increases the public's confidence in governance.

In 2003, a Country Procurement Assessment Report (CPAR) was conducted. The CPAR recommended actions to improve the public procurement system focused on all aspects of  the system including the legal and institutional framework, procurement procedures, proficiency, oversight mechanisms and anti-corruption measures.

The Public Procurement Authority (PPA) formerly Public Procurement Board (PPB) was established to facilitate the successful implementation of the Public Procurement Act 2003 (Act 663).

In  reviewing progress in implementing the CPAR recommendations, the 2007 Procurement Assessment Report of the World Bank concludes that substantial progress had been achieved since 2003 in strengthening public procurement. Highlights include: (i) enactment of the Public Procurement Act (Act 663 given assent on December 31, 2003); (ii) establishment of the Public Procurement Authority (PPA); (iii) development of standard bidding documents and request for proposals; (iv) establishment of an appeals and complaints panel; (v)  development of a software package for procurement planning; (vi) development of core short-term training modules for public officials, the private sector and national oversight bodies; and (vii) development of the PPME (Public Procurement Model of Excellence) tool to collect and  assess data on compliance and performance.

Though significant progress has been achieved with the Act, it should be recognized that corruption has still robed into public procurement processes as highlighted in the figure below.

* Estimated PP Loss (Min, Max): Despite the difficulties in measurement, international comparison covering a wide set of countries is possible when one considers central government procurement only. The size of central government purchases varies between five percent (5%) and eight percent (8%) of GDP for most industrialized countries. For Ghana, the magnitude of central government purchases is estimated between nine percent (9%) and seventeen percent (17%) of GDP.
** Foreign Aid or Official Development Assistance consists of loans and grants by official and non-official agencies of the members of the Development Assistance Committee.

Sources:

1) World Bank http://www.worldbank.org/
National accounts data, and OECD National Accounts data files. http://www.oecd.org/countries/ghana/ World Development Indicators
2) African Development Bank: Main Report on Assessment of Country National Competitive Bidding Procedures, Version 2, September 2012.

Legal Frameworks

Ghana's public procurement framework is underpinned by the Public Procurement Act, 2003 (PPA).
The Act establishes the five basic pillars of public procurement:

  1. comprehensive, transparent legal and institutional framework
  2. clear and standardized procurement procedures and standard tender documents
  3. independent control system
  4. proficient procurement staff
  5. anti-corruption measures.

The Act applies to all procurement financed in whole or in part from public funds throughout the procurement cycle from the selection to the administration of contracts.

Relevant Authorities

1) Public Procurement Board (PPB) as a legal corporate entity:
The Board's duties include: providing policy and regulatory oversight; providing training and capacity building for procurement officials; hearing appeals and complaints; and, assisting local industries to become competitive and efficient suppliers to the public sector. The Board must also maintain a database of all suppliers, contractors and consultants, debar vendors from procurement practice as specified under the PPA, and, publish the list of suppliers, contractors and consultants with proven misconduct under the Act. The right to review is provided for in Section 78. Finally, the PPB must establish and publish a code of conduct for all procurement officials, the PPB itself, tender review boards as well as for suppliers, contractors and consultants.
2) Procurement entities are defined as comprising metropolitan, municipal and district assembles (MMDAs) and all para-statal establishments that utilize public funds.

Public Procurement IT Tools

Software package for procurement planning

Links and references

Ghana - Country procurement assessment report (CPAR), 2003 
Ghana - Assessment of Stage 1 - Use of Country Procurement Systems in Bank-Supported Operations: Proposed Piloting Program

Membership to RECs:

UEMOA