Parliament has passed the Public Procurement Authority (PPA) Amendment Bill 2025, introducing a significant reform aimed at tightening financial oversight. The new amendment mandates that all government-funded procurements must receive written authorization from the Finance Minister, Dr. Cassiel Ato Forson, before they are approved.

The reform seeks to strengthen budgetary discipline and prevent financial commitments that exceed the approved budget allocations. In his address to Parliament, Dr. Ato Forson explained that the amendment is crucial to curbing the accumulation of financial arrears, which has been a persistent issue in past procurement practices.

“One of the critical challenges contributing to the buildup of arrears is the practice of awarding contracts without ensuring that funds are available for payment,” Dr. Forson said. He added that the new requirement, part of the 2025 Budget measures, ensures that all government procurements are backed by confirmed funding before contracts are awarded.

The legislation is seen as a step towards reinforcing financial accountability within the government, ensuring that contracts are only awarded when there is clarity and certainty over the availability of funds to meet financial obligations.

Source:TheDotNews