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Transparency International Calls for PPA Act Modification to Post Complete Contract Details

Summary: Transparency International Ghana is advocating for a comprehensive amendment to the Public Procurement Act (Act 663). The proposed changes would mandate the proactive publication of full contract details by procurement entities to curb corruption, enhance accountability, and improve the investment climate in Ghana.

Introduction

In a significant push for open governance and anti-corruption reforms, Transparency International Ghana (TIG) has formally called for the modification of the Public Procurement Act, Act 663. The organization argues that the current legal framework is insufficient in ensuring true transparency regarding how public funds are utilized. While the existing law requires the publication of a “notice of contract,” it falls short of mandating the disclosure of the complete contract main points—a gap that TIG identifies as a primary enabler of corruption.

This initiative seeks to shift the paradigm from passive transparency to proactive disclosure, ensuring that government contracts are not just announced but are fully scrutinized. By opening up contract details to public oversight, stakeholders hope to close the governance gaps that currently undermine Ghana’s economic potential and erode public trust in state institutions.

Key Points

Background

The call for reform was highlighted during a policy reform multi-stakeholder discussion held in Kumasi, organized by Transparency International Ghana. The event brought together diverse groups, including trade associations, policymakers, regulatory bodies, private development actors, and civil society organizations.

The forum was convened to address structural gaps within Ghana’s foreign investment policies. Currently, Act 663 allows institutions to claim the “awareness” of contracts without revealing the specific terms and conditions. TIG argues that this selective transparency defeats the purpose of the law, as it prevents the public from verifying whether contracts are fair, cost-effective, and beneficial to the state.

During the presentation of findings on Ghana’s overseas creativity (investment) policies, TIG noted that these regulatory gaps are frequently exploited. The lack of full contract visibility creates an environment where public officials and foreign investors can engage in arrangements that are detrimental to national development, often bypassing rigorous scrutiny.

Analysis

The requirement to modify the Public Procurement Act is not merely a bureaucratic adjustment; it is a fundamental shift in how public accountability is operationalized in Ghana.

The Cost of Opacity

When contract details remain hidden, the state loses leverage. Benedict Doh, a consultant for Transparency International Ghana, emphasized that the current system makes it “extremely difficult for proper monitoring and evaluation of investment projects.” Without access to the full contract, civil society organizations (CSOs) cannot verify if deliverables are met, if prices are inflated, or if environmental and social safeguards are being honored.

Impact on Investor Confidence

Mary Awelana Addah, the Executive Director of TIG, highlighted that a lack of transparency is a barrier to economic growth. She noted that while a conducive investment climate is essential for job creation, “persistent governance gaps” continue to undermine investor confidence. Investors generally prefer environments where rules are clear and enforced consistently. When procurement processes are opaque, it creates uncertainty and risk, deterring high-quality foreign direct investment (FDI).

Systemic Governance Constraints

The analysis suggests that the issue is systemic. Mrs. Addah pointed out that weak regulatory enforcement, cumbersome administrative processes, and inconsistent policy implementation are structural bottlenecks. The call for full contract disclosure is part of a broader strategy to shift the focus from attracting any creativity (investment) to attracting quality creativity that delivers long-term benefits. By enforcing transparency, the government can filter out speculative investors looking for loopholes and attract partners committed to genuine development.

Practical Advice

For stakeholders navigating the procurement and investment landscape in Ghana, the proposed amendments to Act 663 signal a shift toward greater diligence. Here is practical advice for businesses, policymakers, and civil society:

For Local Businesses

Participants at the Kumasi forum expressed concern over the lack of measures to protect local businesses. Michael Otchere, Head of the Ghana Investment Promotion Centre (GIPC), offered strategic advice. He urged local businesses to move beyond sole proprietorship and leverage the benefits of foreign investment policies.

• Form Joint Ventures: Instead of competing in isolation, local tech and development firms should consider establishing joint corporations with foreign entities. This structure allows local businesses to benefit from GIPC provisions, access capital, and share risks.
• Understand the Policy: Familiarize yourself with the GIPC Act to ensure you are not left behind as the procurement landscape evolves.

For Policymakers and Regulators

To support the amendment of Act 663, policymakers should:

• Draft Clear Guidelines: Define exactly what constitutes “complete contract main points” to avoid ambiguity in enforcement.
• Digitize Procurement: Invest in digital platforms that make the uploading and searching of full contracts intuitive for the public.
• Harmonize Laws: Ensure that the Public Procurement Act aligns with the Right to Information Act to strengthen the legal basis for disclosure.

For Civil Society and Development Partners

Civil society organizations play a crucial role in monitoring. They should:

• Build Analytical Capacity: Train members to analyze complex contract documents once they are made public.
• Advocate Collaboratively: As Mrs. Addah noted, no single institution can resolve systemic constraints alone. Form coalitions to lobby for the specific amendments to Act 663.

FAQ

Conclusion

The call by Transparency International Ghana to modify the Public Procurement Act represents a vital step toward strengthening democratic accountability in Ghana. By mandating the publication of complete contract details, the state can close significant loopholes that facilitate corruption and mismanagement.

This reform is not just about legal compliance; it is about building a sustainable economic future. As highlighted by stakeholders in Kumasi, true transparency is the foundation of investor trust and local business protection. For Ghana to achieve its development goals, the procurement process must be open to scrutiny, ensuring that every cedi spent contributes to the public good. The proposed amendments offer a practical, verifiable path toward a more accountable and attractive investment environment.