Sole sourcing killing local companies; Minority MPs move for a review

Minority Members of Parliament (MPs) have implored Parliament to eliminate the clause on sole sourcing from the Public Procurement Act, 2003.

The Act is currently undergoing review in parliament but minority MPs have vehemently opposed the portion on sole sourcing arguing that it does not promote competitive bidding.

Minority leader, Mr. Osei Kyei-Mensah Bonsu said since the Act came into force, about 80 percent of government contracts have all been executed under sole sourcing.

According to him, this has restricted issuing of government contracts making it impossible for small companies to compete with the bigs firms for contracts.

Mr. Bonsu has advised MPs to treat the review process seriously adding they have to interrogate every detail of the Act with the goal of improving it.

The Public Procurement Act of Ghana, Act 663 (2003), was enacted and promulgated by parliament to among other things; instil sanity and conformity to public procurement by instituting bodies and principles that harmonize the public procurement process and activities.

The document, which serves as the main point of reference as far as public procurement in Ghana is concerned, was enacted after years of delay and abuse of public funds in the name of procurement.

The Act has, since its inception, introduced several relevant procurement principles that are expected to correct corruption and anomalies which were widely associated with public procurement.

Majority leader, Alban Bagbin, however, noted that government contracts are executed under sole sourcing because it is sometimes restrained by the conditions of the funding.

He said government cannot go against a directive in a funding contract adding that such issues tie the hands of government from doing what it wants.

Mr. Bagbin said government can only avoid sole sourcing if it is able to generate its own funds to undertake developmental projects.

Story by Ghana | | Austin Brako-Powers | Email: [email protected]

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