Economist Dr. Jabir Mohammed has attributed Ghana’s annual procurement losses to non-competitive bidding and what he described as the declining moral fabric of society.
He made these remarks at the National Procurement and Supply Conference, held on Sunday, September 21, 2025, under the theme “Transforming Public Procurement for Sustainable Development: Policies, Practices, and Pathways.”
“If you don’t do competitive bidding and resort to sole sourcing, it can lead to such losses. With competitive bidding, people may quote different prices, and the dynamic nature of the pricing policy allows you to choose the best option at minimal cost. These things are important. As I said earlier, our morals must guide what we do. We need to have the country at heart.”
Also, Deputy Finance Minister Thomas Nyarko Ampem revealed that Ghana loses about GH¢2.36 billion annually through procurement.
He added that government has amended the Procurement Act and established a PFM Compliance Division to enforce the Ghana Electronic Procurement System (GHANEPS) in an effort to curb such irregularities.
Speaking to Univers Business, he urged Ghanaians to be guided by their morals and to put the country first in order to prevent such challenges.
“Human breaches have been with us for a very long time. This is not the first time we are experiencing such issues. It has to do with certain moral aspects of Ghanaian society, where people want to get rich quickly. It’s not just about suppliers; it also involves the organisations that award contracts. For instance, the culture of the so-called ‘10% contracts’ sometimes crosses limits. In addition, government delays in paying contractors often lead them to inflate costs. There are other infractions too—sometimes people manipulate the system and inflate costs.”
He further warned that without patriotism, the situation would persist:
“If we don’t have the country at heart, we will continue to plunge it into the challenges we see today. GH¢2.36 billion is a lot of money that could lift many people out of poverty and be invested productively. But instead, we see losses through contract breaches and payment delays. Ultimately, the moral shortcomings of individuals remain at the heart of the problem.”
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Story by: Sandra Abena Bansah | univers.ug.edu.gh
Edited by Gabriel Tecco Mensah
