CHALLENGES TO THE IMPLEMENTATION OF PUBLIC PROCUREMENT ACT 2003 (ACT 663) IN PUBLIC INSTITUTIONS IN THE WA MUNICIPALITY

Abstract

Public procurement is a critical issue in economic development in both advanced and less-developed countries due to its relative influence on expenditures. In Ghana the Public Procurement Act, 2003 (Act, 663) has been introduced to guide the conduct of public procurement and achieve value for money. Despite the modification of the procurement system in Ghana towards the need for greater achievement of efficiency, compliance with the Public Procurement Act, 2003 (Act 663) remain a challenge. This study investigates the implementation challenges of the Public Procurement Act, 2003 (Act 663) among public institutions in the Wa Municipality. Primary data were gathered using a semi-structured questionnaire from a sample of 50 procurement committee members who were selected from 10 Public entities. The data were analysed using descriptive and inferential statistics. The results indicate the procurement entities in the Wa Municipality. It was revealed that procurement committee members are selected through long years of experience, commitment to work and highest level of education. The methods of procurement used are influenced by the discretion of management and this undermines the principle of transparency and value for money. Different procurement methods yield more transparency, accountability, fairness and value for money. However, respondents do not agree perfectly on the ranking of procurement methods. The results also indicate the challenge of human resources quality, corruption, and political meddling affects all the levels process in the implementation of Public Procurement Act, 2003 (Act, 663). The study concludes that the moral hazards and adverse selection as explained by the agency theory characterized the application of the Public Procurement Act, 2003 (Act, 663). It is therefore, suggested that the Public Procurement Act, 2003 (Act, 663) be modified to solve the anomalies in its implementation. Besides, capacity building and introduction of specific sanctions can lead to a behaviour change among procurement staff in the Wa Municipality.