Anti-corruption elements in the Ghanaian public procurement law

Abstract

Corruption in public procurement is widespread and particularly damaging to development objectives, as it undermines any state’s duty to maximize the social and economic welfare of its citizens. Despite this, research on country-specific institutional arrangements meant to address this problem has remained scarce. This paper aims to fill this gap by analyzing particular anti-corruption components of the Ghanaian procurement system, and by discussing to what extent they are suitable to form a strong corruption deterrence mechanism. The study identifies three clusters of anti-corruption tools: (1) preventive measures: choice of tender method, publication of tender data, record keeping, and contract management; (2) enforcement mechanisms: compliance checks, audits, and review systems; and (3) scope and limitation of sanctions. In view of an envisaged legislative reform of the Ghanaian public procurement system, several recommendations can be drawn from the analysis. These are, in particular: adjusting the thresholds for procurement methods; facilitating access to tender information; integrating contract management provisions; building capacity in audit institutions; strengthening the administrative review system; and formalizing collaboration between the Public Procurement Authority and law enforcement organs. Based on national legislation and empirical data from World Bank reports and the Ghanaian Public Procurement Authority, the analysis also takes into account findings from expert interviews conducted with representatives of procurement authorities, the business community, and donor organizations in Accra in November 2014.