Mid-year Budget Review: Single-source procurement to face tighter restrictions – Ato Forson

Minister of Finance, Dr. Ato Forson, has disclosed that the government will tighten rules governing single-source procurement to improve transparency, accountability and value for money in public spending.

He announced the proposed reforms on Thursday when he presented the 2026 Mid-Year Fiscal Policy Review to Parliament, describing them as part of broader amendments to the Public Procurement Act aimed at improving efficiency and curbing procurement abuse.

He said the reforms focus on three key areas: shortening procurement timelines, limiting the use of single-source procurement and tightening restricted tendering to ensure competitive bidding remains the standard practice for public contracts.

“Competitive Tendering must remain the norm. Restricted Tendering and Single-Source Procurement must be the exception,” Dr. Forson told Parliament.

According to the Finance Minister, government will strengthen oversight and accountability by narrowing the circumstances under which single-source procurement can be used.

“Government will therefore tighten the rules governing these exceptional procurement methods, strengthen oversight and improve accountability to ensure greater transparency and better value for money,” he said.

Dr. Forson explained that under the proposed changes, single-source procurement would only be permitted in genuine exceptional cases.

“Single-Source Procurement will be permitted only in genuine exceptional circumstances, such as emergencies, national security or where only one supplier is capable of delivering the required goods, works or services. Urgency arising from poor planning will no longer be treated as an emergency,” he stated.

He added that the reforms would also introduce sanctions for approvals granted in breach of the Public Procurement Act to reinforce compliance and deter abuse of the procurement process.

Beyond restricting single-source procurement, the government also plans to significantly reduce procurement lead times.

The proposed amendments will cut the period for National Competitive Tendering for goods from 23 weeks to eight weeks, while International Competitive Tendering for works will be reduced from 27 weeks to 14 weeks.

Dr. Forson said the reforms are intended to accelerate project delivery, enhance competition and restore public confidence in the procurement system.

“These reforms will speed up project delivery, strengthen competition, improve value for money and reduce opportunities for procurement abuse,” he said.