Implementation Challenges of the Public Procurement Act by Selected Metropolitan, Municipal and District Assemblies in the Ashanti Region, Ghana

Charles Adusei,Dadson Awunyo-Vitor

doi:10.4236/ib.2015.71005

Abstract

The aim of this study is to investigate the implementation challenges of the Public Procurement Act 2003 (Act 663) by Metropolitan, Municipal and District Assemblies (MMDAs) in the Ashanti Region of Ghana. The key issues examined in the study are the level of knowledge, the procedure and modalities of compliance with the Act and the challenges of implementing the Procurement Act by the procurement committee members. Purposive sampling was adopted in selecting fourteen MMDAs while simple random procedure was used to sample members of the procurement committee at the selected MMDAs for the study. Questionnaires and focus group discussion were used to collect data and information from the respondents. Descriptive and inferential statistics were used to analyse the data. The study revealed that a large proportion of the procurement committee members could not explain key sections of the Act. In all the sampled MMDAs respondents claimed to follow procedure required by the Act. However, they enumerated the following as the key challenges with regards to the compliance of the Act: political interference, unqualified staff, and lack of monitoring as well as inadequate motivation for the committee members. There is a need for the MMDAs to take steps to address these challenges.

Highlights

Procurement forms an essential link among organisations in the supply chain, and it gives a mechanism for coordinating the flow of materials between customers and suppliers
The age group 30 to years represents (28%; n = 29) of the respondents, to years represent (27%; n = 28) and to 59 years representing (45%; n = 28) of the respondents recorded a very high percentage. This information implies that MMDAs have mature procurement committee members
The results show that all the respondents followed the Procurement Act that requires that the tender bids must be opened for a period not exceeding six weeks

Summary

Introduction

Procurement forms an essential link among organisations in the supply chain, and it gives a mechanism for coordinating the flow of materials between customers and suppliers. At every point in the supply chain, procurement passes messages backwards to describe what customers want, and it passes messages forwards to say what suppliers have available. Materials do not arrive, or the wrong materials are delivered, in the wrong quantities, at the wrong time, with poor quality, at too high a price, low customer service, and so on. Procurement may be defined as the acquisition of goods, works and services. This embraces purchasing, that is, buying of goods, but it includes hiring of contracts or consultants to carry out services. A procedure must be followed and is applicable to all contracts for goods and works

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Conclusion