Open Access Peer-reviewed

Assessing the Effect of the Procurement Act (663) on the Public Financial Management in Ashanti Region

Patrick Adu Sarfo1, Richard Baah-Mintah2,

1Kumasi Senior High School, Ghana

2Institute for Development Studies (IDS), University of Cape Coast, Ghana

American Journal of Rural Development. 2013, 1(4), 91-98. DOI: 10.12691/ajrd-1-4-5
Published online: August 25, 2017


The Government of Ghana has since 2001 made various efforts to correct the uncontrolled expenditure of public funds that characterised the national economy which has led to a rather unstable economic climate. This article discusses the extent to which the Public Procurement Act (654) has achieved transparency in the use of state resources, causes of delays in the procurement process and effects of the Procurement Act on government expenditure in the Ashanti Region. The descriptive and explanatory research designs were used for the study. The study relied on both probability and non probability sampling techniques. The study revealed that procurement activities and procedures were transparent because decisions on procurement activities followed the rules and regulations of the Act. It was further revealed that contractors were not paid on time after execution of contracts and this affected their organisational management. It was concluded that the Procurement Act had reduced government expenditure considerably in the sense that the Procurement Act has reduced wastage and leakage of financial resources through effective auditing, expenditure monitoring and cost effectiveness and competition which has brought value for money.


Procurement Act, Procurement Act (663), public financial management, Ashanti Region
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