Monetization of politics and public procurement in Ghana

Abstract

PurposeThis paper aims to investigate the prevalence of corruption in Ghana to understand how and why it has turned public procurement into a mere money-making scheme instead of a means to provide needed public goods and services.Design/methodology/approachThe study focuses on Ghana as a case study and mobilizes the monetization of politics lenses. Data are collected via interviews with key officials across the procurement sector (including the government, donors and civil society), documents, documentaries and news articles.FindingsThe findings suggest that the increasing costs of elections and political financing coupled with the costs of vote-buying, which has become informally institutionalized, intensify corruption practices and, consequently, turns public procurement into a mere source of cash for political ends. Political appointments and legalized loopholes facilitate this by helping to nullify the safeguard accounting and other control institutions are designed to provide. Likewise, enduring poverty and rising inequality “force” citizens into a vote-buying culture which distorts democratic premises that may drive out unscrupulous politicians; thus, perpetuating capture schemes. Civil society's efforts to remedy these have had little success, and corruption and inequality remain rife.Practical implicationsThe main practical implication of the study lies in the need for a gradual demonetization of elections, and the consideration of the fundamental function of public procurement as a policy instrument embedded in economic, social, cultural and environmental plans. Additionally, given the connectedness of the various corruption issues raised, a comprehensive system-based approach in dealing with them would be more effective than a piecemeal approach targeting each issue/problem in isolation.Originality/valueWhile extant literature has examined the issue of endemic corruption in developing countries using state capture, few have attempted to explain why it remains enduring, particularly in public procurement. This study, therefore, contributes to the literature on corruption and state capture theoretically and empirically by drawing on monetization of politics from political science to explain why corruption and state capture endure in certain contexts (with Ghana as an illustrative example) which reduce public procurement to a cash-milking scheme.

Public procurement policies of Nigeria and Ghana: an analysis of the administrative challenges in achieving value for money

“…This may not be surprising due to other factors such as rule-mending, rule-breaking and breaches of procurement laws, among others. These empirical observations in the study are consistent with these works (Osei-Tutu et al , 2009; Akomah and Nani, 2018; Amagnya, 2023; Lassou et al , 2023).…”

“…These administrative challenges were identified at the local government level: low professionalism in procurement, especially contractors and suppliers; red-tape (overbureaucratization); incidences or acts of bribery and corruption; and too much political interference (Osei-Tutu et al , 2010; Adusei and Awunyo-Vitor, 2015). Other administrative lapses or flaws occur when some tender processes opt to go through open competitive tendering and end up as single-source or sole-sourcing without the approval of the regulatory authority, the Public Procurement Authority (PEFA, 2018, 2013; Boatemaa-Yeboah and Tamakloe, 2019; Lassou et al , 2023). The work of Osei-Tutu et al (2009) identified favoritism and nepotism as key factors that inhibit Ghana’s efforts toward achieving VfM in the procurement of goods, services and works.…”

“…The work of Osei-Tutu et al (2009) identified favoritism and nepotism as key factors that inhibit Ghana’s efforts toward achieving VfM in the procurement of goods, services and works. Other studies revealed the incidence of rule-breaking or rule-mending to favor friends or allies in a tender process and some breaches of the procurement law on the award of contracts to contractors, suppliers or consultants, as well as issues of adjudication by judges, among others (Osei-Tutu et al , 2009; Osei-Tutu et al , 2011; Akomah and Nani, 2018; Amagnya, 2023; Lassou et al , 2023). There are some major administrative challenges in public procurement in Ghana toward achieving VfM.…”