Sole sourcing legal but must comply with strict procurement laws – GIMPA law lecturer

Private legal practitioner and lecturer at GIMPA Law School Lom Nuku Ahlijah

Private legal practitioner and lecturer at GIMPA Law School Lom Nuku Ahlijah has explained that sole sourcing, also known as single-source procurement, is permitted under Ghana’s procurement laws but must be applied only under clearly defined conditions and with approval from the Public Procurement Authority (PPA).

Speaking on Good Afternoon Ghana on Metro TV with Desmond Okraku Danso on Wednesday, March 25, 2026, he said the Public Procurement Act, 2003 (Act 663) allows several procurement methods, with competitive tendering being the preferred option.

According to him, sole sourcing is an exception and cannot be applied arbitrarily.

“Under the Public Procurement Act, you have various methods for procuring goods and services… obviously, competitive tendering is preferred as a default position,” he explained.

He clarified that although the law permits sole sourcing, it must be justified and approved by the PPA before any contract is awarded.

“The term that the Act uses is single-source procurement… what it means is that whereas you could use a competitive process… you choose a single source where you essentially invite one company. But if you want to do it, you must do it under certain circumstances and get the approval of the Public Procurement Authority.”

Mr Ahlijah noted that sole sourcing may be used in situations where only one company has the technical capacity or expertise to execute a project, or where national security concerns or urgent project requirements make competitive tendering impractical.

He illustrated this with road construction procurement, explaining that government agencies often already know contractors with the capacity to execute specialised projects.

“There are thousands of construction companies in Ghana, but there may be only one that has the particular expertise or capacity for the type of road that you need… so you invite that company to submit a proposal.”

He added that another valid ground for sole sourcing is when a contractor is already working on a project and needs to continue with a related or expanded scope of work.

“Maybe you’ve already given a contract through a competitive process but you need to do a follow-on… it makes sense that the same entity continues because the equipment or service required is related.”

Mr Ahlijah stressed that even in such cases, the PPA must be satisfied that the contract delivers value for money and that the selected company has the competence to execute the project.

“The PPA needs to be convinced that not only do you come under one of the grounds in the law, but also there will be actual value for money and the competence of that company is such that it can get the job done.”

He noted that the essence of sole sourcing is not to bypass competition but to ensure efficiency in exceptional circumstances while maintaining accountability and proper oversight.

“The law allows you to do single source once you can do your justification and then you get approval… that’s the whole point.”

Mr Ahlijah was speaking in response to ongoing public debate about sole sourcing and procurement decisions under the current administration.