0

Today in History: Stop quoting contracts in foreign currencies – PPA to MDAs, MMDAs

Public Procurement Authority Public Procurement Authority

Mon, 6 Jun 2022 Source: www.ghanaweb.com

In 2019, the Public Procurement Authority stated that Ministries, Departments, and Agencies (MDAs) and Metropolitan, Municipal, and District Assemblies (MMDAs) were still awarding contracts in foreign currencies despite the Bank of Ghana's warning against the act.

The Bank of Ghana has warned individuals and businesses in Ghana against the quoting of transactions in foreign currencies as this act is punishable by law.

Even though the Central Bank has incessantly given this warning, the act is still prevalent.

Read the full story originally published on June 6,2019 by Classfm

The Public Procurement Authority (PPA) has said despite the Bank of Ghana’s caution to companies, institutions and individuals who charge and pay for goods and services with foreign currencies in the country to desist from the practice, it has observed that the Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs) still award government contracts payable from government funds, in foreign currencies.

The PPA, in a statement, has advised procurement entities, contractors, suppliers and service providers to denominate contracts in the local currency – Ghana Cedi – in compliance with the Bank of Ghana directive or face sanctions.

The BoG recently warned agencies not to charge, pay or perform any form of transaction in foreign currencies.

According to the central bank, “The Foreign Exchange Act, 2006 (Act 723) prohibits the pricing, advertising and receipt or payment for goods and services in foreign currency in Ghana”.

The BoG said such violations are punishable by summary conviction, a fine of up to 700 penalty units or a prison term of not more than 18 months, or both.

The PPA said it will enforce the BoG’s directive strictly and, therefore, urged stakeholders to be compliant.

Watch the latest edition of BizTech below:



Source: www.ghanaweb.com
Related Articles: