By Iddi Yire
Accra, July 28, GNA – Parliament on Thursday passed the Contracts (Amendment) Bill, 2022, which seeks to provide for persons authorised to enter into a contract or transaction on behalf of the State.
The object of the Bill is to amend the Contracts Act, 1960 (Act 25) to provide for the type of interest to be paid on a sum of money due to a party of a contract or transaction entered on behalf of the Government.
Mr Alexander Kwamina Afenyo-Markin, the Deputy Majority Leader moved the Motion for the third reading of the Bill, which was seconded by Mr Kwame Governs Agbodza, the Minority Chief Whip.
When Speaker Alban Sumana Kingsford Bagbin put the question to a voice vote after the third reading, the Bill was passed by the House.
Mr Kwame Anyimadu-Antwi, the Chairman of the Committee on Constitutional Legal and Parliamentary Affairs, in his report to the House, said the Committee noted that the proposed Amendment was seeking to authorise only Ministers of State or persons authorized by Ministers to enter a contract on behalf of the State.
He said the mischief the Amendment was trying to cure was to avoid a situation where it might be for persons in authority to enter a contract on behalf of the State without the knowledge or authorisation of the Sector Minister, who was vested with the overall responsibility over the administration of the Sector by the President.
He said the Committee, however, observed that the proposed Amendment is applicable only to the Executive Arm of Government to the exclusion of the other two Organs of Government.
He noted that the Legislature and the Judiciary arms of Government were not headed by Ministers and were allowed by law to enter into a contract.
He said accordingly, a further Amendment had been proffered to allow other persons authorized by law to enter into contracts on behalf of the state.
According to the proposed Amendments: “A person who wilfully enters into a contract contrary to this section commits an offence and is liable on summary conviction to a fine of not less than five thousand penalty units and not more than 10 thousand penalty units or to a term of imprisonment of not less than 10 years and not more than 15 years or both.”
Mr Anyimadu-Antwi said the Committee after extensive deliberations on the Bill, was of the view that the introduction of controls into Government contracts with respect to persons authorized to enter into a contract on behalf of the State, as well as mode of calculating interest payments due other parties in contracts was a right approach.
GNA