Corporate Governance System and Procurement Compliance in Ghana

The focus of the study was to examine corporate governance systems and how it influences public procurement compliance. The paper underscores how implementation of corporate governance practices, including transparency, accountability, independence, fairness, social responsibility, and evaluation of management, are essential components of an effective corporate governance framework for addressing procurement compliance challenges in the public sector of Ghana. Quantitative analysis with descriptive survey design was adopted for the study. A total of 335 respondents from 27 Ministries were considered for the study using census. Analysis of the relationship between corporate governance systems and procurement practices was conducted using partial least squares-sequential equation modelling (PLS-SEM). The findings demonstrated that transparency and accountability, efficient contract management, and upholding integrity have significantly contributed to curbing procurement breaches among public procurement entities in Ghana. The study concludes that there is a need for the enhancement and improvement of the existing system to facilitate the adoption of effective corporate governance practices. These practices are essential for addressing and mitigating the ongoing violations of procurement rules and regulations within the public sector. The paper further concludes that it is imperative to broaden the scope of the conversation to include the private sector, as this would facilitate knowledge transfer from public sector institutions to acquire valuable insights and adopt sustainable methods for adopting effective business practices. The paper highlights the importance of strengthening corporate governance system to enhance procurement compliance within the public sector. This is because efficient and effective procurement practices are an antecedent of value for money and efficient use of public resources.