Contracts (Amendment) Bill, 2022 at consideration stage in Parliament

The Contracts (Amendment) Bill, 2022, which seeks to amend is at the consideration stage in Parliament.

The object of the Bill is to amend the Contracts Act, 1960 (Act 25) to provide for the type of interest to be paid a sum of money due to a party to a contract or transaction entered into on behalf of the government.

It is also meant to provide persons authorised to enter into a contract or transaction on behalf of the State.

Mr Kwame Anyimadu-Antwi, the Chairman of the Committee on Constitutional Legal and Parliamentary Affairs, said the Committee noted that the proposed Amendment was seeking to authorise only Ministers of State or persons authorized by Ministers to enter into 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 possible for persons in authority to enter into 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 appears to be 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 contract.

He said accordingly, further Amendment had been proffered to allow other persons authorized by law for 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.

Source: GNA