Latest news with #ProcurementAct
Zawya
25-04-2025
- Business
- Zawya
Finance Minister Outlines Measures to Tackle Ghana's Large Payable Build-up in 2024
Finance Minister Dr. Cassiel Ato Forson has outlined a comprehensive plan to investors aimed at addressing the country's large accumulation of government payables in 2024, while reinforcing fiscal discipline and transparency across public financial management. Speaking at meeting with investors in Washington DC, USA, Dr. Forson highlighted key reforms and policy actions underway to restore confidence in Ghana's fiscal framework and stabilize its macroeconomic outlook. Auditing Payables&Commitments At the heart of the plan is a government-commissioned audit of all outstanding payables and commitments. The Ministry of Finance has engaged the Auditor General, alongside two independent audit firms, for an intensive eight-week review. 'The objective is to verify the legitimacy and accuracy of these claims,' the Minister explained. 'The findings will guide the implementation of corrective actions to resolve any irregularities and improve accountability going forward.' Strengthening Commitment Controls To prevent the recurrence of unapproved expenditures, the government has amended the Procurement Act. Effective April 3, 2025, no government contract will be approved without prior commitment authorization from the Ministry of Finance. 'This measure is critical for enhancing spending controls and ensuring full compliance with the Public Financial Management (PFM) Act,' the Minister said. PFM Act Amendment and Fiscal Rules The government has also amended the Public Financial Management Act, 2016 (Act 921), to introduce two major fiscal rules. The first is a debt rule that targets a reduction in the debt-to-GDP ratio to 45% by 2035. The second is an operational rule mandating an annual primary surplus of at least 1.5% of GDP on a commitment basis. An Independent Fiscal Council has been established to monitor adherence to these rules and to enhance transparency and credibility in public finance. Enforcing Compliance and Oversight In a further move to institutionalize fiscal discipline, the Ministry has operationalized a new Compliance Division tasked with monitoring how Ministries, Departments, and Agencies (MDAs) adhere to fiscal commitments. A newly appointed Director is now leading the division's efforts. Additionally, the government will introduce a Public Financial Management Commitment Control Compliance League Table to publicly rank MDAs based on their expenditure control performance. Restoring Confidence 'These actions underscore our commitment to resolving legacy financial obligations, enforcing spending discipline, and creating a transparent and credible financial management system,' the Finance Minister said, assuring investors of the government's resolve to maintain stability and support long-term growth. Distributed by APO Group on behalf of Ministry of Finance - Republic of Ghana.
The Guardian
25-03-2025
- Business
- The Guardian
UK ministers vow to tackle forced labour in supply chains to mollify MPs
Ministers have vowed to tackle forced labour in supply chains to mollify MPs after asking them to remove legal protections from the Great British Energy bill. Labour MPs were whipped on Tuesday night to strip out an amendment intended to ensure that companies using forced labour do not drive the UK's green energy transition. The House of Commons voted by 314 to 198 to reject the amendment, made in the House of Lords, which sought to stop public money from being spent by the state-owned GB Energy on solar panels and other materials where there is 'credible evidence of modern slavery' in supply chains. No Labour MPs rebelled by voting against the motion to ditch the Lords amendment but some abstained, including Marie Rimmer and Rachael Maskell. China dominates the solar energy market and between 35% and 40% of polysilicon, the key raw material for solar panels, is produced in Xinjiang where the Muslim Uyghur population has been subject to arbitrary detention and forced labour. Michael Shanks, the energy security minister, said the government would strengthen its efforts to tackle forced labour including by convening cross-Whitehall meetings involving the business department, Foreign Office and Home Office. He announced that 'a senior individual' in GB Energy would be appointed specifically to lead on ethical supply chains including modern slavery, and that the company's strategic priorities would include working proactively to tackle it. Government sources argued that the GB Energy bill was the wrong vehicle for this change because tackling modern energy required a cross-government effort across multiple sectors of the economy. Shanks told the Commons on Tuesday this was a 'question right across the economy, rather than dealing with this on a company-by-company basis'. He also argued that there are existing provisions in the Procurement Act that would allow GB Energy to reject bids and terminate contracts which are known to use forced labour. Critics, including the former Conservative party leader Iain Duncan Smith, said that the Procurement Act only applies where a company has been convicted of modern slavery in the UK or faced equivalent action abroad, and that the Chinese government would not take action against Chinese companies. A handful of Labour MPs called for stronger measures. Sarah Champion, the Labour MP for Rotherham, told the Commons that 'the public deserves a guarantee that their money won't be used to fund human rights abuses.' Rimmer, the Labour MP for St Helens South and Whiston, said that 'the Modern Slavery Act doesn't work on this and the Procurement Act doesn't work', while Maskell, Labour MP for York Central, said ministers should 'switch the burden of proof' so that companies are required to demonstrate they have no association with forced labour. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Helena Kennedy, the Labour peer who sponsored the amendment in the Lords, said: 'I hope the government has a rethink on this issue. I am no hawk and believe we should keep up diplomatic exchanges on trade and climate change and ways of collaborating to end wars but we cannot continue to purchase solar panels which are the product of slave Labour. 'If China says this is not true let us come and visit the factories. Our whole history as a party is about protecting workers from exploitation. I am afraid I stand firm on this. Our moral position should guide us.' David Alton, the cross-bench peer who drafted the amendment, said he would seek to have it re-inserted once the GB Energy bill returned to the Lords. 'Both the last government and this one have been reluctant to move, despite the obvious moral imperative to avoid a slave-made green transition,' he said. 'Existing regulation isn't working, and the Procurement Act could only bar companies if there had been a conviction either in the UK or China. It's ludicrous to assume that Beijing is going to convict companies for participating in its own labour transfer schemes. This is a serious problem which needs primary or secondary legislation to address.'
Telegraph
26-02-2025
- Business
- Telegraph
Rayner announces investigation into seven firms over Grenfell fire
Angela Rayner has condemned as 'mercenary' seven companies set to be investigated over the Grenfell Tower fire, which cost the lives of 72 people. The firms, criticised by the Grenfell Tower Inquiry, could be banned from public contracts after the Government pledged to bring change following the fatal fire. Cladding and insulation companies will be investigated for 'failings' in relation to the west London tower's refurbishment under new powers, Parliament was told. The announcement came as the Government formally responded to the recommendations set out last September in the inquiry's final report. Speaking in the Commons on Wednesday, the Deputy Prime Minister said 'companies must be held to account' as she announced the investigation. Ms Rayner, who is also the Housing, Communities and Local Government Secretary, said the seven companies whose products were used to refurbish Grenfell Tower could be banned from public contracts in future. Sir Martin Moore-Bick's long-awaited report was released in September following a seven-year public inquiry which found the 2017 fire had been the 'culmination of decades of failure' by government and the building industry. Ms Rayner told MPs that the report had found firms whose products were used to refurbish the tower, including Arconic, Kingspan and Celotex, had 'acted with systemic dishonesty' and mis-sold their wares. She said: 'Their disgraceful mercenary behaviour put profit before people and exploited the regulatory regime to evade accountability with fatal consequences. 'And to my disgust and their shame, some have shown little remorse and have refused to even help fix the building safety crisis that they did so much to create. 'Companies must be held to account for their role in Grenfell. The parliamentary secretary to the Cabinet Office [Georgia Gould] is announcing today that she will use new powers under the Procurement Act to investigate Arconic, Kingspan, Saint-Gobain as owners of Celotex at the time, and other organisations. 'And I expect swift, decisive action, and will ensure progress is reported.' Ms Rayner earlier said her department had 'failed to act on known risks and ignored, delayed or disregarded matters affecting the safety of life'. The seven organisations being investigated are: Arconic Architectural Products SAS; Saint-Gobain Construction Products UK Limited, which previously owned Celotex Limited; Exova (UK) Limited; Harley Facades Limited; Kingspan Insulation Limited; Rydon Maintenance Limited; and Studio E Architects Limited. In a written statement, Georgia Gould, the Cabinet Office parliamentary secretary, said the firms would be investigated under new debarment powers in the Procurement Act 2023. She wrote: 'These investigations will establish whether the organisations have engaged in professional misconduct for the purposes of that Act.' The organisations would be notified when an investigation was opened, she said, adding that investigations into other organisations could take place. Ms Gould said: 'The new Act allows us to investigate suppliers and, if certain grounds are met, to add their names to a published and centrally managed debarment list, which must be taken into account by contracting authorities in awarding new contracts and undertaking new procurements.' Responding to the Grenfell Tower Inquiry final report in the Commons, the Deputy Prime Minister said: 'The inquiry chair Sir Martin Moore-Bick and his dedicated team uncovered damning evidence of political, corporate and individual failings going back decades. 'These led to the loss of 72 innocent lives – 18 of them were children. 'On that terrible night in June 2017 it was deadly betrayal, a national tragedy that must never happen again. 'I will repeat today what the Prime Minister [Sir Keir Starmer] said in September to bereaved families, the survivors, and those in the immediate Grenfell community, some of whom are with us today in the gallery. On behalf of the Government, the British state and those responsible: I am very sorry.' Ms Rayner went on to say that Sir Martin's 'most devastating conclusion was that every single death was avoidable'. Earlier this month, the Government announced that the tower, the remains of which have stood in place in west London since the fire almost eight years ago, would be 'carefully' demolished in a process likely to take two years. Police and prosecutors have previously said investigators would need until the end of 2025 to complete their inquiry into the fire, with final decisions on potential criminal charges by the end of 2026. Ms Rayner said 'justice must be done' and that the Metropolitan Police had the Government's 'full support' in its investigation. Dawn Butler, a former Labour minister, said all officials who treated the Grenfell residents badly must be held to account. The MP for Brent East told the Commons: 'Will the Secretary of State agree with me that as well as the chief executives of the companies, all of the people in the council who treated the residents badly and didn't listen to them because of what they looked like, everybody needs to be held accountable?' Ms Rayner, in her reply, said: 'I absolutely agree with [Ms Butler]. At the heart of the new regulatory regime is a requirement that all landlords treat their tenants with fairness and respect.' She added: 'Social landlords are required to understand and provide information and support that recognises the diverse needs of their tenants, including those arising from protected characteristics. 'This hasn't been so in the past and, if I'm honest, it doesn't feel when I speak to the residents of the community that it is that today, and that's why I've pushed the council in that particular area. 'And that's why this Government is bringing forward legislation that says we respect people whether they're social tenants or private tenants – they deserve a safe and secure home, and be treated with dignity and respect.'
The Independent
26-02-2025
- Business
- The Independent
Grenfell firms facing possible bans over ‘mercenary behaviour' named
Seven firms criticised in the Grenfell Tower Inquiry final report could face being banned from public contracts, as the Government pledged to bring change in the wake of the fatal fire. Cladding and insulation organisations are among those which will be investigated under new powers for 'failings' in relation to the west London tower's refurbishment, Parliament was told. The announcement came as the Government formally responded to a series of recommendations which were set out last September in the inquiry's final report. Inquiry chairman Sir Martin Moore-Bick had concluded that the devastating fire, which claimed 72 lives, was the result of 'decades of failure' by government and the construction industry to act on the dangers of flammable materials on high-rise buildings. He said there had been 'systematic dishonesty' by firms who made and sold the cladding and insulation, and called out 'deliberate and sustained' manipulation of fire-safety testing, misrepresentation of test data and misleading of the market. Speaking in Parliament on Wednesday, Deputy Prime Minister Angela Rayner, criticised some firms' 'disgraceful mercenary behaviour (which) put profit before people and exploited the regulatory regime to evade accountability with fatal consequences'. She added: 'And to my disgust and their shame, some have shown little remorse and have refused to even help fix the building safety crisis that they did so much to create.' Ms Rayner, who is also Housing Secretary, said she expected 'swift, decisive action and will ensure progress is reported'. No timeline was given for when investigations under the Procurement Act might begin or be completed. In Sir Martin's report, cladding firm Arconic and insulation firms Kingspan and Celotex faced particularly heavy criticism. Arconic was found to have 'deliberately concealed from the market the true extent of the danger' of using its cladding product, particularly on high-rise buildings. Kingspan had, from 2005 and even after the inquiry began, 'knowingly created a false market in insulation' for use on buildings over 18 metres, the report said. Celotex then, in an attempt to break into this market created by Kingspan, 'embarked on a dishonest scheme to mislead its customers and the wider market', Sir Martin concluded. The Government said Kingspan and Arconic will be investigated as well as former Celotex owners Saint-Gobain. Also facing investigation are fire inspectors Exova, design and build contractor Rydon, architect Studio E and subcontractor Harley Facades. In a written statement published on Wednesday, Cabinet Office parliamentary secretary Georgia Gould said: 'The new Act allows us to investigate suppliers and, if certain grounds are met, to add their names to a published and centrally managed debarment list, which must be taken into account by contracting authorities in awarding new contracts and undertaking new procurements. 'We want to act swiftly and decisively and are committed, where appropriate, to pursuing meaningful action in respect of failings related to the Grenfell tragedy.' The Government said all 58 of the inquiry's recommendations were being accepted. Nine of the 37 recommendations directed at Government are being accepted 'in principle', with some requiring 'further consideration' through consultations, it said. A group representing some of the bereaved welcomed the commitments but said it will be paying 'close attention' to how they progress. One of those being accepted in principle is a key recommendation for a single regulator for the construction industry, which the report said had become 'too complex and fragmented'. The Government said that while it is committed to establishing a single regulator, it does not believe it would be 'appropriate' for that organisation to undertake testing and certification of construction products, or issue certificates of compliance. This would 'create a new conflict of interest within the regulator', the Government said, and it will instead work to strengthen oversight of existing bodies through reforms to the construction products regime. It has launched a consultation, running until May, on regulatory reform in the sector to 'improve public safety, rebuild public trust and ensure the Grenfell Tower tragedy cannot be repeated'. The timeline for wider change is set out in phases, with a suggestion some reforms are unlikely to be delivered before 2028 – 11 years on from the fire. In its update, the Government said it is 'committed to delivering meaningful change as quickly as possible' but that 'given the scale of further change needed, including legislative, we intend to deliver these further reforms using a three-phased approach over the course of this Parliament'. Other recommendations for the appointment of a chief construction adviser as well as those to professionalise fire engineers and assessors through mandatory accreditation, have also been accepted. Ms Rayner said the Government was committed to 'tough action' to 'drive change and reform the system to ensure no community will ever have to face a tragedy like Grenfell ever again'. She added: 'That means greater accountability, stronger regulation, and putting residents at the heart of decision-making.' Grenfell Next of Kin, a group representing some of the bereaved, said it will be 'paying close attention to these words and intentions' from Government, as it repeated criticism of the 'grave mistakes, failures, corruption' it said had led to the deaths. The group said: 'We can never forget our beloved kin and we can never forgive the negligence and corruption that led to their deaths. 'The injustice is so great and the measures being put in place now with new laws and reforms are welcomed, but should have been basic requirements for a developed country such as ours. 'Nevertheless let's move forward in the right direction.' Ms Rayner repeated an apology issued last year by Prime Minister Sir Keir Starmer who had said sorry 'on behalf of the British state to each and every one' of the people affected by the disaster. Earlier this month the Government announced the tower, the remains of which have stood since the fire almost eight years ago, will be 'carefully' demolished in a process likely to take two years. Police and prosecutors have previously said investigators would need until the end of 2025 to complete their inquiry into the fire, with final decisions on potential criminal charges by the end of 2026. Ms Rayner said 'justice must be done' and that the Metropolitan Police has the Government's 'full support' in its investigation.
Yahoo
26-02-2025
- Politics
- Yahoo
Seven organisations to be investigated over Grenfell fire
Seven organisations will be investigated over the Grenfell Tower disaster and all 58 recommendations of a public inquiry will be met, the government says. Those organisations could be prevented from bidding for public contracts, while two existing bodies will be merged to form a single building safety regulator as part of the changes. The government has also backed a new "Hillsborough Law", which would create a legal duty for public authorities to tell the truth and be transparent. The Ministry of Housing, Communities and Local Government (MHCLG) said it will only begin implementing the changes from 2028. It is already working on a list of reforms to building safety, which came from the cladding crisis following Grenfell. The fire in the west London tower block killed 72 people in 2017, the inquiry found all their deaths were avoidable. Deputy Prime Minister and Housing Secretary Angela Rayner said the Grenfell Inquiry had "exposed in stark and devastating detail the shocking industry behaviour and wider failures that led to the fire, and the deep injustices endured by the bereaved, survivors, and residents". "We are acting on all of the Inquiry's findings, and today set out our full response, detailing the tough action we are taking to drive change and reform the system to ensure no community will ever have to face a tragedy like Grenfell ever again. "That means greater accountability, stronger regulation, and putting residents at the heart of decision-making. We must deliver the fundamental change required. We owe that to the Grenfell community, to the country, and to the memory of those who lost their lives," she added. The inquiry report found the fire was the result of a chain of failures by governments, "dishonest" companies and the fire service, which lacked a strategy for dealing with high rise cladding fires. The government's role in failing to regulate safety in the construction industry became apparent early in the Grenfell inquiry and during the hearings it apologised for its "past failures in relation to the oversight of the system that regulated safety in the construction and refurbishment of high rise buildings." Wednesday's announcement is part of a continuing effort to strengthen the regulations and oversight of construction. The seven organisations will be investigated for professional misconduct using powers under the Procurement Act passed in 2023. On Wednesday, the government published a new Construction Products Reform Green Paper setting out possible penalties for companies found to have breached safety obligations. These include fines based on the company's revenue and powers to limit individuals being involved in the industry. However, officials will not currently say if these penalties will be applied retrospectively. The failures which led to the Grenfell fire happened in the years before its refurbishment in 2016. Ministers are also promising a new single construction regulator will improve standards in the industry. In a rapid series of reforms since the fire, the Conservatives set up both a Building Safety Regulator and a National Regulator for Construction Products. Sir Martin Moore-Bick, the chairman of the Grenfell Inquiry, recommended there should be just one body. The government will effectively merge the existing ones into a single regulator in what the housing ministry described as further "sweeping construction, building and fire safety reforms". These are likely to introduce new rules on the testing of specific construction products. The Grenfell disaster was caused by the use of highly flammable cladding backed by insulation which also contributed to the spread of the fire. Manufacturers either concealed evidence of the risks their products posed or made false and misleading claims, the inquiry found. The housing ministry wants to create stronger enforcement of safety standards but also force the construction industry to be more transparent and take responsibility to ensure a fire like Grenfell does not happen again. The London Fire Brigade failed to respond to the rapid spread of the fire at Grenfell due to poor training and a lack of guidance about how to deal with flammable cladding. The government is setting up a new College of Fire and Rescue later this year to "improve the training and professionalism of firefighters". Another finding of the inquiry was that Grenfell was inspected by a fire risk assessor who lacked the necessary training and experience. The government will bring in certification for assessors. The government will provide an update on its work to meet the Grenfell recommendations every three months as part of an attempt to beef up the impact of public inquiry findings. The MHCLG has now taken over responsibility for fire safety from the Home Office and says it will support both the continuing police investigation and plans for a memorial which will replace the tower once it is dismantled in two years' time. Grenfell Report: Key findings from the inquiry Grenfell's 'path to disaster' that led to 72 deaths 'She was so proud to live in Grenfell Tower': The 72 people killed by the fire Grenfell Tower fire: What happens next?
