About 70 per cent of corrupt practices are effected through the purchasing and supply of basic items for some ministries, departments and government agencies, a report by the Auditor General and the Serious Fraud Office has said.

The report said total procurement costs represent 50 per cent of Gross Domestic Product (GDP), constituting a serious drain on the nation's economy.

Mr Stephen Andoh-Kwofie, President of the Chartered Institute of Purchasing and Supply, who announced this at a press conference in Accra on Thursday recommended the establishment of a central procurement audit office to examine and review policies and procedures in government organisations.

He said the office should also conduct post-procurement auditing to ensure compliance with procedures to prevent such heavy financial losses.

This measure, he said is to counteract malpractices in the procurement of goods and services to help the government to achieve the "zero tolerance for corruption."

Mr. Andoh-Kwofie said the reports showed that contracts were awarded to non-existent companies and that there had been deliberate non-compliance to rules in the disbursement of donor funds and payments made for unexecuted contracts.

Most of these malpractices, he said occurred either directly or indirectly through people with no acumen in purchasing and supply,adding that "this has inhibited the arbitrary upward revision of contract prices."

He said the Institute is educating its members on the need to strictly abide by the ethics of the profession and ensure that those who infringe on them are appropriately sanctioned.