Finance Minister, Dr.Cassiel Ato Forson, has introduced legislation to establish an independent Value for Money Office, in a move aimed at tightening oversight of public contracts and curbing wasteful government spending.
Commenting on the Value for Money Bill in parliament, Dr.Forson said the measure is designed to address long-standing weaknesses in public financial management, including inflated contracts, cost overruns, abandoned projects and excessive expenditure.
“The value for money Bill seeks to address chronic inefficiencies in the public financial management system, particularly those arising from inflated contracts, abandoned projects, cost overrun and wasteful spending. By institutionalizing a value for money framework, this bill aims to ensure that every cent spent by the government delivers the maximum possible benefit to citizens in terms of economy, efficiency, effectiveness, equity and sustainability. Furthermore, the establishment of the value for money office will create a specialized and independent oversight institution, a technical mandate to conduct value for money assessment, issue value for money certificates before major contracts are awarded, monitor compliance and ensure sanctions where violations occur.”
Under the proposed framework, the new office would operate as a specialized oversight body with authority to conduct technical value-for-money assessments and issue mandatory certification before major public contracts are approved. It would also monitor compliance and apply sanctions for breaches, introducing an additional layer of scrutiny into Ghana’s procurement system.
Dr.Forson framed the bill as part of a broader fiscal reform agenda intended to restore discipline in public spending and strengthen governance following years of budgetary strain.
“The overarching objective is to ensure fiscal discipline, reduce waste, promote public confidence and strengthen the governance and accountability architecture of the country. Mr. Speaker, the bill also seeks to institutionalize value for money oversight and transform the public financial management landscape of the country by reducing contract inflation and wasteful expenditure and ensuring uniform pricing across governments. Finally, Mr. Speaker, this bill seeks to strengthen fiscal discipline and accountability, enhance public trust and investor confidence and align Ghana with international best practices in public financial management.”
The minister cited international precedents, noting that countries including the United Kingdom, Canada, Singapore, Slovakia and the United States have embedded statutory value-for-money mechanisms within their fiscal systems.
“Right Honourable Speaker, globally, countries such as United Kingdom, Canada, Singapore, Slovakia and United States have established statutory framework on value for money. Mr. Speaker, in the UK, for example, they’ve established the National Audit Office for value for money. Canada, for example, have established the National Money Audit Manual under the Ministry of Finance as an independent body.
The United States, for example, also have established the National Accountability Office for value for money to ensure optimal use of public funds. So, Mr. Speaker, Ghana seeks to follow suit and to ensure that every city count in the award of government contract is also met.”
If passed, the bill would mark one of the most significant overhauls of Ghana’s procurement and expenditure oversight regime in recent years. For investors, the reform could signal a stronger commitment to transparency and cost control at a time when fiscal credibility and efficient capital deployment remain central to sovereign risk assessments.
