Ghana’s Value for Money legislation is a major step toward strengthening transparency, accountability, and efficiency in the management of taxpayer funds, as it will ensure independent oversight of planned government expenditure.
This is according to the Ghana Institute of Procurement and Supply (GIPS), which welcomed the newly assented law as it aligns with established international best practices in public expenditure management.
According to the institute, the law will help ensure that government spending delivers value to various state institutions and the broader economy by reducing excesses and inefficiency in public procurement processes.
GIPS President, Dr. Simon Annan, says that the assent to the Value for Money Act, which creates the independent Value for Money Office and will come into effect next year, signals government’s commitment to tackling the rising misuse of state resources often linked to procurement-related infractions.
“The Value for Money legislation is expected to improve fiscal discipline across state institutions by introducing stronger checks and balances. It will further promote the prudent use of public funds by ensuring that contracts are awarded on the basis of quality, service delivery and overall public benefit,” he adds.
Dr. Annan adds that, to complement the new legislation, the Procurement Practicing Bill should be enacted as soon as possible to enforce professionalism and ethical conduct among procurement officers responsible for implementing the new legal reforms in the sector.
The proposed bill, which has been readied for Cabinet, seeks to formalise Ghana’s procurement sector by establishing standards, accreditation and oversight for procurement professionals, with the aim of improving transparency, accountability and strengthening the effective management of public resources.
In conjunction with the Value for Money Act, the Procurement Practice Bill will tighten oversight of public financial management, reduce procurement irregularities and ensure more efficient use of public funds.
Dr. Annan says the two laws will concurrently empower procurement and supply chain officers as well as strengthen procurement governance in the country. “Together, these laws will help strengthen value-based procurement by providing greater oversight and supporting the use of qualified, licensed and certified procurement professionals with the appropriate expertise,” he notes.
In addition, Dr. Annan notes that “The Value for Money Act establishes an oversight framework, but its success will depend on the quality of procurement practice across the public sector. This makes the passage of the Procurement Practicing Bill a critical next step in strengthening procurement governance in Ghana.”
GIPS believes the combined effect of these reforms will be to strengthen confidence in public financial management, improve the integrity of procurement processes and promote more effective use of public resources in support of national development objectives.
GIPS reaffirmed its commitment to supporting reforms aimed at improving procurement practices in the country, encouraging all stakeholders to work together to ensure the effective implementation of the legislation for the national good.
“Legislation alone will not deliver the intended outcomes. The effectiveness of these reforms will ultimately depend on the capacity, competence and ethical conduct of the professionals responsible for implementing them across government institutions,” Dr. Annan adds.
