News:
February 25, 2026
Parliament is currently considering a landmark bill aimed at tackling chronic inefficiencies in the country’s public finances by establishing an independent Value for Money (VfM) Office.
The proposed legislation seeks to address long-standing issues such as inflated contracts, abandoned projects, cost overruns, and wasteful spending that have plagued the public financial management system.
Ensuring “Every Cedi Counts”
Presenting the bill before parliament, the Finance Minister, Dr. Cassiel Ato Forson, emphasized that the new framework would institutionalize fiscal discipline.
“By institutionalizing a value for money framework, it will ensure that every cedi spent by the government delivers the maximum possible benefit to citizens,” Dr. Forson stated, noting that this would be measured in terms of economy, efficiency, effectiveness, equity, and sustainability.
A Mandate for Oversight
If passed, the Value for Money Office will function as a specialized oversight body with a clear technical mandate. Its core functions will include:
* Pre-Contract Review: Conducting value for money assessments and issuing a mandatory VfM certificate before major government contracts are awarded.
* Monitoring Compliance: Overseeing projects to ensure they adhere to agreed standards and costs.
* Enforcing Sanctions: Ensuring accountability by applying penalties where violations occur.
Dr. Forson explained that the overarching objective is to strengthen Ghana’s governance architecture. “The goal is to reduce waste, promote public confidence, and ensure uniform pricing across government,” he added. “This will transform the public financial management landscape by curbing contract inflation and wasteful expenditure.”
Aligning with Global Best Practice
The Minister highlighted that the establishment of such an office would bring Ghana in line with international standards. He cited examples from countries that have successfully implemented similar statutory frameworks to ensure optimal use of public funds.
“In the global arena, countries such as the United Kingdom, Canada, Singapore, and the United States have established statutory frameworks on value for money,” Dr. Forson told the House. He noted that while these bodies have different names such as the UK’s National Audit Office or the US Government Accountability Office; they share the common goal of ensuring fiscal accountability.
“Mr. Speaker, Ghana seeks to follow the same path to ensure that every cedi counts in the award of government contracts,” he concluded.
Dominic Shirimori/Ghanamps.com