The proposed Value for Money Office Law is not limited to scrutinising single-source procurement arrangements, but will serve as a broader quality assurance mechanism to ensure efficiency and accountability in public spending, according to the Finance Ministry.
Frederick Amissah, Technical Advisor at the Ministry of Finance, explained that the new system is designed to ensure that every cedi spent by the state delivers equivalent value in goods and services.
Speaking in an interview on Joy FM’s Newsnight on Monday, May 11, Mr. Amissah said concerns about public procurement inefficiencies, particularly under single-source arrangements, have informed the need for stronger oversight mechanisms. However, he stressed that the new office goes beyond that scope.
He noted that under the proposed framework,” all public contracts that meet a specified financial threshold—estimated at $10 million—will be required to obtain a Value for Money certificate before approval,” adding that “it is not focused on single source procurement only.”
In addition, all single-source procurements will mandatorily undergo the same certification process before contract award.
According to him, the initiative is part of broader public financial management reforms aimed at improving discipline in procurement processes and ensuring that government spending yields optimal results.
“It is to ensure that every cedi we spend represents real value in goods and services,” he explained, adding that the system is intended to prevent situations where high public expenditure does not translate into quality infrastructure and services.
Mr. Amissah further indicated that the Public Procurement Authority (PPA) will continue to play its regulatory role, including assessing compliance with procurement rules. The Value for Money Office, he said, will complement this by evaluating whether proposed contract prices reflect the best possible value.
He also disclosed that the reforms will be integrated into the Ghana Electronic Procurement System to enhance transparency and reduce room for procedural irregularities.
The reforms, he said, are not isolated measures but part of a wider effort to strengthen Ghana’s public financial management architecture and ensure accountability in the use of public funds.
President John Dramani Mahama earlier assented to the Value for Money Office Bill, marking a major step in the government’s efforts to curb inflated public sector contracts and strengthen accountability in public spending.
Announcing the development after the bill was signed into law on Monday, 11 May, the Finance Minister, Dr Cassiel Ato Forson, described the move as a significant milestone in efforts to contain rising public expenditure linked to overinflated government contracts.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.