Ghana's new Value for Money Office will scrutinise all large public contracts. This includes projects that are not single-sourced. The office aims to ensure public money is spent wisely. Every cedi spent by the government should deliver its full worth in goods and services.
This initiative is a key part of improving how the country manages its finances. Concerns about wasted money in public deals have led to this change. The office will go beyond just looking at single-source contracts. These are deals where only one company is asked to bid.
Under the new law, any public contract above a certain amount must get a "Value for Money certificate." This amount is set at $10 million. The certificate confirms the deal offers good value for taxpayer money. This process is required before the contract can be officially approved. The Public Procurement Authority will still check for rule compliance.
Frederick Amissah, a Technical Advisor at the Finance Ministry, explained the new system. He stated in an interview that the office will complement the work of the Public Procurement Authority. Its focus is on the economic justification of proposed contract prices. The reforms will be integrated into Ghana's electronic procurement system. This integration aims to boost openness and reduce errors. President John Dramani Mahama signed the Value for Money Office Bill into law on May 11. Finance Minister Dr. Cassiel Ato Forson called this a major step. It will help control the rising costs of government contracts.
This reform is part of wider efforts to make Ghana's public finance management stronger. It seeks to create more fiscal space, the money available for government spending. This increased fiscal space can be used for development projects or to reduce debt. For investors, it signals improved governance. This can boost confidence in the Ghanaian economy. The move is expected to prevent situations where high spending does not lead to good infrastructure or services.