By Alex Ababio
President John Dramani Mahama has assented to the Value for Money Office Act, 2026, a major public financial management reform that government officials say could transform how state contracts are awarded, monitored and evaluated across Ghana’s public sector.
The new legislation, introduced in Parliament earlier this year by Finance Minister Cassiel Ato Forson, establishes an independent Value for Money Office (VfMO) tasked with scrutinising government expenditure, evaluating large public projects, and preventing wasteful spending before contracts are approved.
The move comes amid growing public frustration over inflated contract sums, abandoned infrastructure projects, procurement irregularities and persistent allegations of financial mismanagement that have cost the country billions of cedis over the years.
Government officials argue that the law represents one of the most significant accountability reforms in Ghana’s recent fiscal history.
A New Oversight Regime for Public Spending
Under the Act, the Value for Money Office will operate as an independent technical oversight institution with powers to conduct value-for-money assessments, issue mandatory Value for Money Certificates before major contracts are awarded, monitor project implementation and enforce sanctions where violations occur.
Speaking during the presentation of the bill before Parliament in February, Dr. Ato Forson described the legislation as a “decisive step” toward addressing deep-rooted inefficiencies in Ghana’s public financial management system.
“This Bill institutionalises a comprehensive value-for-money framework to ensure that every cedi spent by Government delivers maximum benefit to citizens in terms of economy, efficiency, effectiveness, equity and sustainability,” the Finance Minister said.
According to the Ministry of Finance, the new office will enforce cost benchmarks, assess procurement processes, and coordinate with institutions such as the Auditor-General, the Public Procurement Authority and the Internal Audit Agency.
Government estimates suggest the reforms could save Ghana up to GH¢3 billion annually by reducing contract inflation, duplication and inefficient expenditure.
Ghana’s Long Battle With Procurement Waste
The establishment of the VfMO follows years of audit findings exposing procurement breaches, inflated project costs and stalled government projects.
Successive Auditor-General reports have repeatedly identified irregularities involving sole-sourced contracts, uncompetitive procurement processes, delayed execution of state projects and poor contract management.
Analysts say these systemic weaknesses have contributed significantly to Ghana’s debt burden and fiscal instability.
The issue gained increased national attention during Ghana’s recent economic crisis, when the country entered an International Monetary Fund-supported programme after facing severe debt distress, high inflation and mounting public dissatisfaction over state spending.
Public finance experts have long argued that Ghana’s procurement system focuses excessively on compliance paperwork instead of actual project outcomes and value delivery.
The new law attempts to reverse that trend by shifting oversight from post-expenditure auditing to pre-contract scrutiny and ongoing performance evaluation.
“This reform changes the conversation from merely spending money to ensuring public investments generate measurable social and economic returns,” a senior Finance Ministry official familiar with the legislation said.
International Models Behind the Reform
During parliamentary deliberations, Dr. Forson stated that the legislation draws inspiration from international best practices including the United Kingdom’s National Audit Office, the United States Government Accountability Office and value-for-money systems used in Canada and other advanced economies.
These institutions typically assess whether governments achieve efficiency, effectiveness and economy in public expenditure.
Public policy analysts say Ghana’s adoption of a similar framework reflects increasing pressure from international lenders, investors and development partners for stronger fiscal governance and procurement transparency.
The World Bank and IMF have repeatedly stressed the importance of improving public expenditure efficiency in Ghana as part of broader fiscal consolidation efforts.
Economic governance experts believe the new office could also improve investor confidence if implemented independently and insulated from political interference.
Minority Raises Corruption Concerns
Despite broad support for fiscal accountability reforms, the passage of the bill was not without controversy.
According to parliamentary proceedings reported by state-owned media, the Minority Caucus expressed concerns that the new office could itself become another bureaucratic institution vulnerable to political influence and corruption.
Some opposition lawmakers reportedly questioned whether the office’s certification powers could create opportunities for rent-seeking or administrative delays in government contracting.
Responding to the criticism, Deputy Finance Minister Thomas Nyarko Ampem defended the legislation, arguing that the office would instead strengthen transparency and accountability across procurement systems.
Policy observers say the credibility of the office will largely depend on the independence of its leadership, transparency of its operations and enforcement of sanctions without political favouritism.
Public Frustration Over Corruption and Waste
The law also arrives at a time when public trust in state institutions remains under pressure.
Across social media platforms and civil society discussions, many Ghanaians continue to express frustration over corruption scandals, delayed public projects and deteriorating infrastructure despite repeated government spending announcements.
Online public discussions reviewed by this publication reveal growing demands for stricter accountability and transparent disclosure of how public funds are utilised.
Some citizens have questioned why major allocations to public projects often fail to translate into improved roads, hospitals, schools and social services.
Anti-corruption campaigners say Ghana has historically struggled with implementation gaps — where strong laws exist on paper but enforcement remains weak.
“This is potentially a very important reform, but institutions are only as effective as the political will backing them,” a governance analyst at a local policy think tank told journalists in recent media discussions on procurement reforms.
Tackling Abandoned Projects and Cost Overruns
One of the key targets of the new legislation is the persistent problem of abandoned government projects.
Over the years, Ghana has witnessed numerous stalled infrastructure developments including roads, housing projects, hospitals, schools and water systems that consumed public funds without completion.
Economists warn that abandoned projects often lead to cost escalation because governments are forced to renegotiate contracts years later under higher inflationary conditions.
The Finance Ministry argues that mandatory Value for Money Certificates before contract approvals could help identify unrealistic pricing, poor feasibility studies and weak procurement structures early enough to prevent waste.
Dr. Forson has repeatedly stated that many projects become overpriced because effective scrutiny often begins only after public money has already been spent.
The Bigger Governance Test Ahead
While the assent of the law marks a major legislative milestone, governance experts say the real challenge lies ahead — implementation.
Questions remain about the operational independence of the office, staffing capacity, funding arrangements and coordination with existing anti-corruption and audit institutions.
Experts also caution that overlapping mandates between the VfMO, Auditor-General, Public Procurement Authority and other oversight agencies could create institutional friction unless responsibilities are clearly defined.
Transparency advocates are calling for public disclosure of all Value for Money assessments and certificates issued under the law to ensure accountability and build public trust.
There are also calls for Parliament and civil society organisations to actively monitor the office’s performance once operational.
For many observers, the creation of the Value for Money Office represents an attempt by the Mahama administration to demonstrate fiscal discipline at a time when Ghana continues to recover from economic turbulence and public confidence challenges.
Whether the institution becomes a genuine anti-waste watchdog or another state bureaucracy will depend largely on enforcement, transparency and political independence.
But for now, the signing of the Value for Money Office Act signals a clear message from government: the era of unchecked public spending and inflated contracts is officially under scrutiny.