Ghana’s New Value for Money Office Bill: Strengthening Public Financial Governance and Accountability

In a significant move to reform public financial management, Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, formally laid the Value for Money Office Bill before Parliament on February 24, 2026. This legislative initiative is designed to tackle persistent inefficiencies and waste within government spending and project execution. The bill proposes the creation of an independent, specialized oversight body tasked with ensuring that every cedi of public expenditure delivers optimal value, effectiveness, and equity for Ghanaian citizens. This article provides a detailed, SEO-optimized exploration of the bill’s objectives, mechanisms, and potential impact on Ghana’s fiscal landscape.

Introduction: The Imperative for Fiscal Discipline in Ghana

Ghana, like many developing economies, faces ongoing challenges with public resource management. Issues such as contract inflation, abandoned projects, cost overruns, and perceived wasteful expenditure have historically undermined fiscal stability and public trust. The Value for Money Office Bill emerges as a cornerstone policy response to these challenges. Its core mission is to institutionalize a rigorous, pre-emptive framework for evaluating major government investments and contracts. By mandating independent value-for-money (VfM) assessments before funds are committed, the bill aims to shift from reactive auditing to proactive assurance, embedding principles of public financial accountability and fiscal responsibility at the heart of state operations. This reform is positioned not merely as an administrative change but as a fundamental step toward restoring public confidence, improving service delivery, and fostering sustainable economic development.

Key Points of the Value for Money Office Bill

The bill introduces several transformative elements to Ghana’s governance architecture. Below are its most critical components:

Establishment of an Independent Oversight Authority

The legislation proposes the creation of the Value for Money Office as a legally autonomous institution. This office will operate with a clear technical mandate, separate from the line ministries and agencies it will audit. Its independence is crucial to ensure unbiased assessments free from political or bureaucratic interference, a common critique of existing internal audit functions.

Mandatory Value for Money Certificates

A central mechanism of the bill is the requirement for a Value for Money Certificate to be issued by the Office before any major public contract or capital project can be awarded or proceed. This certificate will attest that the proposed expenditure has undergone a comprehensive VfM review, confirming that the project represents the best use of public funds considering alternatives, pricing, and long-term benefits.

Comprehensive Assessment Framework

The Office will employ a holistic assessment framework evaluating proposals against five key criteria: economy (minimizing cost), efficiency (maximizing output per input), effectiveness (achieving stated objectives), equity (fair distribution of benefits), and sustainability (long-term viability). This multi-dimensional approach ensures that “value” is not confused with mere cheapness but encompasses overall societal benefit.

Enforcement and Sanction Powers

The bill grants the Office powers to monitor compliance with its certifications and directives. Where violations occur—such as proceeding without a certificate or ignoring prescribed cost-saving measures—the Office will have the authority to recommend sanctions, potentially including the withholding of funds or referral for disciplinary or legal action. This enforcement backbone is essential for moving beyond advisory status to tangible impact.

Background: The Context of Public Expenditure Challenges in Ghana

To understand the urgency of this bill, one must examine the historical and operational context of public spending in Ghana. For years, concerns have been raised about:

• Contract Inflation: Reports from the Auditor-General and civil society organizations have frequently highlighted contracts for goods, works, and services that appear significantly overpriced compared to market benchmarks.
• Project Abandonment and Stagnation: Numerous infrastructural projects initiated by various governments have stalled or been abandoned, representing sunk costs with no public return, often due to poor initial feasibility or budgeting.
• Cost Overruns: Even projects that commence often experience substantial budget increases, diverting funds from other planned initiatives and straining the national budget.
• Fragmented Procurement: Lack of uniform standards across government entities leads to price disparities for identical items, indicating missed opportunities for bulk purchasing and centralized negotiation leverage.

These issues collectively contribute to fiscal vulnerability, higher public debt, and eroded public trust. The Value for Money Office Bill is thus a direct response to these documented systemic failures, aiming to introduce a standardized, expert-led gatekeeping function for large-scale public expenditure.

Analysis: How the Bill Aims to Transform Public Entrepreneurship

The bill’s design reflects a sophisticated understanding of the failure points in public financial management. Its analysis reveals several strategic intentions:

Proactive vs. Reactive Governance

Currently, oversight bodies like the Auditor-General primarily conduct ex-post audits—reviewing spending after it has occurred. While vital, this is inherently reactive. The VfM Office introduces a pre-emptive control. By forcing a rigorous examination of value *before* money is spent, it aims to prevent waste rather than just document it. This shifts the accountability paradigm from “Did you spend correctly?” to “Should you spend this at all, and is this the best way?”

Specialization and Technical Capacity

The bill mandates that the Office be staffed with professionals in finance, engineering, economics, and procurement. This specialization addresses a key gap: line ministry officials may lack the time, comparative data, or technical expertise to conduct deep VfM analyses for complex projects (e.g., a new highway, a hospital, or a large IT system). The Office becomes a center of excellence for cost-benefit analysis, life-cycle costing, and benchmarking.

Alignment with International Best Practices

Minister Forson explicitly linked the bill to global standards. Models referenced include:

• The UK National Audit Office (NAO), which audits central government departments and public bodies, with a strong VfM remit.
• The US Government Accountability Office (GAO), which provides auditing, evaluation, and investigative services for Congress.
• The Canadian Value for Money Framework used by its Office of the Auditor General.

By adopting a similar model, Ghana signals its commitment to meeting the transparency and efficiency expectations of international financial institutions, donors, and investors. This alignment is crucial for sovereign bond market access and programmatic support from bodies like the IMF and World Bank.

Potential Impact on the “Public Entrepreneurship” Landscape

The term “public entrepreneurship” here refers to the government’s role as an active investor and initiator of economic and social projects. The bill seeks to professionalize this function. If implemented effectively, it could:

• Improve Project Quality: Rigorous upfront scrutiny should lead to better-feasibility, more realistic budgeting, and thus higher completion rates for infrastructure and social projects.
• Generate Measurable Savings: By challenging assumptions, comparing alternatives, and negotiating better prices, the Office could directly free up fiscal space for other priorities like health or education.
• Level the Playing Field: Uniform VfM standards across all ministries, departments, and agencies (MDAs) could reduce arbitrary variations in procurement, creating a more predictable environment for both suppliers and public officials.
• Boost Investor Confidence: A demonstrable reduction in waste and improved project bankability makes Ghana a more attractive destination for public-private partnerships (PPPs) and foreign direct investment.

Practical Advice: Implementation, Challenges, and Citizen Engagement

The success of the Value for Money Office Bill will depend entirely on its implementation. Here is practical analysis for various stakeholders:

For Policymakers and Implementing Agencies

• Adequate Resourcing: The Office must be funded sufficiently and independently to attract and retain top-tier talent and afford robust analytical tools.
• Clear Regulations and Guidelines: Secondary legislation must precisely define “major contracts,” the scope of VfM assessments, timelines, and appeal processes to avoid operational gridlock.
• Integration with Existing Systems: The Office’s processes must dovetail with the Public Procurement Authority (PPA) and the Controller and Accountant General’s Department, not create parallel or conflicting bureaucracy.
• Political Will: The Office will inevitably challenge powerful interests and entrenched practices. Sustained support from the highest levels of government, including the Presidency and Finance Ministry, is non-negotiable.

For Civil Society, Media, and Citizens

• Demand Transparency: Advocate for the mandatory public publication of all Value for Money Certificates and Office annual reports. Transparency is the citizen’s primary tool for accountability.
• Monitor the Appointment Process: Scrutinize the selection of the Office’s leadership (e.g., Director-General) to ensure appointees possess impeccable integrity and technical merit, not political loyalty.
• Build Understanding: Develop public education campaigns on what “value for money” truly means—it’s not just about the lowest bid, but the best long-term outcome for the public.
• Use the Reports: Journalists and NGOs should analyze the Office’s findings, compare certified projects with uncertified ones, and track performance against savings projections.

Anticipated Challenges and Mitigation

• Resistance from Procurement Actors: Firms used to inflated contracts and officials accustomed to discretion may resist. Mitigation: Strict enforcement of sanctions and whistleblower protections.
• Capacity Gap: Building a team capable of assessing diverse sectors (from road construction to ICT to healthcare procurement) takes time. Mitigation: Start with a focused list of high-value, high-risk project types and phase in others.
• Risk of Form Over Substance: The process could become a box-ticking exercise. Mitigation: The Office must publish detailed, accessible assessment methodologies and case studies demonstrating rigorous analysis.
• Judicial or Legal Challenges: Disgruntled contractors may sue if denied certificates. Mitigation: The bill must provide a clear, fair, and expedited administrative review process to resolve disputes.

FAQ: Common Questions About the Value for Money Office Bill

What exactly is “Value for Money” in this context?

It is a systematic assessment of whether a proposed public investment or procurement represents the optimal use of resources. It balances the “3Es”: Economy (minimizing cost), Efficiency (maximizing output per input), and Effectiveness (achieving the intended outcome). Modern frameworks also add Equity (fairness in distribution) and Sustainability (long-term viability).

Will this Office duplicate the work of the Auditor-General?

No. The Auditor-General performs ex-post audits—examining whether spent funds were used correctly and legally. The Value for Money Office performs ex-ante appraisal—scrutinizing proposals *before* money is spent. They are complementary stages of the accountability cycle: prevention (VfM Office) and detection (Auditor-General).

Which projects will require a Value for Money Certificate?

The bill will specify thresholds, typically based on project value or contract size. It will likely cover all major capital projects, high-value procurement (e.g., above a certain cedi amount), and potentially all Public-Private Partnership (PPP) agreements. The goal is to capture expenditures where waste would have the most significant fiscal impact.

Can the Office’s decision be appealed?

Yes, any fair and robust system requires an appeal mechanism. The bill is expected to outline an administrative review process within the Office or, ultimately, the right to seek judicial review in court if a party believes the assessment was flawed or unfair.

How will this affect ordinary Ghanaians?

In the long term, it should lead to:

• Better-maintained schools, hospitals, and roads built at fair prices.
• More reliable delivery of public services as funds are less likely to be wasted on ghost projects or inflated contracts.
• Potentially freeing up government revenue for social programs, debt reduction, or tax cuts.
• Increased trust in government institutions.

However, in the short term, the rigorous process may slightly lengthen the time to initiate some projects as assessments are completed.

What are the legal implications for officials who bypass the Office?

This is a critical detail that will be in the bill. Sanctions could range from personal financial liability for losses incurred, disciplinary action under the Public Financial Management Act, to criminal charges for willful violation of the law or causing financial loss to the state. The strength of these penalties will determine the Office’s deterrent power.

Conclusion: A Pivotal Moment for Ghana’s Fiscal Future

The laying of the Value for Money Office Bill represents more than a legislative procedure; it is a declaration of intent. It acknowledges that Ghana’s path to fiscal sustainability and credible development hinges not just on generating revenue, but on the intelligent, transparent, and accountable deployment of every cedi spent. The proposed Office, modeled on world-class institutions, offers a structured, technical, and independent mechanism to combat the endemic waste that has plagued public entrepreneurship. Its success will be a litmus test for Ghana’s governance reform agenda. If empowered, resourced, and shielded from political pressure, this Office could become a powerful engine for public financial management reform, generating real savings, improving project outcomes, and rebuilding the social contract between the state and its citizens. The journey from bill to effective law to impactful institution is long, but this step is undeniably in the right direction for a more prosperous and accountable Ghana.

Sources and Further Reading

• Parliament of Ghana. (2026). The Value for Money Office Bill, 2026. [Official Bill Text, when published].
• Ministry of Finance, Ghana. (2026). Statement by the Hon. Minister for Finance, Dr. Cassiel Ato Forson, on the Floor of