Ghana Deputy Finance Minister Justifies New Value for Money Office in 2026 Budget to Curb Procurement Abuses

Introduction

In a recent appearance on Joy FM’s Super Morning Show on November 14, 2025, Ghana’s Deputy Minister for Finance, Thomas Nyarko Ampem, strongly advocated for the establishment of a new Value for Money Office as part of the 2026 national budget. This initiative aims to tackle longstanding issues of waste, procurement abuses, and inflated contract prices in government projects. By creating a specialized unit equipped with technical experts like engineers, the office would ensure projects deliver optimal economy, efficiency, and effectiveness—core principles of value for money (VfM) in public procurement.

This development is particularly relevant for stakeholders in Ghana’s public sector, businesses bidding on government contracts, and taxpayers concerned about fiscal accountability. Understanding the Public Procurement Authority (PPA) Ghana limitations and the need for enhanced oversight could prevent billions in losses, promoting sustainable economic growth.

What is Value for Money in Public Procurement?

Value for Money refers to achieving the best possible outcomes from public spending by balancing cost, quality, and timeliness. In Ghana, where procurement scandals have eroded public trust, a dedicated Value for Money Office Ghana could standardize project costing, setting clear minimum and maximum price benchmarks.

Analysis

Deputy Minister Thomas Nyarko Ampem’s justification highlights critical gaps in Ghana’s current procurement framework. The PPA Ghana, established under the Public Procurement Act, 2003 (Act 663), primarily enforces procedural compliance—ensuring tenders follow due process, competitive bidding, and documentation standards. However, as Ampem noted, it lacks the technical depth to evaluate if prices represent true value for money.

Historical Context: Role of Crown Agents

Previously, the Crown Agents collaborated with the PPA to provide VfM assessments. Their exit has left a void, exacerbating procurement abuses Ghana such as bid rigging, ghost projects, and unjustified cost escalations. Ampem emphasized that without specialized intervention, Ghana continues to “lose huge sums of money” annually.

Technical Expertise Requirement

The proposed office would employ engineers and sector-specific professionals to conduct detailed engineering cost analyses. For instance, for road construction or infrastructure projects, experts could benchmark costs against industry standards, regional averages, and historical data, ensuring projects stay within a defined cost envelope (e.g., X minimum to Y maximum).

This pedagogical shift toward technical auditing aligns with global best practices, as seen in the UK’s National Audit Office or Australia’s VfM frameworks, adapted to Ghana’s context.

Summary

Ghana’s government plans to launch a Value for Money Office in the 2026 budget to address PPA limitations in cost evaluation. Deputy Minister Thomas Nyarko Ampem, speaking on Joy FM, underscored its role in curbing inflated contract prices Ghana and procurement abuses. The office will feature technical experts for precise project assessments, complementing PPA’s compliance focus. Broader budget measures include indirect job creation via policies and VAT rationalization to support businesses.

Key Points

Practical Advice

For businesses, contractors, and citizens engaging with Ghana’s public procurement, here’s actionable guidance based on the Deputy Minister’s insights:

For Government Contractors

Prepare detailed cost breakdowns using engineering benchmarks. Familiarize with PPA guidelines and anticipate VfM scrutiny post-2026. Tools like the PPA’s e-GP portal can streamline compliant bidding.

For Taxpayers and Civil Society

Monitor budget implementation via platforms like the Ministry of Finance website. Advocate for transparency by requesting project audits under the Right to Information Act, 2019 (Act 989).

For Policymakers

Integrate VfM training into procurement units. Pilot the office with high-value sectors like infrastructure and health to demonstrate ROI.

Adopting these steps can enhance participation in PPA Ghana processes, fostering a culture of accountability.

Points of Caution

While promising, the Value for Money Office initiative warrants careful implementation:

• Setup Costs: Recruiting engineers and experts may strain initial budgets; prioritize cost-effective staffing via secondments from state agencies.
• Independence: Ensure the office operates autonomously to avoid political interference, similar to PPA’s oversight challenges.
• Capacity Building: Without ongoing training, technical assessments risk obsolescence amid inflation and material price fluctuations.
• Scope Creep: Limit focus to high-impact projects to avoid bureaucratic delays in routine procurements.

These precautions, drawn from standard procurement reform experiences, underscore the need for phased rollout in the 2026 budget.

Comparison

Comparing the proposed Value for Money Office Ghana to existing structures reveals clear enhancements:

PPA Ghana vs. Value for Money Office

International Benchmarks

Similar to South Africa’s VfM unit under the National Treasury or Kenya’s Public Procurement Regulatory Authority’s technical reviews, Ghana’s model could integrate PPA strengths while filling VfM gaps.

Legal Implications

The establishment aligns with Ghana’s legal framework, particularly the Public Procurement Act, 2003 (Act 663, as amended by Act 914 in 2016), which mandates VfM in Section 44. It complements the PPA’s mandate without duplication. No new legislation is referenced, but budgetary allocation in the 2026 Appropriation Bill would formalize it. Potential legal risks include challenges if staffing bypasses Public Services Commission rules, emphasizing compliance with the 1992 Constitution’s fiscal responsibility clauses (Article 179). Procurement abuses could still trigger Auditor-General probes under the Audit Service Act, 2000 (Act 584).

Conclusion

Deputy Minister Thomas Nyarko Ampem’s call for a Value for Money Office in Ghana’s 2026 budget marks a proactive step toward fiscal prudence. By addressing PPA Ghana limitations and curbing procurement abuses through expert-led assessments, it promises substantial savings and restored public confidence. Coupled with job-enabling policies like VAT rationalization, this initiative supports broader economic resilience. Stakeholders must now track its rollout to ensure tangible benefits for Ghana’s development agenda.

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