Government has taken a major step toward tightening oversight of public spending as Finance Minister Dr Cassiel Ato Forson tabled a bill before the Parliament of Ghana seeking to establish a new Value for Money Office (VfMO).
The proposed legislation aims to strengthen accountability, curb waste, and ensure that government-funded projects deliver measurable benefits to citizens. According to Dr. Forson, the creation of the VfMO forms part of broader fiscal reforms designed to restore confidence in public financial management and safeguard scarce national resources.
Under the bill, the Value for Money Office will be mandated to review and certify major public expenditure before implementation. A Value for Money Certificate will become compulsory for large-scale government projects, confirming that proposed expenditures are cost-effective, necessary, and aligned with national development priorities.
The office will also have authority to:
– Review public contracts for inflation and inefficiencies
– Monitor project implementation and expenditure performance
– Recommend sanctions for non-compliance
– Publish verified project data for public scrutiny
Officials say the VfMO will operate with enforcement powers rather than serving merely as an advisory body.
A key feature of the proposal is the establishment of a digital transparency portal. The platform will provide real-time updates on certified projects, including cost breakdowns, funding sources, and implementation timelines. The move is intended to enhance citizen engagement and allow civil society organizations, journalists, and watchdog groups to independently monitor government spending.
The Finance Minister emphasized that greater transparency would help rebuild public trust in state institutions and promote responsible stewardship of public funds.
The proposed office is expected to collaborate closely with existing oversight bodies such as the Auditor-General’s Department and the Public Procurement Authority, reinforcing rather than duplicating their mandates.
Government officials argue that the VfMO will serve as a preventive mechanism — identifying potential financial risks before funds are disbursed — while traditional audit institutions typically conduct post-expenditure reviews.
Dr. Forson projected that the new office could help Ghana save approximately GH¢3 billion annually by reducing inflated contracts, preventing duplication of projects, and improving procurement discipline. These savings, he noted, could be redirected toward critical sectors such as healthcare, education, and infrastructure development.
The tabling of the bill comes at a time when Ghana continues to implement fiscal consolidation measures aimed at stabilizing the economy and improving public debt management. Analysts say the proposed office could signal a stronger commitment to expenditure rationalization and anti-corruption reforms.
However, governance experts caution that the effectiveness of the VfMO will depend on its operational independence, adequate resourcing, and political will to enforce sanctions without interference.
The bill is expected to be referred to the appropriate parliamentary committee for further scrutiny before debate and possible passage. If approved, the Value for Money Office would become a central pillar in Ghana’s public financial management architecture.
As Parliament begins deliberations, stakeholders across government, civil society, and the private sector will be watching closely to see whether the proposed reforms translate into lasting structural improvements in how public funds are managed.
Source: classfmonline.com
