President John Dramani Mahama has today signed into law the Value for Money Office Bill, a move the government says will fundamentally transform public procurement and rein in the rising cost of public sector contracts.
The ceremony took place at the Jubilee House in Accra, after which the Minister of Finance, Cassiel Ato Forson, briefed the press.
According to Dr. Forson, the new law will ensure that single-source procurement arrangements are subjected to rigorous scrutiny.
“That means, going into the future, the Republic of Ghana and the Government of Ghana will curtail public sector expenditure that has actually risen as a result of the overinflation of contracts, government contracts,” the Minister stated.
Explaining the operational framework, he said: “What we seek to do going into the future will be that we will set up the office, and all single-source procurement will have to go through the office for value for money.”
Dr. Forson noted that in the past, the legal division of the Ministry of Finance was responsible for conducting value-for-money assessments, but lacked the requisite skills and capacity to deal effectively with the task.
“So what we’ve done is to properly institutionalise the Value for Money Office,” he told journalists.
The Finance Minister recalled that President Mahama, as part of his campaign pledge, promised to establish the Value for Money Office. “And today, he has graciously assented to it following Parliament’s passage,” he added.
Dr. Forson used the opportunity to assure the people of Ghana that the menace of contract overinflation in the public sector would be curtailed by the President’s signature.
He outlined a clear roadmap for implementation: “What we seek to do is to use the next six months to properly constitute the office, nominate the leadership of the Value for Money Office, and constitute a technical team that will ensure the implementation of the Act.”
The Minister projected that by January 2027, the office would be fully operational. “And so, I believe that beginning January 2027, we will be able to do that. This office will be fully implemented, and Ghanaians will see the need for a Value for Money Office.”
Drawing on international experience, Dr. Forson expressed strong confidence in the new office’s potential for cost savings.
“I have seen Value for Money offices being operated in other countries. And I can tell you for a fact that if there’s one single office that can pay for itself from day one, it is the Value for Money Office,” he concluded.
