ACCRA, Ghana — The Ghana government is making a bold play to stem the tide of inflated contracts to abandoned projects. The current administration is proposing an independent “Value for Money Office” (VfMO) with sweeping powers to scrutinize every penny of public spending.
The “Value for Money Office Bill, 2026,” introduced by Finance Minister Dr. Cassiel Ato Forson, would establish a new office that aims to institutionalize a culture of outcome-driven accountability, ensuring that public funds deliver tangible benefits to citizens
“This bill aims to ensure that every cedi spent by the government delivers the maximum possible benefit to citizens in terms of economy, efficiency, effectiveness, equity, and sustainability,” Dr. Forson told Parliament.
The proposed VfMO would act as an independent financial ombudsman, intervening at critical stages of public projects. Its most potent weapon: the mandatory “Value for Money” (VfM) certificate.
Details
Under the bill, no major public contract can be awarded, and no significant payment released, without this certification, which attests to a project’s economic justification and technical soundness.
This “pre-award review” mechanism is designed to halt problematic projects before they even begin to consume resources.
Beyond initial vetting, the VfMO is envisioned to deploy a “three lines of defense” strategy. Following the pre-award reviews, it would conduct post-award monitoring to prevent the notorious cost overruns and delays that plague many infrastructure initiatives.
Finally, post-completion evaluations would assess whether projects truly delivered their intended benefits, providing a feedback loop for future planning.
Crucially, the bill grants the VfMO sanctioning powers, allowing it to penalize officials or agencies found responsible for wasteful spending, fraud, or contract inflation. This marks a departure from existing oversight bodies, which often lack the teeth to enforce accountability effectively.
The office would also be tasked with establishing and enforcing national cost benchmarks, a direct response to the prevalent issue of overpricing for public goods and services.
To foster transparency, the legislation mandates a public portal where citizens can track certified projects, monitor cost savings, and review performance reports in real-time.
This move aims to empower civil society and the media to act as additional watchdogs, adding another layer of accountability to public spending.
Filling a Gap
While Ghana already has institutions like the Auditor-General and the Public Procurement Authority (PPA), the VfMO is designed to fill a critical gap.
The Auditor-General typically scrutinizes spending after it has occurred, while the PPA focuses on the process of procurement.
The VfMO, by contrast, is intended to be a proactive force, intervening during the planning and execution stages to ensure genuine value for every public investment.
Within its first five years, the VfMO is projected to save the country approximately GH¢3 billion annually and reduce contract inflation and waste by 10–15%.
This article was edited with AI and reviewed by human editors
