President Mahama signs Value for Money Office bill into law to curb inflated government contracts

John Dramani Mahama has assented to the Value for Money Office Bill, introducing a new institutional framework aimed at reducing inflated public sector contracts and strengthening accountability in government spending.

The announcement was made on Monday, May 11, by Finance Minister Cassiel Ato Forson, who described the signing of the bill into law as a major milestone in Ghana’s public financial management reforms.

According to Dr Forson, the newly passed law will establish a dedicated Value for Money Office tasked with reviewing and approving all single-source procurement arrangements to ensure transparency and efficiency in public spending.

“Today is a good day. His Excellency, the President, this morning signed into law the Value for Money Office Bill,” he stated.

He explained that moving forward, all single-source procurement processes will be required to pass through the new office for value-for-money assessments before approval is granted.

The Finance Minister noted that previously, such assessments were conducted by the Legal Division of the Ministry of Finance, a structure he said lacked the technical capacity required for in-depth procurement evaluations.

The new legislation, he said, is designed to professionalise and institutionalise the process through a specialised office with independent technical expertise to scrutinise government contracts and ensure cost efficiency.

The establishment of the Value for Money Office also fulfills a key campaign promise by President Mahama aimed at improving transparency, reducing waste, and strengthening oversight in public sector procurement.

Dr Forson further disclosed that government is currently making arrangements to provide the necessary funding, recruit leadership, and assemble a technical team to operationalise the office.

He added that the office is expected to become fully functional by January 2027.

“I want to use this opportunity to assure the people of Ghana that the manner of public sector contracting and overinflation of contracts will be curtailed by this signature,” he said.

Policy analysts say the new framework could significantly reshape public procurement in Ghana by tightening controls over contract awards, especially in cases involving direct or single-source procurement.

The reform is also expected to improve investor confidence and public trust by reducing perceptions of inflated contract costs and inefficiencies in government spending.