President John Dramani Mahama has assented to the Value for Money Office Act 2026, a landmark piece of legislation aimed at strengthening oversight of public expenditure and curbing inflated government contracts in Ghana.
The new law establishes an independent Value for Money Office that will be responsible for reviewing public procurement processes, particularly sole-source contracts, to ensure efficiency, transparency and accountability in the use of state resources.
The legislation was introduced in Parliament earlier this year by Finance Minister Cassiel Ato Forson as part of broader reforms to improve public financial management and reduce wasteful spending within the public sector.
New Oversight Body to Review Government Contracts
Speaking after the presidential assent, Dr. Forson said the new office would play a central role in addressing the persistent problem of overinflated public contracts and weak expenditure controls.
“The President this morning signed into law the Value for Money Office Act. This singular signature in assent will mean that 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 overinflation of government contracts.” - Dr. Forson
According to the Finance Minister, all sole-source procurement arrangements will now be subjected to review by the newly established office before approval.
“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
Institutionalising Public Spending Controls
Dr. Forson explained that although value-for-money assessments previously existed within the Legal Division of the Ministry of Finance, the arrangement lacked the technical expertise and institutional independence needed for effective oversight.
“In the past, the Legal Division of the Ministry of Finance has been the one that conducts the Value for Money Office. They did not have the requisite skills and ability to deal with value for money.
"So what we've done is to properly institutionalize the Value for Money Office.” - Dr. Forson
He noted that the establishment of the office fulfils one of President Mahama’s campaign promises focused on promoting fiscal discipline and improving accountability in government spending.
Full Implementation Expected in 2027
Government plans to spend the next six months setting up the institution, appointing its leadership and constituting a technical team to operationalise the law.
Dr. Forson indicated that the office is expected to become fully functional by January 2027. “And so I believe that beginning 2027 January, this office will be fully implemented and Ghanaians will see the need of a Value for Money Office,” he said.
The Finance Minister further argued that the office could eventually generate significant savings for the state by reducing waste and creating additional fiscal space for national development priorities.
He described the institution as “one single office that can pay for itself from day one” due to its potential to reduce unnecessary public expenditure and improve project efficiency across government sectors.
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