Finance Minister Imposes New Approval Requirement for State Contracts
Finance Minister, Dr Cassiel Ato Forson, has announced that no government contract will be approved without prior commencement authorisation from the Ministry of Finance, in a move aimed at tightening fiscal discipline and curbing unapproved public expenditure.
The directive, which takes effect on April 3, 2025, was delivered at a meeting with senior officials from Ministries, Departments, and Agencies (MDAs), where Dr Forson signalled a break from past practices that allowed contracts to be awarded without rigorous financial oversight.
“You cannot award contracts without the express approval of the Ministry of Finance. No commencement certificate, no procurement,” the Finance Minister stated.
The measure, he noted, is not merely an administrative adjustment but a legal requirement under the Amended Public Financial Management Act, 2025.
Officials found circumventing the new rule will face consequences, as the government seeks to prevent fiscal slippages that have contributed to past budget overruns.
“The Ministry of Finance will no longer take the fall for fiscal indiscipline,” Dr Forson said, underscoring his commitment to enforcing stricter controls on public spending.
Ghana has long grappled with concerns over inefficient public procurement and the accumulation of liabilities outside the approved budget framework.
The latest directive aligns with broader efforts to enforce transparency and accountability in state expenditure.
“We are among the privileged few. We cannot continue to subject our people to hardship through poor governance and financial mismanagement,” he added, calling on public officials to uphold fiscal responsibility.
The move is expected to bring greater scrutiny to government contracts, ensuring that spending remains within budgetary limits and aligns with national economic priorities.
