President John Dramani Mahama officially signed the Value for Money Office Bill into law on May 11, 2026. This new law establishes a dedicated office to combat the chronic issue of overpriced government contracts. Finance Minister Dr. Cassiel Ato Forson estimates these contracts cost Ghana approximately GHS 33.7 billion ($3 billion) annually in public funds.
This initiative aims to introduce a crucial pre-contract value assessment mechanism, addressing a significant gap in Ghana's existing procurement architecture. The new office will assess whether the government truly receives adequate value for its expenditure. However, concerns remain regarding the practical implementation of this well-intentioned legislation.
The creation of the Value for Money Office (VFM Office) responds to a long-standing challenge within Ghana’s public procurement system. While existing laws, such as the Public Procurement Act 663 (2003) and its amendment Act 914 (2016), focused on procedural compliance, they often failed to ensure value for money. PricewaterhouseCoopers audit for the 2023 African Games revealed over GHS 450 million ($40 million) in avoidable costs, highlighting the need for a VFM Office. The National Development Planning Commission (NDPC) has also reported GHS 70 billion in development project cost overruns.
Dr. Cassiel Ato Forson, speaking at the signing ceremony, hailed the new Act as a significant milestone. He emphasised its role in curbing the substantial financial losses Ghana incurs from inflated government projects. The institution aims to ensure that public funds are spent efficiently and effectively, reducing waste and corruption in contract awards.
Despite the positive intent, the law’s effectiveness hinges on a clear operational framework. The Minority in Parliament has warned that the new Office risks becoming “another layer of politically supervised corruption.” This sentiment is echoed by the Ghana Institute of Procurement and Supply (GIPS), which has called for legislative alignment to resolve potential overlapping mandates. A senior procurement expert, speaking before the Bill's assent, described it as a “hell of trouble.”
These anxieties stem from Ghana's history of well-intentioned legislation faltering during implementation due to unclear roles or institutional conflicts. Decision-makers must now focus on developing a precise institutional process map. This map will define when each actor acts, with what legal authority, and prevent overlaps with existing bodies like the Public Procurement Authority and the Auditor-General's Department. The financial markets and public will closely watch how the government addresses these implementation challenges to ensure the new office achieves its goal of saving billions in public funds.