Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has issued a directive requiring prior approval from the Ministry of Finance for all government contracts, effective April 3, 2025. This move aims to tighten control over public expenditure and prevent unauthorized contracts that strain the national budget.

Key Points:

• Commencement Authorization: Every contract must receive commencement authorization from the Ministry of Finance before procurement can begin.
• Accountability: Principal spending officers will be held personally accountable for violating this directive, with possible consequences including imprisonment.
• Fiscal Discipline: The directive aligns with the amended Public Financial Management Act, 2025, which introduces stricter measures to prevent fiscal indiscipline ¹ ².

Rationale:

• Preventing Financial Irregularities: Financial irregularities in public contracting have been a recurring concern in Ghana’s Auditor-General reports, citing a drain on public resources.
• Restoring Public Trust: Dr. Forson emphasized that restoring public trust in government begins with accountability and discipline in national budget management ¹.

Impact:

• Tighter Control: The directive will ensure that government contracts are awarded transparently and in accordance with approved budgetary processes.
• Consequences for Non-Compliance: Failure to comply with the directive will result in serious consequences, including possible imprisonment for ministers and chief directors