In a firm move to strengthen fiscal discipline and eliminate loopholes in
government spending, Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, has
announced that no public contract will be approved without official
commencement authorization from the Ministry of Finance. This new directive,
which took effect on April 3, 2025, is aimed at ensuring tighter control over
public procurement processes and improving transparency in the use of state
resources.
Dr. Forson made this announcement during a high-level engagement with Chief
Directors and top officials from various Ministries, Departments, and Agencies
across the country. He stressed that from now on, the approval of any contract
must be preceded by a valid commencement certificate issued by the Ministry of
Finance. Without this certificate, no procurement or contractual obligation
will be legally recognized by the government.
Addressing the gathering, the Finance Minister stated clearly that the
Ministry is committed to ending the era of unauthorized contract awards that
have contributed to fiscal challenges over the years. According to him, the new
approach is not just an internal policy shift but a binding legal obligation
under the recently amended Public Financial Management Act of 2025.
He warned public officials that failure to comply with the directive would
have serious consequences. The Ministry of Finance, he said, will not take
responsibility for any breaches in financial procedure caused by negligence or
non-compliance from any public entity. The onus now lies on public officials to
ensure that every contract awarded follows the right procedures and receives
the appropriate clearance.
Dr. Forson also used the opportunity to call on public servants to show a
renewed sense of patriotism and accountability in managing public finances. He
emphasized that those entrusted with the nation’s resources must act with
integrity and dedication to the public good. According to him, Ghana’s economic
recovery and long-term growth depend on strict adherence to budget processes
and responsible financial governance.
He noted that Ghana cannot afford to continue the practice of entering into
financial commitments without proper planning or oversight, which often leads
to unpaid debts and financial pressure on the state. The Finance Minister
highlighted that the new rule is designed to instill discipline across all
sectors of the public service and ensure that public funds are used efficiently
and lawfully.
Dr. Forson described the requirement for commencement authorization as a
crucial safeguard against fiscal indiscipline. He explained that this system
will allow the Ministry of Finance to track and control public spending more
effectively while preventing unplanned liabilities from piling up.
He also reminded attendees that their roles as public officers come with
significant responsibility. They must ensure that their actions reflect the
trust placed in them by the people. The Minister encouraged officials to lead
by example and embrace transparency and due process in all areas of procurement
and expenditure.
The amended Public Financial Management Act of 2025 reinforces this
directive by making it legally mandatory for all public contracts to receive
commencement authorization before any financial commitment is made. Dr. Forson
noted that this law is not only a tool for financial regulation but also a
moral and administrative guide for public service conduct.
He concluded his remarks by reiterating the Ministry’s commitment to working
closely with all government entities to achieve greater financial stability and
discipline. However, he was clear that the Ministry would no longer absorb the
impact of financial indiscipline from other sectors and that accountability
would be enforced at all levels.
The announcement has already drawn the attention of both public and private
sector observers, with many viewing it as a much-needed step towards addressing
long-standing challenges in Ghana’s public financial management system. With
this directive now in effect, all ministries and government agencies are
expected to align their procurement processes with the new legal requirement to
avoid sanctions and ensure compliance with national financial policy.
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