Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has introduced a new directive requiring prior commencement authorization from the Ministry of Finance for all government contracts, effective April 3, 2025. This move aims to ensure fiscal discipline and prudent financial management in the country.
No government contract will be approved without prior commencement authorization from the Ministry of Finance.
Dr. Forson emphasized that every government contract must obtain commencement authorization before procurement can begin. The directive is part of the government’s efforts to strengthen fiscal discipline and reduce unnecessary expenditure.
The Minister’s decision is likely a response to concerns about unchecked contract approvals and their impact on the country’s finances. By requiring prior commencement authorization, the Ministry of Finance can better manage government expenditure and ensure that contracts align with national priorities.
The directive may have significant implications for government agencies, which will need to adapt their procurement processes to comply with the new requirements. This could lead to more efficient use of resources and better value for money in government
Dr. Cassiel Ato Forson is a seasoned economist and tax practitioner with over 20 years of experience in public and private sectors. He has held various roles, including Deputy Minister for Finance and Ranking Member of the Finance Committee of Parliament.
Story by: Ohemaa Adusi-Poku
