In a move to tighten fiscal control and clamp down on financial mismanagement in public sector, Finance Minister, Dr. Cassiel Ato Forson, has issued a sweeping directive: no government contract shall be approved without prior commencement authorisation from the Ministry of Finance.
The directive, which took effect on April 3, 2025, aims to enforce accountability and prevent unauthorized commitments that have long plagued Ghana’s public sector finance.
Addressing Chief Directors and senior officials of various Ministries, Departments, and Agencies (MDAs) at a high-level meeting, Ato Forson stated unequivocally, “No government contract shall be approved without prior commencement authorisation from the Ministry of Finance.”
“This is not business as usual,” the Minister declared.
“This is a decisive step to enforce fiscal discipline, ensure accountability, and end the culture of financial recklessness in public administration.”
The directive aligns with the recently amended Public Financial Management Act, 2025, which strengthens mechanisms for budget implementation and expenditure control.
The amendment seeks to close loopholes that have allowed MDAs to incur liabilities without proper financial clearance—often leading to unpaid arrears, legal battles, and ballooning public debt.
Forson emphasized that this is not simply a bureaucratic hurdle but a binding legal requirement. “Every contract must now receive commencement authorisation,” he stressed.
“Let me repeat: No commencement certificate, no procurement.”
He warned of serious consequences for public officials who flout the directive. “Any breach of this directive will attract serious consequences,” he cautioned, signaling a shift from leniency to enforcement.
“The Ministry of Finance will no longer carry the weight of fiscal indiscipline alone. If you are a principal spending officer and you violate this directive, you will be held personally accountable,” he warned.
The Minister’s message was clear: transparency and responsibility in managing public funds are non-negotiable.
“I urge all public officials to act with integrity and a deep sense of national duty,” he said.
“We are among the privileged few—we must not continue to subject our people to hardship through negligence or abuse of public resources.”
Ghana’s public sector has, in recent years, faced criticism over financial mismanagement, delayed payments to contractors, and budget overruns—issues that successive governments have struggled to contain.
The Finance Ministry has often borne the brunt of blame for these systemic problems, prompting Dr. Forson’s strong stance to redistribute accountability across all MDAs.
He concluded with a call to action: “Restoring trust in public service begins with transparency, responsibility, and discipline in implementing the national budget. That journey starts now.”
The directive is expected to reshape procurement practices across government agencies, demanding greater diligence and compliance with financial protocols.
-BY Daniel Bampoe
