The Minister for Finance, Hon. Cassiel Ato Forson, has announced a key amendment to Ghana’s Public Procurement Act, aimed at tightening control over government spending and enhancing fiscal discipline.

According to the Minister, the amendment mandates that no central government procurement process can begin without first receiving a commitment authorisation — also known as a commencement certificate — from the Ministry of Finance.

“We have passed an amendment to the Procurement Act to ensure that the issuance of commitment authorisation (e.g., commencement certificate) by the Minister for Finance is a prerequisite for all central government procurements under the Authority or the Central Tender Review Committee,” he stated.

Finance experts and governance advocates have welcomed the move as a step toward promoting transparency, accountability, and responsible public financial management.

The amendment is also seen as part of broader reforms by the Ministry of Finance to restore macroeconomic stability, manage public debt effectively, and improve confidence in Ghana’s procurement systems.

A dedicated Compliance Desk within the Ministry of Finance has been set up by govt to monitor and enforce adherence to the newly upgraded Public Financial Management (PFM) Act, 2025.Kwame Governs Agbodza, the Minister-Designate for Roads and Highways, has expressed concerns about the growing debt within the ministry.

In his appearance before the Appointments Committee of Parliament on Monday, January 20, 2025, Agbodza revealed that the New Patriotic Party (NPP) government left a minimum of GHC100 billion in outstanding commitments.

He further disclosed that as of January 20, 2025, unpaid certificates from the Government of Ghana amounted to GHC20 billion, with an additional GHC15 billion in unpaid road funds.In March, Energy and Green Transition Minister John Jinapor disclosed that contracts amounting to GH₵6 billion were signed by the Ministry of Energy in 2024 without obtaining commencement certificates, despite the ministry’s total budget for that year being less than GH₵2 billion.

Speaking on the current state of the energy sector in Parliament, Mr. Jinapor revealed that these financial commitments have placed a significant strain on the Electricity Company of Ghana (ECG) and the broader energy sector.

He also raised concerns over ECG’s growing liabilities, highlighting that the power distributor has an outstanding debt of GH₵13 billion to suppliers.Thus, the Finance Ministry’s new measure is expected to ensure that government contracts and procurement activities are aligned with the country’s available financial resources and do not create unfunded liabilities.

The commitment authorisation requirement applies to all procurement activities overseen by the Public Procurement Authority (PPA) or vetted through the Central Tender Review Committee.

It is expected to reduce the risk of budget overruns, contract arrears, and unplanned debts by ensuring that funds are available before any procurement process is initiated.