Ato Forson bars MMDAs from awarding contracts without Finance Ministry approval

Government contracts will no longer be awarded without prior approval from the Ministry of Finance, beginning April 3 2025.

This is according to the Minister for Finance, Dr Cassiel Ato Forson, who has issued a firm directive to all Ministries, Departments, and Agencies (MDAs).

The instruction, delivered during a meeting with Chief Directors and senior public officials, is aimed at tightening control over public expenditure and preventing the award of unauthorised contracts that often place unexpected pressure on the national budget.

“This is not business as usual,” Dr Forson said. “You cannot award contracts without the express approval of the Ministry of Finance. Every contract must now receive commencement authorisation. No commencement certificate, no procurement.”

He stated plainly that any breach of the directive would attract serious consequences, including possible imprisonment for ministers and chief directors who ignore the new procedure.

“This is not merely a bureaucratic process; it is a legal requirement,” Dr Forson said.

The directive is in line with the recently amended Public Financial Management Act, 2025, which introduces stricter measures to prevent fiscal indiscipline and hold individuals accountable for unauthorised spending.

According to Dr Forson, the Ministry of Finance will no longer bear the cost of commitments made outside of approved budgetary processes.

“The Ministry of Finance will no longer carry the weight of fiscal indiscipline alone,” he said. “If you are a principal spending officer and you violate this directive, you will be held personally accountable.”

Dr Forson urged public officials to uphold their responsibilities with integrity, warning that continued negligence and misuse of public resources would only worsen hardship for ordinary Ghanaians.

“We are among the privileged few; we must not continue to subject our people to hardship through negligence or abuse of public resources,” he said.

He added that restoring public trust in government begins with accountability and discipline in the management of the national budget,something he said must begin without delay.

Financial irregularities in public contracting have been a recurring concern in Ghana’s Auditor-General reports and have long been cited as a drain on public resources.