This is why we need the Value For Money Office - Lecture by Hon. Issah Atta

Added: 2026-05-23

[00:00:00]Let's see, get fund right and apology has to say do say 20 and say schools some renovated some your building from scratch and so on.

[00:00:12]How then do you then have to go to the value and value for money office and then go and say that okay now I am here to justify how much I'm spending on these on these projects.

[00:00:28]Why would I the value for money office right because why would I have thought that before the finance minister agrees to input whatever it is you want from the from the government into the presentation of the budget of the preparation of the budget would have agreed with you that okay you want to build 10 schools at X amount of money we are fine with that so we can deal with that. Why then do you need to come back to the value for money office for some kind of justification as to why for instance the in putting up the the school this door is two cities.

[00:01:01]But then value for money says you sure it's two cities but we've checked this door should cost you one CD.

[00:01:06]Why why why why is that why is that conversation important? Okay so let me just tell you why.

[00:01:12]So you see if you look at the auditor general's report for 2024 they identify key weaknesses that can be found in the financial public financial management act. One of it was procurement irregularities and over pricing.

[00:01:26]Now take a look at this.

[00:01:28]The Ministry of Finance does not have capacity to do BOQ sub projects.

[00:01:35]And I'm a finance person when you tell me this building will cost 20 million I have no way of verify what you are saying is true or not.

[00:01:45]So let me take you through the the the approval stages of government procurement.

[00:01:51]Now boards normally when the management of a company presents projects and costing to board.

[00:01:59]The board might not have the capacity to authenticate the figure.

[00:02:04]We might be interested in just saying the project is nice. Let's go ahead and do.

[00:02:08]Not because we have been advised by experts on cost verifications.

[00:02:14]That's number one.

[00:02:16]The public procurement law that we have in this country talks about compliance with existing laws of this country.

[00:02:22]Compliance.

[00:02:24]And what are the compliance? If I'm taking something to PPE tomorrow and I said I'm building an airport at 50 million dollars.

[00:02:35]>> Mhm.

[00:02:36]PPE first question will be was there commitment authorization?

[00:02:40]>> Mhm.

[00:02:41]First question.

[00:02:41]>> First question.

[00:02:42]The second question PPE, was it captured in your budget? Okay.

[00:02:47]>> Is there a board resolution on it? Mhm.

[00:02:49]Now, they will look at the method of procurement. If it is sole source, what is the justification? If it is restricted tender, what is the justification? Or you want to do open tender?

[00:02:59]In all these dimensions, the issues of cost certainty has not arise. Oh.

[00:03:05]Okay. So, that is how come a GETFund three-unit classroom block can be different from GNPC three-unit classroom block. It can be different from one that assembly will build for three units.

[00:03:15]>> an MTN.

[00:03:16]>> Or an MTN three-unit classroom. There's no standardization in basic infrastructure.

[00:03:23]This is the reason why there is a need for a value for money office. Okay.

[00:03:27]>> So, what they are now saying is that every project an SOE is drawing must first be accompanied by a value for money assessment.

[00:03:37]And let me give you this.

[00:03:39]Any World Bank or IMF-funded project or any bilateral projects we've executed in this country, one of the principal requirements in the memorandum is to achieve is to present with them value for money assessment on all your projects.

[00:03:57]So, even foreign nationals are much aware that there is a likelihood of overpricing in award of contracts. Because of that, they will say, "Take it from a reputable institution."

[00:04:12]And I can demonstrate to you countries that have practiced similar effort in curbing overpricing and Thank you. And abandoned projects.

[00:04:21]Look, under value for money. I'll come there.

[00:04:24]So, what the value for money seeks to do, like I indicated in the earlier submission, is that every project might have a revenue line.

[00:04:33]So, how come Cocoa Board 2024 budgeted in the board the board's resolution 483 million Ghana cedis?

[00:04:47]That is what was approved by the board.

[00:04:49]>> Okay. And they ended the year with 4.3 billion Ghana cedis road contracts above the budget threshold.

[00:04:58]How did this become possible?

[00:05:01]So, in going for the value for money office, the project must be tied to a revenue.

[00:05:08]If you do not achieve that revenue, the project does not kick start. So, that there's no need for abandoned abandoning projects. You don't start a project when you are not sure of the financial source. The last time I came here with uh what's his name?

[00:05:25]on this big push matter. Yes. Oh, uh he's an 80, Dr. Bawumia.

[00:05:32]Uh what's the Is that a Kofi Tonto? Yes.

[00:05:34]Kofi Tonto, yes. You remember I brought a report from the Auditor General >> Yes. who stated that many abandoned projects or has happen happen in this country because of what? No planned budgetary allocation.

[00:05:47]>> Right. So, we commit the country into contracts without knowing the source of fund.

[00:05:54]The value for money office will ensure that any project you initiate, [clears throat and snorts] it must come with a comprehensive program to raise the resources.

[00:06:03]>> Could we have empowered the public procurement authority to do that without necessarily setting up another office?

[00:06:10]>> So let me tell you why it would have been difficult.

[00:06:12]>> Okay.

[00:06:14]The PPA already has as part of its mandate a provision for value for money.

[00:06:19]>> Yes, absolutely.

[00:06:21]Yes.

[00:06:23]It already has.

[00:06:24]>> Mhm.

[00:06:25]Number two, the national presence is is key.

[00:06:30]We are not looking forward to establishing a new office and recruit thousands of people. That's not the objective.

[00:06:38]>> Mhm.

[00:06:39]I'm listening.

[00:06:40]>> So we are just trying to say that even existing structures within offices will be trained to undertake this exercise.

[00:06:49]>> Okay. Now the IMF as part of its policy reforms mentioned the issue of value for money.

[00:07:00]And this argument was brought before the IMF and even the minority The former finance minister is aware of this. Oh, about merging improvement in PPA to deal with similar issues.

[00:07:13]>> Exactly, instead of setting up another office.

[00:07:17]The one thing that was completely rejected >> Mhm.

[00:07:21]and it was agreed as a part of a policy reform even by the former administration to establish a value for money office.

[00:07:28]And the idea was that there is in the PPA law that stipulates the idea of value for money yet never implemented.

[00:07:35]>> Okay.

[00:07:38]So this is a policy reform that is anchored on the successful exit of the IMF program. To be sure that the country can engineer safe accounting of our public resources. And let me finalize on this point.

[00:07:57]>> Okay.

[00:08:00]If you look at uh the commitment authorization regime.

[00:08:06]Now, it is not just giving us your expenditure.

[00:08:11]Your expenditure must be accompanied by your inflow. Yes.

[00:08:15]So, the finance minister giving you no objection for your projects is not in in itself an end to you executing the project because it is tied to your inflows happening.

[00:08:27]Mhm. So, if you tell me that you raised 11 billion this year, then you do a project 10 billion.

[00:08:36]And as at November that year, you've raised only 5 billion.

[00:08:40]You should not go and commit the country to the 10 billion.

[00:08:44]You should commit the country to a tune of what you have raised.

[00:08:49]Ah.

[00:08:50]Can't I start a project based on expected inflows? No.

[00:08:54]>> Why can't I? So, it is it means that your even your calculation of your inflows need to be questioned.

[00:09:00]Mhm.

[00:09:01]>> Such massive variation. If you were expecting 11 billion and you do 9 billion, That's that's normal.

[00:09:06]>> 11 billion, 5 billion. 50% is 50% less than 50%.

[00:09:10]>> 50%. And there's no justifiable reason why it happened.

[00:09:13]Then, we need to look at your expenditure framework again.

[00:09:17]Because because I know that when contracts are given, there are two types. It's either you are given mobilization to start or you start on your own and the government pays you.

[00:09:24]>> So, that the commitment authorization also recognize multi-year infrastructure development.

[00:09:29]>> Okay. That is not treated within a single year framework. So, part is earmarked for this year and another part for next year. So, you have to state the payment model. When you are sending for the commitment authorization, after this part, I will share with you an SOU that I submitted. Okay. So, when you list a project like it, you give total amount.

[00:09:50]Then you say for 2017, what you are expected to spend for that project, 2018, 2019, after this. It is all these expenditure projections that will give the finance minister the hope that this project is doable. Okay. When we When we do these things, you see that a lot of money will be saved. It is not to suggest that the previous uh regimes that we have been using have not delivered value, but we could have done better. And it has been several times we just spoke about the Auditor General's reports. Every time we see the quantum of money that has been lost. Nowadays, accountability here, if the value if if the value for money officer gives a wrong assessment, there are regimes in the law that penalizes that person.

[00:10:37]And RTI is available now that we can always seek for information that we want. I think this is the way forward for us.