Expert Backs Finance Minister’s Strict MDAs Contract Directive, Says Move Will Control Reckless Spending——Financial Analyst and Banking Consultant Dr. Richmond Atuahene is justifying the Finance Minister‘s recent directive barring Chief Directors, Spending Officers, etc, at the various Ministries, Departments, and Agencies (MDAs) from awarding contracts without prior commencement authorization from the Ministry of Finance.
Dr. Atuahene says the decision is a strategic and necessary step toward the fiscal consolidation touted by the government.
The directive, which took effect on April 3, 2025, has sparked debate within public service circles, but Dr. Atuahene insists the policy is not only justified but it’s long overdue.
In an interview with Brand Focus Africa, the financial analyst explained that MDAs historically incurred massive liabilities at the blind side of the Ministry, thereby escalating the country’s debt burden without proper oversight.
He cited the recent development where, after an audit by the new government, it emerged that the state owed road contractors about GH¢65 billion and not GH¢25 billion as was initially known due to “unauthorized commitments” made by various MDAs.
“It’s very simple,” Dr. Atuahene said. “There are lots of contracts that were awarded without the knowledge of the Finance Ministry, and that’s a serious problem.”
Dr. Atuahene further emphasized that the Finance Minister, Dr. Cassiel Ato Forson, is simply asserting his rightful role in safeguarding public funds by demanding oversight over all contract approvals.
“The minister is saying, I am in charge. Anything to do with money, let me have a first look at it before you award it,” Dr. Atuahene explained. “And for me, it’s a very strategic issue
He argued that MDAs, that do not generate enough revenue on their own, should not independently take on financial commitments that add pressure to the national budget.
By requiring commencement certificates, the Ministry of Finance ensures that every contract is scrutinized, costed, and factored into the national budget before execution begins.
While acknowledging that MDAs may resist the directive, Dr. Atuahene was clear that the measure is not driven by bad intentions but by a genuine effort to curb unplanned expenditure and restore discipline to Ghana‘s public financial management system.
“If you cannot generate enough revenue, you don’t take on more liabilities,” he asserted.
Dr. Atuahene noted that the move aligns perfectly with Ghana’s broader fiscal consolidation agenda, especially under the watchful eye of the International Monetary Fund (IMF), which has urged stricter controls and transparency in public finance.
By centralizing contract approvals through the Ministry of Finance, Dr. Atuahene believes Ghana is finally moving away from the reckless practice where agencies award contracts without thinking through the long-term fiscal implications.
