Hayford Aboagye, Partner Assurance at PwC Ghana and a Public Financial Management (PFM) expert, has highlighted the urgent need for stricter enforcement of Ghana’s PFM laws to reduce waste and inefficiencies in public spending.
Mr. Aboagye pointed out that while Ghana’s PFM framework is considered one of the best globally, weak implementation has resulted in project mismanagement, abandoned infrastructure, and recurring financial burdens on taxpayers.
He called on policymakers to focus on cost-cutting measures and strengthen enforcement mechanisms to prevent economic setbacks, especially as the government looks into further amendments to the PFM Act.
“To start a project, go all the way to a certain point, and then only to realize that we didn’t conduct the comprehensive feasibility studies on that project. This project gets stored, and we have to come back to the taxpayer to cough up additional financing so that we can start another project. We construct rules, and within a year or two, these rules are not fit for purpose.”
And the minister of finance comes back to us and has several measures to get us to pay more. So the issue is how strictly are we enforcing these laws and regulations?
And I think in the minister’s budget, he’s even proposing to review a PFM act once again so that he can put additional measures in place to strictly enforce the various provisions that we have. So if we don’t take steps to cut those wastes, if we don’t take steps to ensure that whatever systems we have put in place are working, then I think we’ll be back to where we are once again and possibly more troubling.”
“Mr. Aboagye pointed out that although the Finance Ministry’s reforms align with the IMF program to enhance procurement and compliance, Ghana’s primary challenge continues to be the effective enforcement of Public Financial Management (PFM) laws.”
Mr. Aboagye pointed out that although the Finance Ministry’s reforms are in line with the IMF program to enhance procurement and compliance, Ghana’s primary challenge continues to be the effective enforcement of Public Financial Management (PFM) laws.
