Accra:Chairman of Parliament's Finance Committee, Isaac Adongo, has emphasized the need for stricter controls on government spending and the necessity of parliamentary approval for multi-year agreements to prevent the state from entering financial commitments without proper authorization.
According to Ghana Web, Adongo elaborated that the commitment controls require the Finance Minister to verify the availability of funds before the procurement processes can proceed, with the Public Procurement Authority (PPA) acting as a gatekeeper.
He highlighted that these controls are designed to ensure that government agencies do not undertake expenditure obligations without the necessary financial backing. The commitment authorization framework mandates the Finance Minister to confirm fund availability before the PPA moves forward with procurement decisions.
Adongo stated in an interview on Joy News that approval from the Finance Minister is required before incurring expenditures, especially those of a multi-year nature. He further noted that the PPA has been assigned a gatekeeping role to ensure compliance with the process, particularly in public procurement.
He also referenced Section 33 of the Public Financial Management Act, which mandates parliamentary approval for agreements with multi-year financial implications. Finance Minister Dr. Cassiel Ato Forson has started presenting such agreements, including those involving Tata Consulting, to Parliament to ensure they comply with the law.
Adongo argued that parliamentary scrutiny of these agreements is crucial, as some government commitments in the past were not brought before the House for examination and approval.