Business News of Wednesday, 26 September 2018
Source: citinewsroom.com
2018-09-26
Ken Ofori-Atta, Finance Minister
The Ministry of Finance has launched the Public Investment Management System which will among other things maintain a comprehensive record of all data associated with investment projects in the country.
According to a study carried out by the World Bank in 2012 and confirmed by the recent Public Investment Management Assessment , a number of weaknesses were identified at all stages in the management, allocation and execution of investment projects which has often lead to low value for money for projects undertaken.
The Public Investment Management System is expected to enhance the quality of public investment by strengthening the links between the National Medium term Development Strategy, National Infrastructure and Sector Plans and the annual budget.
Speaking at the launch of the system, Chief Director at the Ministry of Planning, Magdalene Apenteng bemoaned the lack of efficient monitoring of investment projects in the country, a situation she blamed on the many uncompleted and unoccupied projects in the country.
“The reality is that some government institutions carry out projects to beat deadlines and therefore go through abridged appraisals and the consequences of such action are little or no value for money as well as number of uncompleted and unoccupied projects such as the Komenda Sugar Factory”, she noted.
World Bank Country Director for Ghana, Henry Kerali lauded Ghana for the initiative and also cautioned that the system must be implemented effectively as it means Ghana is going to receive less concession and funding grants from the World Bank.
“Ghana will now be entitled to less concessions and funds. It also means that there is now a greater need for improved productivity and effectiveness of public expenditure to make sure that the little public funds that are available are efficiently utilized”.
On his part, Finance Minister Ken Ofori Atta said the Public Investment Management System will ensure that monies allocated for various investment projects are efficiently utilized.
“The Public Investment Management System is part of the grand agenda of government to electronically integrate all financial management systems and bring efficiency to government business”