The Ministry of Finance has issued a directive to all Covered Entities and Public Institutions across the country, instructing them to strictly comply with the Public Investment Management (PIM) framework for capital expenditure (CAPEX) projects before seeking Commitment Authorisation.
The directive, signed by the Deputy Minister for Finance, Thomas Nyarko Ampem (MP), on behalf of the Minister, emphasised that all public investment projects must strictly adhere to statutory planning and appraisal processes.
According to the Ministry, the directive is pursuant to the Public Financial Management Act, 2016 (Act 921) and the Public Financial Management (Public Investment Management) Regulations, 2020 (L.I. 2411). Under these legal frameworks, public institutions are required to comply with prescribed processes for the preparation, appraisal, and inclusion of public investment projects in their respective Public Investment Plans (PIPs).
The Ministry noted that its Guidelines for the Preparation and Appraisal of Projects and the Development of the Public Investment Plan were duly issued pursuant to Section 33(5) of Act 921 and Regulations 25 to 27 of L.I. 2411.
Consequently, the Ministry warned that requests for Commitment Authorisation for unappraised CAPEX procurements will not be honoured. Covered entities and public institutions have been instructed to ensure that all proposed capital investment projects pass through the approved public investment planning requirements and are fully reflected in their PIPs prior to submitting requests for Commitment Authorisation.
“Consequently, requests for Commitment Authorisation for CAPEX procurements that have not been appraised will not be honoured,” the statement warned. “Institutions should therefore ensure that proposed capital investment projects have gone through the applicable public investment planning requirements approved by this Ministry and are duly reflected in their PIPs before submitting requests for Commitment Authorisation to the Ministry.”
The Ministry expressed confidence in the cooperation of all affected state entities, stressing that strict compliance with the directive remains mandatory for all processing of Commitment Authorisation applications.
By: Rainbowradioonline.com/Ghana