The Controller and Accountant-General’s Department (CAGD) has issued a warning to ministries, departments, agencies and other public institutions against opening bank accounts without obtaining prior written approval.
The directive applies to all public institutions operating under Ghana’s Public Financial Management laws, including accounts opened with the Bank of Ghana and commercial banks.
According to the CAGD, its monitoring activities have uncovered cases where some government institutions opened bank accounts with commercial banks without securing the required authorisation.
The department said such actions contravene Section 51(1) of the Public Financial Management Act, 2016 (Act 921), which gives the Controller and Accountant-General the authority to approve the opening of bank accounts by institutions covered by the law.
CAGD Orders Prior Approval for New Bank Accounts
In a circular issued to public institutions, the CAGD directed any entity seeking to open a new bank account to first obtain written approval from the appropriate authority.
The department warned that bank accounts opened without the necessary clearance will be closed, while any funds held in those accounts will be transferred into the Consolidated Fund.
The CAGD further cautioned public institutions and officials that failure to comply with the directive could result in sanctions under Ghana’s Public Financial Management Act and other applicable laws and regulations.
Government Institutions Urged to Protect Public Funds
The Controller and Accountant-General’s Department urged all covered institutions to strictly follow the bank account approval requirements to strengthen financial accountability, transparency and effective management of public funds.
The directive forms part of broader efforts to improve public financial management in Ghana, strengthen government oversight and prevent the unauthorised handling of state funds.
The CAGD reiterated that any account established without the required approval will be closed and all funds in such accounts transferred to the Consolidated Fund.
Source: newsthemegh.com