The Controller and Accountant-General’s Department (CAGD) has directed ministries, departments, agencies (MDAs) and other public institutions to stop opening bank accounts without prior written approval.
The directive applies to all public institutions covered by Ghana’s public financial management laws, including accounts opened with both the Bank of Ghana and commercial banks.
The CAGD said its monitoring activities had uncovered cases where some public institutions opened accounts with commercial banks without obtaining the required authorisation. It described the practice as a violation of the Public Financial Management Act, 2016 (Act 921).
Section 51(1) of the Act requires public institutions under the law to obtain approval from the Controller and Accountant-General before opening bank accounts.
In a circular issued to the affected institutions, the CAGD instructed any entity seeking to open a new account to first obtain written approval from the appropriate authority.
The department warned that accounts opened without the necessary clearance would be closed. It added that any funds held in such accounts would be transferred to the Consolidated Fund.
The CAGD further cautioned that institutions and public officials who fail to comply with the directive could face sanctions under the Public Financial Management Act and other applicable laws.
The department said the measure is intended to strengthen oversight and improve accountability in the management of public funds.
It urged all ministries, departments, agencies and other covered institutions to comply with the requirement and ensure that all their bank accounts are properly authorised.
The CAGD stressed that failure to follow the directive would lead to the closure of unauthorised accounts and the transfer of their balances to the Consolidated Fund.
