Ghana CAGD warns public institutions against unauthorized bank accounts

The Controller and Accountant-General’s Department (CAGD) has issued a directive to all ministries, departments, agencies, and other public institutions in Ghana against opening bank accounts without prior written approval. This mandate applies to accounts held with both the Bank of Ghana and various commercial banks.

The CAGD noted that some entities have been bypassing the approval process, which constitutes a breach of Section 51(1) of the Public Financial Management Act, 2016 (Act 921). Under this law, the Controller and Accountant-General must authorize the opening of bank accounts for covered entities to ensure proper oversight and accountability.

Institutions found to be in violation of this directive will face the closure of unauthorized accounts, and all funds held within them will be transferred to the Consolidated Fund. Furthermore, the CAGD warned that officials and institutions failing to comply may face sanctions under the Public Financial Management Act and other relevant regulations.