The Controller and Accountant-General’s Department (CADG) has ordered public entities to stop opening bank accounts without prior approval, warning that unauthorised accounts will be closed and their funds transferred to the Consolidated Fund.
The directive is aimed at tightening control over public funds after the Controller and Accountant-General’s Department said it had identified instances where covered entities opened accounts with commercial banks without obtaining the required written approval.
Under Section 51(1) of the Public Financial Management Act, 2016 (Act 921), the Controller and Accountant-General has sole authority to approve the opening of bank accounts for covered entities, according to the circular.
The department directed all covered entities to obtain prior written approval before opening any account with either the Bank of Ghana or a commercial bank.
Accounts found to have been opened without the required approval will be closed, while funds held in those accounts will be transferred into the Consolidated Fund, the department said.
The Controller and Accountant-General’s Department will also impose sanctions under the Public Financial Management Act and other applicable laws and regulations against entities that fail to comply with the directive.
The move is to centralise oversight of public finances and prevent government funds from being held outside authorised financial channels.
