The Controller and Accountant-General, Mr Kwasi Agyei, has reaffirmed that all government institutions will be migrated onto a secure Electronic Funds Transfer (EFT) system by the first quarter of 2026.
He said the reform is designed to strengthen efficiency, transparency and the integrity of public financial management, replacing manual cheque transactions that expose the state to fraud risks and reconciliation delays.
Mr Agyei was speaking at a high-level consultative meeting in Accra involving the Controller and Accountant-General’s Department, the Ministry of Finance, and Managing Directors of commercial banks.
The discussions focused on the integration of the Ghana Integrated Financial Management Information System (GIFMIS), the Ghana Interbank Payment and Settlement Systems (GhIPSS), and the new EFT module.
The shift will leverage the Ghana Integrated Financial Management Information System (GIFMIS) and the Ghana Interbank Payment and Settlement Systems (GhIPSS) Electronic Funds Transfer (EFT) platform to ensure all government transactions are processed electronically. This means Ministries, Departments, and Agencies (MDAs), as well as Metropolitan, Municipal, and District Assemblies (MMDAs), can make direct payments from their commercial and rural bank accounts to individuals and suppliers, with all transactions processed through GIFMIS.
Mr Agyei noted that although the Public Financial Management Act (Act 921) designates GIFMIS as the official system for public fund management, many MDAs and local authorities continue to rely on manual cheques for payments.
This, he said, undermines transparency and delays the preparation of timely financial reports and national accounts.
“It is imperative that we eliminate the use of manual cheques and fully embrace electronic funds transfer,” he said. “This initiative is not just a technological upgrade it is a transformative step towards strengthening accountability in the management of public funds.”
The Auditor-General’s 2024 report emphasizes the urgency of this reform, highlighting GH¢ 4.6 billion in cash irregularities across public boards, corporations, and statutory institutions, and total financial irregularities amounting to GH¢ 18.4 billion for the year.
Over the past decade, public institutions have recorded GH¢ 99.57 billion in various infractions, including GH¢ 7.47 billion in cash irregularities. These figures, though not solely attributable to manual cheque payments, reveal the scale of fiscal vulnerabilities that electronic payments are designed to mitigate.
Mr. Agyei indicated that the CAGD will coordinate sensitization and training programmes for MDAs to ensure readiness ahead of the rollout, reinforcing a culture of financial discipline and transparency.
He reiterated the timeline, noting, “Our goal is to fully transition to secure electronic payment systems by the end of the first quarter of 2026.” The reform is expected to enhance public sector efficiency, reduce fraud, improve reconciliations, and strengthen public confidence in government financial operations, marking a significant milestone in Ghana’s public financial management reforms.
