CAGD to Close Unauthorised MDAs’ Bank Accounts

Accra: The Controller and Accountant-General's Department (CAGD) has cautioned ministries, departments, agencies, and other public institutions against opening bank accounts without obtaining prior written authorisation. The department stated that the directive applies to all entities governed by Ghana's public financial management laws and covers accounts opened either with the Bank of Ghana or commercial banks. According to Ghana Web, CAGD's monitoring has revealed instances where some public institutions opened bank accounts with commercial banks without securing the necessary approval. Such actions violate Section 51(1) of the Public Financial Management Act, 2016 (Act 921), which mandates the Controller and Accountant-General to authorise the opening of bank accounts by covered entities. In a circular to public institutions, the department directed all entities intending to establish new bank accounts to first obtain written approval from the appropriate authority. The CAGD warned that any account open ed without the required clearance would be shut down, while funds held in such accounts would be transferred to the Consolidated Fund. It also cautioned that institutions and officials who disregard the directive could face sanctions under the Public Financial Management Act and other relevant laws and regulations. The department urged all covered entities to comply with the requirement to ensure proper oversight and accountability in the management of public funds. 'Failure to comply with this directive shall result in the closure of any bank accounts opened without the requisite approval, and all funds held in such accounts shall be transferred into the Consolidated Fund,' the CAGD said.