CAGD orders covered entities to seek approval before opening bank accounts
The Controller and Accountant-General’s Department (CAGD) has directed all covered entities to obtain prior written approval from the Controller and Accountant-General before opening bank accounts with the Bank of Ghana or any commercial bank.
The Controller and Accountant-General’s Department (CAGD) has instructed all covered entities to seek prior written approval from the Controller and Accountant-General before opening any bank accounts with the Bank of Ghana or commercial banks. This directive follows concerns that some entities are opening accounts without proper authorization, which the CAGD claims violates Ghana’s public financial management laws.
The unauthorized opening of accounts is deemed a breach of Section 51(1) of the Public Financial Management Act, 2016 (Act 921), which grants the Controller and Accountant-General exclusive authority to authorize covered entities’ bank accounts. Under the new rule, all entities must obtain written approval from the Controller and Accountant-General before opening a bank account, regardless of whether the account is with the Bank of Ghana or a commercial bank.
The CAGD emphasizes that this requirement is mandatory and not optional for covered entities under the public financial management framework. Non-compliance will result in closed unauthorized accounts and transferred funds to the Consolidated Fund. The Department warns of severe sanctions for entities failing to comply, aligning with the Public Financial Management Act and other relevant laws.
The CAGD urges covered entities to comply fully with the directive and uphold Ghana’s public financial management framework.
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