Controller General directs public entities to seek approval before opening bank accounts

The Controller and Accountant-General's Department (CAGD) has issued an order requiring all public institutions to seek prior written approval before establishing bank accounts with the Bank of Ghana or any commercial banks. This directive was issued following reports of certain public entities opening bank accounts without obtaining the necessary authorization from the Controller and Accountant-General.

The CAGD explained that such practices violate Section 51(1) of the Public Financial Management Act, 2016 (Act 921), which clearly states that the Controller and Accountant-General holds the exclusive power to approve the opening of bank accounts for public entities. Consequently, the CAGD has reminded all public entities to secure written approval before opening any new account.

Failure to comply could result in the closure of the unauthorized accounts, with the funds transferred to the Consolidated Fund. The CAGD also warned that entities non-compliant with the directive may face sanctions under the Public Financial Management Act and other relevant laws. The department urged all affected institutions to adhere to the directive in order to ensure the proper management and accountability of public funds.