The Controller and Accountant-General’s Department (CAGD) has directed all covered entities to obtain prior written approval before opening bank accounts with the Bank of Ghana or commercial banks.
The directive follows concerns over some covered entities opening bank accounts without the required authorisation from the Controller and Accountant-General.
According to the Department, the practice contravenes Section 51(1) of the Public Financial Management Act, 2016 (Act 921), which gives the Controller and Accountant-General the sole authority to approve the opening of bank accounts for covered entities.
The CAGD has therefore reminded all covered entities to obtain written approval before opening any new account.
It warned that accounts opened without the requisite approval will be closed, while funds held in such accounts will be transferred into the Consolidated Fund.
The Department further cautioned that covered entities that fail to comply with the directive could face sanctions under the Public Financial Management Act and other applicable laws and regulations.
The CAGD urged all affected institutions to comply with the directive to ensure proper management and accountability of public funds.
