Controller warns public institutions against opening unapproved bank accounts

The Controller and Accountant-General’s Department (CAGD) has cautioned ministries, departments, agencies and other public institutions against opening bank accounts with the Bank of Ghana or commercial banks without obtaining prior written approval.

The Department said the practice constitutes a breach of Section 51(1) of the Public Financial Management Act, 2016 (Act 921), which mandates the Controller and Accountant-General to approve the opening of bank accounts by covered entities.

In a circular issued to public institutions, the CAGD said it had observed that some entities were opening accounts with commercial banks without securing the required authorisation.

It has therefore directed all affected institutions to seek written approval before opening any new bank account with either the Bank of Ghana or a commercial bank.

The Department warned that any account opened without the necessary approval would be closed, with all funds held in such accounts transferred to the Consolidated Fund.

“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 stated.

The CAGD further cautioned that institutions that disregard the directive could face sanctions under the Public Financial Management Act and other relevant laws and regulations.

The directive is aimed at strengthening financial controls and ensuring that public funds are managed in accordance with Ghana’s public financial management framework.