CAGD Moves to Shut Down Unauthorized Bank Accounts, Warns MDAs
The Controller and Accountant-General’s Department (CAGD) has warned Ministries, Departments and Agencies (MDAs) and other public institutions against opening bank accounts with the Bank of Ghana or commercial banks without prior written authorization.
The Department said the practice constitutes a violation of Section 51(1) of the Public Financial Management Act, 2016 (Act 921), which gives the Controller and Accountant-General the authority to approve the opening of bank accounts by institutions covered under the public financial management framework.
In a circular issued to government institutions, the CAGD said it had observed that some public entities were operating accounts with commercial banks without obtaining the required approval.
The Department has consequently directed all affected institutions to secure prior written authorization before opening any new account with the Bank of Ghana or a commercial bank.
The CAGD warned that institutions that disregard the directive risk having their unauthorized accounts closed, with all funds held in those 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 Department cautioned.
It further warned that public institutions found violating the directive would face sanctions under the Public Financial Management Act and other applicable laws and regulations.
The latest directive forms part of measures by the CAGD to strengthen financial controls, ensure accountability in the management of public funds and prevent the unauthorized operation of government bank accounts.
Source: Felix NYAABA/expressnewsghana.com
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