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

The department said opening such accounts without approval constitutes a breach 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 covered entities.

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

It directed all affected institutions to obtain prior written approval before opening any new bank account with the Bank of Ghana or a commercial bank.

The department warned that accounts opened without the requisite approval would be closed and all funds held in them transferred into 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 said.

It further warned that institutions that fail to comply with the directive would face sanctions under the Public Financial Management Act and other applicable laws and regulations.