The Controller and Accountant-General’s Department (CAGD) has issued a firm directive requiring all covered entities to obtain prior written approval from the Controller and Accountant-General before opening any bank account with the Bank of Ghana or any commercial bank .
The directive, contained in a press statement dated August 17, 2026, follows concerns that some public institutions have been opening accounts with commercial banks without the required authorisation—a practice the Department says contravenes Ghana’s public financial management laws .
⚖️ The Legal Basis: Section 51(1) of Act 921
The CAGD said the unauthorised opening of bank accounts infringes 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 all covered entities .
Under the directive, a covered entity cannot independently establish a new bank account with a commercial bank without first securing the requisite written authorisation. The Department stressed that the requirement is mandatory and not optional for entities covered by the public financial management framework .
🏛️ What Are Covered Entities?
Covered entities are all organisations and agencies of the state that fall under the Public Financial Management Act, 2016 (Act 921) . Under the Act, these include:
· The Executive, Legislature and Judiciary
· Constitutional bodies
· Ministries, departments and agencies (MDAs)
· Local government authorities
· The public service
· Autonomous agencies and statutory bodies
In practice, this encompasses a wide array of public institutions. The Ministry of Finance’s own Public Financial Management Compliance League Table lists over 100 entities, including:
· MDAs: Ministry of Finance, Ministry of Health, Ministry of Education, Ministry of Energy and Green Transition
· State-owned enterprises and commissions: Ghana National Petroleum Corporation, Petroleum Commission, Cocoa Marketing Company, Minerals Commission
· Constitutional and governance bodies: Electoral Commission, Commission on Human Rights and Administrative Justice, Ghana Audit Service
· Funds and authorities: District Assemblies Common Fund, Ghana Education Trust Fund, National Petroleum Authority
The CAGD’s directive therefore applies to all these institutions, covering their accounts with both the central bank and commercial banks.
🔍 Why the Directive Matters
The CAGD said its monitoring activities had uncovered cases where some public institutions opened accounts with commercial banks without obtaining the required approval . The Department described this practice as undermining established controls governing public funds and potentially enabling the unauthorised operation of government cash resources .
The directive forms part of the government’s broader efforts to strengthen financial controls, improve accountability in the management of public funds, and ensure that all government cash is captured within the framework of the Treasury Single Account system established under the PFM Act .
⚠️ Consequences of Non-Compliance
The CAGD has warned that failure to comply with the directive will have direct financial consequences :
· Closure of unauthorised accounts: Any bank account found to have been opened without the requisite authorisation will be closed .
· Transfer of funds: All funds held in such unauthorised accounts will be transferred into the Consolidated Fund .
· Sanctions: The CAGD said it would enforce appropriate sanctions against covered entities that fail to comply, in accordance with the provisions of the Public Financial Management Act and other applicable laws and regulations .
The directive also signals that existing accounts opened without the required approval are subject to the same action, including closure and fund transfers .
📋 CAGD’s Call for Compliance
The Department has directed all covered entities to take steps to ensure full compliance with Section 51(1) of Act 921 and to secure prior written approval before opening any new account .
The CAGD said it was counting on the cooperation of all covered entities to ensure adherence to the directive and compliance with Ghana’s public financial management framework .
🏁 Conclusion
This directive represents a significant tightening of financial controls over public institutions in Ghana. By centralising approval authority for bank accounts in the Office of the Controller and Accountant-General, the CAGD aims to close a loophole that has allowed some public entities to operate accounts outside the established oversight framework.
The move comes as the Ministry of Finance continues to strengthen public financial management through initiatives such as the PFM Compliance League Table, which ranks institutions on their adherence to fiscal rules and supports corrective action for those found non-compliant .
