CAGD has issued a final warning against unauthorized bank accounts, saying non-compliant accounts may be closed and funds transferred to the Consolidated Fund.
By Ferdinand Ellis | EducateGhana.com
The Controller and Accountant-General’s Department (CAGD) has issued a final warning to public institutions against opening bank accounts without prior approval, cautioning that unauthorized accounts could be closed and funds transferred into the Consolidated Fund.
The warning is contained in Circular No. CC.T01/26, dated 17 August 2026 and signed by the Controller and Accountant-General, Kwasi Agyei.
According to the circular, some public institutions continue to open accounts with commercial banks without obtaining the required approval from the CAGD.
CAGD says unauthorized accounts violate the law
The Controller and Accountant-General’s Department said the opening of bank accounts by covered entities without its approval constitutes a violation of the Public Financial Management Act, 2016 (Act 921).
CAGD specifically cited Section 51(1) of the Act, which provides the legal basis for its authority over the opening of bank accounts by covered entities.
The Department has therefore directed 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 a commercial bank.
The directive is intended to strengthen control over public funds and ensure that government resources are managed through approved financial channels.
➡ Related: [Public Financial Management Act in Ghana: Complete Guide]
➡ Related: [Controller and Accountant-General’s Department: Functions and Responsibilities]
What CAGD has directed public institutions to do
CAGD has instructed the heads of all covered entities to ensure that no bank account is opened without the required written authorization.
The approval must be obtained before the account is established, meaning institutions cannot open an account first and seek authorization afterwards.
The Department is also relying on heads of covered entities to ensure that their institutions comply with the directive.
The latest circular therefore places responsibility on institutional leadership to ensure that banking arrangements involving public funds comply with the applicable financial management rules.
➡ Related: [Ghana’s Public Financial Management System Explained]
➡ Related: [Financial Management Rules for Government Institutions in Ghana]
Unauthorized accounts could be closed
CAGD has warned that institutions that open bank accounts without the required approval could face direct enforcement action.
According to the circular, an account opened without the requisite approval will be closed.
The Department further stated that funds held in such unauthorized accounts will be transferred into the Consolidated Fund.
This means public institutions cannot assume that funds deposited into an unauthorized account will remain under their control if the account is subsequently identified as non-compliant.
➡ Related: [Consolidated Fund of Ghana: Meaning, Sources and Uses]
➡ Related: [Government Revenue and Public Expenditure in Ghana]
Institutions could face sanctions
The financial consequences are not the only measures outlined by CAGD.
The Department said appropriate sanctions will be enforced against covered entities that fail to comply with the directive.
Such sanctions will be applied in accordance with the Public Financial Management Act and other applicable laws and regulations.
The warning therefore goes beyond an administrative reminder and signals an intention to enforce the legal requirements governing public bank accounts.
➡ Related: [Public Sector Accountability in Ghana: Institutions and Oversight]
➡ Related: [Audit and Financial Accountability in Ghana’s Public Sector]
Which institutions are covered?
The directive applies broadly to institutions that fall within the definition of covered entities under Ghana’s public financial management framework.
These include Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs).
It also covers State-Owned Enterprises and other public institutions that manage public funds, subject to the applicable provisions of the law.
The requirement is therefore relevant to a wide range of public institutions rather than only central government ministries.
➡ Related: [Ministries, Departments and Agencies in Ghana: Complete Guide]
➡ Related: [Metropolitan, Municipal and District Assemblies in Ghana: Functions and Structure]
Why control of public bank accounts matters
The control of government bank accounts is an important part of public financial management.
Centralized authorization helps government maintain oversight of public funds, monitor cash balances and strengthen accountability across public institutions.
Unauthorized accounts can create difficulties in tracking public resources and may weaken established financial control mechanisms.
CAGD’s latest warning is therefore aimed at ensuring that public funds remain within the approved financial management framework.
➡ Related: [Public Sector Financial Management in Ghana]
➡ Related: [Ghana’s Consolidated Fund and Public Accounts Explained]
CAGD gives final warning
The Department described the latest directive as a final warning to covered entities and called on institutional heads to ensure full compliance.
The circular requires entities to obtain prior written approval from the Controller and Accountant-General before opening accounts with the Bank of Ghana or commercial banks.
CAGD also said it is counting on the cooperation of heads of covered entities to ensure that the requirements are observed.
Institutions that disregard the directive risk closure of unauthorized accounts, transfer of funds into the Consolidated Fund and other sanctions provided for under Ghana’s financial management laws.
About the Author
Ferdinand Ellis is an education researcher, policy analyst, lecturer and education journalist. He is the founder of EducateGhana.com, Ghana’s Education Intelligence Platform, where he reports on education policy, public-sector developments, governance, research and national affairs.
