President John Dramani Mahama has called for sweeping reforms to decentralise the operations of the Controller and Accountant-General’s Department (CAGD), arguing that the current centralised structure fuels delays, inefficiencies, and financial leakages across the public sector.
Speaking at the Annual Conference of the African Association of Accountants General in Accra, the President said Ghana needs a more responsive payroll and financial management system.
“I think that the time has come when we take bold action about decentralising. The Accountant-General in Ghana manages the payroll of a nurse in my hometown in Bole. If she reports to work, she doesn’t report to work; if she deserts her position, her salary continues to go into her account because by the time somebody writes a letter to the region, the region sends it to the ministry, the ministry sends it to the Accountant-General, some 3, 4, 5, 6 months have passed.”
He stressed that such delays frequently result in needless financial losses.
“Every year, the Auditor-General will flag it and say somebody continued to receive a salary even after they had deserted their post.
“There’s a case of the person who died… and the officials of the entity attended his funeral. And yet, after the man died, they attended his funeral, for 36 months, his salary was credited to his account. I mean, that is extreme anyway, but it’s an example of what can happen if we don’t decentralise.”
The Controller and Accountant-General’s Department also highlighted persistent challenges with the Ghana Integrated Financial Management System (GIFMIS), despite it being a major reform tool in Ghana’s public financial management architecture.
In a statement at the conference, the department warned that some government entities continue to bypass GIFMIS.
“Some covered entities continue to process transactions outside the GIFMIS platform, using manual cheques and bank letters, bypassing the established controls. While these methods may allow immediate access to funds, they compromise the integrity and transparency of our public financial management system.”
The department said non-compliance weakens transparency, reporting and cash management.
“The non-usage of GIFMIS impacts the generation of timely financial reports, limits real-time financial information for decision-making, hinders effective cash management, reduces traceability and increases the risk of financial irregularities.”
To address the issue, the government plans to eliminate all manual payment systems.
“In collaboration with the Bank of Ghana and the Ghana Interbank Payment and Settlement System (GhiPSS), the department will roll out the economic funds transfer system to all commercial banks by the end of the first quarter of 2026. This will result in the complete withdrawal of manual cheques and ensure that all payments are processed through GIFMIS.”
Deputy Finance Minister Thomas Nyarko Ampem expressed confidence that the government will maintain a clean record throughout its tenure.
“It has been 10 months of no scandal. Hopefully, we will end the first year with no scandal. Second year, third year, and the administration will end without a scandal,” he said, noting that the government remains guided by the President’s repeated warnings against corruption.
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