The Finance Ministry has disclosed that it is wrapping up processes to consolidate the over 15,000 government accounts within the commercial banks into a single account with the Bank of Ghana, by the end of the year.
The Single Treasury Account policy is under the Financial Management Act, 2016, (Act 921).
The law requires that government sets up a single bank account with the Central Bank through which it can monitor all receipts and payments to ensure effective management of state funds.
Government has about 15,000 separate accounts with different banks which is managed by different government institutions, including Ministries, Departments and Agencies.
The Ministry of Finance has started moving the public accounts to the BoG through the Public Financial Management Reforms Programme.
Director of the programme, Dr. Muhammed Sani Abdullai told Citi Business News that processes to begin the full implementation of the Single Treasury Account are almost complete.
“As we speak now, we have all IGF institutions; the majority of them, having their accounts at BoG. And we also have majority of MDAs having closed their accounts with the commercial banks and sent to BoG. So one can say that largely, we are on track.”
Also under the policy, Ministries, Departments and Agencies can only have a maximum of four bank accounts.
Dr. Abdullai explained further that “ If you are say the Minister of Finance you should be able to say at the beginning of business day today, this is the volume of money I have or the level of money I have. So the account is meant to ensure that the Minister is aware of what is in the purse and then be able to plan on the basis of that.”
He emphasized that the ministry is also developing innovative ways of tracking public expenditure.
“A lot of work has been done and we are even moving beyond that to ensuring that the Finance Minister and who ever needs to know can check on their mobile phones and say that is the amount of cash that is standing.”
Some financial analysts have welcomed the creation of the single account describing it as one of the surest ways to ensure accountability with regards to public expenditure.
By Nana Oye Ankrah/citibusinessnews.com/Ghana