The Ministry of Finance has cautioned Metropolitan, Municipal, and District Assemblies (MMDAs) operating outside the Ghana Integrated Financial Management Information System (GIFMIS) that they risk having their accounts frozen if they fail to comply.
The directive is part of the government’s intensified efforts to curb financial mismanagement and the misuse of public funds by local authorities and state institutions.
It comes against the backdrop of a sharp rise in payroll fraud, with the Auditor-General’s latest report showing that such infractions surged from GH₵14 million in 2023 to GH₵57 million in 2024.
Addressing the Public Accounts Committee (PAC), Deputy Minister for Finance, Hon. Thomas Nyarko Ampem, disclosed that the ministry has already started engaging the assemblies but will impose sanctions on those who continue to operate outside GIFMIS.
“Especially those using their IGFs, they are the main culprits now. We want to give them the benefit of the doubt,” Hon. Ampem explained. He stressed that the ministry, in collaboration with the Controller and Accountant-General’s Department, will soon meet with the assemblies to set firm timelines for compliance.
“After a certain time within this year, you will not be able to spend your money if you are not operating within the government system”.
Deputy Minister for Finance, Hon. Thomas Nyarko Ampem
While giving the assurance that essential public services will not be disrupted during the transition, the Deputy Minister emphasized that manual financial transactions would soon be prohibited.
“We don’t want government services to suffer or the citizenry to be denied access. But very soon, we will announce the timelines, and after that, no manual transactions will be allowed outside GIFMIS”.
Deputy Minister for Finance, Hon. Thomas Nyarko Ampem
Payroll Infractions
The Deputy Minister further underscored the government’s resolve to tackle payroll infractions, describing them as a persistent challenge undermining public sector accountability.
He condemned the practice of individuals receiving allowances and salaries without working and warned that officials who validate such payments will face consequences. “We’re going to expose and deal with officers who validate people who have not worked for salaries and allowances yet continue to enjoy such benefits,” he declared.
The PAC hearing also brought to light the steps being taken by the Controller and Accountant-General’s Department to address the issue. Controller and Accountant-General, Kwasi Agyei, revealed that his office is collaborating with the Office of the Special Prosecutor (OSP) to investigate the payroll infractions flagged in the Auditor-General’s report.
He stressed that the mere recovery of misused funds was no longer sufficient and that stricter measures were needed to deter future misconduct.
“My issue is we shouldn’t just end at recovery because we realised that we were happy when they said recovered, then we tick. We should go beyond recovery. The audit report will definitely indicate the recipients and their staff ID. We are working in collaboration with other security agencies, including the OSP”.
Controller and Accountant-General, Kwasi Agyei
He explained that the system provides a clear audit trail that can help investigators identify individuals who processed fraudulent allowances and salaries.
“There is an audit trail. We can go straight into the system and identify who actually, on that particular day, processed the allowance. It is very easy to do. Once we get that, we will exercise patience, and through investigations, those culpable will be brought to book”.
Controller and Accountant-General, Kwasi Agyei
Members of the Public Accounts Committee expressed concern over the persistent nature of financial irregularities within the public sector. The Auditor-General’s report cited numerous instances of unearned salaries, responsibility allowances paid to undeserving staff, and overpayment of wages.
These practices, lawmakers argued, not only drain public resources but also erode public trust in the state’s financial management systems. The Ministry of Finance’s latest move reflects a growing determination by the government to strengthen financial discipline across the public sector. By enforcing strict adherence to GIFMIS, authorities believe they can close loopholes that enable financial malpractices at the local level.
At the same time, the partnership between the Controller and the Accountant-General’s Department and the Office of the Special Prosecutor signals a firmer approach towards accountability, ensuring that individuals and officials complicit in mismanagement face both administrative and legal sanctions.
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