Prez. Mahama Urges Decentralisation of Accountant-General System to Curb Payroll Waste

Ghana’s President, John Dramani Mahama, has called for reforms to decentralise the operations of the Controller and Accountant-General’s Department (CAGD). He said the current centralised system causes delays, inefficiencies, and financial losses across the public sector.

Speaking at the Annual Conference of the African Association of Accountants-General in Accra, President Mahama said Ghana needs a more responsive payroll and financial management system. He explained that under the current system, even a nurse in his hometown of Bole could receive a salary for months without actually working. “By the time a letter reaches the Accountant-General, sometimes three, four, or even six months have passed,” he said.

The President highlighted cases of financial abuse, including employees who deserted their posts or even died, yet continued receiving salaries. “Every year, the Auditor-General flags cases where people continued to receive salaries after deserting their posts,” he said. “There was a case of a man who died, and for 36 months his salary was still credited to his account. This shows why decentralisation is urgent.”

The CAGD also pointed out challenges with the Ghana Integrated Financial Management System (GIFMIS), a key tool for financial management. Some government entities continue to bypass GIFMIS, using manual cheques and bank letters. While this gives quick access to funds, it undermines transparency and proper reporting.

The department warned that non-compliance with GIFMIS reduces the accuracy of financial reports, limits real-time decision-making, hinders cash management, and increases the risk of financial irregularities.

To address these issues, the government plans to remove all manual payment systems. In collaboration with the Bank of Ghana and the Ghana Interbank Payment and Settlement System (GhiPSS), the CAGD will implement the economic funds transfer system across all commercial banks by the end of the first quarter of 2026. This will ensure all payments are processed through GIFMIS, eliminating manual cheques.

Deputy Finance Minister Thomas Nyarko Ampem expressed confidence in the government’s integrity, noting that the administration has maintained a clean record for the past 10 months. “Hopefully, we will end the first year with no scandal, and continue without scandal throughout the administration,” he said, emphasizing the government’s commitment to fighting corruption under President Mahama’s leadership.

The proposed decentralisation and full use of GIFMIS aim to improve accountability, reduce payroll abuse, and strengthen public financial management across Ghana.