Local Assemblies risk account freeze for breaking gov’t financial system

By Rebecca Okine

The Ministry of Finance has warned that Metropolitan, Municipal and District Assemblies (MMDAs) operating outside the Ghana Integrated Financial Management Information System (GIFMIS) risk having their accounts frozen.

The move forms part of government’s crackdown on financial mismanagement, particularly the misuse of internally generated funds (IGFs) by local authorities.

It also comes amid concerns raised in the Auditor-General’s report, which revealed a sharp rise in payroll fraud from GHS14 million in 2023 to GHS57 million in 2024.

Addressing the Public Accounts Committee, Deputy Finance Minister Thomas Nyarko Ampem said the ministry had begun engaging with the assemblies but would not hesitate to impose sanctions on defaulters.

“Especially those using their IGFs, they are the main culprits now. We want to give them the benefit of the doubt,” he noted.

Mr Ampem disclosed that the ministry, working with the Controller and Accountant-General’s Department, will soon announce strict compliance timelines.

“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,” he warned.

Mr Ampem assured, however, that the enforcement would not disrupt the delivery of public services.

“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,” he stressed.

The ministry believes full compliance with GIFMIS will enhance transparency, curb financial leakages, and strengthen accountability in public financial management across all assemblies.