By Gloria Anderson
The Government of Ghana has announced a major shift in public financial management, directing all Ministries, Departments and Agencies (MDAs) to transition from manual cheque payments to a fully digital system as part of a nationwide rollout of electronic funds transfer.
The move will see manual cheque payments completely phased out and replaced with digital transactions processed through the Ghana Integrated Financial Management Information System (GIFMIS) and the Ghana Interbank Payment and Settlement Systems (GhIPSS). The reform is aimed at strengthening transparency, efficiency and accountability in the management of public funds.
Commercial banks have been tasked with supporting MDAs in the transition process to ensure smooth nationwide implementation.
Speaking at the launch, the Controller and Accountant-General, Kwasi Agyei, described the initiative as a critical step towards improving financial governance in the public sector.
“This initiative will strengthen transparency, efficiency and integrity in Ghana’s public financial management system,” he said, adding that it reflects the Ministry’s commitment to enhancing financial accountability.
He urged chief directors and heads of institutions to take the lead in ensuring compliance, strengthening internal controls and driving the reform across the public service.
The Deputy Minister for Finance, Thomas Nyarko Ampem, also underscored the importance of the transition, noting that it would streamline operations and eliminate inefficiencies in government transactions.
“We are taking a significant step in our journey to modernise public financial management, strengthen transparency and eliminate inefficiencies in the way government and the private sector transact business,” he said.
“The integration of government systems with the GIFMIS platform to enable electronic funds transfer is a major milestone.”
The Bank of Ghana has played a key role in strengthening the country’s payment infrastructure to support the initiative. A representative of the central bank noted that the system would enhance operational efficiency and ensure greater accountability among MDAs.
The Chief Executive Officer of the Ghana Association of Banks, John Awuah, welcomed the rollout, highlighting its impact on financial traceability and oversight.
“The nationwide rollout will ensure that every cedi transacted on the platform is traceable,” he said.
Authorities say the reform will reduce delays, curb financial leakages and improve overall public sector efficiency, marking a significant milestone in efforts to modernise Ghana’s financial systems and strengthen accountability.
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Source:
www.gbcghanaonline.com