The Bank of Ghana (BoG) has defended its choice to persist with the new head office construction, despite facing a substantial loss of 10.50 billion cedis in 2023.
Last year, the Central Bank allocated $82 million to contractors for the ongoing project, even while grappling with financial difficulties.
The decision to continue with the project has been questioned, with MP Yusif Suleman challenging its practicality given the bank’s financial situation. Mr. Suleman voiced these concerns during a Public Accounts Committee session on Friday.
Stephen Opasa, Special Advisor to the BoG Governor, justified the continuation of the construction, arguing that the project is too advanced to be stopped now.
He pointed out that the bank’s losses were attributable to multiple factors, not just the construction costs.
Mr. Opasa acknowledged Mr. Suleman’s concerns but contended that halting the project at this stage would be inefficient and costly, given the contractors already engaged.
“The alternative was to stop the project. While we understand the perspective of minimizing losses, the losses in 2023 and 2022 were not solely due to this project. Halting it might not have been the best decision given the circumstances, with contractors actively engaged and the project significantly advanced.”
The Bank of Ghana’s defense arises as the institution is pursuing a government bailout to bolster its capital and advance its policy goals.
tigpost.co