The Bank of Ghana (BoG) has justified its decision to continue the construction of a new head office despite incurring a significant loss of 10.50 billion cedis in 2023.
The Central Bank paid $82 million to contractors for the project last year, even amid financial challenges.
The continuation of the project has faced scrutiny, with MP Yusif Suleman questioning its feasibility given the bank’s financial state. Mr Suleman raised these concerns during a Public Accounts Committee hearing on Friday.
Special Advisor to the BoG Governor, Stephen Opasa, defended the decision to proceed with the construction, stating that the project is already too far along to halt.
He emphasized that, the bank’s losses were due to various factors, not solely the construction expenses.
Mr Opasa acknowledged the concerns raised by Mr. Suleman but argued that stopping the project mid-way would have been inefficient and costly due to the contractors already on site.
“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 BoG’s defense comes at a time when the bank is seeking a government bailout to recapitalize and support its policy objectives.
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