Bank of Ghana defends ongoing HQ construction amid significant financial losses

The Bank of Ghana (BoG) has defended its decision to continue the construction of its new head office despite recording a significant loss of 10.50 billion cedis in 2023.

The Central Bank spent $82 million on contractors for the project last year, which has drawn criticism from various quarters, including MP Yusif Suleman.

During a Public Accounts Committee hearing on Friday, Suleman questioned the viability of the project given the bank’s financial situation. However, Stephen Opasa, Special Advisor to the BoG Governor, justified the ongoing construction, arguing that the project was too advanced to halt. He emphasized that the losses incurred were due to other factors, not the construction project itself.

Opasa acknowledged the concerns raised but maintained that stopping the project mid-way would have been inefficient and costly, especially with contractors already on site.

“The other alternative was to stop the project. So, I see your point in management, but as I explained earlier, the losses we incurred in 2023 and 2022, we know how they occurred. It is not because of this project that we incurred losses.

“I hear you that maybe we could have stopped that project to reduce the losses, but contractors were still on site and all that, and therefore stopping that, I am not sure whether it would have been the best decision.

“But I hear you clearly. Maybe if it was your house, you could have stopped and when things got better, you continued, but contractors were on site. This is a project that was way advanced,” Opasa stated.

The BoG’s defense comes as the bank seeks a government bailout to recapitalize and support its policy objectives.