The Bank of Ghana (BoG), which reported a substantial loss of 10.50 billion cedis in 2023, has defended its choice to go forward with construction on a new head office. Despite the losses, the Central Bank last year gave $82 million to project contractors.
MP Yusif Suleman has expressed doubts about the project’s feasibility in light of the bank’s financial circumstances, casting doubt on the decision to move forward with the development. Suleman brought up the matter on Friday during a session of the Public Accounts Committee.
But Special Advisor to the Governor of the BoG Stephen Opata defended the ongoing work, saying the project was too far along to be abandoned. He underlined that the construction project was not the only issue that led to the bank’s losses.
Notwithstanding the MP’s worries, Opasa insisted that because contractors were still on the site, it would have been inefficient and expensive to halt the project in transition.
“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,” he stated.
The BoG’s defense coincides with the bank’s request for a government bailout in order to recapitalize and further its stated strategic goals.