BoG defends construction of new headquarters

Ghana’s central bank, the Bank of Ghana has justified its decision to construct a new headquarters building. BoG in defence of its decision said the current structure it is housed in does not have the capacity to resist disasters such as strong winds or earthquakes.

The revelation of BoG’s decision was made by the Minority Leader, Casiel Ato Forson, who in a press conference gave the BoG governor and his deputies 21 days to step down from their positions or wait to be forced out by the party.

Dr Ato Forson was speaking following the revelation that the central bank posted losses in excess of GHS60 billion in 2022. The Ajumako Enyam Esiam lawmaker said it is troubling that the bank that could not make a profit is spending in excess of GHS2 billion to construct a new headquarters building at Ridge.

“Perhaps the more troubling fact is that, having brought the Bank of Ghana to this terrible financial state, the Governor and his deputies, have found it prudent and expedient to invest $250 million (GHC2.8 billion) on another Head Office building somewhere at Ridge. In our circumstances, this is the height of insensitivity in the management of the finances of a troubled country,” Ato Forson stated.

However, the Bank of Ghana has reacted to the revelation of its plans to construct a new headquarters building, giving multiple reasons for the decisions.

According to BoG, “The outcome of the structural integrity work was that the main building does not satisfy the full complement of excess strength required for a building to be considered safe for usage. This means that in the case of a worst-case gravity and wind loading scenario, for example, unusually strong wind, the building may be significantly affected.”

Also, the bank is making itself ready to take advantage of financial opportunities that will arise from the West African region. It said there are plans for a regional central bank and Ghana wants to host the headquarters, which is a reason for BoG to position itself well to take advantage of it when the time comes.

“The building also does not have the required strength to withstand the expected imposed significant earthquake loads that would be expected to occur in the Accra area. Based on the above, and looking at the strategic objective of positioning Ghana as the financial hub of the sub-region, with prospects of a potential Headquarters for a future regional Central Bank.

Accordingly, “The Board and Management of the Bank considered a new Head Office building as the most important priority project to support the operational efficiency of the Bank, and also position the Bank of Ghana in a very good position to be the host of the regional Central Bank as we currently host the West African Monetary Institute (WAMI) of the sub-region.”