Bank of Ghana's 6 Huge Expenses In 2022 Raises Eyebrows: Central Bank Spent GH¢131.6M On Vehicle Maintenance

• Bank of Ghana's huge operational expenses in 2022 as listed in its annual financial report has been described as reckless
• For instance, the BoG spent GH¢131.6 million on vehicle maintenance last year and GH¢97.4 million on foreign and domestic spendings, the NDC says is outrageous
• In the same year, the Bank of Ghana made a loss of over GH¢600 million that it blamed on the controversial domestic debt exchange programme

Six of the expenses of the Bank of Ghana (BoG) in 2022 as listed in its annual financial reports have been described as outrageous.

Last year, the central bank posted a loss of over GH¢600 million ($60 million), prompting concerns it has been reckless with its operational spending.

For instance, page 89 of the 2022 annual financial report lists 15 operational expenses, but the huge spending on vehicle maintenance has generated the most controversy.

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According to the central bank, in 2022 it spent GH¢131.6 million (or $13.16 million) on motor vehicle maintenance.

While the number of vehicles involved was not stated, the spending shows that the central bank spent over $1 million monthly last year on vehicle maintenance.

GH¢97.4 million spent on foreign and domestic travel

According to the BoG's 2022 financial report, GH¢97.4 million (or $9.74 million) was spent on foreign on domestic travel. The spending on travel in 2022 was three times the spending on the same activity in 2021. In 2022, the BoG spent GH¢28.176 million or ($2.8 million).

Below is an image of the spending deemed contentious by the opposition NDC:

Bank of Ghana fights criticism over loss of GH¢600 million

The Bank of Ghana said, however, said the claims that it lost close to GH¢600 million in 2022 due to reckless spending are unfounded.

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Director of Research at the central bank, Dr Philip Abradu-Otoo, said if not for the DDEP, the loss would not have been recorded.

He, however, disclosed that there are ongoing efforts to inject adequate capital into the central bank.

NDC describes BoG Governor Ernest Addison as a criminal

Meanwhile, YEN.com.gh has reported in a previous story that the opposition NDC has urged Bank of Ghana Governor Dr Ernest Addison to resign immediately for his part in the losses at the central bank last year.

Minority Leader Cassiel Ato Forson spoke on behalf of the opposition party during the Moment of Truth series on Tuesday, August 8, 2023.

The NDC described the BoG Governor, President Nana Akufo-Addo, Vice President Dr Mahamudu Bawumia and Finance Minister Ken Ofori-Atta as criminals.

"Our hands won't burnt again" - BoG vows

Following the losses, the BoG announced that it will no longer lend money to the government in its bid to avoid a repeat of the loss that happened in 2022.

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The central bank said it has rolled out a zero financing policy as part of a grand plan to recoup the GH¢60.8 billion it lost in 2022.

Director of Research at the Bank of Ghana Dr Philip Abradu-Otoo disclosed during a TV programme that the policy would be implemented to the letter.

Source: YEN.com.gh