Bank Of Ghana Justifies Spending $250 Million On New Head Office Citing Danger From Earthquakes

Bank Of Ghana Justifies Spending $250 Million On New Head Office Citing Danger From Earthquakes

  • The Bank of Ghana has justified spending $250 million on a new head office despite its financial troubles
  • The central bank has said its current structure is vulnerable to collapse in the event of strong winds and earthquakes
  • The Bank of Ghana arrived at these decision to construct a new office after a structural integrity assessment

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The Bank of Ghana (BoG) has justified the construction of a new head office, saying its current space and obsolete and potentially unsafe.

The central bank said a structural integrity assessment was influencing its decision.

BoG Governor
Bank Of Ghana governor Enerst Addison. Source/Facebook/@BankOfGhana
Source: Facebook

In a statement, the BoG explained that its main building does not have the required strength 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," it explained.

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It further said the building was not earthquake-proof and could not withstand such activity.

“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."

The BoG noted further that its actions were in line with positioning Ghana as the financial hub of the subregion.

It said it had hopes of becoming the potential headquarters for a future regional central bank.

The BoG thus said a new building is "the most important priority project."

This comes as it posted losses of GH¢55.12 billion due to haircuts that its investments suffered under the Domestic Debt Exchange Programme.

The central bank has denied claims that it was wreckless, despite printing unsanctions amounts of money for the government.

Minority slams BoG for losing money

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Meanwhile, reported in a related story that the Minority questioned the Bank of Ghana's losses from the Domestic Debt Exchange Programme.

A ranking member on the finance committee of Parliament, Isaac Adongo, said the central bank cannot undertake monetary policy without printing money.

Speaking on behalf of the Minority after the 2023 mid-year budget presentation on July 31, the MP said the Bank of Ghana is broke.

Potential BoG recapitalisatoin levy

The Minority in Parliament warned Ghanaians that the government could introduce a new tax to support the Bank of Ghana.

The Minority has said this new tax will be described as the Bank of Ghana recapitalisation levy.

This assertion followed the NDC's call for the Bank of Ghana leadership to resign after GH¢60 billion in losses.

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