Bank Of Ghana's GH¢131M For Vehicle Maintenance Explained: Central Bank Says Fuel Cost Included In Spending

• The Bank of Ghana has moved to dispel concerns that it has been reckless in the use of state funds relating to expenses on vehicle maintenance
• The central bank disclosed in the 2022 annual financial report that it used GH¢131 million for just vehicle maintenance within 12 months last year
• But clarifying, the BoG said "vehicle maintenance" is a generic term that includes fuel cost and car parts, among others

The Bank of Ghana (BoG) has been compelled to break down over GH¢131 million used for vehicle maintenance in 2022 after public backlash.

The huge spending on vehicle maintenance is among six expenditures in the 2022 financial report of the central bank that has triggered a debate among Ghanaians.

However, explaining the GH¢131 million (or $13 million) expense, the BoG released a statement on Wednesday, August 9, 2023, to explain that the term "vehicle maintenance" includes other spending such as fuel cost, annual insurance for all its vehicles, car parts replacements, and other maintenance cost.

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BoG justifies spending $250 million on new head office, says strong winds and earthquakes can collapse current structure

"Historically, fuel cost has accounted for about 90% of this vehicle maintenance expenses expenditure line. For 2022, the fuel cost increased by 123.3% compared to 28.9% in 2021.

"This was on the back of petrol and diesel prices increasing from GH¢6.6618 per litre of petrol, and GH¢6.665 per litre of diesel at the end of 2021 to GH¢16.5811 per litre of petrol and GH¢19.6053 per litre of diesel at the end of 2022. This implies increases of 149% (Avg. 87%) and 194% (Avg. 122%)," the BoG clarified.

According to the central bank, the cost of car parts and other related expenses are all linked to the dollar, which appreciated astronomically against the cedi in 2022.

"We also had significant increases in insurance costs etc for all our fleet of vehicles and bullion vans across the country," the statement added.

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BoG's "outrageous" expenses in 2022 listed: Spent $13m on car maintenance, $9.7m on travels among others

The huge operational expenses in 2022 have been described as reckless by the opposition NDC and other Ghanaians.

In the same year under review, the Bank of Ghana lost over GH¢60 billion, which it blamed on the controversial domestic debt exchange programme.

Bank Of Ghana justifies spending $250m on new head office

Also, the Bank of Ghana justified spending $250 million on a new head office despite its financial troubles.

The central bank said in the August 9 statement that its current structure is vulnerable to collapse in the event of strong winds and earthquakes.

The statement said that the Bank of Ghana decided to construct a new office after a structural integrity assessment.

In other news, deputy finance minister John Kumah has rubbished claims that government plans to introduce a tax to support the Bank of Ghana.

Source: YEN.com.gh