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Struggling Economy of Ghana Bailout by IMF Doesn’t Support $250 Million New Headquarters for Bank of Ghana: Razak Kojo Opoku3 min read

Struggling Economy of Ghana Bailout by IMF Doesn’t Support $250 Million New Headquarters for Bank of Ghana: Razak Kojo Opoku<span class="wtr-time-wrap after-title"><span class="wtr-time-number">3</span> min read</span>


First and foremost, it is important that, the Bank of Ghana makes it available to the public the:
1.Procurement Process, and the companies/architect which are responsible for the architectural designs and building of the $250Million new Headquarters.

2. Companies that have been awarded Contracts at the Bank of Ghana Since 2017.

The hollow justification by officials of Bank of Ghana for the construction of a new office at a reported cost of $250Million is indeed a great disrespect to the citizens of Ghana who have been experiencing 54-43.1% Inflation rates, worst depreciation of $1-11 Cedis(previously $1-15 Cedis), Haircut on investments, high standards of living etc.

The timing for the building of a $250Million new headquarters for the Bank of Ghana is inappropriate, and appears seriously insensitive to the plight of suffering Ghanaians. The Citizens of Ghana are suffering and the officials of Bank of Ghana are talking and thinking about their own comfortability.

The IMF that lend us $3 Billion loan is not even thinking of having a new headquarters at the cost of $250Million.

However, the Bank of Ghana which has been poorly managed with the following outcomes is dreaming of a $250Million New Headquarters:

1. Financial loss of GHS 60.8 Billion (equivalent to $6 Billion, which is twice the amount of money Ghana is receiving from the IMF for 3 years bailout).

2. Impairments and revaluation losses leading to a negative equity position of GHS 55.12 Billion.

3. Drawdown of $3.46 Billion in Gross International Reserves from $9.70 Billion at the end of December 2021 to $6.24 Billion at the end of December 2022.

4. Printing of nearly GHS 80 Billion to finance Government’s Budget without Parliamentary Approval.

5. The Details of the 2022 Annual Report of Bank of Ghana has also revealed very disturbing financial expenses at the detriment of the poor masses.

Meanwhile, the Government of Ghana is struggling to pay:
1. Beneficiaries of NABCO
2. Youth in Afforestation Programme
3. Matured Bonds of Pensioners and individual bondholders.

The Bank of Ghana spent GHS 25 Billion to revoked the licenses of Ghanaian owned Banks due to corporate governance issues, and just few years after the Banking sector clean-up exercise, the Bank of Ghana itself has incurred a loss of GHS 60.8 Billion largely due to the same corporate governance issues.

Why should the Governor, Deputy Governors and the Board of Directors of Bank of Ghana not take responsibility for this after supervising this magnitude of mess? Are they better than the owners/Board Chairmen of the collapsed Banks who are currently facing prosecutions at the various Law Courts?

The rising inflation and depreciation of the Cedi is also as a result of some bad choices and decisions by the Government. The Russia-Ukraine War and COVID-19 pandemic cannot be blamed entirely for the current economic situation of Ghana.

The inflation rate of Russia for the month of July 2023 was 4.3% and that of Ukraine was 11.3%. However, Ghana which is blaming Russia-Ukraine War for the cause of the economic woes recorded an inflation rate of 43.1% for the month of July 2023. This doesn’t make sense.

While Citizens are encouraged to save at the Banks and stop hoarding Dollars in their homes, some Appointees have been caught hiding their monies in the house. What good examples are we setting for the Citizens to have absolute trust and confidence in our Political leadership?

The New Patriotic Party (NPP) cannot afford to lose the 2024 general election. It is therefore imperative that Government fast track the economic recovery process for the good people of Ghana before December 7th, 2024.

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