Ato Forson bemoans GHC4.5b cost of new Bank of Ghana headquarters

The Finance Minister, Cassiel Ato Forson has underscored the need for a value for audit exercise on the new Headquarters complex of the Bank of Ghana.

He reiterated that the construction of the edifice was imprudent, as the building was “commenced at the same time that the bank was going through difficulties.”

Dr Forson consequently noted that a value for money audit is needed on the project. Speaking in an interview with Alfred Ocansey on March 13, he said such an audit is non-negotiable.

“I am sure the governor himself will not run away from that call. The kind of money they’ve spent on the central bank building is in excess of $300 million. Because if you put everything together in terms of cost of building, cost of furniture, cost of IT system. In terms of cedis, that is GHC4.5 billion for one headquarters,” he bemoaned.

The Finance Minister’s comment was in reaction to a question regarding his earlier call on the authorities of the bank to sale-lease back the building to raise an amount of GHC53b required to recapitalise.

“First of all, they have to look within. You know, you’ve seen their new Head Office, a very big building. They have a choice—a choice to sale and lease back if they want. They have to look within and cut expenditure and reduce events. The taxpayer cannot afford ¢53 billion,” he said in an interview on March 11.

A leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser.

Dr Forson explained to Alfred Ocansey that he made that suggestion because the current state of the central bank “points to a situation I believe that it doesn’t reflect a bank that can ask the taxpayer to support.”

He is nonetheless hopeful that the bank could bounce back.

“But we will overcome it. Luckily, the bank is policy-solvent – they are able to generate enough resources to fund their monetary policy operations. So, they are working. All that they need to do is to improve their balance sheet over a period of time,” he said.

READ ALSO:Bank of Ghana can lease-back its Head Office to raise GHC53b required to recapitalise – Ato Forson