The Bank of Ghana (BoG) has come under fresh criticism from Bright Simons, Honorary Vice President of the IMANI Centre for Policy and Education, over the controversial construction of its new headquarters.
In a detailed analysis, the seasoned and renowned civil activist raised questions about the project’s escalating costs, procurement processes, and its “commissioning” amidst incomplete construction.
According to Bright Simons, the central bank initially budgeted approximately $100 million for the construction of a modern head office in 2020, which following a review by the Public Procurement Authority (PPA), it was determined that the project could be executed at $81.8 million.
“De Simone & Boogertman+Partners submitted the design for the first 25-storey building below. BoG decided to award the contract to Goldkey for the second design below the first one. The floors of the main tower were reduced to 20 but an additional shorter block was added, ostensibly increasing floor space.”
Bright Simons, Honorary Vice President of IMANI Centre for Policy and Education
Bright Simons pointed out that the change saw costs rise to $121 million with PPA approval, and by 2022, the BoG revised its budget again, increasing the project allocation to $200 million. He noted that by September 2023, the project was only 40% complete, with analysts projecting final costs at $250 million.
Controversial Commissioning and Technical Concerns
The IMANI’s Honorary Vice President in a blistering critique asserted that the commissioning of the central bank’s new headquarters project is “technically dubious” as the project is only 81%-85% complete.
He alleged that significant work, including interior fittings, utility installations, and amenities, remains unfinished.
“Further information suggests that the central building management system that is supposed to enable control of security, utilities, and ventilation etc. is still stuck in considerable design and troubleshooting issues”.
Bright Simons, Honorary Vice President of IMANI Centre for Policy and Education
Bright Simons posited that analysts predict the project’s final costs could exceed $300 million, casting doubt on the management and oversight of the project.
He called on the BoG to provide a comprehensive and transparent statement on the true state of the project. “It would be nice to see a proper statement from the Bank of Ghana explaining the true state of affairs,” he remarked, highlighting the need for accountability in public spending.
The escalating costs and the apparent lack of clarity surrounding the project come at a time when the BoG faces public scrutiny over other financial management issues, including its operational losses and the impact of its monetary policies on Ghana’s economic stability.
The central bank’s accumulation of huge losses in 2022 and 2023 respectively have sparked outrage among several well-meaning Ghanaians, with the National Democratic Congress Caucus in Parliament in recent times having to question the prudence of such a lavish expenditure amidst Ghana’s economic challenges.
Critics argue that the BoG should prioritize fiscal discipline and transparency, especially when the country is grappling with high inflation, a depreciating currency, and rising public debt.
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