The Bank of Ghana (BoG) has defended its choice to proceed with the construction of a new head office, despite reporting a significant loss of 10.50 billion cedis in 2023.

Last year, the Central Bank paid $82 million to contractors for the project.

The decision has drawn criticism, with MP Yusif Suleman questioning the project's viability given the bank’s financial difficulties. Suleman raised his concerns during a Public Accounts Committee hearing on Friday.

In response, Stephen Opasa, Special Advisor to the BoG Governor, argued that halting the project was not feasible due to its advanced stage.

He stressed that the bank’s losses were attributable to various factors beyond the construction costs.

Opasa acknowledged the MP’s concerns but asserted that stopping the project halfway would have been inefficient and more costly due to ongoing contractor commitments.

“The other alternative was to stop the project. So, I see your point in management but as I explained earlier the losses we incurred in 2023 and 2022 we know how they occurred. It is not because of this project that we incurred losses.

“I hear you that maybe we could have stopped that project to reduce the losses, but contractors were still on site and all that and therefore stopping that I am not sure whether it would have been the best decision.

“But I hear you clearly. Maybe if it was your house, you could have stopped and when things got better, you continued, but contractors were on site. This is a project that was way advanced,” he stated.

The BoG’s defense comes as the bank is also pursuing a government bailout to recapitalize and support its policy objectives.