New BoG Office: Ayariga Accuses Governor of Inflating Cost
The Member of Parliament for Bawku Central constituency, Mahama Ayariga has accused the Governor of the Bank of Ghana (BoG), his two deputies and other key officials of inflating the cost for the construction of the new headquarters.
According to him, the three senior officials and the Board of the Bank colluded with the contractors to overprice the “project with a possible view to obtaining personal gain.”
In an open letter to the Central Bank, Mahama Ayariga said the originally proposed project cost was USD100,857,924.48 for a “projected gross floor area of 73.000 sq.m”, however, the Public Procurement Authority (PPA) directed the Bank to award the contract at USD81,882,640.00.
Citing a document from the bank titled “NEW BANK OF GHANA CORPORATE HEADQUARTERS PROJECT”, he said the contract was ultimately awarded at USD121,078,517.94 following a grant of concurrent approval by Central Tender Review Committee (CTRC).
Per the same document, he said, the contract was subsequently awarded by the CTRC at a cost of USS222,799,760.55 due to “modification of the initial design concept to the current gross floor area in excess of 100,000sq.m.”
He continued, “The briefing on the CORPORATE HEADQUARTERS PROJECT states clearly that the cost per square meter is the basis for determining the project cost. When the scope of works of the project moved from 73.000sq.m to about 107,737sq.m, we expect a corresponding change in the cost of the project. However, the variation in scope of work was about 36.9% but the project cost changed by 84%. The price moved from USD121,078,517.94 to USD222,799,760.55.”
“This un-corresponding change in the cost of the project, relative to the change in scope of works, is clearly unreasonable and can only be explained by suspected padding of project cost and corruption. Your refusal to provide details to aid any understanding of the pricing reinforces my belief that massive corruption explains the shift in office project price from USD8 ,882640.00 to USD121,078,517.94 and then to USD222,799,760.55, Even more so when you yourselves initially proposed a price of USD100,857,924.48.”
Referral To OSP
The lawmaker on that note intends to refer the Governor, his deputies, the contractor and the other Board members of the Bank to the Office of the Special Prosecutor (OSP).
“The Governor, the Deputy Governors, all other members of the Board of the BoG, and Messrs. Goldkey Properties Ltd (the contractors) – should be investigated for corruption and corruption-related offenses relating to overpricing of the Bank of Ghana new headquarters building with the object of obtaining a personal gain ultimately.”
“Let me assure you that we will pursue you until you come clean on how a project which you yourself had originally priced at USD100,857,924.48 for 73,000sq.m got awarded to Messrs. Goldkey Properties Limited, in the same year, at USD121,807,8517.94 and how a variation in scope of works of about 36.9% increase has led to a project cost escalation of 84% increase which has resulted in the 107,737sq.m now costing USD222,799,760.55.”
He says this is due to the Bank’s reluctance to furnish him with details of the project- through a Right to Information request he filed- under the pretext “national security considerations”.
