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BusinessBoG spent GHS6bn on its employees in 6 years - Report 


BoG spent GHS6bn on its employees in 6 years – Report 


A recent report from JoyNews has revealed that the Bank of Ghana (BoG), allocated a substantial 6 billion Ghanaian Cedis toward employee costs spanning from 2017 to 2022.

The report dived into the workforce statistics of the Bank of Ghana, noting that the total staff count, including directors, stands at 2,215 individuals.

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Analysis of the data unveiled a steady increase in BoG’s expenditure on staff salaries and benefits over the years. In 2017, the bank allocated 596.2 million Ghanaian Cedis for employee costs, witnessing a notable surge from the previous year.

By 2018, this figure climbed to 697.3 million Ghanaian Cedis and further escalated to 809.8 million Ghanaian Cedis in 2019.

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The onset of the Covid-19 pandemic brought about unprecedented financial challenges, evident in the bank’s expenditure.

During this period, BoG’s spending on personnel costs exceeded the billion-mark, totaling more than 1 billion Ghanaian Cedis.

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“The research team, we have been looking at the Bank of Ghana’s (BoG) financial statement, their audited statement right from 2017 to 2022 and we have found out that some interesting revelation in there and just like you captured in your intro. If you look as of 2022  Bank of Ghana’s staff number in terms of their staff plus their directors we are talking about 2, 215 workers.

“Now what has become the bone of contention has been the amount the bank spent on their personnel. So we have been looking at how much BoG spent on their staff plus their directors. We looked at the data from 2017 BoG spent GH592.200,000.00 Ghana cedis on their personnel cost. In 2016 this number rose to 697.300,000.00 Ghana Cedis then crossed to 809.800,000.00. Then we have our first billion during the Covid season where BoG spent more than 1 billion Ghana Cedis on personnel costs,” a member of Joy News’ research team disclosed.

The significant allocation of funds toward employee expenses has sparked discussions regarding fiscal prudence and resource management within the Bank of Ghana.

Critics have raised concerns over the sustainability of such expenditure patterns, especially considering evolving economic dynamics and the imperative for efficient resource allocation.

Meanwhile, Togbe Afede XIV, the Agbogbomefia of the Asogli State, has alleged that the Bank of Ghana allocated a substantial amount of GH₵1.62 billion (£147.27 million at the 2022 average cedi-pound exchange rate) for the salaries of its 2,203 employees.

Drawing comparisons between the Bank of Ghana and the Bank of England (BOE), Togbe Afede XIV highlighted a significant disparity. While the BoG pays an average of £66,851 per employee, the BOE pays substantially higher at £95,829 per employee.

Furthermore, Togbe Afede XIV pointed out a distinct difference in the financial circumstances of the staff. Unlike the staff of the Bank of England, who do not owe loans to their employer, BoG staff carry an average debt of GH₵566,046 (£51,459) per employee as of the end of 2022.

Expressing concern over the considerable sum of staff loans, totaling GH₵1.247 billion, with an average indebtedness of GH₵566,046 per employee, Togbe Afede XIV argued that such a financial burden should not be overlooked, especially amidst the current economic challenges faced by the country.

In light of these revelations, Togbe Afede XIV urged a reassessment of the remuneration structure within the Bank of Ghana, emphasizing the necessity for equitable compensation practices aligned with prevailing economic realities and aimed at promoting financial stability for both the institution and its employees.

“It is difficult to believe how some BoG’s operating incomes and expenses compare with those of the Bank of England (BOE). For example, BOG spent GH₵1.62 billion (£147.27 million at the 2022 average cedi-pound exchange rate) on its 2,203 employees, that is, £66,851 per employee, about 38x Ghana’s GDP per capita.

“BOE on the other hand, with an average labour force of 4,675 per their 2021-22 financial report, spent £448 million, that is, £95,829 per employee, about 2.6x UK’s GDP per capita. Unlike BOE staff who do not receive loans from their employer, BOG staff owe the bank GH₵566,046 (£51,459) on average or per employee as at the end of 2022.”

“The Bank’s personnel costs amounted to GH₵1.62 billion. With a total of 2,203 employees, this equals an average remuneration of a colossal GH₵735,361 per employee in 2022 or GH₵61,280 monthly per employee, including several allowances. These employees also had staff loans amounting to GH₵1.247 billion, an average of GH₵566,046 per head,” an excerpt of his piece said.

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