Member of Parliament representing North Tongu, Samuel Okudzeto Ablakwa, has released documents revealing an ongoing legal dispute concerning the land upon which the new Bank of Ghana (BoG) headquarters is currently under construction.
Ablakwa, who has been unveiling a series of revelations regarding the BoG building project, asserts that the land was initially appraised at approximately GH¢91 million. At one point, the BoG reportedly offered the landowners GH¢100 million for the parcel.
However, the central bank eventually withdrew its interest in the land. Subsequently, in 2020, the government invoked a compulsory acquisition provision through an Executive Instrument (E.I) in lieu of compensation for the land, which, as Ablakwa discloses, has not been paid. According to experts, the total amount, along with accrued interests, has now reached 400 million cedis.
Originally, the land was owned by the State Insurance Company (SIC). It became entangled in legal proceedings after ITALCONSTRUCT INTERNATIONAL LIMITED obtained guarantees from SIC for a loan from IVORY FINANCE COMPANY, which subsequently defaulted. The loan agreement was established in 2013, with the consent judgment delivered in 2014.
Ablakwa reveals that in August 2019, the Bank of Ghana, despite being aware of the ongoing litigation and the consent judgment, approached the managements of both SIC and IVORY FINANCE. The BoG reportedly offered GH¢100 million to both entities to acquire the land for their new headquarters project.
“Interestingly, BoG did not pursue their offer and rather placed IVORY FINANCE under receivership,” following which the E.I. of October 2020 was issued, and even with that due compensation, according to his sources, had yet to be paid.
“Based on the Consent Judgement which has not been set aside, the interest and penalties which have accrued and factoring inflation — experts confirm that a combined compensation will not be less than a staggering GHS400million,” his post of September 5, 2023 read in part.
Click on link below for Ablakwa’s full post on Facebook:
https://web.facebook.com/okudzetoablakwa/posts/844766670337741?ref=embed_post