BoG clarifies role in $12m payment for Pwalugu Irrigation Project

The Bank of Ghana has addressed concerns regarding the disbursement of $12 million for the Pwalugu Irrigation Project, asserting that the payment was made based on government authorization despite minimal visible progress on the ground.

Bernard Otabil, the Director of Communication at the Bank of Ghana, clarified the

Read full articleCentral Bank's role as a custodian of government accounts during an interview with Citi News. He emphasized that the Bank operates within its mandate and executes transactions as instructed by the government.

"We are the Central Bank, we are actually the chief cashiers of the government and we also hold all governments accounts. So, we would act on instructions that have been given to us. Once that approval has been sought and the project is started, then you would also have the role of the ministry of finance at some point, coming in to also look at what has been submitted and whether it is actually in line with what has been submitted with the contract that has been solely specified and when satisfied with the supporting documents that need to be presented. But finally, you will also have the Controller and Accountant General coming in and making that authorization for payment to be made and that comes to us."

He emphasized that the Bank of Ghana is not responsible for verifying project progress post-payment, highlighting its role as the government's banker. Otabil emphasized that payments are made from government accounts authorized by relevant officials, with the Bank ensuring compliance with instructions and adequate funding.

"In our unique position, we deal with the government and most of all the MDAs, but largely we are on the government’s side, we are the bankers of the government. The government withdraws on its own account, let’s make that clear and nobody can issue a cheque on anybody’s account. So, we will make the payment from the government’s account authorized by the right people that are supposed to make that authorization. So, we will check to make sure that the instruction solely given both amounts in words actually match and that the account is well funded and then we can go ahead and make payment," he added.