Bank of Ghana clarifies GHS 131m vehicle servicing costs amid concerns over increased expenditure
The Bank of Ghana (BoG) has addressed concerns raised by analysts regarding its vehicle servicing costs, as outlined in its annual report. The report revealed that GH¢131.586 million was spent on motor vehicle maintenance and running as of December 2022, a significant increase from the GH¢61.510 million spent during the same period in 2021.
Additionally, personnel costs rose to GH¢1.620 billion, up from GH¢1.260 billion in 2021, while foreign and domestic travel expenses surged to GH¢97.437 million, marking a staggering over 300% increase from the GH¢28.176 million recorded in 2021.
In response to the concerns, Mr. Charles Elias Reindorf, the Director of Finance at the Bank of Ghana, clarified that the motor vehicle maintenance and running expenses encompass various components, including fuel, insurance, miscellaneous, and licensing. He emphasized that fuel costs accounted for approximately 90% of the total expenses, while maintenance expenses constituted a mere 2.18% of the overall cost. Furthermore, he noted that in 2021, maintenance expenses were at 2.38% and even dropped in 2022.
Mr. Reindorf shed light on the fact that the title “Motor Vehicle and Maintenance and Running Expenses” led to a disproportionate focus on maintenance costs, overshadowing the larger share of expenses attributed to fuel.
The press conference held on Wednesday, August 2, aimed to provide clarity and transparency on the BoG’s expenditure breakdown, quelling concerns surrounding the bank’s vehicle servicing costs.
