The Bank of Ghana has come under public scrutiny after it emerged that the institution have given out a contract for the procurement of gold watches to be given out as end of service benefits to retiring staff members.
The watches cost, in total, $504,000 (roughly Ghc 2m) to procure.
A report from the New Statesman showed the procurement process underway, with the Central Bank seeking 73 watches in total – 25 units of 18 karat ladies gold watches and 48 units of 18 karat gents gold watches.
The controversy so far surrounds the use of sole sourcing for the procurement contract, although some of us are more worried about the excess on display here.
The intent of the gesture, the bank says, is to “award deserving members of staff who had served with the Bank for 30 years or more and are due to retire compulsorily from the service of the Bank in the years 2016 and 2017.”
“BoG intends to use its 2016 budgetary allocation to fund the procurement activity,”
In the face of severe public backlash, the Bank issued a statement late Wednesday defending the expenditure.
“End of service benefits, as part of the conditions of service for staff, is a longstanding tradition of the Bank, an obligation the Bank has always fulfilled to boost staff morale and commitment to the goals and ideals of the institution. The award scheme has been the convention of the Bank since the 1970s.” the statement read.
“In the year 2012, the Bank decided to procure the gold watches once every two years in order to control cost and make savings on foreign exchange,”