A dispute has emerged between the Asokore Mampong Municipal Assembly and Sekyedumase Community Bank PLC following the demolition of the bank’s Aboabo branch to pave the way for the redevelopment of the Aboabo Market into a 24-hour economy market.
The bank has raised concerns that its relocation process had not been completed before the demolition, and has indicated that it would assess its losses and pursue what it considers fair and adequate compensation.
The Assembly, however, maintains that it engaged the bank throughout the redevelopment process and issued notices requiring it to vacate the premises.
Documents available to the Ghana News Agency (GNA) indicate that discussions on the relocation of the branch began in 2025.
The bank had proposed that its one-storey building be incorporated into the design of the new market, arguing that the branch provided essential banking services to traders, transport operators, small businesses, salaried workers and residents within the municipality.
It explained that relocating a banking facility required regulatory approvals, technical and security assessments, Board approval, installation of banking infrastructure and the secure transfer of customer records and other assets.
The bank, therefore, requested additional time to complete the relocation process.
The Assembly rejected the proposal, saying the final architectural and engineering designs for the project could not accommodate the existing structure.
In a letter dated June 15, the Assembly issued a final warning to the bank, giving it five days to vacate the premises.
It warned that failure to comply would result in lawful measures to recover possession of the site.
The bank subsequently complained that contractors had blocked access to the branch with construction materials and that electricity supply to the building had been disconnected, disrupting its operations.
It further raised concerns about the presence of sensitive customer information, banking equipment, computers, furniture, records and cash at the premises, warning that demolition without proper inventory and safeguards could have serious consequences.
The bank has indicated that it would assess the cost incurred in relocating its operations and submit a claim for compensation.
The dispute is further complicated by a 2003 tenancy agreement between the Assembly and the bank.
The agreement permits the Assembly to revoke the bank’s licence where national or public interest so requires, but provides that such revocation must be effected with notice.
Legal and financial analysts say the key issues in any potential legal action could include whether the tenancy was lawfully terminated, whether adequate notice was given and whether the bank suffered losses for which it could be compensated.
Financial Consultant, Dr Solomon Aggrey, said any compensation claim would ultimately have to be determined by the courts and would only become a judgment debt if a court ruled in favour of the bank.
The demolition forms part of the Assembly’s plans to redevelop the Aboabo Market into a flagship 24-hour economy market.
The project is expected to provide modern trading facilities, parking spaces, police and fire service posts, a 24-hour clinic and pharmacy, a daycare centre and a Women’s Bank component.
The redevelopment is linked to the government’s 24-Hour Economy and Accelerated Export Development Programme, which seeks to expand economic activity beyond traditional working hours, increase productivity and create more than 1.7 million jobs by 2028.
