The demolition of the Aboabo branch of Sekyedumase Community Bank PLC by the Asokore Mampong Municipal Assembly has triggered concerns over possible compensation claims, with the bank insisting that its relocation was not completed before the structure was pulled down.
The bank’s premises were demolished as part of the Assembly’s redevelopment of the Aboabo Market into a 24-hour economy market, despite earlier engagements between the two parties over the bank’s continued presence at the site and financial experts warning of potential judgment debts claims.
The development which has raised questions about the fate of the bank’s tenancy arrangement with the Assembly and the potential financial implications for the public purse should the dispute eventually end up in court.
Documents sighted by this publication indicate that the Assembly had, since 2025, engaged the management of Sekyedumase Community Bank over the planned redevelopment and the need to relocate its Aboabo branch.
The bank, however, maintained that discussions had included the possibility of incorporating its existing one-storey building into the design of the new market.
According to the bank, during a meeting on November 28, 2025, it was informed that consultants would assess whether the existing structure could be retained as part of the redevelopment.
The bank subsequently renewed that proposal, arguing that the branch serves as an important financial hub for traders, transport operators, small businesses, salaried workers and residents within the municipality.
It also explained that relocating a banking facility is not an ordinary exercise, requiring technical and security assessments, regulatory approvals, Board approval, installation of banking infrastructure and the secure transfer of customer records and other assets.
The bank therefore asked the Assembly for adequate time to complete the process.
The Assembly, however, rejected the proposal, explaining that the final architectural and engineering designs for the project did not permit the retention or integration of the existing bank building.
In a letter dated June 15, 2026, the Assembly issued what it described as a “Final Warning to Vacate the Aboabo Market Redevelopment Site”, giving the bank five days to vacate the premises.
The Assembly warned that failure to comply would compel it to take what it described as “all lawful measures necessary” to recover possession of the site and proceed with the redevelopment.
The bank subsequently protested the manner in which the matter was being handled, particularly after contractors began placing laterite and other materials at the entrances to the premises.
It said the action disrupted banking operations and was followed by the disconnection of electricity to the building.
The bank further raised concerns about the safety of its property, saying the premises contained customer information, banking equipment, computers, furniture, records and other valuable assets.
In a letter to the Assembly and several institutions, including the Ashanti Regional Coordinating Council, Bank of Ghana, ARB Apex Bank and the Ashanti Regional Police Command, the bank warned that demolishing the building without proper inventory and safeguards could have serious consequences.
“The Building contains a lot of information about its customers, modern banking equipment, data, furniture, computers and accessories and cash,” the bank stated.
It said it would assess the cost of relocating the branch and submit a claim to the Assembly for what it described as fair and adequate compensation.
The dispute is further complicated by a tenancy agreement dating back to 2003.
The agreement grants the Assembly the right to revoke the licence where national or public interest requires it, but expressly provides that such revocation should be done “with notice.”
This provision could become significant if the bank challenges the demolition and seeks compensation for losses arising from the termination of its occupation and the destruction of the premises.
While the Assembly has maintained that it issued notices and engaged the bank repeatedly, the bank’s position is that it required sufficient time to secure the necessary regulatory approvals and undertake a lawful relocation before demolition.
“This disagreement therefore goes beyond the physical destruction of the building and could potentially centre on whether the contractual arrangement was properly terminated, whether adequate notice was given and whether the bank suffered losses for which it is entitled to compensation.
Any such claim would have to be determined through the appropriate legal process. It would only become a judgment debt if a court ultimately rules in favour of the bank and orders the state or the relevant public authority to pay compensation.” Dr. Solomon Aggrey, a financial consultant noted in a media interview in reaction to the demolition.
The demolition comes as the Assembly moves to transform the Aboabo Market into one of the government’s flagship 24-hour economy market projects.
Hundreds of structures at the market were demolished in May to make way for the redevelopment, with the Assembly saying the project would provide modern trading infrastructure and stimulate economic activity in the area. The proposed facility is expected to include sheds and lockable shops, parking facilities, police and fire service posts, a 24-hour clinic and pharmacy, a daycare centre and a Women’s Bank component.
The Aboabo project forms part of the government’s broader 24-Hour Economy and Accelerated Export Development Programme (24H+), which seeks to extend productive economic activity beyond conventional working hours, improve market access, increase productivity and create employment.
The 2026 Budget describes the 24-hour economy as a productivity-focused programme aimed at accelerating industrialisation, boosting exports and creating more than 1.7 million decent jobs by 2028 across sectors including agriculture, manufacturing, logistics and services.
The initiative has since gained statutory backing following President John Dramani Mahama’s assent to the 24-Hour Economy Authority Bill, 2025, in February 2026. The Authority is expected to coordinate implementation of the programme and align public and private sector efforts towards its objectives.
The demolition of the Sekyedumase Community Bank has introduced a new concern into the project: whether the push to deliver the 24-hour economy market could result in an avoidable compensation bill for the Assembly.
