The Member of Parliament for Old Tafo, Vincent Ekow Assafuah, has strongly criticised a proposed GH¢ 700 million financing arrangement for the second phase of the National Pensions Regulatory Authority headquarters project, describing it as unnecessary and potentially harmful to pension contributors.

He questioned the rationale behind the expansion, noting that the first phase of the headquarters project remains uncommissioned despite being funded through internally generated resources.

“Why pursue a Phase Two expansion when Phase One is yet to be operational?” he asked.

Mr Assafuah also raised concerns about the reported interest rate of just above 5 percent attached to the proposed financing, arguing that it falls significantly below prevailing market returns of around 20 percent.

He warned that this could result in substantial opportunity costs for pension contributors over time.

In addition, he criticised what he described as duplication of roles within the micro pensions space, where a new directorate has been created at high cost while a separate consultancy contract reportedly worth GHS 4 million has also been awarded for similar functions.

“Why create a new directorate at the cost of about GHS 100,000 a month and still pay GHS 4 million in consultancy fees for the same job?” he queried.

He is calling for the immediate suspension and independent review of the proposed financing arrangement to ensure it serves the best interest of Ghanaian workers.