Accra, July 2, GNA - The Bank of Ghana (BoG) is installing a one million dollar Sorting Machine that would replace over 500 members of counter staff at the Bank.

The installation is part of the Central Banks' transformation exercise that intends to shed off about 1,000 staff members.

The programme, which started last week, would continue for two weeks, after which staff, who wished to leave the Bank would be processed and appropriate compensation paid to them.

In an interview with the Ghana News Agency (GNA) Business Desk in Accra on the current disengagement exercise by the Bank, Mr Kassim Yahyha, Head of Public Affairs, said the machine would do the work of 500 persons in the main banking hall and be "100 times faster."

He said at the end of the three-week period disengagement would start from August 2003 by which time staff wishing to leave the Bank would be free to leave.

Mr Yahya said the equipment being installed was capable of dispensing, picking out counterfeit and mutilated notes while arranging them in an order that would keep the notes in good state.

This, he noted would ensure that the lifespan of the Cedi notes are prolonged.

The Bank of Ghana spends about three billion cedis a month to replace mutilated cedi notes through poor handling.

The Central Bank withdraws about nine million mutilated notes, which have been in circulation for up to six months or a year are withdrawn every month.

Mr Yahya explained that the developmental style of approach adopted by Dr Kwame Nkrumah led to the creation of certain departments in the Bank, which resulted in the employment of a rather large number of people to handle issues of development financing.

He said as part of the transformation, the BoG merged the Development Finance, Rural Banking Finance Department and the Non-Bank Financing Department. He said the disengagement of about 1,000 people in the Bank would be across the entire levels of the Bank, "and not necessarily from the non-core areas," adding that besides," the entire exercise is voluntary."

Mr Yahya said a counselling unit had been set up to counsel staffs that have decided to leave. He said they would be advised freely on what exactly to do.

He said some other people would be freshly engaged to address the growing needs of the Bank.

He said Ghana had 12.33 banking staffs per 100,000 customers; the highest on the continent, saying this must change since it was not sustainable.

"Kenya has 2.14 banking staff per 100,000 persons, South Africa has 6.43 per 100,000 and Nigeria 4.49 per 100,000.

The UK has 3.65 banking staff per 100,000 customers.