Ofori-Atta prepares $28 million loan deal for MPs to buy cars
The Minister for Finance, Ken Ofori-Atta, has presented a loan agreement for $28 million to Parliament for the purchase of 275 vehicles for members of the current crop of Members of Parliament (MPs).
According to the papers, presented to parliament, the loan will be sourced from the National Investment Bank (NIB).
Per the amount and the number of individuals involved, each MP is expected to receive over $100,000 for the purchase of a vehicle for parliamentary use.
The Finance Committee of the House is expected to consider the loan agreement and report to the house. But MPs, according to a Deputy Minister of Finance, Abena Osei Asare, will be expected to pay back the loans.
In February this year, MPs expressed dissatisfaction with the government securing loans for them to buy cars for their official duties and pay from their pockets.
The legislators argued that such a decision was unfair to them considering that other government officials are given cars to work with.
The Minority Chief Whip, Mohammed-Mubarak Muntaka had raised concerns over the arrangement during the vetting of Osei Kyei Mensah-Bonsu as Minister-designate for Parliamentary Affairs.
He explained that District Chief Executives (DCEs), currently numbering 266 (only about 9 short of MPs) do not have to buy cars to work in their offices.
He lamented, saying, “that state is able to provide, maintain, fuel and chauffeur-drive them; yet in the case of a Member of Parliament, he has to go through all these difficulties.”
“I hope that as you get the opportunity for the second time to be the Minister for Parliamentary Affairs, you will continue to press home the issue so we can overcome it,” he told the nominee.
In response, Mensah-Bonsu – who is also MP for Suame and Leader of the Majority Group in Parliament, acknowledged the challenge posed by the matter to efficient work from Members of Parliament.
He however indicated that there are other challenges that equally needed attention to enhance the performance of MPs.
“What we need to do to enhance the performance of Members of Parliament is not only in respect of vehicles but also the procurement of official residences, provision of security for Members of Parliament.
Then also, the fourth issue relates to a pension scheme for members, so that at least your mind is liberated to concentrate on your functions as a Member of Parliament,” the Majority Leader stated.
Parliament approves $200milion World Bank loan to buy COVID-19 vaccines
Meanwhile, the house on Tuesday, July 6, approved a $200 million World Bank loan to buy COVID-19 vaccines to augment the country’s vaccination exercise, and cater for other activities to strengthen the health system.
“This is aside $100million and $130million loans taken from the World Bank for the Covid-19 Emergency Preparedness Plans 1 and 2 last year,” parts of the report read.
The loan is to be repaid in 25 years, with an interest charge of “1.3% – the sum of one and a quarter per cent (1.25%) per annum plus the basis adjustment to the interest to the interest charge (+14bps) on withdrawn credit,” the report noted.
A report by the Finance Committee has indicated that out of the $200 million, $137.15million would be spent specifically on vaccine procurement.
The vaccines are to be procured at the cost of US$10.55 per dose.
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Among other interventions, the report revealed that part of the money will be spent on case detection, contact tracing, recording, and reporting and containment, isolation, and treatment of Covid-19 cases.
The report stated that “this financing would provide improved access to affordable and equitable COVID-19 vaccines, strengthen the system for effective deployment as well as enhance preparedness and response to the Ghana COVID -19 strategic preparedness and response programme.”