Debates of 2 Jun 2005

MR. SPEAKER
PRAYERS 10:05 a.m.

CORRECTION OF VOTES 10:05 a.m.

AND PROCEEDINGS AND 10:05 a.m.

THE OFFICIAL REPORT 10:05 a.m.

Mr. Speaker 10:05 a.m.
Order! Order! Correction of Votes and Proceedings - pages 1, 2, 3. . .13 - [Pause] - Yes, hon. Member for Evalue Gwira.
Mr. Kojo Armah 10:05 a.m.
Mr. Speaker, page 13, item 3, (iii) “In attendance”, the name of the Chief Director is “Mr. Kojo Amoakwa” not “Amoako”.
Mr. Speaker 10:05 a.m.
The correction would be made. We have the Official Report for Wednesday, 1st June, 2005. Any corrections? [Pause.] Right, item 3 - There is one Urgent Question in the name of hon. Akua Sena Dansua. Hon. Minister for Finance and Economic Planning?
URGENT QUESTION 10:05 a.m.

MINISTRY OF FINANCE AND 10:05 a.m.

ECONOMIC PLANNING 10:05 a.m.

Mr. Speaker 10:05 a.m.
Hon. Minister for
Finance and Economic Planning?
Majority Leader (Mr. F. K. Owusu- Adjapong) 10:05 a.m.
Mr. Speaker, I crave your indulgence to allow the hon. Deputy Minister for Finance to respond on behalf of the Minister.
Mr. Speaker 10:05 a.m.
Hon. Deputy Minister, you may proceed.
Mr. E. K. D. Adjaho 10:05 a.m.
Where is the Minister? Mr. Speaker, I do not have any objection to the hon. Deputy Minister coming to answer the Question but it is only fair for the hon. Majority Leader to tell the House why the Deputy Minister will be answering the Question and where the hon. Minister for Finance and Economic Planning is. It is only fair that we are made aware -
Mr. Speaker 10:05 a.m.
Hon. Majority Leader, this is the point he is making; that although he may not have any objection it is customary that you explain the absence of the hon. Minister.
Mr. Owusu-Adjapong 10:05 a.m.
Mr. Speaker, I am happy to learn from my hon. Colleague that the hon. Deputy Minister is competent to respond to the Question. The hon. Minister is engaged in another equally important assignment and because of the respect he has for Parliament he has directed that his deputy who is also a Member of Parliament, one of us, and knows all the rules of the game should come and respond to the Question. Thank you, Mr. Speaker.
Mr. Speaker 10:05 a.m.
Hon. Majority Leader, we will grant your request but I hope in future you will lay the proper foundation.
Mr. Owusu-Adjapong 10:15 a.m.
Point taken; there will be more amplification next time around.
Deputy Minister for Finance and
Economic Planning (Prof. G. Y. Gyan- Baffour): Mr. Speaker, in answer to the Question, the Social Investment Fund (SIF) was set up in 1998 through the efforts of the Government of Ghana, the African Development Fund and the United Nations Development Programme (UNDP). The total project cost was $20.3 million; it started on a pilot basis in six districts and was expanded to 39 districts by 1999. Currently, Mr. Speaker, it is in 80 districts of the country.
The SIF has approved one hundred and forty seven sub-projects amounting to $19.49 million; 772 of the projects have been fully completed whilst 247 are at various stages of implementation. The remaining 28 are yet to be implemented. The projects include classroom blocks, staff quarters, nutrition centres, rural health facilities, irrigation, agro-processing, skill development and maintenance of farms to market roads.
Mr. Speaker, the first phase of the project funded by the African Development Bank and the Organisation of the Petroleum Exporting Countries (OPEC) ended in 2004. Currently OPEC has provided seven million dollars for the second project and the African Development Fund is now in the process of getting us a second project that would be funded to the tune of about twenty million units of account, which is almost about twenty-eight million dollars. It is yet to be processed; it has not been signed yet.
Mr. Speaker, because of the transition from Phase I to Phase II there has been a slowdown of the activities of the Social Investment Fund (SIF) and as soon as the modalities for the disbursements of the OPEC Fund of $7 million are completed, funds will be made available for the smooth implementation of all ongoing projects including those in North Dayi.

Mr. Speaker, the SIF first entered the then Kpando district in October, 2002 and the SIF together with the Kpando District Assembly developed nine sub- projects and subsequently added three in October, 2003, bringing the total number to twelve in the district. Mr. Speaker, these sub-projects cover ten schools, one income generating activity, that is a gari processing factory, and one health post and nurses' quarters.

Mr. Speaker, to date, an amount of ¢2.4 billion has been approved by the SIF in the Kpando District Assembly out of which ¢1.2 billion has been disbursed. Mr. Speaker, out of the twelve sub-projects in the district, eleven are in North Dayi alone. Five of the eleven in North Dayi have been completed and handed over to the District Assembly, with a maintenance plan, over a year ago. A sixth project at Fesi is about 95 per cent completed - actually it is at the painting stage.

Two other sub-projects -- one at Anfoega-Wadaxeme is at the lintel stage and the other at Dzana is at the roofing stage -- have been abandoned by the contractors, while three sub-projects, which were approved late, are yet to be started. These are the ones at Ave Danyigba Unit Committee with 3-unit classroom; Kpando Gabi RC - 6-unit classroom; and the Gbeli Unit Community, a community clinic.

Mr. Speaker, I wish to inform this august House that the delays in the implementation of sub-projects are often associated with the inability of the local community on the one hand, and in this particular case the KDA on the other to generate the required 10 per cent and 15 per cent respectively as matching funds.

To buttress this point, Mr. Speaker, it would interest you to know that while the first sub-projects were approved in October, 2002 the District Assembly made

its maiden payment on 1st July, 2004, nearly two clear years after the approval and in fact at the time the projects were being handed over. The last instalment of the amount was paid on 11th January, 2005.

Mr. Speaker, as I speak, the comm- unities still owe SIF an amount of ¢118,129,087 and these delays in payments of the Assembly and the communities' contributions have affected the last three sub-projects, thus requiring a review of the contract sum.

It is expected that with the co- operation of the District Assembly and the beneficiary communities, all the sub- projects in the district would be completed hopefully by the end of July, 2005 except, of course, the three that we awarded lately.

Mr. Speaker, there are about 45 other equally distressed districts that are yet to be covered by the SIF.
Ms. Akua Sena Dansua 10:15 a.m.
Mr. Speaker, I would like to know from the hon. Minister how much the KDA has paid so far as their counterpart to the SIF Project.
Prof. Gyan-Baffour 10:15 a.m.
Mr. Speaker, the counterpart fund for the District Assembly is 15 per cent of the project cost. And as I said, that had all been paid as at 11th January, 2005; 15 per cent of the total sum -- Maybe, let me do the calculation, 16 per cent of ¢2.4 billion may be about ¢250 million thereabouts. I do not have the specific figures here but that is the percentage that had been paid by the District Assembly.
Ms. Akua Sena Dansua 10:15 a.m.
Mr. Speaker, I would like to find out from the hon. Minister if the Ministry would not consider using part of the HIPC Funds to pay off the outstanding debt that the communities owe
the SIF since they cannot afford, on their own, to contribute to this fund.
Prof. Gyan-Baffour 10:15 a.m.
Mr. Speaker, this 15 per cent and 10 per cent of the Fund that are required by the District Assembly and the communities affect all District Assemblies and communities that have access to the SIF. If we try to use the HIPC Funds to pay for it, then it has to be a general policy to use it for everybody else. The problem of inability to pay is actually not limited to any specific district and, therefore, that will require a lot of thinking through. But as I stand here, I cannot vouch that we will use the HIPC Fund for that.
But also, Mr. Speaker, let it be known that the formula will be brought to Parliament and, of course, I cannot pronounce as to how the HIPC Funds would be used at this point.
Ms. Akua Sena Dansua 10:15 a.m.
Mr. Speaker, I would like to know from the hon. Minister if it is true that projects in most districts in the country were executed and then when it came to the turn of the Volta Region the funds dried up and so their projects have been delayed. I would like to know from the hon. Minister if this is the situation.
Prof. Gyan-Baffour 10:15 a.m.
Mr. Speaker, that is not the case.
Mr. E. K. D. Adjaho 10:15 a.m.
Mr. Speaker, I would just want to find out from the hon. Deputy Minister if, as a former Director- General of the National Development Planning Commission (NDPC), he was directly involved in the implementation of the Social Investment Fund programmes.
Prof. Gyan-Baffour 10:15 a.m.
Mr. Speaker, I do not think I got his question clearly but I was the Director-General of the NDPC and, in fact, the implementing agency responsible for SIF. The Ministry
of Finance and Economic Planning is the executing agency and NDPC is the implementing agency. If that is what hon. Deputy Minority Leader wants to know, that is it; but his question then was not very clear to me.
Mr. Adjaho 10:15 a.m.
Mr. Speaker, now that he has confirmed that he was the former Director-General of the NDPC and the implementation wing of the programmes of the SIF, any problem that has been associated with the implementation of the SIF, especially in the North Dayi and the Volta Region has something to do with him. Will he confirm that to this honourable House?
Mr. Speaker 10:15 a.m.
Hon. Deputy Minority Leader, are you asking a question? Can you go ahead and let me get the question you are asking -- the supplementary question you are raising.
Mr. Adjaho 10:15 a.m.
Mr. Speaker, I want to find out from him whether he is aware that the problem that I mentioned in the implementation of the programme in the Volta Region, especially North Dayi, has something to do with him, he being in charge of the implementation wing of this project.
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, I do not think so.
Mr. Kojo Armah 10:25 a.m.
Mr. Speaker, the hon. Deputy Minister for Finance and Economic Planning confirmed that there are problems with the counterpart funding of the Assemblies and the communities with regard to the Social Investment Fund (SIF) projects. May I know from him whether the Ministry of Finance and Economic Planning is contemplating varying that policy because it affects all
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, as I speak, we are not contemplating doing that. As I said earlier on, about one thousand and forty-nine projects out of that seven hundred and seventy-four had been completed, and in those areas the counterpart funds actually came through. If some of them are not getting through because of the counterpart fund, I do not think we have started thinking through as to why we should vary it for a few sections of the community.
But what I can say is that a lot of them have the ability to pay because the District Assemblies were really part of the design of the projects. So I wonder why the District Assemblies in certain areas are refusing. I can understand the one for the communities, but the District Assemblies, I just do not understand why; because they have the resources to do so.
Mr. John D. Mahama 10:25 a.m.
Mr. Speaker, if I heard the hon. Deputy Minister right, he said that so far the fund was being implemented in eighty districts and that there were moves to replenish the fund. I would want to ask the hon. Deputy Minister what plans there are to include the rest of the districts in this Social Investment Fund.
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, there are about forty-five other distressed districts that we intend to move into. In fact, the process was altered a little bit because of the cash flow. So as soon as we get the fund from the ADB, which is about almost thirty million US dollars, we will move into those distressed areas.
Mr. John Tia 10:25 a.m.
Mr. Speaker, in answer to a supplementary question from the hon. Member for North Dayi (hon. Akua Dansua), the hon. Deputy Minister indicated that the formula on the HIPC
Fund would soon be ready. May I know from the hon. Deputy Minister when he will introduce it to this House?
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, the Ministry of Local Government and Rural Development and the Committee on Local Government and Rural Development do the formula. It will be out here very soon; but I cannot tell how soon it is going to be here.
Mr. Tia 10:25 a.m.
Mr. Speaker, my supple- mentary question was on the HIPC Fund and not the District Assemblies Common Fund; and the Ministry of Finance and Economic Planning handles that. So that was his answer to a supplementary question, that the formula would soon be ready. And I was asking him, how soon and when would he introduce it to the House?
Mr. Felix Owusu-Adjapong 10:25 a.m.
Mr. Speaker, we have to see whether first of all this question is directly related to the SIF we are discussing - [Interruption.] Oh please, Mr. Speaker. We have to see whether we are discussing a different topic for which he needs to be properly briefed by his superior, the hon. Minister for Finance and Economic Planning. And secondly, an impression is being created that there is going to be a formula for HIPC Fund. I am not aware of that. I am only aware of an account as to how HIPC funds are supposed to be handled. We need to be very careful how we use words like “formula” and the rest indiscrimi-nately on the floor of this House.
The supplementary question is irrelevant and therefore, if he wants a proper answer to it, I suggest he comes through the proper channel by putting a Question; and I assure him that the hon. Minister for Finance and Economic Planning will come and answer appropriately to the satisfaction of the people of Ghana.
Mr. Speaker 10:25 a.m.
Hon. Deputy Minister, a question has been asked and if you have the answer, you may give it; and if you do not have it, say so.
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, I will need some notice to answer that supplementary question - [Laughter.]
Mr. S. K. B Manu 10:25 a.m.
Mr. Speaker, the hon. Deputy Minister in answering the question relating to counterpart funding admitted that District Assemblies were party to the negotiation and therefore he did not see why District Assemblies may not be able to pay; but he could understand if communities were facing problems. Having accepted that communities may genuinely be facing problems in paying their part of the fund, does his Ministry have any plans to help such communities come out of this problem he admitted himself?
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, the answer to that is in the affirmative and the Ministry of Finance and Economic Planning is considering how to go about helping the distressed districts, especially the communities.
Mr. A. S. K. Bagbin 10:25 a.m.
Mr. Speaker, in the main Answer to the Urgent Question, the hon. Deputy Minister mentioned that the contractors have abandoned some of the projects in the Kpando district. Could he tell this House why the contractors abandoned the projects?
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, there are various reasons why contractors abandon projects. At times they have a couple of projects around and, sorting out with their resources here and there, if they get locked up somewhere then they find it difficult to continue. In this particular case, we had to give two of them some help, with cement from SIF resources just
to help them to finish the buildings. But even then they were unable to continue.
So what we have decided is that we are actually taking the contracts away from them and reaward them to somebody else who can actually do them for us on time. So we have so many reasons, Mr. Speaker, why some contractors abandoned them; at times it is the cash flow. If the flow is slow, they may abandon it. At times, if even the flows are in, they may use them for something else and then get locked up. So the reasons are many.
Mr. Joseph Yieleh Chireh 10:25 a.m.
Mr. Speaker, I would want to find this out from the hon. Deputy Minister. He said that the contractors had abandoned those projects. Does he know the names of the contractors? Who are they?
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker,
yes, I know the names of the contractors. But for some very goods reasons, I probably would not want to mention their names here.
Mr. Chireh 10:25 a.m.
Mr. Speaker, I am surprised by the answer I have been given. This is a Parliamentary Session and there should not be any secret about contractors having been awarded contracts. After all, it was supposed to be transparent and open; he should inform us.
Mr. Speaker 10:25 a.m.
Hon. Member, what is your supplementary question? Ask it.
Mr. Chireh 10:25 a.m.
Mr. Speaker, I asked a question, who are the contractors and what are their names; and who abandoned their jobs? I have not been given the answer. So that is why I am repeating the question.
Mr. Speaker 10:25 a.m.
Hon. Member, I thought he said he was not going to mention the
Mr. Bagbin 10:25 a.m.
Mr. Speaker, this is a Parliamentary Session and we would want to know the contractors so that as the oversight arm of Government, we could take action. In fact, I was going to ask him what action Government has taken against those contractors. They cannot award contracts to contractors and they just abandon them and they are allowed to go free. Please, we would want to know the names.
Mr. Speaker 10:25 a.m.
Hon. Deputy Minister, there is a question, on these contractors. What action have you taken?
Prof. Gyan-Baffour 10:25 a.m.
Mr. Speaker, I was reluctant to do that for very obvious reasons, but I will tell them the names. There are two of the contractors and they are Reagbin Ventures and Dot Sanni Design Company Limited. Then the other one is Bans Consult Limited.
Mr. Speaker, we have terminated the contracts with these people. Actually, we have terminated their contracts and we are working to find out whether we have not even overpaid them; if we have, we will have to retrieve whatever amount we have overpaid them.
Mr. B. D. K. Adu 10:35 a.m.
Mr. Speaker, in answering a question about the slow pace of contracts he mentioned cash flow. What is his Ministry doing to help these contractors to be able to lay hands on cash to speed up the various projects?
Prof. Gyan-Baffour 10:35 a.m.
Mr. Speaker, I know there are various problems with cash flow, not only with contractors but generally. Mr. Speaker, our cash flow depends on the taxes that are paid; as the taxes come in then government expenditure goes on. If the taxes are delayed, government expenditure is also
delayed. So that is what I mean by cash flow.
But we are trying to find a way to make sure that we do not make any commitment when we do not have the cash. That is the cash management process that is going on so that we do not make any commitment unless we know very well that we have the resources to meet those commitments.
Mr. J. D. Mahama 10:35 a.m.
Mr. Speaker, for
clarity of the answer, the second company, I thought I heard Dog Selling Divine Company; I am not sure what kind of company that is. If he can mention it -- Dog Chain Divine Company or something like that.
Mr. Speaker 10:35 a.m.
Hon. Member for Bole/
Bamboi, are you asking a question?
Mr. J. D. Mahama 10:35 a.m.
Yes, Mr. Speaker.
Mr. Speaker 10:35 a.m.
Then ask your question,
please.
Mr. J. D. Mahama 10:35 a.m.
I would like to
Prof. Gyan-Baffour 10:35 a.m.
Mr. Speaker,
the name is Dot Sannie Design Company Limited.
Mr. Speaker 10:35 a.m.
Hon. Members, we
have exhausted this matter; hon. Deputy Minister, we thank you very much for coming, you are hereby discharged.
Hon. Members, at the commencement of Public Business -- item 5, Laying of Papers.
PAPERS 10:35 a.m.

Mr. Speaker 10:35 a.m.
The Papers are accordingly laid. Item 6 -- Committee Sittings -- any directions on this matter?
Mr. Felix K. Owusu-Adjapong 10:35 a.m.
Mr. Speaker, yesterday we commenced a meeting of the Committee of the Whole to discuss the Proposed Formula for the Distribution of Subsidies to be paid to Licensed District Mutual Health Insurance Schemes. We could not complete because there were some information we needed; there is an urgency relating to this matter and I therefore move that this House do now adjourn till tomorrow 10.00 in the morning to enable the House to constitute itself into a Committee of the Whole to handle this all important matter I so move, Mr. Speaker.
Ms. Akua S. Dansua 10:35 a.m.
Mr. Speaker, I rise to second the motion for adjournment.
Question put and motion agreed to.
ADJOURNMENT 10:35 a.m.

  • The House was accordingly adjourned at 10.40 a.m. till 3rd June 2005 at 10.00 a.m.