Debates of 25 Jul 2007

MR. SECOND DEPUTY SPEAKER
PRAYERS 10:16 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:16 a.m.
Mr. Second Deputy Speaker 10:16 a.m.
Correction of Votes and Proceedings. [There was no correction to the “Votes and Proceedings”.]
Questions. Question 759 -- Is the hon. Minister for Local Government, Rural Development and Environment ready?
ORAL ANSWERS TO QUESTIONS 10:16 a.m.
MINISTRY OF LOCAL 10:16 a.m.
GOVERNMENT, RURAL 10:16 a.m.
DEVELOPMENT AND 10:16 a.m.
ENVIRONMENT 10:16 a.m.
Mr. Second Deputy Speaker 10:16 a.m.
Did you get the question?
Nii Amasah Namoale: Mr. Speaker, I
think he understood the question.
Mr. Second Deputy Speaker 10:16 a.m.
Hon. Members would also want to hear it properly.
Nii Amasah Namoale: What I am asking is, will he agree with me that the ECG has misled him in the sense that the underground cables are intact but it is the bulbs and lamps that are open due to the sea breeze that keeps those street lights always down?
Mr. Asamoah-Boateng 10:16 a.m.
Mr. Speaker, I do not believe the ECG officials have
misled me at all. In fact, I believe that their response to my question is correct, unless my hon. Colleague has any other information that would dispute what the ECG officials told me.
Mr. Speaker, if I may remind him, my hon. Colleague seems to know exactly what goes on 24 hours in Accra. The last time he asked me the same question -- I think he does not sleep in the middle of the night so he must know what goes on in the middle of the night because it is due to pilfering. They say people are taking the cables out, unless you have somebody to check that this is not taking place; then I can verify. I am told that this is what is taking place, unless he can tell me it does not happen on that particular carriageway.
Nii Amasah Namoale: I would like to
Mr. Second Deputy Speaker 10:16 a.m.
Hon.
Member, please, go ahead with your second supplementary.
Nii Amasah Namoale: Mr. Speaker, will the hon. Minister agree that I contest this thing? If he can write a letter to the ECG that I am contesting this allegation, that it is not true and that the cables are intact but they are rather not doing the right thing.
Mr. Second Deputy Speaker 10:16 a.m.
Hon. Member, that question is disallowed. You can ask your -- [Interruption.]
Nii Amasah Namoale: I am done, Mr. Speaker.
Mr. Kojo Armah 10:16 a.m.
Mr. Speaker, I want to know from the hon. Minister whether the electrical cables that connect the poles are overhead or underground, in which case there could be pilfering that nobody would know.
Mr. Asamoah-Boateng 10:16 a.m.
Mr. Speaker, I am not a technical man with ECG. But at least, I have driven down the road several times and I am aware that they are underground.
Mr. Asamoah Ofosu 10:16 a.m.
Mr. Speaker, I would want to ask the hon. Minister whether it is the duty of his Ministry to maintain street lights, and if it is, would it not be proper for the Ministry to do the maintenance whilst waiting for the rehabilitation by the Ghana @ 50 Secretariat?
Mr. Asamoah-Boateng 10:16 a.m.
Mr. Speaker, it is not my Ministry's responsibility to maintain street lights. Mr. Speaker, so when this Question was posed to my Ministry I was a bit surprised. But of course, it falls under local authority, and I am also aware that local authorities, the District Assemblies and Metropolitan Assemblies such as AMA do provide some facilities such as the bulbs when they are not functioning.
So yes, they do contribute in some aspects but the main maintenance of the street lights is the duty of ECG and probably the best place to direct this question will be the Ministry of Energy. But we do collaborate and I have been speaking to them. That is why I am answering these questions.
Mr. A. K. Agbesi 10:16 a.m.
Mr. Speaker, just
before the Ghana @ 50 celebration, a lot of street lights were installed in the Greater Accra Region, particularly along the Motorway. Mr. Speaker, I want to know from the hon. Minister whether the street lights which have been installed in many parts of Accra including the Motorway fall under his Ministry, and if yes, what he is doing about these lights which suddenly decided not to function at all.
Mr. Asamoah-Boateng 10:16 a.m.
Mr. Speaker, obviously with such a big event taking place in Ghana, all the District Assemblies and Metropolitan Assemblies were encouraged to cooperate and work with the authorities. I can tell you that the major work was done by the ECG in putting up these extra street lights and also maintaining the bulbs.
Of course, i t means that that collaboration must continue so that we can maintain them regularly. Accra is peculiar but when you go to the other district capitals, the Assemblies take the rest of the responsibilities in most cases, making sure that the lights are on.
Mr. Speaker, it may interest you to know that I passed the night at Yendi, in your place, and I was very amazed and impressed with the street lights in Yendi. They were very, very impressive, and I encourage every District Assembly to go to Yendi to learn how to maintain street lights. [Hear! Hear!] -- Mr. Speaker, it is collaboration, and that we all have to undertake --
Alhaji Sumani Abukari 10:30 a.m.
Thank you, Mr. Speaker. First of all, I will congratulate Mr. Speaker for lighting up his streets. Mr. Speaker, the stealing of cables on our busy roads is simply because most of the streets are dark. I think an hon. Colleague here made a Statement on that issue.
So I want to ask the Minister what he is doing to ensure that the Metropolitan, Municipal and District Assemblies keep the streets well lit so that the thieves do not get get the opportunity to steal the cables. They steal them simply because
Alhaji Sumani Abukari 10:30 a.m.


it is dark in the night. What is he going to do to ensure that these are rectified as early as possible?
Mr. Asamoah-Boateng 10:30 a.m.
Mr. Speaker, it is true that obviously when there is darkness, you find unscrupulous people loitering around and doing things that we do not want them to do. But it is important also to be aware of the difficulties of maintaining these things. Assemblies, I am aware, allocate some amount of money to maintain street lights but these are inadequate and they normally fall on the Ministry for help.
In that respect, I have put in place systems to find solutions. For instance, as I stand here now, Mr. Speaker, we are working with the Ministry of Energy to find electric poles and hon. Members will be happy to know that almost all their districts will be covered.
For the cables, I am aware that there are some available and even bulbs. So we can buy them or take them in bulk and spread the cost over a period so that we can light all the streets of our capitals. And so this is a programme that we are working on extensively now. Thank you, Mr. Speaker.
Mr. E. K. Banduah 10:30 a.m.
Mr. Speaker, in his Answer, the Minister acknowledged the fact that there is the need to get the co-operation of the public in order to stem the tide of pilfering. I want to find out from him the steps he is taking to get the co-operation of the public in this respect.
Mr. Asamoah-Boateng 10:30 a.m.
Mr. Speaker,
I think number one is me answering the questions on the floor. So the message should go out from here that the public must co-operate. Not only that, the security agencies must also be brought into play and those who begin to disobey the rules and the laws of the land must be arrested and punished. So it is the co-
operation of everybody. Therefore, if my hon. Colleagues will also help me when they go to their constituencies and their districts to make sure that we drum the message home that co-operation from the public is important to maintain our street lights regularly -- Thank you.
Dr. Kwame Ampofo 10:30 a.m.
Mr. Speaker, in his Answer, the Minister states -- and I quote:
“Unfortunately due to financial difficulties the rehabilitation work has slowed down.”
I would like to know from the hon. Minister, what the nature of these financial difficulties is.
Mr. Asamoah-Boateng 10:30 a.m.
Mr. Speaker, my senior brother and Colleague is very much aware that the Ghana @ 50 Secretariat is not under my Ministry but we do co-operate and discuss their programmes. Mr. Speaker, I am aware that they have even requested for some more money -- I do not know whether on the floor of the House or wherever -- They are not smooth sailing in terms of the moneys they need to complete most of the work. I am not aware of the specifics but I am aware that there is a general difficulty in accessing money to do their job. Thank you.
Mr. Second Deputy Speaker 10:30 a.m.
Well, I wanted to go to the next question but we have not seen the hon. Member for Jirapa for some time. You may ask the last supplementary.
Mr. Edward Salia 10:30 a.m.
Thank you, Mr. Speaker. Mr. Speaker, in the hon. Minister's Answer to the Question, he did draw attention to the beauty of the street lights in Yendi District. My observation is
Mr. Second Deputy Speaker 10:30 a.m.
Hon. Member, I hope you are not meaning Yendi lights are not up to standard?
Mr. Salia 10:30 a.m.
No, no. Mr. Speaker, yours are the best.
Mr. Second Deputy Speaker 10:30 a.m.
Please, go on.
Mr. Salia 10:30 a.m.
Mr. Speaker, I am talking about elsewhere. So Mr. Speaker, I want to find out from the hon. Minister whether there is standardization of these street lights or it is a matter of different choices by different District Assemblies. Some of them, as I said, really are nothing to write home about in terms of the quality of their lights.
Mr. Asamoah Boateng 10:30 a.m.
Mr. Speaker, it is always a joy to see hon. Colleagues who disappear for a while and come back. I know he was absent with permission but I love to see him -- hon. Salia. And the question he posed to me, Mr. Speaker, it is true to some extent that different Assemblies procure different specifications in terms of the bulbs that they use.
Sometimes you see some dim, some brighter, some yellow, some white. We have been working with them to find a standard for the bulbs. It is also the cost element. That they look at their cost structure and they think they can buy this particular type than the other one. But as I said, Mr. Speaker, your own district gives me a good hope that they can copy and that is why I have encouraged my districts to go back and copy Yendi. It did not cost them much but they are maintained and
Mr. Asamoah Boateng 10:30 a.m.


they are bright -- those street lights are top class -- and I want every district to have that standard if we can do that.

Modern Market for Yeji

Q. 863. Mr. Baba Abdul-Rahman Masoud asked the Minister for Local Government, Rural Development and Environment whether the Ministry had any plans to construct a modern market for Yeji to befit its status as a district capital.
Mr. Asamoah-Boateng 10:30 a.m.
Mr. Speaker, ideally, it is the District Assembly which initiates projects and contacts the relevant agencies and authorities for assistance to implement these projects. The Pru District Assembly where Yeji is the district capital therefore has the mandate, the responsibility and the duty to plan for the construction of a modern market for Yeji to befit its status as a district capital. Thank you, Mr. Speaker.
Mr. Masoud 10:30 a.m.
Mr. Speaker, I want to ask the hon. Minister whether his Ministry has received any building plan, be it short- term, long-term, from the Pru Assembly in respect of the construction of a modern market for the area.
Mr. Asamoah-Boateng 10:30 a.m.
Mr. Speaker, the Pru District is one of the newly created districts and I am aware that such a request is being put to the Ministry. Mr. Speaker, but as I said earlier on, the Assembly must also begin to put its own plans and priorities in focus so that if it is a market they want first, then we tackle the market. Mr. Speaker, I personally visited Pru a couple of months ago and I interacted with the Assembly and some of the Chiefs and the people and a market did not feature at all.
In my discussions with them I had the impression that environmental sanitation, with refuse mounting, the planting of trees on the Volta River and the street litter bins were some of the things that I was told about. But if my hon. Colleague would want to impress me that a market is also important, I would dialogue with the district and find a way of solving the market problem in Yeji. Thank you.
Asesewa Market
Q. 864. Mr. Stephen Amoanor Kwao asked the Minister for Local Government, Rural Development and Environment when the Asesewa Market would be given a facelift.
Mr. Asamoah-Boateng 10:30 a.m.
Mr. Speaker, the development of the Asesewa Market has been captured in the Medium Term Development Plan of the District Assembly spanning 2006 - 2009 alongside other markets in the district.
Mr. Speaker, I am glad to inform the hon. Member that, the Asesewa lorry park which is part of the market has been selected for a facelift under the Towns V Programme and work will commence in January 2008. The facelift will include provision of sheds, pavement and construction of an in-and-out entrances.
To also improve on sanitation in the market, arrangement has been completed with Zoomlion Company Limited to provide four refuse containers for refuse collection. This arrangement is to take effect from 15th August, 2007.
Mr. Kwao 10:40 a.m.
Mr. Speaker, I thank you and I thank the hon. Minister for the
Mr. Kwao 10:40 a.m.


selection of the Asasewa lorry park for the facelift under the Towns V Programme for which work will commence in January, 2008. May I know if the hon. Minister can tell the House when the facelift of the Asasewa lorry park will end and how much it will cost?
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker, I am afraid I cannot tell him when it will end. Of course, Mr. Speaker, it is starting in January, 2008. I believe, and my infor- mation is that all the plans and the design work have been done and so I am hoping that it should not take more than a year. But it is also important to know that it depends on the smooth running of the Assembly and the attention they pay to this particular market and lorry park. But we will monitor them and make sure the contractors who are on the job and the Assembly complete on time.
In terms of cost, Mr. Speaker, I am not aware, as I speak to you now, but I can check the facts. This is part of the GTZ Programme and I am afraid I have not got the information. But I can come back to the House to give him the cost of the programme.
Mr. Second Deputy Speaker 10:40 a.m.
Hon. Member, your final question.
Mr. Kwao 10:40 a.m.
Mr. Speaker, please I have more than one.
The hon. Minister said the facelift of the market will include provision of sheds, pavement and construction of an in-and- out entrance. May I know from the hon. Minister when this stage of the facelift would begin and when it will end.
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker, I am not too sure what my hon. Colleague means by asking this supplementary question because I have not mentioned phases here; I have just said that the
construction of the work will start in January 2008. I am not aware of phases yet, unless he is reading from something different from what I have got here.
Mr. Kwao 10:40 a.m.
Mr. Speaker, in one of the sentences in the second and third paragraphs, he said the facelift will include provision of sheds, pavement and the construction of an in-and-out entrance and that is exactly what I am referring to; it is in the Answer.
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker, if I am right in understanding my hon. Colleague, it is the sentence that reads: “the facelift will include provisions of sheds, pavement and construction of an in-and-out entrance”. And his question earlier on was when that particular phase will start. That is why I am surprised because -- [Interruption.]
Mr. Second Deputy Speaker 10:40 a.m.
Hon. Member, is that a question? You can make it clear for the hon. Minister to answer.
Mr. Kwao 10:40 a.m.
Mr. Speaker, where he has put his Answer, I was a little bit confused because initially, he said the Assembly had a development plan which will include the facelift of the market. And then he came on to say that the Towns V Programme is coming in to do the facelift of the Asasewa station. Then he went on again to say that the facelift will include the provision of sheds, pavement and construction of an in-and-out entrance. So I am connecting it to the facelift of the lorry park.
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker, can I just assure my hon. Colleague that the work on the project in terms of the lorry park and the market will start in January, 2008. If my hon. Colleague thinks that the pavements and the sheds should start earlier, I am prepared to listen to him and talk to the Assembly and the contractors so that we can start the priority

ones that he prefers and the Assembly also prefers.
Mr. Second Deputy Speaker 10:40 a.m.
Question No. 942, hon. Member for Amenfi Central, hon. Kofi Arthur?
Mr. John Gyetuah 10:40 a.m.
Mr. Speaker, my hon. Colleague had asked permission to attend to a programme in the constituency. He has therefore asked me to ask the Question on his behalf.
Mr. Second Deputy Speaker 10:40 a.m.
Please, go ahead.
Amenfi Central (District Status)
Q. 942. Mr. John Gyetuah (on behalf of Mr. George Kofi Arthur) asked the Minister for Local Government, Rural Development and Environment when the Amenfi Central constituency would be upgraded to a district status.
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker,
the Ministry has no plans to upgrade the Amenfi Central constituency to a district status.
However, the stakeholders of the constituency can apply to the Ministry for consideration. If the application meets the requirements indicated below, the Ministry would take the issue up accordingly.
Mr. Speaker, section 4 (a) and (b) of the Local Government Act, 1993, Act 462 enumerates the requirements as:
i. a district shall have a minimum population of 75,000 people;
ii. a municipality shall have a geographical area consisting of a single compact settlement and shall have a minimum population of 95,000 people;
iii. a metropolis shall have a minimum population of 250,000 people; and above all
iv. having a geographical contiguity and economic viability, with “economic viability” explained as the “ability of an area to provide the basic infrastructural and other developmental needs from the monetary and other resources generated in the area”.
Mr. Gyetuah 10:40 a.m.
Mr. Speaker, according to the hon. Minister, section 4 (a) and (b) of the Local Government Act, 1993, Act 462, stipulates the requirements for the creation of a district. Among other things, a district shall have a population of about 75,000. Amenfi West constituency has a population of about 186,000 and during the recent visit by His Excellency President J. A. Kufuor, the Omanhene, Kasapreko Kwame Basanyi III made a special appeal to the President and followed it up with a letter. I want to find out whether this letter has reached him.
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker, I am afraid, I have not received such a letter from the constituency or the Omanhene.
Mr. Gyetuah 10:40 a.m.
Mr. Speaker, I want to find out from the hon. Minister whether his Ministry has plans at all to create new districts.
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker, it is true, that the Ministry has been making some plans and on which I have answered some questions on the floor of the House, to create some districts and municipals. I would encourage my hon. Colleague to send me a reminder; I would also check with my mails system to see whether the letter is hiding somewhere. But as I speak to you now, among the requests I have seen, Amenfi Central is not one of them.
Mr. Charles S. Hodogbey 10:40 a.m.
Mr. Speaker, from all the conditions he has given down here, there are several districts or several constituencies which are able to meet these criteria. What is taking the Ministry long to upgrade those constituencies having met these conditions?
Mr. Asamoah-Boateng 10:40 a.m.
Mr. Speaker, I am surprised about the question actually because he has asked me this question before. He is looking for a district in his constituency and Mr. Speaker, it is not straightforward as just the stipulation that he sees here.
He is aware that first, a request must be made. So we may have municipalities or towns or settlements that may qualify with the numbers sitting in their specific locations. But if a request has not been made, I cannot go round creating districts from left and centre. I do not even have the capacity to do that, neither the Ministry nor the Government.
What we need to do -- and I must understand -- is that the request must be made and, of course, we would look at the criteria that are fixed. But it is not only the number criteria, Mr. Speaker; my hon. Colleague is also aware of the economic viability of the district to sustain itself. So it should go beyond just the number games.
Mr. Alfred K. Agbesi 10:50 a.m.
Mr. Speaker, the Minister has stated in black and white that by law these are the conditions that an area must meet. The fact that the area must send application is not legal, it is not provided for as his Answers show. My question is, by law, if an area qualifies by the criteria, why is it that the Ministry cannot declare an area which has qualified by law?
Mr. Asamoah-Boateng 10:50 a.m.
Mr. Speaker,
Mr. Agbesi 10:50 a.m.
Mr. Speaker, I am worried about these answers. My constituency is overqualified; there are over four hundred inhabitants. We have met the conditions stated in (i) and (iv), and Ashaiman is overqualified. We have come before the Ministry asking for this.
By this Answer, the Minister is saying that if you qualify and satisfy the conditions in (i) and (iv), you must be given -- I am a bit disturbed when these Answers are there and yet places qualified by law, by conditions stated in (iv) are not given, including Ashaiman. I want to know from the Minister why this is so and why this cannot be so. I want to know.
Mr. Second Deputy Speaker 10:50 a.m.
Hon. Member for Ashaiman, although you are hijacking the question, I will nevertheless allow the Minister to answer. Please,
resume your seat.
Mr. Asamoah-Boateng 10:50 a.m.
Mr. Speaker, he nearly gave me your title as the Speaker. As you rightly said, he has hijacked the Question to Ashaiman. This is not an Ashaiman business, this is about Amenfi Central which he has deliberately pushed in one question.
He posed this question on the floor of the House and I did explain that Ashaiman may qualify under the criteria put. I also gave him a good reason that from the point of view of the Ministry, which I shared with him on the floor, it may be economical, feasible and beneficial for Ashaiman to be under Tema which is likely to be turned into a metropolis.
Unless he disagrees, of course, then we can discuss these matters and create a district if that is what Ashaiman people want. But I would imagine that the benefits that would derive to them under a metropolis is far greater than seeking a district.
Mr. Second Deputy Speaker 10:50 a.m.
Question 986.
Street Lights Levy
Q. 986. Mr. John Agyabeng asked the Minister for Local Government, Rural Development and Environment whether the street lights levy paid to Electricity Company of Ghana by electricity consumers were sent to the District Assemblies or the Ministry.
Mr. Asamoah-Boateng 10:50 a.m.
Mr. Speaker, the street light levy paid to the Electricity Company of Ghana (ECG) by electricity consumers is not sent to the District Assemblies or my Ministry.
The street light levy is billed by the ECG on the consumption of all customers at the rate of 50 pesewas (old cedis) per unit consumed and 80 per cent of the levy collected is used to supplement energy consumption of the street lights whilst
the remaining 20 per cent is used for its maintenance.
Mr. John Agyabeng 10:50 a.m.
Mr. Speaker, I want to ask the hon. Minister whether he is aware that people still believe that the levy is paid to the District Assemblies.
Mr. Asamoah-Boateng 10:50 a.m.
Mr. Speaker, if people believe that, at least today I have made it quite clear that they are not sent to the District Assemblies. They are ECG's business so he should also go and tell them and his own constituents must also be educated; but these are not sent to the Assemblies or my Ministry.
Mr. Second Deputy Speaker 10:50 a.m.
Hon. Minister, thank you for attending upon the House to answer Questions. You are discharged accordingly. At the Com- mencement of Public Business --
COMMUNICATION FROM THE 10:50 a.m.
PRESIDENT 10:50 a.m.
THE CASTLE-OSU 10:50 a.m.
ACCRA 10:50 a.m.
PAPERS 10:50 a.m.
MOTIONS 10:50 a.m.
Chairman of the Committee (Nii Adu Daku Mante) 10:50 a.m.
Mr. Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the Report of the Finance Committee on the Credit Agreement amongst the Bulk Oil Storage and Transport Company Ltd., Citibank, N. A. and Export-Import Bank of the United States of America with Government of the Republic of Ghana as guarantor, for an amount of one hundred and twenty-three million and forty-four thousand United
States dollars (US$123.44 million) for the purchase and construction of oil storage tanks and pipelines may be moved today.
Mr. P. C. Appiah-Ofori 11 a.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.

Finance Committee Report on Credit Agreement amongst BOST, Citibank,

N. A. and Export-Import Bank of
USA 11 a.m.
Chairman of Committee (Nii Adu Daku Mante) 11 a.m.
Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Credit Agreement amongst the Bulk Oil Storage and Transport Company Ltd., Citibank, N. A. and Export-Import Bank of the United States of America with Government of the Republic of Ghana as guarantor, for an amount of one hundred and twenty-three million and forty-four thousand United States dollars (US$123.44 million) for the purchase and construction of oil storage tanks and pipelines.
Mr. Speaker, may I now present your Committee's Report. And in so doing, I would read the Background to this Agreement and then the Conclusion.
1.0 Introduction
Chairman of Committee (Nii Adu Daku Mante) 11 a.m.


The above Government of Ghana guaranteed Credit Agreement amongst the Bulk Oil Storage and Transport Company Ltd (BOST), Citibank, N.A. and Export-Import Bank of the United States of America for US$123.44 million to purchase and construct oil storage tanks and pipelines was laid in the House on Thursday, 19th July 2007 and referred to the Finance Committee for consideration and report in accordance with article 181 of the 1992 Constitution and Order 171 (1) of the Standing Orders of the House.

To consider the credit agreement, the Committee met with the Deputy Minister for Finance and Economic Planning, hon. Prof. George Gyan-Baffour and officials from the Ministry of Finance and Economic Planning and reports as follows:

2.0 Background

As members are aware, the Bulk Oil Storage and Transport Company Ltd. (BOST) is fully Government of Ghana- owned and is responsible for the maintenance and management of Ghana's strategic oil reserves.

Even though the company has a long- term target of holding reserves covering twelve (12) weeks of national demand for petroleum products, it currently holds only four (4) weeks' reserves.

The Bulk Oil Storage and Transport Company Ltd (BOST) is also responsible for the transportation of bulk petroleum products in the country.

BOST also aids the operations of the Tema Oil Refinery (TOR) by supplying TOR with refined petroleum products from the international markets.

The company receives the equivalent of its total import costs from TOR over 60 days of delivery of product; and this caters for costs only. BOST's main source of income is the BOST margin currently fixed at 100 cedis (one Ghana Pesewa) levied on each litre of fuel sold by the Oil Marketing Companies (OMCs).

The National Petroleum Authority (NPA) has since June 2006 revised retail oil prices on an as-needed basis. The price now includes an element of forecasted future crude oil prices as well as past crude oil prices as needed to recover costs due to the lag in changes to retail prices. This has helped restore the financial sustainability of both BOST and TOR.

3.0 Terms and Conditions

The terms and conditions of the loans are as follows:

Citigroup Loan

Loan Amount -- US$13.90 million

Any amounts remaining undrawn at the end of the Availability Period shall be cancelled.

Interest Payments --

Interest Period -- Three or six months at the borrower's Option or such other

period as the borrower and Citigroup shall agree.

Repayment --

Guarantee -- Government of Ghana guarantee

US Exim Bank Guaranteed Loan

Loan Amount -- US$109.54 million

Interest Rate -- 6 months Libor + 0.30 per cent (5.37 + 0.30 =5.67 per cent)

Commitment Fee -- 0.125 per cent

Grace Period -- 5 years

Repayment Period -- 10years

Maturity -- 15 years

Guarantor -- Government of the Republic of Ghana 4.0 Waiver of Taxes and Duties

To become effective, the agreement requires that the project be waived/exempted from the payment of all taxes, including customs duties, withholding taxes, fees and other levies.

Attachment: Please find attached the Commissioner of Customs, Excise and Preventive

Interest Rate -- 6 months Libor + 2.25 per cent (5.37 + 2.25 =7.62 per cent)

Commitment Fee -- 0.5 per cent

Grace Period -- 2 years

Repayment Period -- 3 years

Maturity -- 5 years

Availability -- 24 months from the signing date.

Interest on advances will be payable in Arrears at the end of each Interest Period and semi- annual in the case of Interest periods in excess of six months. Interest to be computed on a 360- day basis and the number of days elapsed

Q u a r t e r l y o r s e m i - a n n u a l instalments, as agreed between Citigroup and the borower.

Service's assessment of the taxies, duties and levies required to be waived.

5.0 Committee Observations

The Committee observed that the loan will be entirely repaid from BOST's cash flows. The Committee was informed that currently, BOST generates a margin of one million, eight hundred thousand dollars (US$1.8 million) on a monthly basis from their margin of ¢100 per litre (or 1Gp/per litre) of fuel sold by the Oil Marketing Companies (OMCs). This brings the margin to a total of US$21.6 million per annum.

The Committee was again informed that the Company receives an additional six million dollars (US$6 million) in revenue from a storage tank leasing arrangement with Trafigura.

It was noted by the Committee that this loan, though commercial in nature, falls within BOST's Debt Sustainability Assessment (DSA) framework and has also been confirmed from the International Monetary Fund (IMF).

Due to this, the Exim bank submitted the Agreement to their Board and the US Congress for approval and was accordingly granted.

The Committee further noted that the project will improve BOST's distribution networks to the middle and northern belt of the country to minimize the movement of petrol tankers on our highways with its attendant risks of road accidents and

deterioration of major highways.

The Committee also observed that the principal amount of the EXIM loan shall be repaid in twenty (20) semi-annual instalments, due and payable in June and December of each year after the grace period; whilst that of the Citigroup would be repaid in quarterly or semi-annual instalments after the grace period and as agreed between BOST and the Citigroup.

6.0 Conclusion

The Committee has critically examined the Agreement and has found that the project is laudable towards supporting the expansion of BOST's storage and distribution networks to enable it meet its long-term target of holding petroleum products in reserve to meet twelve (12) weeks of national demand of petroleum products.

The Committee also finds the project even more critical in the face of current energy crisis and soaring oil prices.

The House is therefore invited to adopt the report of the Committee and to approve by resolution, the Credit Agreement amongst the Bulk Oil Storage and Transport Company Ltd (BOST), Citibank, N.A. and Export-Import Bank of the United States Of America with Government of the Republic of Ghana as Guarantor, for an amount of one hundred and twenty-three million and forty-four thousand United States dollars (US$123.44 million) for the purchase

and construction of oil storage tanks and pipelines in accordance with article 181 of the Constitution and Sections 7 and 10 of the Loans Act, 1970 (Act. 335).

The Committee also recommends to the House to approve by resolution, the waiver of the project from the payment of taxes, duties and other levies totalling twelve million, five hundred and thirty-two thousand, nine hundred and thirteen dollars and eight cents (US$12,532,913.08) in accordance with article 174 (2) of the Constitution.
ATTACHMENT 11 a.m.
THE COMMISSIONER 11 a.m.
ACCRA 11 a.m.
MINISTRY OF FINANCE 11 a.m.
AND ECONOMIC 11 a.m.
PLANNING, 11 a.m.
SIRIBOE, CHIEF DIRECTOR 11 a.m.
LIABILITY 11 a.m.
BULK OIL STORAGE AND 11 a.m.
TRANSPORTATION COMPANY 11 a.m.
LIMITED 11 a.m.
THE CLERK 11 a.m.
OFFICE OF PARLIAMENT 11 a.m.
PA R L I A M E N T H O U S E , 11 a.m.
Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben/Brakwa) 11 a.m.
Mr. Speaker, I beg to second the motion and in so doing I would like to make a brief intervention.
Mr. Speaker, if you look at the
document before us, the Ghana Govern- ment is not contracting a loan. The Ghana Government is only guaranteeing a loan in accordance with section 10 of the Loans Act for BOST. It is indeed a short-term
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loan payable in five years and it is coming from two main sources; one source is Citi Group and the other source is US Exim Bank.

Mr. Speaker, what is it meant for? Nobody will doubt that the population of Ghana is increasing. Consequent upon that the need for fuel is also increasing. Vehicular transport is increasing and therefore there is more need for the consumption of fuel. Unless we take action to forestall any calamity, one day we shall be stranded. There will be no fuel to fuel our vehicles and the economy would collapse irretrievably.

It is for this reason that BOST is going for this facility to expand its storage facility so that it will be able to keep in store fuel for the period of twelve weeks instead of the current facility accommodating fuel for only four weeks. It is good for Ghana and therefore we do not have to waste time in giving the approval.

But I want to draw attention to one thing. What we have been doing in the past is that after approving the loan, we then go back to approve the exemption for taxes. The Committee on Finance is now making history. The Committee is saying that it is a waste of time to give approval at one time and then go on again to give approval for tax exemption at another time. So, all the necessary documents have been attached so as we are giving approval for this loan we are at the same time trying to give approval for the tax exemption hence using one stone to kill two birds.

Question proposed.
Mr. Haruna Iddrisu (NDC -- Tamale South) 11 a.m.
Mr. Speaker, thank you for the opportunity to associate myself with this motion and to urge hon. Members to support any effort in expanding and
strengthening the capacity of BOST for purposes of storage of oil and its distribution countrywide.
Indeed, Mr. Speaker, we now even have a facility expanding as far as Buipe moving towards Burkina Faso in order that the products would be made available there.
Mr. Speaker, but in supporting the motion, I would like to refer you to pages 3 and 4 for the purpose of some analysis. If you look at page 4, the repayment period for the US$109.54 million is ten years, the grace period is five years, and the commitment fee is 0.125 per cent.
Now, if you come to page 3 and compare it to the paltry -- paltry in terms of US$109.54 million against US$13.90 million -- you will find the commitment fee here being 0.5 per cent; grace period, two years; and repayment period, three years.
I am just taking the opportunity to urge the hon. Minister for Finance and Economic Planning that next time he is negotiating these terms he should demand more favourable conditions. This is because in one breath he has done well, if you look at the US$109.54 million facility, the kind of grace period and repayment period is much more relaxed than compared to those of the US$13.90 million facility.
rose
Mr. Second Deputy Speaker 11 a.m.
Yes, hon. Deputy Minister for Finance and Economic Planning?
R 11 a.m.
Dr. A.A. Osei 11:10 a.m.
On a point of information. Mr. Speaker, I think that even though my dear Colleague is asking us to look at page 4, he cannot differentiate between the US Exim Bank and Citi Group. Mr. Speaker, the one that he is saying we did well is essentially a sovereign facility from the Exim Bank in the United States which is not like Citibank which is a purely commercial enterprise; so it is to be expected.
Mr. Speaker, I happen to be the person who went to negotiate the US Exim Bank loan. It is typical of the US Exim Bank to give even more serious terms than this. We negotiated it for them to go this far; but Citibank is completely different. If you go to Stanbic and you go to any Exim bank, the terms will be completely different. So this is why he should know the difference; it is to be expected.
Mr. Second Deputy Speaker 11:10 a.m.
Hon.
Member for Tamale South, will you please take note of the distinction. It is a point of order that was upheld. So the hon. Member is to note the distinction.
Mr. H. Iddrisu 11:10 a.m.
Mr. Speaker, this distinction is unnecessary. All we are calling him -- [Interruption.]
Mr. Second Deputy Speaker 11:10 a.m.
Hon. Member, the Chair has accepted the point of order, that there is need to distinguish between two different sources. So it is not for the hon. Member to say it is unnecessary when the Chair has accepted it as a valid point of order. Please, go on.
Mr. H. Iddrisu 11:10 a.m.
Mr. Speaker, I respect your ruling, but indeed, even the Committee's Report -- [Interruption.]
Mr. H. Iddrisu 11:10 a.m.
Mr. Speaker, I am also encouraged and I would like to refer you to the first sentence of paragraph 5, the Committee's Observation; and I would like to quote it --
“The Committee observed that the loan will be entirely repaid from BOST cash flows.”
Mr. Speaker, that is very significant. It means that the Government of Ghana is only guaranteeing and we look forward to BOST giving an undertaking for the repayment.
Mr. Speaker, I would like to refer
to the fifth paragraph of page 2 of your Committee's Report. And in order that we strengthen the hands of BOST in future, I will not even hesitate to recommend strongly that we may consider an adjustment of the BOST margin currently which is fixed at ¢100 to possibly ¢200.
I think that that can facilitate the expansion project and facilitate the repayment of the loan within the period. I am afraid that with the current 100 per cent regime, they may not be able to fast-track the repayment system. If you look at how much returns they make, it is estimated at 21.6 million per annum; and they also make some revenue from some relationship with Trafigura.
Mr. Speaker, I think that the expansion
process is important, especially so since we need to have maximum reserve because of the constant fluctuation in the world market price of crude oil.
Mr. Speaker, may I also finally recommend to the Ministry of Finance and Economic Planning that I have made some observations that sometimes even when crude oil is 66 per cent or 67 per cent, in one instance Government waited
until some period when it rose to 79 per cent before they did procurement. We always can take advantage of the lower regimes because if we have expanded capacity for reserve, we will always be able to buy more and that will be saving the State some resources.
With these few comments, Mr. Speaker, I associate myself with the motion.
Mr. J. B. Aidoo (NPP -- Amenfi East) 11:10 a.m.
Mr. Speaker, the importance of this facility cannot be overemphasised.
Mr. Speaker, as has been captured rightly by your Committee's Report on page 5, the facility is intended to sort of minimise the movement of petrol tankers on our highways with its attendant risk of road accidents and deterioration of major highways.
Mr. Speaker, I am urging hon. Members to support this facility so that the supply of petroleum products to the middle and northern sections of this country will be enhanced.
Mr. Speaker, I have one observation which I want to bring to the floor of the House, and that is the rot at the various BOST depots in the country. Mr. Speaker, there is a lot of fuel siphoning and racketeering going on at the various depots. When I was then the Western Regional Minister, I even had the experience of intervening personally in some of these practices. And Mr. Speaker, you will not believe it; when I attempted going into it, my life was threatened -- and this is no news -- all because people are making millions, if not billions, of cedis out of this fuel racketeering.
Mr. Speaker, the most important thing
is that the nation is losing a lot of money
from this fuel racketeering because eventually, what is being siphoned out is not accounted for anywhere; and it is the State that suffers in the long run.
Mr. Speaker, as we approve of this facility on the floor of this House, we must also urge TOR to put the necessary mechanisms in place to check the siphoning and racketeering of fuel at its various depots, else when BOST goes ahead to put up more storage tanks across the country, what will happen is that the country will eventually be losing more monies by way of siphoning and racketeering of petroleum products.
Mr. Speaker, with that, I am urging all
hon. Members to support it because it is a very good facility.
Mr. E. K. D. Adjaho (NDC -- Avenor/
Ave): Mr. Speaker, ordinarily, any effort that will shoot up fuel supply in this country ought to be supported by well- meaning Ghanaians. But I have a problem with the motion, which is item 7, the subject-matter of this debate.
Dr. A. A. Osei 11:10 a.m.
On a point of order.
Mr. Second Deputy Speaker 11:10 a.m.
Very well, hon. Deputy Minority Leader, please take that on board.
Mr. Adjaho 11:20 a.m.
Mr. Speaker, you know this is not the first time we are being called upon to waive taxes and levies and duties. It is itself something that has to be looked at properly. The way it has been done, the short-cut approach that is being done, I am not too comfortable with it.
Devoting one sentence to the waiver of a tax involving over $12 million, I do not believe, is the way forward for this House when we are being called upon to exercise our jurisdiction over waiver of taxes and levies. Mr. Speaker, this has not been the way we have been handling such matters.
But Mr. Speaker, if we look at the Committee's Report, I had an opportunity last week or thereabout of saying that this type of shoddy work by either the Customs, Excise and Preventive Service (CEPS) or whoever, should not be encouraged in this House.
Mr. Speaker, look at the attachment; do we have the Bill of Lading based upon which this Tax Assessment Form has been prepared? What is the invoice number? What is the bill of lading number? This is a form that has been designed by CEPS themselves and if they expect us to take CEPS seriously then they themselves should comply. They should be the first
Mr. Adjaho 11:20 a.m.
If you look at it, the whole thing is blank. If they do not have the Bill of lading and they are only giving us this based on estimates, then what we normally do is that the Commissioner for CEPS writes to this House that looking at the figure the total estimates for tax exemption is so much. But you do not go and take a form and fill, and the form itself is not complete -- This House cannot be approving Reports when they attach forms which are incomplete.
Mr. Speaker, where is the invoice number? Where is the waybill or bill of lading number? Where is the tin number? Where is the declarant number? Where is the FCVR number? And what is the exchange rate? And then if we look at it again, the importer himself has not even signed the certificate. [Inter-ruption.] I am using the Committee's Report unless somebody wants to say that those spaces have been filled in his report. At least, what is before me here is blank and I think that it is not proper.
If they have the invoice based upon which they are calculating the tax exemption they should make the invoice available to this House. How did they arrive at these figures? If it is an estimate, fine, they should write to the appropriate committee of the House to indicate that the tax exemption is so much.
Mr. Speaker, I am looking at the information that has been put in this Report. A covering note signed by Chief Collector (Osman Awudu) on behalf of the Commissioner does not cure the defect in their own form and we cannot cure it; that is their own form. This is an official form of CEPS.
Mr. Speaker, again, I have a problem.

Some hon. Members -- rose --
Mr. Second Deputy Speaker 11:20 a.m.
I think that since hon. Members would have the opportunity to contribute, you let him conclude then you can come in and deal with all the issues.
Mr. Adjaho 11:20 a.m.
Mr. Speaker, you would find out in the last paragraph at page 3 of the Report, that the hon. Deputy Minister for Finance and Economic Planning informed the Committee that the total amount of taxes, duties and levies required to be waived -- [Interruption.]
Mr. Second Deputy Speaker 11:20 a.m.
Which page are you reading?
Mr. Adjaho 11:20 a.m.
It is relevant. It is very, very relevant -- [Interruption.]
Mr. Second Deputy Speaker 11:20 a.m.
That is why when an hon. Member is on his feet and you try to speak to him while he is on his feet, you just confuse him. So hon. Members, allow the hon. Member on the floor to make his contribution. Hon. Deputy Minority Leader, continue.
Mr. Adjaho 11:20 a.m.
Mr. Speaker, the point being made is that there is the likelihood that when we do this kind of thing we would be making errors. If we look at one of the Committee's Reports dealing with the 90 million loan facility that we will be coming to, even that there were errors in the figures at the committee level -- [Interruption.]
Nii Adu Mante: Mr. Speaker, before us is the BOST Agreement and he is making reference to a different document and Report which he has together, which has no relevance to this matter before us. Mr. Speaker, may I beg of you to allow him to make reference to the Report that I have read out to the House. If he has anything he should defer it and wait.
Mr. Second Deputy Speaker 11:20 a.m.
Perhaps, others who want to help him are confusing him. Hon. Member on floor, could you please indicate the document you are referring to?
Mr. Adjaho 11:20 a.m.
Mr. Speaker, I am talking about the way information to this House about taxes and waivers are being handled, and I just used another document to buttress that point dealing with the 90 million where there is a problem with the figures from CEPS and that from the hon. Deputy Minister for Finance and Economic Planning. But when full information is provided by this House -- [Inter-ruption.]
Dr. A. A. Osei 11:20 a.m.
On a point of order. Mr. Speaker, this House has just been asked to adopt a Report that we all have copies of. He starts reading from page 3 of a different report which is not before us and makes allusions to a Deputy Minister having done something. Mr. Speaker, the Chairman just read this Report; my hon. Good Friend Haruna Iddrisu has quoted extensively from page 3; but he starts to quote from page 3 of something else which is of no relevance to this.
By the way, Mr. Speaker, in this Report he is talking about there being no letter from the Commissioner but then he reads to us a letter signed for the Commissioner. So Mr. Speaker, I do not know whether he has a different report from what has been given to us. If he has, maybe, he should present it at the appropriate time. But right
Mr. Second Deputy Speaker 11:20 a.m.
Hon. Deputy Minority Leader, please advert your attention to the Report before us.
Mr. Adjaho 11:20 a.m.
Mr. Speaker, I thank you
very much. But Mr. Speaker, unless you want to say that in making a submission on this floor one cannot refer to any other document that is relevant to the subject- matter of the discussion, we are talking about the aspect dealing with tax and I am also referring to the fact that when one writes a report talking about tax exemption and one devotes only one paragraph to it, there is a likelihood that problems might crop up.
Mr. Second Deputy Speaker 11:20 a.m.
Hon. Member, with regard to the tax exemption for this particular matter before the House, address it.
Mr. Adjaho 11:20 a.m.
Mr. Speaker, the point being made, again, for the avoidance of doubt, is that the form, the attachment has not complied with CEPS forms because we do not know what the invoice number is. We do not know the bill of lading number. How did they get the figures from which the tax exemption has been calculated?
If the waybill is not available, if the invoice is not available, the practice of this House is just to get a letter from the Commissioner of CEPS stating that these are the tax exemptions. But when they use the Tax Assessment Form which provides
Dr. A. A. Osei 11:30 a.m.
Mr. Speaker, with all due respect, I am surprised today at my hon. Senior Colleague. In one breath he says he wants a letter from the Commissioner; and he has that letter. The Commissioner goes further to give this House more information based on the estimates, and my hon. Senior Colleague asks about an invoice number. It is an estimate; how could he get an invoice number. He wants the letter, the letter comes and he says -- [Pause.]

So Mr. Speaker, I am really confused as to what is wrong with my senior Colleague this morning. He wanted a letter and he had it and he says because the person had gone to do more work than we normally do not do, he is against that. Mr. Speaker, I am rather surprised.
Mr. Second Deputy Speaker 11:30 a.m.
Hon. Deputy Minority Leader, please, go on -- [Interruption] -- No, do not talk across. Just go on with your contribution.
Mr. Adjaho 11:30 a.m.
Mr. Speaker, the point being made is this; and I want to repeat it. Those who want to listen carefully to me should listen carefully and then at the end of the day we will see whether there is something wrong with me or those who are trying to make the interventions.
Mr. Speaker, the point being made is that if you want a tax exemption of a certain amount and you do not have the information available and it is only an estimate, you write to this House saying that these are the things. But when you take a particular form which is the Tax Assessment Form, which says that you must fill in certain pieces of information and those pieces of information have not
Dr. A. A. Osei 11:30 a.m.
On a point of order. Mr. Speaker, I am sure my senior Colleague must have passed somewhere before coming here this morning. Mr. Speaker, I am not a Minister-designate; I am not. He knows that I am not a Minister-designate. I do not know whether he went to church
to pray or saw a mallam. But he knows that I went to the Committee as a Minister of State-designate; then he misleads this House by saying that I am a Minister- designate.
I am sure -- [Interruptions] -- Well, which church he went to, the priest did not pray for him well today. Mr. Speaker, if he waits a few minutes, I will explain to him why there is something wrong.
Mr. Second Deputy Speaker 11:30 a.m.
Hon. Member, it is a small point and you have been dragging it for so long.
Mr. Adjaho 11:30 a.m.
Mr. Speaker, if anybody

Mr. Speaker, in any case, I do not know the distinction he wants to draw between a Minister of State-designate and a Minister- designate. I do not know the distinction that he wants to draw this morning. I do not want us to go into the law and the Constitution.

Nii Adu Mante: On a point of order.

Mr. Speaker, I want to remind my good Friend that if he is opposed to the points that he is raising, he should not drag others into it. In the first place, I do not know the weight he has attached to all the reference
Mr. Second Deputy Speaker 11:30 a.m.
Hon.
Chairman, you are out of order.
Hon. Deputy Minority Leader, please,
go to the main substance and conclude your contribution.
Mr. Adjaho 11:30 a.m.
Mr. Speaker, it is very important because we are being called upon to waive taxes. So the attachments giving us the figures are very important and the substance is also very important. We are talking about over twelve million US dollars. Mr. Speaker, I know sometime ago that this House -- [Interruption.]
Mr. Appiah-Ofori 11:30 a.m.
On a point of order. Mr. Speaker, in the name of God, let us avoid frivolities. Mr. Speaker, the point he is raising, whatever documents he claims have not been brought, if the absence of such documents will result in a loss to the State or will constitute cost, then yes, I will support him to the hilt. But Mr. Speaker, this one is in and out. If they have estimated twelve million US dollars, it should come into the Consolidated Fund. Then if they are to refund, the same twelve million US dollars goes back to them. Does the country lose anything? No. So let us try and then avoid all these things. He is making a valid point.
Subsequently, maybe, we will look at this. But we do not have to waste time on all these things because it is just in and out; the nation loses nothing. So Mr. Speaker, I want to appeal to him so that he mellows down; and let us make progress.
Mr. Second Deputy Speaker 11:30 a.m.
Well, that is a piece of information you are giving the hon. Deputy Minority Leader.
So hon. Member, you can consider it.
Mr. Adjaho 11:30 a.m.
Mr. Speaker, he started by mentioning God but I know that God has never listened to his prayers.
Mr. Speaker, it is also important for the Ministry to tell us what has happened to the Trafigura facility that we have approved. It has been mentioned in the Report and what is the relationship between that arrangement and that of the Board?
Mr. Speaker, we also want to know; they said they have got a letter of comfort or the IMF had confirmed the debt sustainability assessment. I do not know whether at the committee level the letter had come from IMF or -- Who informed them? It is not clear because they have put it there. They have put it in the Report and it is important for us to know whether a letter had come from the IMF; or who came before the Committee and told them that the IMF was comfortable with this facility.
Mr. Speaker, I am looking at page 5 of the Committee's Report under Committee Observations. And it was noted by the Committee that the loan though commercial in nature falls within the Board's debt sustainability assessment framework; and it has also been confirmed from the IMF. I do not know because I was not at the meeting. I did not attend the meeting. I am not a member of the Finance Committee.
I want to know who informed the Committee that they had done those things. The facility has been confirmed that it is DSA. But Mr. Speaker, I believe that in future when we want to look at some tax exemptions, as has been the practice, it is important for us to have more information on this matter.
Mr. Speaker, these are my observations and I am not comfortable at all with the way this matter has been handled by the Ministry of Finance and Economic Planning and the Finance Committee.
Mr. Second Deputy Speaker 11:40 a.m.
Hon. Member, you did raise a concern about an apparent anomaly in bringing in this motion, a resolution, for tax exemption. Of course, the other leg was to complain about inadequacy of information from CEPS. Now, in respect of -- [Inter- ruptions] -- Hon. Member, I am making a ruling on that aspect.
Now, first of all, the memorandum that was laid in the House included a request for tax waiver, and the motion seeks the approval by the House of the Committee's Report. The Committee in its deliberations needed to consider the totality of the memorandum laid before the House including tax waiver.

So if the Finance Committee and the Ministry concerned are satisfied that they have got the necessary information on the tax that needs to be waived, and then they bring it together, then both the approval of the motion and the approval of the tax waiver are in order. In view of the fact that the memorandum did make the request, the Committee did consider both the loan and then the tax waiver.

With regard to your complaints about inadequacy of information, of course, that has to be addressed by both the Committee and the Ministry. Yes, hon. Deputy Minister for Finance and Economic Planning?
Dr. A. A. Osei 11:40 a.m.
Mr. Speaker, I think that either the Chairman or the hon.
Mr. Second Deputy Speaker 11:40 a.m.
Hon. Deputy Minister, are you contributing?
Dr. A. A. Osei 11:40 a.m.
I am contributing to the motion.
Mr. Second Deputy Speaker 11:40 a.m.
You are contributing to the motion?
Dr. A. A. Osei 11:40 a.m.
Yes.
Dr. A. A. Osei 11:40 a.m.
Mr. Speaker, the practice of this House has been the following: that when these things are brought to the Committee on Finance, there is not enough information for the Committee to look at taxes. I think my senior Colleague, hon. P. C. Appiah-Ofori reminded us that this is one of the few times that the Finance Committee has come in one swoop to provide information about the terms of the loan as well as information on the taxes. Usually, we come with the loan, and later on come back and seek approval for the taxes. And, as he rightly said, I agree; the Commissioner sent a letter saying these are the estimates of the taxes.
Mr. Ayariga 11:40 a.m.
On a point of order. Mr. Speaker, he is misleading this House because there is a letter from the Commissioner, but the letter itself for me, does not state the tax exemption. It counts on the attachment; and the question that the Deputy Minority Leader is asking is
whether or not the attachment is a valid assessment.
That is the issue -- whether it is a final valid assessment and he counts on the requirements of a valid assessment and says that there is no information on the attachment to lead us to a proper conclusion that this is a valid assessment, based on which this letter can be taken seriously by this House. Mr. Speaker, that is the issue; it is not about whether or not an adequate information has been provided.
Mr. Second Deputy Speaker 11:40 a.m.
That is the information that he has given, so please, take that on board.
Dr. A. A. Osei 11:40 a.m.
Mr. Speaker, I did not even read the letter. He is anticipating me. Mr. Speaker, the letter tells us the following and Mr. Speaker, with your permission I read:
Mr. Second Deputy Speaker 11:40 a.m.
Please, allow him just as he allowed him.
Dr. A. A. Osei 11:40 a.m.
Mr. Speaker, this issue about invoice and all those things when the items are not here, how do you take the invoice and bill of lading? It can only be an estimate -- [Interruptions.]
Mr. Second Deputy Speaker 11:40 a.m.
Yes, hon. Chairman of Public Accounts Committee?
Mr. S. Sallas-Mensah 11:40 a.m.
Sit down. I am on the floor. [Interruptions.]
Mr. Second Deputy Speaker 11:40 a.m.
Order! Order! Hon. Member, yours is to take the permission of the Chair and contribute. Yours is not to order an hon. Member to sit down or to stand up.
Dr. A. A. Osei 11:40 a.m.
Mr. Speaker, I seriously object to the statement “sit down”. It is insulting; it is demeaning and I expect that he withdraws.
Mr. Second Deputy Speaker 11:40 a.m.
Hon. Member, take it easy. I believe you did not intend any derogatory attitude to it, so you may address him to calm him down.
Mr. Sallas-Mensah 11:40 a.m.
Mr. Speaker, if you would agree with me, it is the normal practice of the House, that if you call an hon. Member on a point of order, the hon. Member on the floor should resume his seat. So it is just a matter of procedure.
Mr. Second Deputy Speaker 11:40 a.m.
Hon. Member, that is so but it is not for the hon. Member giving the chance to raise a point of order to order the other hon. Member to sit down. It is not the duty of the hon. Member.
Mr. Sallas-Mensah 11:40 a.m.
All right, Mr. Speaker, with respect to the Chair, I withdraw.
Mr. Second Deputy Speaker 11:40 a.m.
Very well.
Mr. Sallas-Mensah 11:40 a.m.
Mr. Speaker, the hon. Member has alluded to the statement he is making, that the assessment has been raised. But the equipment have not yet arrived in Ghana and so we are talking
about provisional assessment. So you do not put it on actual tax assessment as if the materials are at Tema and have been assessed. What the Deputy Minority Leader is saying is that this is the first time we are seeing these kinds of forms at the Committee.
So if it was addressed to the Ministry of Finance and Economic Planning, the Ministry of Finance and Economic Planning should have refined the forms before coming to this House. If they have not done so, then it means that the assessment they are asking us to approve is the actual assessment. But the materials and the equipment have not arrived in the country yet so we cannot say that that is the actual. It should be provisional tax assessment which should be on completely different forms.
Mr. Second Deputy Speaker 11:40 a.m.
Hon. Deputy Minister for Finance and Economic Planning, these are concerns that are raised; it is for you to provide information that will answer the questions on the issue that has been raised.
Dr. A. A. Osei 11:40 a.m.
Mr. Speaker, that was what I said. I said by the normal House practice, we do not get such information when we are coming with the loan. So we told them that it was important for transparency, to show hon. Members of the House how they came through the assessment; the methodological frame-work that they used to arrive at the assessment. That was why in his wisdom, Mr. Osman Awudu used the form that normally is used to do the final assessment; so hon. Members can look at these items and see the basis upon which these numbers were arrived at.
Mr. Speaker, it is to provide transparent information, that he attached the forms because we are not used to getting these forms. This is to help hon. Members notice
that for example, if you take tank materials, this is the CIF and so on and so forth. Mr. Speaker, he is trying to show more transparency. Do we prefer transparency as opposed to no information?
Mr. Second Deputy Speaker 11:40 a.m.
Hon. Deputy Minority Leader, if you can listen to the reaction to the point you raised -- Order! Order! -- [Interruptions] -- In order to make informed debate, it is always desirable when serious issues are raised that hon. Members listen to the responses to be able to assess the quality of it. But if in the delivery attention is diverted, you are not in a position to fully grasp the response that is being given. So hon. Deputy Minister, go on.
Dr. A. A. Osei 11:40 a.m.
So Mr. Speaker, I want to advise my hon. senior Colleague that the attempt Mr. Osman Awudu made, is to help us hon. Members of this House get an informed opinion as to the basis of the estimation. Mr. Speaker, when the items do arrive, Customs Excise and Preventive Service (CEPS) would do the proper thing. They can come back and say “now you can check on the actual, that is, the CIF value which is ‘x' amount and now different, then we can go back and check. If he does not provide this information, when it comes we have no basis for knowing why the numbers have changed or have not changed.
Therefore I want to assure hon. Members that CEPS and by implication the Ministry is trying to be more informative, more transparent so that we hon. Members of this House can be more informed. That is why they are preliminary estimates. Mr. Speaker, this is never done. In fact, if anything we should be commending the Committee for doing this type of work
Dr. A. A. Osei 11:40 a.m.


for this House.
Mr. Adjaho 11:50 a.m.
On a point of order. Mr. Speaker, the Deputy Minister for Finance and Economic Planning is misleading this House. Where in this Report is preliminary assessment mentioned? He should tell this House where in this report, which is the subject matter of this motion, preliminary assessment is mentioned -- There is no preliminary assessment in the Report.
Dr. A. A. Osei 11:50 a.m.
Mr. Speaker, that is why I am explaining this to him; that is why I am contributing to this debate. If it were actual, all the information he is talking about would have been made available. Precisely, the reason why those numbers are not available, is that they are estimates because the items are not in. Mr. Speaker, so my point here is that we are trying to provide this august House with more information so that they can make better decisions. This was not the practice in the past. In any case, I think we should commend the Committee for encouraging CEPS to provide this information; it helps the Committee.
As I said earlier, I was involved with the US Exim Bank in trying to arrange for this facility. Since the US Exim Bank gave us the loan for the Akosombo dam, they had not given us another loan for a long time. So this was important to them and also to the Government for us to go back to access that facility.
In negotiating the loan with the US Exim Bank, even though we do not formally have a programme with the International Monetary Fund, they wanted to be comfortable that the Fund would

write a letter saying that it was within the Debt Sustainability Announcement (DSA), and here it should not be BOST; it should not be the Government of Ghana. So I had to write to the IMF to ask them to write a letter and a copy was made available to the Committee.

Mr. Speaker, he has Ranking Members on the Committee and they could have told him. I am sure that if he had asked, they would have told him that that letter was part of the documentation that was provided by the Committee. So it is not one of us just saying so but it was a condition for the US Exim Bank to provide this facility. So it was a matter of comfort that IMF did write it.

If I recall, the Chief of the Mission, Miss Prerosky was the one who wrote it and the Committee had access to the information. So that was why that letter was made available. We do not have a programme with the IMF and it was not necessary, but I think it was important for the US Exim Bank to get this letter from the IMF.

With these few words, I urge hon. Members to seriously move for this motion. As I said, it is a come-back from a dormant relationship with the United States Exim Bank and this would help the Government of Ghana and in particular BOST to have appropriate infrastructure for reserves.

Mr. Alfred K. Agbesi (NDC -- Ashaiman) Mr. Speaker, normally, any loan that would better our conditions as Ghanaians would be welcome. Particularly, when we read the Report about storage and a system that would make our tankers not to travel long distances to avoid accidents, et cetera, is something which we should all welcome.

So, in substance, this is a good project that we all have to support. But I get

worried when the hon. Minister-designate for Finance and Economic Planning tries to justify this document that we have with this tax assessment form. I get worried because if you look at the form, it reads as follows -- and Mr. Speaker, with your permission I quote:

“This is to certify that the assessment given is true and correct.”

It is unsigned and it is marked by nobody.

If you go further and look at this form, the importer or agent's signature is signed by nobody. This is a document which is calling for the exemption of payment of over twelve million dollars. Such a document coming before this august House must be the concern of everybody, particularly the hon. Minister for Finance and Economic Planning. Though we support this, what the documents are calling for - the waiver of tax -- leaves much to be desired.

On this point, I would have wished the hon. Minister had said that this document accompanying the Report should, as a matter of fact, be withdrawn for a better thing to be brought before this House. That was why I was surprised that he was trying to justify this document.

I would say that if these are the
Mr. Kofi Adda 11:50 a.m.
On a point of order. Mr. Speaker, I think my hon. Colleague is misleading this House and he should be made to understand certain things. When
we come out with assessments such as we have before us, it is an indicative amount of what we might have to exempt BOST from. Therefore, nothing actually is going to be paid. All the twelve million dollars are stated here. It is when the goods arrive and the final assessment is made that the actual amount is then paid. So it could be slightly over or below; we do not know.
If it ends up being exactly the same amount, then that is what we have to exempt them from. Therefore, he is misleading the House that we should not consider this. Mr. Speaker, he should clarify himself on this matter and accept what the proper thing is to be done.
Mr. Agbesi 11:50 a.m.
Mr. Speaker, I do not even know what he has said; he has said nothing.
Mr. Second Deputy Speaker 11:50 a.m.
Hon. Member, he has said something; you might not agree with him - [Interruption.]
Mr. Agbesi 11:50 a.m.
Which does not go to the root of what we are saying - [Inter- ruption.]
Mr. Second Deputy Speaker 11:50 a.m.
Hon. Member, he has raised a point of information which he felt you did not look at. You are entitled to take it on or not but to say he has said nothing is improper.
Mr. Agbesi 11:50 a.m.
Thank you, Mr. Speaker. Mr. Speaker, I take your direction that he has said something. But what I am saying is that, the issue is waiver of tax and that is what is contained in the Report. I am saying that I support my leader saying that if we had to waive taxes as they are calling for, as much as twelve million dollars, the documents accompanying the Report seeking this waiver is something which is incomplete.
We are talking about money; we are talking about State funds; we are talking about money that we are going to waive. If
Dr. A. A. Osei 11:50 a.m.
On a point of order. Mr. Speaker, my hon. senior Colleague from Ashaiman is misleading this House -- [Interruption.] As I made known to him, in the past, there was no information. Now, somebody provides you with information being more transparent and you are calling this House to reject a case of more information than less information. I am confused as to where he is going.
So I am not sure that an august Member of this House would want this House which is being provided with more information to reject it. He is calling on his Colleagues to reject it. I am surprised that a lawyer of that nature would make that type of statement. He may object to the forms but we have explained to him. The attempt to provide additional information was to assist him so that when he goes back, in the future, he would know the basis upon which the CIF value was estimated, et cetera, to be able to inform this House properly.
Mr. Second Deputy Speaker 11:50 a.m.
Well, you have made these points so let him take them on board.
Mr. Adjaho noon
On a point of order. Mr. Speaker, with the greatest respect, my hon. good Friend opposite just said that he did not understand why a lawyer of his standing should make such a statement. It is unparliamentary; he should withdraw and apologise to the hon. Member for Ashaiman.
Mr. Second Deputy Speaker noon
Let me
hear from the hon. Member for Ashaiman.
Mr. Agbesi noon
Mr. Speaker, I take very strong objection to what he has said -- a lawyer of my standing, to say that. If I should say that somebody knows a little in accounting, in finance, he would take objection to it. I think that he should withdraw and apologise to me.
Mr. Second Deputy Speaker noon
Hon. Deputy Minister, he takes objection to your showing surprise that a lawyer should -- [Interruption.]
Dr. A. A. Osei noon
Mr. Speaker, he is a good friend of mine. I have no intention of impugning his reputation. The context in which I used that expression was not to impugn his reputation. But if he takes offence, I gladly withdraw.
Mr. Second Deputy Speaker noon
Very well. Hon. Member for Ashaiman, please, continue.
Mr. Agbesi noon
Mr. Speaker, I will wind up. Mr. Speaker, I heard him say that in the past they did not supply this further information. There is a popular song which says that yesterday is gone, let us meet what we see today. Today, it is transparency; today, it is accountability; let us be transparent to our people. If this document is good enough to waive tax, on this side of the House we are saying it is not good enough.
We are saying that the information on this document for which this House is being called upon to do something is lacking in substance. So Mr. Speaker, that is the reason why we are saying that this document asking for the waiver should be withdrawn.
Nii Adu Mante: Mr. Speaker, it appears my good friend, the hon. Member for Ashaiman is misleading this honourable House. Mr. Speaker, all that has been said before he got up was on the form -- whether the form is a provisional form for the assessment of the items that

are to be exempted from tax. That was the issue at stake and the House has more or less agreed to that.

Mr. Speaker, let me remind him that the area that he is talking about is not for official use. This document has been properly signed from the Office of the Commissioner for CEPS. This has been signed. So if he should get up and say that it is an unsigned document, I say he is misleading this House. It has been properly signed and you can find the signature and this stamp endorsed thereon. Mr. Speaker, that is my case.
Mr. Lee Ocran noon
Mr. Speaker, when you make a mistake it is glorious, nice and beautiful to accept the mistake and let us move on. That is the problem we are facing. There are some inadequacies in the form. Let us accept that there areinadequacies and let us move ahead. Trying to justify what is inadequate would not help us move ahead in any way. [An hon. Member: There is nothing in their report which says it is a provisional assessment.] [Interruptions.]
Mr. Second Deputy Speaker noon
Order! Order!
Mr. Ocran noon
So Mr. Speaker, let my hon. Friend there accept the fact that there are inadequacies in the form, the form is incomplete and let us move ahead and get this Agreement approved. What do they want? Approval of the Agreement or scoring points by unnecessary argument? It is not helping anybody.
Mr. E. A. Agyepong noon
Mr. Speaker, I do not know what the confusion is all about. I think for our four years with the Finance Committee, this is not a new thing. I wished the Chairman of the Public Accounts Committee were here. He has been the Chairman of the Finance Committee before and he knows.
Mr. Speaker, when there are no invoices, the importer could be asked to indicate the items and on those items he could be assessed. This is why they have written “assessment.” Assessment of your tax is not a true value. If there should be a variation, there should be a variation in it.
The hon. Deputy Minority Leader has been here for a long time and he knows we have handled such Agreements before. If his problem is lumping the two together, if that is worrying him, then he is right. But if you go to the papers, they talk about individual items, say, “tank materials” and then it lists the items. Then it goes to “hydro testing”; then to “fire prevention”.
These are the items that are envisaged would be sent down here and this is where the assessments are worked.
So all this quarrel about “it is not complete”, “it is complete” -- Moreover, they have been signed and the man who assessed it is a Senior Collector of Taxes. It is signed. We have done this over and over. Sometimes, there are no invoices attached but what the CEPS brought as the man's imports, whatever it is, they give the items and they are assessed; they bring it here and we give them the tax exemption. I do not think there is any big problem about this.
In any case, whether it is fraudulent or
not, or the papers are not correct, whatever be it, we are going to pay the tax and it is there. So this quarrel about this matter that it is not complete -- Mr. Speaker, these are genuine and they must be accepted as such. They have indicated the various headings where the items must be bought. So I ask hon. Members to accept this and then we vote on it accordingly.
Mr. Second Deputy Speaker noon
Hon. Member for Ashaiman, have you concluded your argument?
Mr. Agbesi noon
Mr. Speaker, the concerns
we are raising are not only technical but they go to the content of the matter. We are only concerned that public money must be used and applied properly; this is our concern. I believe our concerns must go to the Majority and they should see eye to eye with us. We are only concerned about the public purse, how it is utilised and in the interest of the State.
Mr. Speaker, if you look at the
Mr. Second Deputy Speaker noon
Hon. Member for Ashaiman, your statement is opposite to that of the Deputy Minority Leader. You have made it -- [Inter- ruptions.]
Some hon. Members -- rose --
Mr. Second Deputy Speaker 12:10 p.m.
Please, resume your seats. You said they are provisional and that is precisely what the Deputy Minority Leader was saying.
Hon. Members, I think it is necessary for us to advert our minds to certain salient principles. It appears nobody is disputing the desirability of all infor-mation coming so that when a loan or grant is considered, the tax element should be known and then they are taken together so that you would have an idea of exactly what it entails.

What is happening now is that they want to bring the two together and they have given certain figures which give an idea of the kind of tax element that is involved. Obviously, it is within the power of the House to demand that subsequent development on it, which is the actual figures when the goods arrive, the House

should know.

There is no harm in taking that position but the House has a right to, in principle, having an idea of the tax stroke, to give a waiver but still reserve the right to see the actual state of affairs when the time arrives. If we look at these principles we are more likely to save ourselves from dragging this matter ad infinitum - [Interruption.] The hon. Member just raised a point of order; he did not contribute.

Mr. Appiah-Ofori - Mr. Speaker, I am a member of the Finance Committee and we have taken note of all the observations. I am suggesting that we go ahead with it, that in future we take note of this and do exactly as you are saying so that we make progress because as a matter of fact we are rising at the weekend and this loan is necessary for BOST to move forward. If it delays we are sabotaging the national economy.

So I want to appeal to everyone here -- I saw somebody holding our Standing Orders and somebody was even counting the number of hon. Members here. We have taken note of all the points they are raising and at the appropriate time we shall consider that. But for the time being, because of the urgency of this, I urge them to support us to give approval so that we make progress.
Mr. Mahama Ayariga (NDC - Bawku Central) 12:10 p.m.
Mr. Speaker, let me indicate that as a matter of principle nobody on this side of the House is willing to stand in the way of Ghana obtaining a loan for the expansion of BOST and for ensuring that our storage capacity is increased.
Mr. Speaker, first it appears a little
strange that in bringing to us a proposal for a loan, they have attached the request for exemption in relation to tax. Mr. Speaker, I do not know whether there is some assumption that this House would
Mr. Second Deputy Speaker 12:10 p.m.
Hon. Member, hold on. This point was ably raised by the hon. Deputy Minority Leader and I ruled on it.
Mr. Ayariga 12:10 p.m.
Mr. Speaker, I will move on to other issues. The debate here appears to me to be centred around whether or not this is a provisional tax assessment or this is an invalid tax assessment. There is some assumption that it is a provisional tax assessment. Mr. Speaker, in the first place, nothing is stated that this is a provisional tax assessment, but on the other hand, this is just the loan that we are approving.
After we have approved the loan then the contract for the supply of whatever the loan is supposed to finance would then be awarded and the items would be imported. It is when the items arrive here that we can do a proper assessment of the tax that should be exempted.
So whatever the case, this cannot be a provisional tax assessment. This can only be an anticipatory tax assessment, an assessment in anticipation that these goods would arrive in Ghana and when they arrive in Ghana, this is likely to be the tax and so they are requesting Parliament to grant an exemption.
Mr. Second Deputy Speaker 12:10 p.m.
Hon. Member, “pretending” is not a proper
word to use.
Mr. Ayariga 12:10 p.m.
Mr. Speaker, I withdraw that word.
Mr. Second Deputy Speaker 12:10 p.m.
Very well.
Mr. Ayariga 12:10 p.m.
But let me indicate that the loan agreement itself is an urgent matter. We should go ahead and approve that; but the tax exemption is not an urgent matter for which reason, if there are clear problems that most of the hon. Members in the House have with it, we should gloss over it and say that this is urgent and let us go ahead and approve it. Let us approve the loan, leave the exemption matter so that at a future date when in fact the goods have arrived in Ghana and a proper assessment is conducted, we can go ahead and grant the exemption.
Mr. Speaker, there is no doubt that the goods would not arrive in this country before we resume after we have gone on recess; there is no doubt about that, looking at the processes involved and the time-frame that is involved. So there is no urgency about this matter. If it is threatening to divide this House, as it has, let us put it aside and deal with the loan and any time that the goods are in and a proper assessment is done, this House can go ahead and approve it; and we would go ahead and have the project implemented.
Mr. Speaker, we have a reputation to protect. This House has a reputation to protect, a reputation of a House that is diligent in the work that it does, a House that properly manages the finances of this country.
Mr. Second Deputy Speaker 12:10 p.m.
Hon. Chairman, if the hon. Member is misleading the House point that out, but he shouting and that he is just repeating, please leave that out and point out any misleading aspect of his contribution.
Mr. Second Deputy Speaker 12:10 p.m.
Address the issue I raised first. I am saying that when you described his contribution as “he is just shouting”, that was not proper so you should withdraw that.
Nii Adu Mante: Mr. Speaker, I hereby withdraw those words.
Mr. Second Deputy Speaker 12:10 p.m.
Very well.
Nii Adu Mante: Mr. Speaker, all that I am saying is that unfortunately the word “provisional” was not incorporated in the report so as to say that the forms attached to the report are provisional assessment. That is all there is to it. But it appears from the submissions of good Friends over here that the word “assessment” should have been captured in the report or the annexures.
Mr. Speaker, next time we shall do so and make sure that this word “provisional” would always be captured on documents.
Mr. Second Deputy Speaker 12:10 p.m.
Hon. Chairman of the Committee, the element of misleading was what I wanted you to address. If it is a question of assuring him then please, leave that for now.
Mr. Ayariga 12:10 p.m.
Mr. Speaker, I am sure if we want assurances we would call on others to do that.
Dr. A. A. Osei 12:20 p.m.
Mr. Speaker, on a point of order. Mr. Speaker, my good Friend is saying we would certainly approve it for them. This is for the Government of Ghana; it is for all of us to approve it. It is not as if he is doing us a favour, please. He should withdraw that statement; it is not for them. Who is “them”? [Interruptions.] We are approving it for the constituents -- [Interruptions.]
Mr. Second Deputy Speaker 12:20 p.m.
Order! Order! Hon. Deputy Minister, un-doubtedly, this is a loan for the entire nation and it is just a way of speaking. It is being brought by somebody so do not worry about that.
Dr. A. A. Osei 12:20 p.m.
Mr. Speaker, it is as
Mr. Second Deputy Speaker 12:20 p.m.
Hon.
Deputy Minister, everyone of them contributed and said this is a laudable loan and we should support it in the interest of Ghana. There are certain aspects that we can overlook. Yes, you were concluding.
Mr. Ayariga 12:20 p.m.
Yes, Mr. Speaker.
Mr. Speaker, I appreciate the little
Mr. Second Deputy Speaker 12:20 p.m.
Please,
can you leave that aspect out?
Mr. Ayariga 12:20 p.m.
That is so, Mr. Speaker.
Mr. Speaker, let me conclude on the note that whilst urging my hon. Colleagues to go ahead and approve the loan agreement, we would require that the details of the construction works -- how many tanks and where the tanks would be constructed -- are matters that we are all interested in and we hope that the Ministry would make that information available to us as soon as practicable. Because, Mr. Speaker, we do not know, as we sit here deliberating on the loan agreement, what sort of work is going to be carried out and exactly where the construction is going to take place and an information providing that sort of detail would be very helpful to us in this House.
Mr. A. A. Osei 12:20 p.m.
Mr. Speaker, on
a point of information. Mr. Speaker, it appears that when a Member does not belong to a committee, he or she assumes that the information is not made available. Mr. Speaker, your Committee gets all these details. It is too bulky to bring all of them here; but he should ask the Committee whether or not they got the information. So he is misleading this House by saying that he is approving something that he does not know about.
Mr. Speaker, the Committee has been duly informed.
Mr. Second Deputy Speaker 12:20 p.m.
Let us
hear from hon. Moses Asaga.
Mr. Moses Asaga 12:20 p.m.
Mr. Speaker, first
of all, I think that the hon. Minister of State for Finance and Economic Planning-to-be is misleading the House in saying that, if you are not a member of a committee you may not know the details -- [Inter- ruption] -- but the vital ones should be mentioned in the report. It is the privilege or right of every Member to have any document that is presented before the House, but just for convenience sake, we would always ask that only an abridged version be brought. So an abridged version should have been brought, given to all Members and that the location of the project or whatever should have been in it.
But beyond that all that I am saying is that the hon. Minister for Finance and Economic Planning is sitting here. I know how much he is always worried about tax element and how detailed he is when it comes to tax issues. Here we are discussing a waiver that is supposed to be either provisional or an assessment and the Minister for Finance and Economic Planning cannot get up and tell us what he prefers us to do because he is the Minister for Finance and Economic Planning. I thought that he should have been solving this problem.
Mr. Second Deputy Speaker 12:20 p.m.
Hon.

Mr. Kwadwo Baah-Wiredu -- rose
-- 12:20 p.m.
Mr. Second Deputy Speaker 12:20 p.m.
Hon.
Minister, I would call you; just hold on.
Mr. Second Deputy Speaker 12:20 p.m.


The privilege that committee members have over non-members is seeing the extent of documentation that is attached to it. So that point that has been made is valid. Hon. Minister for Finance and Economic Planning, you were on your feet.
Minister for Finance and Economic Planning (Mr. Kwadwo Baah-Wiredu) 12:20 p.m.
Mr. Speaker, I just want to point out that we act as a Ministry. We have a Minister, the Deputy Ministers; we have all been at the committee meeting, so when dis- cussions are going on and they are right, I do not see why we should derail it.
Yes, we are all interested in tax exemption. Even in the laws of this country provisional areas can be taken on board and then ask that when the thing is concluded, the details can come in. So do not necessarily have to say that “you are sitting here and you are not standing up”.
Mr. Second Deputy Speaker 12:20 p.m.
Order!
Order! Hon. Minister, please, calm down. Hon. Asaga, even though the hon. Minister for Finance and Economic Planning is present here, it does not mean that he should intervene at anytime; he would do so when he deems it necessary. So if you put it that way, it was not proper to him so you may address it before we conclude.
Hon. Asaga, the way you put it, he is not pleased with it, so you may need to address it before I ask the Member of Parliament for Bawku Central to conclude.
Mr. Asaga 12:20 p.m.
Mr. Speaker, what I was
saying was that since there was a debate as to whether it is a provisional assessment or final -- I was only saying that the Minister for Finance and Economic Planning could easily direct us and say “look, I accept that it is supposed to be provisional so we should capture ‘provisional' or ‘as far as my Ministry is concerned', even without the word provisional we would take it on board”. This was all that I was talking of.
Mr. Second Deputy Speaker 12:20 p.m.
Very well, hon. Minister, if your intervention you would resolve the issue of whether it is provisional or not, let us hear you on the estimate. Is it provisional or final?
Mr. Baah-Wiredu 12:20 p.m.
Mr. Speaker, in
Mr. Second Deputy Speaker 12:20 p.m.
Order!
Order! Hon. Member for Bawku Central, can you conclude?
Mr. Ayariga 12:20 p.m.
Mr. Speaker, if we
take the intervention of the hon. Minister as constituting an amendment of the proposal before the House, I believe that my hon. Colleagues on this side of the House are amenable to wholeheartedly supporting the motion that is before us -- [Interruptions.] First, a motion to amend and then the substantive motion itself -- I believe that would resolve the debate.
Mr. Speaker, let me end on the note
that all these interventions from this side of the House are not meant to obstruct the implementation of this project but to ensure that this House is seen to be doing its work as diligently as it can; and so if there are mechanisms for correcting mistakes from our hon. Friends from the other side, let them be humble enough to admit their mistakes and then accept our assistance in correcting those mistakes, so that we can move together as a nation to approve this loan and have the project implemented.
Mr. Speaker, on the assumption that the hon. Minister has amended this motion, I would urge my hon. Colleagues to support the motion and to vote for it overwhelmingly.
Mr. Second Deputy Speaker 12:20 p.m.
Hon. Members, the effect of the hon. Minister's intervention does not amount to amendment. The complaint of the hon. Deputy Minority Leader and others was that on the face of the document it was not clear whether it was provisional or final; and it needed the hon. Minister to give some assurance to the House as to the status of the tax assessment. Obviously, the House has proceedings. We have records and if anybody is in doubt as to the status of this in future, the records of the House are very clear.

Question put and motion agreed to.
Mr. Second Deputy Speaker 12:30 p.m.
Order! Order! I think the cooperation of the entire House should be acknowledged and appreciated. And so there should be no need for notice -- Now, hon. Minister for Finance and Economic Planning, Resolution No. 8.
RESOLUTIONS 12:30 p.m.
Mr. Baah-Wiredu 12:30 p.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 181 of the Constitution and sections 7 and 10 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the Government of Ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
PURSUANT to the provisions of the said article 181 of the Constitution and section 7 and 10 of the Loans Act, 1970 (Act 335) and at the request of the Government of Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Credit Agreement amongst the Bulk Oil Storage & Transport Company Ltd.; Citibank, N.A. and Export- Import Bank of the United States of America with Government of the Republic of Ghana as Guarantor,
Mr. Baah-Wiredu 12:30 p.m.


for an amount of one hundred and twenty-three million and forty-four thousand United States dollars (US$123.44 million) for the purchase and construction of oil storage tanks and pipelines.
THIS HONOURABLE HOUSE 12:30 p.m.
H E R E B Y R E S O LV E S A S 12:30 p.m.
Mr. Moses Asaga 12:30 p.m.
Mr. Speaker,
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Asaga, please resume your seat.
Mr. Asaga 12:30 p.m.
And especially when my - [Interruption.]
Mr. Second Deputy Speaker 12:30 p.m.
Hon. Asaga, please resume your seat! Please
resume your seat! Now, hon. Asaga, the hon. Deputy Minister for Finance and Economic Planning is usually a vocal person. If you had a genuine complaint, you would have raised it for the Chair to deal with it. So forget about it; please resume your seat.
Mr. H. Iddrisu 12:30 p.m.
Mr. Speaker, I rise to associate myself with the Resolution, even though the resolution has been seconded and to crave the indulgence of Mr. Speaker to say that sometimes when we raise issues, it is important that the hon. Minister - whether Minister for Finance or for Energy, or they acting together provide some directions about the issues.
Mr. Second Deputy Speaker 12:30 p.m.
Order! Order! The hon. Member did raise that in order to increase the capability of BOST to continue paying the loan itself, instead of Government; It would be a good idea if the margin was doubled. Yes, hon. Minister for Finance and Economic Planning, you want to comment on that?
Mr. Baah-Wiredu 12:30 p.m.
Mr. Speaker, as a Member of Parliament, I know that we work with the Order Paper; we work with the Votes and Proceedings and then we work with the Official Report which normally we term Hansard.
As a Ministry we normally have liaison officers who go through these things and
suggestions and ideas put across by hon. Members are picked, and obviously they are looked at. So my hon. Friend should not necessarily be worried because this is a very important issue he has raised; and we shall attach the importance that it deserves. Thank you.
Mr. Second Deputy Speaker 12:30 p.m.
Very well. So hon. Member, he has taken note of it. Now, the motion for the Resolution is moved and seconded and it has been supported by hon. Haruna Iddrisu.
Question put and motion agreed to.
Resolved accordingly.
Waiver of Tax and Duties on Equipment for the Construction of Oil
Storage Tanks and Pipelines
Mr. Baah-Wiredu 12:30 p.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 174(2) of the Constitution, Parliament is empowered to confer power on any person or authority to waive or vary a tax imposed by an Act of Parliament;
THE EXERCISE of any power conferred on any person or authority to waive or vary a tax in favour of any person or authority is by the said provisions made subject to the prior approval of Parliament by resolution;
BY THE COMBINED operation of the provisions of section 26 (2) of the Customs, Excise and Preventive Service (Management) Law, 1993 (PNDCL 330), the Export and Import Act, 1995 (Act 503), the Export Development and Investment Fund Act, 2000
(Act 582), the Value Added Tax Act, 1998 (Act 546), the Value Added Tax (Amendment) Act, 2000 (Act 579) and other existing Laws and Regulations applicable to the collection of customs duties and other taxes on the importation of goods into Ghana, the Minister for Finance and Economic Planning may exempt any statutory cor- poration, institution or individual from the payment of duties and taxes otherwise payable under the said Laws and Regulations or waive or vary the requirement of such statutory corporation, institution or individual to pay such duties and taxes;
IN ACCORDANCE with the provisions of the Constitution and at the request of the Government of Ghana acting through the Minister responsible for Finance and Economic Planning, there has been laid before Parliament a request by the Minister for Finance and Economic Planning for the prior approval of Parliament to the exercise by him of his power under the Laws and Regulations relating to exemption of tax liability on equipment and materials to be imported or purchased locally to ta l l ing US$12,532,913.80 in respect of the purchase and construction of oil storage tanks and pipelines.
N O W T H E R E F O R E , t h i s honourable House hereby approves the exercise by the Minister responsible for Finance of the power granted to him by Parliament by Statute to waive such tax liability on equipment and materials to be imported or purchased locally to ta l l ing US$12,532,913.80 in respect of the purchase and
Mr. Baah-Wiredu 12:30 p.m.


construction of oil storage tanks and pipelines.

Nii Adu Mante: Mr. Speaker, I beg to second the motion.

Question put and motion agreed to.

Resolved accordingly.
Mr. A. O. Aidooh 12:30 p.m.
Mr. Speaker, may
we take motion number 16.
Mr. Second Deputy Speaker 12:30 p.m.
I
think it has been moved and seconded by hon. P.C. Appiah-Ofori; so the debate continues.
Mr. A. O. Aidooh 12:30 p.m.
Mr. Speaker, some
issues were raised by some Members, and they have since been meeting. I understand that they have found a solution to the matter. So my hon. Colleague would announce that to you.
MOTIONS 12:30 p.m.
Mr. Lee Ocran (NDC -- Jomoro) 12:30 p.m.
Mr. Speaker,I rise to speak on the motion. When it was moved the other time I objected strongly to the loan because we had earlier on approved an amount of ¢112.8 billion from the National Health Insurance Fund for the same purpose. We
have had two meetings since then with the Chief Executive of the National Health Insurance Secretariat.
He has brought enough documents to prove that the first amount approved from the Health Insurance money was to establish a network of all the district mutual health insurance schemes so that if I travel from here, and I go to Bolgatanga, and I am a member of the Health Insurance Scheme in Accra, there should be equipment that will enable my card to be swiped for all the information to appear on the screen of the provider so that I could be treated.
The second loan, the 15 million dollars,
which we objected to is to establish a network within the health providers. That is, for example, if I went to the Korle Bu Teaching Hospital and I went to Cardiothoracic Department and they treated me and asked me to go for a laboratory test, and from the test I should buy drugs at the Pharmacy, all these will make it possible for it to be coordinated and be sent straight to the computer at the front desk.
Mr. Speaker, after these explanations, I think we were convinced that the loan will have to be consented to except that we raised a few issues. Next time a report is being prepared, we believe that the committees that prepared the reports will have the relevant information because a sloppy report will receive a “no” answer from this side.
Secondly, there were a few amounts
($400,000) reserved for advertisements during the second phase of the project which is internal coordination of all the various services that are taken before it goes to the provider. We do not see who these advertisements would benefit. If I am to go for medicine, go for X-ray and pay, what are they advertising for me? They are advertising nothing; I think we must use money properly.
Apart from these objections, Mr. Speaker, I think this time round I consent to the loan except of course any other
person has something to say.
Mr. Second Deputy Speaker 12:40 p.m.
I think
you were a major contributor on this matter, and when you consent, I believe the matter is resolved. I hope that is the situation.

Mr. Haruna Iddrisu (NDC -- Tamale

South): Mr. Speaker, thank you for the opportunity. I think that it is important that we support the National Health Insurance Scheme (NHIS) as a major policy intervention of the Government to improve upon health delivery and to improve upon the quality of health service.

But Mr. Speaker, in doing so we must hold the National Health Insurance Council (NHIC) and its secretariat accountable to this House and to the people of Ghana. Once our Ranking Member has given his green light, I do not want to belabour the issue.

But Mr. Speaker, if you look at the formula which was presented to this House captured in the Hansard of 24th November 2006, column 1561 and other related issues, we always make allocation for purposes such as the following - Mr. Speaker; there is a subsidy element, there are health services investment, financially distressed scheme, administration and logistics. We always make some quantum of allocation.

Mr. Speaker, for the purpose of 2006 we approved ¢147 billion for Admi- nistration; Health Service Investment -- ¢334 billion. MIS and ICT Solution which is what the hon. Ranking Member has referred to; we allocated ¢65 billion.

Mr. Speaker, you only borrow where you have insufficiency. Now they have acknowledged that they need to adjust to the kind of funding regime that the NHIS has; but Mr. Speaker, that does not mean that we should not ask questions as to how

these disbursements have been done over the years.

In particular, Mr. Speaker, a worrying signal is that for distressed subsidies, this House together with the National Health Insurance Scheme approved ¢628.80 billion. Officially, they tell the Ghanaian public that the premium payable is seventy-two thousand but even here we have had contradictions where the same NHIS coming through the Deputy Minister for Health has come here to ask for either hundred thousand or one hundred and twenty thousand cedis being the premium payable.

We want to know how much premium Ghanaians are expected to pay for purposes of NHIS. We need clarity on the matter. If you say seventy-two thousand cedis and then you come making calcula-tions based on one hundred and twenty thousand or one hundred thousand cedis -- Mr. Speaker, if you calculate fifty thousand cedis times fifty thousand Ghanaians, which is likely to generate some funds, we need more answers than we are getting.

Mr. Speaker, on ICT Solution, as he referred to, I said that I do not want to belabour the issue; and that is directed to the Minister for Finance and Economic Planning. Mr. Speaker, the National Health Insurance Act is clear. Its sources of income are clear; they are not doubtful. It says two and a half per cent of value added tax. So you generate it on daily basis. Even as people just buy and there is consumption, people pay VAT.

The additional two and a half per cent of Social Security contribution is also a guaranteed source of income. They have no business draining the allocations made for the National Health Insurance Secretariat and that is what we have witnessed over the years. The Ministry of Finance and Economic Planning does not make timely releases. I hope that he is
Mr. Second Deputy Speaker 12:40 p.m.


not going to challenge me because I have evidence, even for 2007.
Dr. A. A. Osei 12:40 p.m.
Mr. Speaker, I do not
mind my younger brother trying to speak on very important issues but if he does not have the facts -- the information he has is incorrect. Mr. Speaker, a few days ago I went to the Committee to explain to them the process of requesting money from the Government. Mr. Speaker, he is a Parliamentarian. He is supposed to work with the Constitution. He should tell this House how he expects the Minister for Finance and Economic Planning to pay money to somebody for something that he has not approved.
Mr. Speaker, if he remembers, the 2006 Budget for the NHIS was not approved by this House in November 2006. Mr. Speaker, I do not know whether he has worked with Government before. In the Public Service if Parliament approves something in the Appropriation Act and you want it, you request for it. Mr. Speaker, he should listen carefully. You request for it and then it is released to you.
Mr. Speaker, if the National Health Insurance Scheme has not requested for money, the Minister for Finance and Economic Planning cannot release that money to them. As I speak, Mr. Speaker, the people at the National Health Insurance Scheme, as of when I came to Parliament, have not requested for funds from their 2007 budget. Mr. Speaker, I will not violate instructions from this Parliament or the Constitution and do what my younger brother wants me to do. I do not want to go to jail for causing financial loss to the State.
Mr. Second Deputy Speaker 12:40 p.m.
That
is fine. Hon. Member, he has given you information. [Interruptions] -- Order!
Mr. Second Deputy Speaker 12:40 p.m.


Order! Leave the hon. Member to keep his attention. Hon. Member for Tamale South, he has given some information, if you can carry it along.
Mr. H. Iddrisu 12:40 p.m.
Mr. Speaker, I hope
Mr. Second Deputy Speaker 12:40 p.m.
Hon.
Minister, are you disputing the law?
Dr. A. A. Osei 12:40 p.m.
Mr. Speaker, I am not a
lawyer but I can assure him I have perused the Act. He has to this House what the fund is. He does not know what the Fund says in the Act; he does not know what it is. Mr. Speaker, we have not violated that Act. He knows very well that that is not true. He should be very careful about these statements. The operations account of the NHIS is not the same as the Fund; and he should know better.
Mr. Second Deputy Speaker 12:40 p.m.
Very
well.
Mr. Ayariga 12:40 p.m.
Mr. Speaker, let me
make known to this House that the Committee that considered this proposal had a very lengthy discussion. Indeed, specifically, myself and the hon. Deputy Minister had cause to go and get a copy of the Act to examine the Act carefully to determine whether or not the current arrangement or procedure that is adopted is indeed consistent with the dictates of the Act.
And he would admit that there are problems in the Act. He would admit that he recalls our discussions, our examination and analysis of the legislation. So there are problems and we tried to reconcile it by
arguing that their approach is dictated by the practical needs of administering funds as it relates to all other sectors.
But in fact, if you look at the Act and the language of the Act you will see that the practice cannot be said to be consistent with the language of the Act. And the Committee said that perhaps this should be the subject matter of an entire review of the National Health Insurance Scheme and the legislation governing it; so that we can make sure that we tailor the legislation to either capture the practical dictates as he says is necessary or if in fact the practical dictates as he says are necessary are really not the case, we will demand that conduct is consistent with the dictates of the Act.
So this debate, for me, is unnecessary because he knows that we examined the legislation -- he and I and we saw the difficulties in relation to the practice as applied to the specific legislation. So let us not go into the debate about what the Act says because he and I know what the Act says. We know that what he is saying is not what the Act says.
Mr. Second Deputy Speaker 12:40 p.m.
That
is all right.
Mr. Baah-Wiredu 12:50 p.m.
Mr. Speaker, thank
you very much. Mr. Speaker, it is good that our hon. Friends have been meeting on this law. But the interpretation of the law is basically reserved for the Supreme Court.
Mr. Speaker, we are all trying to make sure that the right things are done. We will go by the Financial Administration Act and the Financial Administration Regulations and any other practical thing that will help us to advance the course of development of this nation, especially in terms of accountability and transparency. If the structure says that “transfer moneys into a fund” and from the fund moneys are then taken into the operations account, we need to go by that.

If say something must be approved by Parliament and after the approval by Parliament you then put in the request and those payments are effected, that is fair enough. So we all just have to try and clear the grey areas. As a Member of Parliament, I am always interested in questions; I am always interested in statements; I am always interested in appearing before committees to answer questions and I am always interested in audit reports.

So if there is anything that we want to advance to make things clear, that is fair enough. So let us accept these practices; and it is very good that he said that even they have met on some of these things. If there is a demonstration of it to the public, I think that is fair enough. So let us make some advances.

I think all of us want to advance the cause of this nation, especially when funds have to be accounted for and properly used -- because I would like even to get to those at the district level to account for moneys that had been given to them. You know that anything can happen with insurance, Mr. Speaker.
Mr. Adjaho 12:50 p.m.
Mr. Speaker, the hon. Member who had the floor before the hon. Minister for Finance and Economic
Mr. Second Deputy Speaker 12:50 p.m.
Yes,
I think you are right. Initially he was to explain a point but he is going beyond that.
Mr. Baah-Wiredu 12:50 p.m.
Mr. Speaker, I
then cut off.
Mr. H. Iddrisu 12:50 p.m.
Mr. Speaker, I think
that we should be making progress. I will ask the hon. Minister to read, in particular, section 82 and section 91 of Act 650, which make specific reference to the SSNIT contributions and that of the value added tax (VAT) and I accept the explanation by the hon. Minister for Finance and Economic Planning to that effect.
But Mr. Speaker, even when they came here in November 2006, if you remember, it took us about two weeks to approve the Formula for the National Health Insurance Scheme for both 2006 and 2007. Some of them admitted here that it was late enough and they would do something about it.
So I am surprised this time round, people are trying to say that there is nothing wrong. You cannot wait till the end of a fiscal year, especially so that the Budget is presented before the beginning of January, and then come here for approval and say that people should not raise the issue of lateness about it.
With those few comments, Mr. Speaker, we ask that an audit be carried out on the entire work of the National Health Insurance Scheme; that the audit report should be made available to Parliament so that we can monitor and follow up on how they are utilizing some of their own domestic incomes and the added revenue they expect to get from the loans scheme. We will need a specific audit performance on the National Health Insurance Scheme.
With that, Mr. Speaker, I thank you for the opportunity.
Dr. Richard W. Anane (NPP --
Nhyiaeso): Mr. Speaker, it is now obvious that the House is arriving at a consensus with respect to how we are going to manage the National Health Insurance and with respect to the loan, which the House has been requested to help get for the National Health Insurance Scheme to execute certain very important issues.
Mr. Speaker, what has happened this morning and what has been happening in the last few days are a comfort to some of us. We want to express our appreciation, especially the fact that Members at the end of the day accept the fact that yes, in spite of the difficulties which are normally obvious with all new institutions and especially with such a national institution which is new to this nation and which must succeed by all means, because of the need for health care to be promoted -- I think I would want to thank all Members for that.
But Mr. Speaker, there has always been an expression, which I thought ought to be clarified -- and I believe that this facility will help to end it once and for all. It is about the question on portability which has been assured by the Act. This has been difficult to execute because of the fact that we have disparage mutual institutions countrywide and each of them does not seem to have the same focus, even though now all manner of efforts are being put into effect to ensure that these disparage mutual institutions appreciate the need to relate to the centre.
rose
Mr. Second Deputy Speaker 12:50 p.m.
Hon.
Member for Bawku Central, do you have a point of order?
Mr. Ayariga 12:50 p.m.
That is so, Mr. Speaker.
Mr. Speaker, I regret to indicate that the hon. Member is misleading this House. This loan facility is not to deal with the issue of portability.
The earlier amount of money approved by this House which is supposed to be the equivalent of $24 million will deal with the issue of portability, which is the connectivity between the various mutual health insurance schemes all over the country; so that when one is insured in District ‘A' and one moves to District ‘E' the network would ensure that one's card is able to have the information transferred to District ‘A', that is how the information issue is addressed.
So this facility does not deal with the portability issue. The portability issue is being dealt with under a different arrangement altogether.
Dr. Anane 12:50 p.m.
Mr. Speaker, I want
to thank my hon. Member but I do appreciate his difficulty. Mr. Speaker, in ensuring that we eventually get to the portability question, there is the need for a platform to be put in place. And this facility is the starter to ensure that we have our Information, Communication and Technology (ICT) platform in place. This is just amongst several other needs which the National Health Insurance Scheme requires.
But Mr. Speaker, I brought this up because I know that many of us are worried when we go back to our homes and a lot of our people talk about the fact that yes, they have enrolled in the National Health Insurance Scheme but when they are sick or when they travel outside, they cannot access health care. Mr. Speaker, this is a starter and that is the more reason why I said we are happy that today we have come to a basic understanding that there is the need for all of us to come together to promote this, in spite of the fact that we may have our differences, in

spite of the fact that there may be some problems associated with it.

We are together helping to resolve this teething problem so that at the end of the day when the platform has been established, when the linkages have been established, we can say that yes, we have arrived and that the National Health Insurance Scheme in Ghana is something to be proud of.

Mr. Speaker, I believe that all of us see that this facility is a cheaper source for us to get somewhere. We know that yes, we have the National Health Insurance Fund, we know that we have approved the funding, the budgeting and everything. But Mr. Speaker, if we have a cheaper source to also promote the insurance scheme, I believe it would be a good idea for all of us to come to the understanding, for us to pick it up in order to ensure that we quickly execute some of the needed requirements of the scheme so that we can move forward.

With these few comments and with my appreciation to our Friends on the other side, I would also say that yes, let us all support the project and let it go on.

Mr. Mahama Ayariga (NDC --

Bawku Central): Mr. Speaker, the Committee reviewed the proposals diligently. Indeed, we had occasion to invite the leadership of the National Health Insurance Scheme to brief us on the basis on which they are requesting this House to approve the $15 million loan that we are getting from IDA.

Mr. Speaker, we were told by the Secretariat that the initial $24 million that this House approved is meant for constructing the platform and putting in place the infrastructure for connecting all the mutual health insurance schemes and the service providers in the country. But subsequently there was a realization that in order for this system to work effectively
Dr. Anane 1 p.m.
and to do away with the manual tool of information into the computer at the front desk of all the mutual health insurance schemes and their providers, there is the need to construct a platform that will facilitate the internal connectivity of all service providers.

So that for instance, if you go to Korle Bu, we are told that all the departments there will be connected in such a way that as you visit the various departments, whether the pharmacy, the laboratory, the ward, et cetera, the information will be integrated and automatically put in a platform that can be accessed nationwide for the purpose of ensuring that the system works very effectively. That was the basis on which they were requesting additional money in order to facilitate the development of this platform.

There is no doubt that this is a very

laudable proposal and, if indeed and in fact, it is implemented successfully, we are looking at a national health insurance scheme that will be very effective in its functioning, will be very easy to administer, very efficient, and will serve the Ghanaian public effectively.

There were a number of issues however that we were concerned about. We looked at the figures involved and we were very concerned about the fact that it appeared to us that we were putting so much resources into the management aspect of the project. If you look at the figures involved, we are spending close to $8 million on training alone.

Indeed, we were concerned because if we were to give somebody $8 million, he would probably construct a university for us. So we did not appreciate why

for training of National Insurance Health Scheme management in the use of computerized systems, we would be committing as much as $8 million.

The explanation was that this is going to be over a period of five years and so we are looking at just over a million dollars per annum; and they argued that we are looking at all service providers in the country including all the hospitals, all the pharmacies, all those who provide ser-vices to the National Health Insurance Scheme. So we are looking at very large numbers over a long period of time; and the training programmes will be consis- tent throughout the year.

On that note, the Committee was satisfied and decided that it will go ahead and approve the loan that has been requested. But we made it clear to them that we would demand annual periodic reports on the implementation of this project so that, as a House, we can continue to monitor the process of implementation of the project. And we got an assurance from the leadership of the Secretariat that they will give us first of all a work plan, a time line and periodic reports so that the Committee of this House will be apprised of what is happening there and the processes of implementation.

Let me end on the note that we made

some observations -- and I believe that my hon. Colleague, Haruna Iddrisu was trying to raise some of those issues -- about the transfer of funds to the National Health Insurance Scheme. The agreement was that we would undertake a comprehensive review of the entire National Health Insurance Scheme with a view to streamlining the financing arrangements.

Lastly, we also noticed that the way the National Health Insurance Scheme is being managed, it is as if it is an independent body from the Ministry of Health. Indeed, at a certain point, we were

told that the Deputy Minister for Finance and Economic Planning was on the Board of the Council and subsequently, if you look at the arrangement you will think that this is an outfit of the Ministry of Finance and Economic Planning.

But if you look at the investments that they are now calling on us to approve for them, these are investments in health infrastructure. We are looking at making hospitals more effective, the adminis- tration of hospitals, pharmacies, et cetera, and infrastructure that are clearly health- specific. Now, the question is: to what degree has the Ministry of Health control over all these developments in the health sector in relation to the Ministry of Finance and Economic Planning?

I think that this is a fundamental issue that we must address. Is this a project that should be managed by the Ministry of Health or it is something that should entirely be in the hands of the Ministry of Finance and Economic Planning with little oversight from the Ministry of Health? This question arises because these are infrastructure that are specifically health- related.

I believe that at the appropriate time, this House should look at the whole arrangement between health and finance in relation to the National Health Insurance Scheme because the Act, while it talks about health-care financing also talks about the development of health care infrastructure. And I think the develop- ment of health-care infrastructure is clearly within the mandate of the Ministry of Health. To the extent that we are approving huge sums of money for the National Health Insurance Scheme to develop health-care infrastructure without so much control or oversight by
Dr. Anane 1 p.m.


the Ministry of Health, for me, is a little problematic.

On that note, I would urge our Colleagues to support this loan agreement based on the understanding that we have come with the National Health Insurance Scheme, that they will give us all the information needed for us to be able to monitor the progress of work and to be sure that the money is actually used for the development of health-care infras-tructure, as it relates to the effective functioning of the National Health Insurance Scheme.

Deputy Minister for Finance and

Economic Planning (Dr. Anthony Akoto Osei): Mr. Speaker, I rise to support the motion on the floor at this moment and to very briefly try and provide some information to hon. Colleagues so that there is no wrong impression given that the Ministry of Finance and Economic Planning has some oversight res-ponsibility of the NHIS.

I, myself, personally have had several meetings in the Ministry of Health where I have vociferously advocated that the Ministry should take charge of NHIS since it is primarily an instrument to implement health policy. The only role the Ministry plays is that in the Act, all investments by the Fund for obvious reasons need the approval of the Minister for Finance and Economic Planning. That is the only role we play except to advance monies to them.

It is correct what my Colleague is saying, that the impression is given by the NHIS that they are a different entity separate from either the Ministry of Finance and Economic Planning or Ministry of Health. That is not what the Act was meant to be and I have told the Committee several times. We do not have any reason to believe that it is an instrument to implement health policy in Ghana and by implication, the Minister for Health. In fact, in the Act, it is stated that, the Minister for Health shall direct the
Mr. E. K. D. Adjaho (NDC -- Avenor- Ave) 1:10 p.m.
Mr. Speaker, I just want to make one or two observations.
Mr. Speaker, in the course of the
debate, an issue cropped up as to how the moneys on the levies ought to be paid into the National Health Insurance Fund. Sections 90 and 91 of the National Health Insurance Act, 2003, Act 650 deal with this matter and I am very clear in my mind that there is no need for interpretation. If there is anything at all, it is a matter of
enforcement.
Mr. Speaker, for the records, I only refer to section 91 of the Act and with your permission I beg to quote:
“The revenue or collection agency charged with the collection of the levy shall within thirty days of the collection of the levy, pay the levy directly into the Fund.”
Mr. Speaker, in my view, this is the section that deals with the payment of the moneys collected into the Fund. And it says it should be done directly. I am very clear in my mind, and we know the agency responsible. When we collect our VAT invoices we see that we have paid two and a half per cent for National Health Insurance, and we know that it is the VAT that is in charge of the collection.
Mr. Second Deputy Speaker 1:10 p.m.
Hon. Deputy Minister for Finance and Economic Planning, do you have a point of order?
Dr. A. A. Osei 1:10 p.m.
Mr. Speaker, I think that my hon. Colleague said it. If there is the need for the interpretation of an Act, the appropriate forum is the Supreme Court.
Mr. Speaker, all moneys that are collected are kept by the Controller and Accountant-General; that is clear. The account is at the Bank of Ghana, in the
custody of the Controller and Accountant- General. So he and I cannot sit here and say that we have gone against the Act. If it is an interpretation of an Act, I think the appropriate forum is the Supreme Court rather than we disagreeing here. It is very clear in our minds where the money should be.
Mr. Second Deputy Speaker 1:10 p.m.
Hon. Deputy Minister for Finance and Economic Planning, he is expressing his view and in his view, the law is clear. You cannot take that away from him.
Dr. A. A. Osei 1:10 p.m.
Mr. Speaker, with all due respect, I am not taking that away from him. He said he does not see why I should come and interpret it differently; and that is what I take issue with.
Mr. Second Deputy Speaker 1:10 p.m.
He said he disagrees with you.
Dr. A. A. Osei 1:10 p.m.
No, that is why I should take it differently. I also have my view. So as I accept his view, he should also accept my view. That is all I am saying.
Mr. Second Deputy Speaker 1:10 p.m.
That is true.
Dr. A. A. Osei 1:10 p.m.
Thank you, sir.
Mr. Second Deputy Speaker 1:10 p.m.
You had it right to interpret as you think fit and he says he disagrees with you. Let him disagree. Hon. Member for Avenor- Ave, there seems to be general agreement. Could you wind up so that I put the Question.
Mr. Adjaho 1:10 p.m.
Mr. Speaker, I believe that
when we talk about an Act of Parliament, simpliciter, the issue of Supreme Court does not come in at all.
Mr. Second Deputy Speaker 1:10 p.m.
Hon. Member, would you move away from that?
Mr. Adjaho 1:10 p.m.
When his boss made the point, I decided to keep quiet but when he also repeated it, I realized that they were misinforming the public and therefore I must correct them at this stage.
When we are talking about an Act, simpliciter, the issue of Supreme Court does not come in, except when the Act conflicts with the Constitution of the Republic of Ghana. But we are not saying there is any provision here which conflicts with the Constitution. As far as I am concerned, the provisions are clear; the moneys collected by the VAT Service are to be paid directly into the Fund without any request. That is my point.
Prof. Gyan-Baffour 1:10 p.m.
Mr. Speaker, I think the hon. Member there is confusing everybody. What we are saying is that there are two accounts. We have the Fund and then we have the operational accounts of the National Health Insurance. In that Fund, whatever moneys are collected go right into that Fund. It does not go anywhere. Nobody takes it at the Ministry of Finance and Economic Planning. The account is at the Bank of Ghana and it is one of the sub-accounts of the Consolidated Fund. If they need money to do something and therefore would want to move that money into their operational accounts, they make a request to the Ministry of Finance and Economic Planning for us to move it.
So there is nothing like we have held the money. The money goes into that Fund
Mr. Adjaho 1:10 p.m.
Mr. Speaker, I do not know the point being made by my good old professor. The point is that as far as management of the Fund is concerned, the provision of section 82 is clear. The Fund that we are talking about is the Fund that the Act is referring to. The account is different from the Fund that this Act is talking about. We are not talking about an account; we are talking about the Fund. So if they are introducing something -- [Interruptions.]
Prof. Gyan-Baffour 1:10 p.m.
Mr. Speaker, I think the hon. Member on the other side is actually confusing everybody. We have a Fund and the Fund is an account. It is a sub-account of the main Consolidated Fund. That money goes right into that account. Then it is moved, when they request it, into their operational account, which can be outside Bank of Ghana -- anywhere else.
So to say that we do not put the money into that Fund is not correct; it is misleading. Each of these funds have these sub-accounts that the moneys go right into. When they request it, we just authorize and then remove it into their operational accounts. So that is the issue.
Mr. Adjaho 1:10 p.m.
Mr. Speaker, well, I have not seen the Ministry of Finance and Economic Planning directly here but even the management of the Fund itself is reserved for the Council, under this Act.
Number two, the point that is being made is that -- [Interruption] -- I know there might be certain behind-the-scenes administrative arrangements, but those administrative arrangements cannot and should not take precedence over this Act.

That is the point that we are making. That is the point that I am making and we must make that point very clear. This Act refers to one and only one Fund.
Dr. A. A. Osei 1:10 p.m.
Mr. Speaker, no one is here talking about the violations of the Act; my hon. Colleague has just explained it. The VAT Service collects this levy and it goes into the Fund.
Some hon. Members: Which Fund?
Dr. A. A. Osei 1:10 p.m.
What do you mean by which Fund? There is only one Fund, which is kept at the Bank of Ghana. There is no doubt about that.
Mr. Speaker, my hon. senior Colleague is being misinformed by the hon. Member for Asawase. He does not understand how government runs. There is no doubt in our minds; we do not manage the Fund, except that the law says that when they need to invest, they must seek our approval. The management is up to the Board. It is very clear. What they do not understand is that the Fund is the Fund. It is in a Bank of Ghana account. I would have given them the account number if I had it here.
There is only one Fund -- there are two of them. The one that Fund puts in there, and the one that Social Security -- there is only one Fund. So I do not know why he is confused. That was what my hon. Colleague tried to explain. My hon. Colleague from Asawase has been misinformed and he is misinforming his senior Colleague. I have explained it to him but he does not understand.
Alhaji Mubarak 1:10 p.m.
Mr. Speaker, I believe my hon. Colleague, the hon. Deputy Minister for Finance and Economic Planning, is confusing himself. This is because the law is very clear. Section 82 of the Act says that the Council would manage the Fund. But he has just confirmed that it is at Bank of Ghana and
that it is upon request that they release. So who is managing the Fund? They are managing the Fund, but the Act says that the Council should manage it.
So if there are some administrative difficulties, let us look at the law and review it. He should not maintain his stance and say that somebody is getting confused. This is because even the law that he keeps referring to, article 179 of the Constitution, makes provision for Parliament to set aside some of those rules and make provision that can create an independent fund, which this Act did. So he is rather misinforming the whole country and not I confusing my senior Colleague.
Mr. Second Deputy Speaker 1:20 p.m.
Order!
Order! Hon. Members, undoubtedly, if you have matters like that which need discussions to resolve, they cannot be resolved by passing pieces of information to a Member on his feet. He cannot absorb it properly. So I am going to disallow further arguments on this Fund because essentially, everybody has agreed on the need for the loan so that those kind of issues that are not clear in hon. Members' minds, steps should be taken for this to be resolved. That cannot be resolved by the kind of exchanges that are going on. So hon. Member for Avenor-Ave, if you can wind up, so that issues which look technical and needs to be clarified, can be done at a proper time. So please, continue and finish.
Mr. Adjaho 1:20 p.m.
Mr. Speaker, thank you
Mr. Second Deputy Speaker 1:20 p.m.
Hon.
Member, I have told you that you should veer away from it now. That can still be resolved, please.
Mr. Adjaho 1:20 p.m.
Mr. Speaker, I believe
that at the appropriate time, I think this matter and in terms of the arrears will -- This Fund is not different from the GETFund, but the Common Fund, so if you are in arrears, you are in arrears. If you are not in arrears, you are not in arrears. That is the point we want to make, and we are saying that they are in arrears.
Mr. Speaker, the second point I want
to make and my very final point, is that there are problems generally with the management of the Health Insurance Scheme in certain districts. There are problems and I think that those who are in charge should take the necessary steps, even as we approve this facility, to make sure that those problems are properly addressed, and addressed at the appropriate time.
Mr. Speaker, I say so because of the
peculiar situation in my own district. The issue cropped up and it has become a major problem between the District Assembly, as an assembly, and the District Chief Executive as a District Chief Executive. I am raising this matter because behind the scenes, I did not want to be caught in the crossfire. So I went to the Health Insurance Secretariat to try to find ways of resolving the problem in the district and I realised that first, it had something to do
Mr. Adjaho 1:20 p.m.
with the management of funds allocated to the Scheme.
Secondly, it had something to do as
to whether the District Assembly and the District Chief Executive have even any say in the composition of the Board. What really happened was that, the District Chief Executive dissolved the Board and then the Assembly came and passed a resolution that he had no power to dissolve the Board; and it set up a committee to investigate the matter. I looked at the law and I have realised that neither the DCE nor the District Assembly has any say because this is a limited liability company -- limited by guarantee.
The scheme is run under the Companies Code, as a company limited by guarantee, and therefore the District Assembly can assist but has no power to appoint Board members; neither has the District Chief Executive got those powers.
There are problems there and I think that even as we provide funds to people at the district level to manage these funds, it is very important that steps are taken to put things right. Otherwise, it will be tantamount to fetching water in a basket as we say in my dialect.
Minister for Finance and Economic
Planning (Mr. K. Baah-Wiredu): Mr. Speaker, the management of health insurance scheme cuts across several sectors -- financial issues are involved, health issues are involved. Mr. Speaker, for example, in the United States of America, the Secretary of the Treasury is the Chairman and Managing Trustee of the Social Security and Medical Care Board of Trustees. Health Insurance Schemes are there.
In our own case, we have designated the Ministry of Health as the institution involved. Sections 6, 7 and 8 talk about a whole lot of things and I think it is better for us to have the Finance Committee, the Health Committee and probably the statutory committee on legal issues to meet and then streamline some of these things.
I think we are all concerned about the
management of the Fund, either at the national level or at the district level. He has made his point clear, and I believe that we must work with the law as it is. I think there is an L.I. also involved and we should insist on that. During the holidays, these committees can meet and streamline them. We are all concerned with the National Health Insurance and we would like that it covers the whole country.
So Mr. Speaker, the points and the issues raised by Members are of concern to all of us and we are taking the appropriate steps to make things work. I think there are certain sections that have been referred to the Ministry of Finance and Economic Planning; there are certain sections that refer to probably other Ministries and we need to sit together and streamline and then make things work for all of us.
We should make sure that the National Health Insurance Scheme has got a budget; that the budget is approved and executed. Rules and regulations must be abided by. This is not the first time that we have had a Fund. We have the District Assemblies Common Fund, we have the GETFund, and others. So together, I think we can get there.
But I am very happy that the hon. Member talked about computerisation at the district level -- putting all of them together for the 138 districts. Also, hospitals, departments and other sectors must be networked. I think that is where the confusion was and now it has been

cleared. I think we must make advances.

Concerning the US$15 million, the time and energy that we are spending on this, sometimes, even five million out of that money might be spent. I think we need to source bigger sums of money to complete this infrastructure set-up for this scheme to move on.

So Mr. Speaker, the relevant sections that I have just mentioned, part 6, part 7, part 8 need to be looked at. The insurance scheme as I said, insurance is very important, anything can happen. In Britain today, due to floods, managers of insurance schemes are finding it very difficult to make things work. But that is how we must be looking at ours.

I am very happy that the Members of Parliament for Jomoro, Asawase, our side and others, are all happy and want to make sure that the National Health Insurance Scheme works. The ideas that are coming are very important and I believe my hon. Brothers from Bawku and Tamale South, are all championing it. As a fund, we are also interested in championing it. We do not know how long we are going to live in this world, and I do not want a situation where we have to go and social democrats would say, “cash and carry”, no. It should not be “cash and carry”; it should be national health insurance because we actually insure vehicles.

Mr. Speaker, on this note, we thank

all hon. Members for the intelligent presentations that they have made and I believe that the institution that is going to be better off is the National Health Insurance Scheme. The people of Ghana are also going to be very happy and will get the best out of this. We are not talking about Wechiau, neither Lassia Toulu;

we are talking about National Health Insurance.

Question put and motion agreed to.
Mr. Second Deputy Speaker 1:20 p.m.
Hon.
Minister for Finance and Economic Planning, Resolution no. 17. Can you move it please?
RESOLUTIONS 1:30 p.m.
Minister for Finance and Economic Planning (Mr. Kwadwo Baah-Wiredu) 1:30 p.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the Government of Ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament; PURSUANT to the provisions of the said article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335) and at the request of the Government of Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Agreement between the Government of the Republic of Ghana and International Development Association (IDA) for an amount of SDR10.10 million (US$15.00 million equivalent) to finance the Health Insurance Project.
THIS HONOURABLE HOUSE 1:30 p.m.
H E R E B Y R E S O LV E S A S 1:30 p.m.
Alhaji M.M. Mubarak (NDC -- Asawase) 1:30 p.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. Second Deputy Speaker 1:30 p.m.
Hon.
Chairman of the Finance Committee, it seems you are representing the Majority Front Bench.
Nii Adu Mante: Mr. Speaker, I am in
dual capacity today. Mr. Speaker, may we take item 20 on the Order Paper.
PRIVATE MEMBER'S MOTION
Measures to Remove Algae in the Marine Waters
Mr. Lee Ocran (NDC -- Jomoro) 1:30 p.m.
Mr. Speaker, I beg to move, that this honourable House requests the Govern- ment to take appropriate measures to remove the algae in the marine waters of the Jomoro District which have greatly affected the livelihood of the people of the area.
Mr. Speaker, on the 4th of July this year, I made a Statement on the floor of this honourable House about the appearance of a green substance in the marine waters of the Jomoro District extending all the way from Jomoro to the estuary of the Ankobrah River in the Nzema East District. Mr. Speaker, this substance has greatly affected fishing in the area because it destroys the nets of fishermen and makes it almost impossible for them to earn income.
Mr. Speaker, poverty in the coastal areas of the Jomoro District has increased by 35 per cent because of the appearance of this substance. But investigations have shown that the substance emanates from la Cote d'Ivoire, the neighbouring Republic. It has become a trans-boundary problem and so it is only at the very highest level that this issue can be resolved.
The purpose of this motion is to ask this honourable House to call on the Government to ask the National Disaster Management Organisation (NADMO) to provide some relief items for the affected communities whilst the Government looks into the possibility of providing some funding for the affected people so that they can take care of their families.
Mr. J. B. Aidoo (NPP -- Amenfi East) 1:30 p.m.
Mr. Speaker, I rise to second the motion on the floor of this House. Mr. Speaker, in doing so, I would also want to reiterate a point which has already been made on the floor of this House before, that the algae growth in the Nzema area is affecting the livelihood of these fishermen.
Mr. Speaker, already, we know that the coconut industry in this area has been seriously affected and therefore if the algae growth should also go to affect fishermen then it means that poverty is going to actually increase in the area.
Mr. Speaker, as has been noted, the problem is coming from la Cote d'Ivoire. The problem is arising because discharges from Abidjan, when carried by the marine waters towards Ghana and then mix with the waters from the Ankobrah River give rise to the growth of these algae, this substance.
Mr. Speaker, the problem therefore is taking an international dimension. Therefore, it cannot be dealt with at the district level alone, neither could it be dealt with at the regional level. It has to be taken by our Government and the Government of la Cote d'Ivoire to find a lasting solution to the problem.
It is also not a problem that has suddenly arisen. It has been there for a very long time and therefore the time has actually come for this problem to be dealt with, once and for all. It is in this respect that I am rising to support the motion to call on our Government to take the necessary steps to deal with the problem so as to bring relief and comfort to the people of the Nzema area.
Minister for Finance and Economic Planning (Mr. Kwadwo Baah-Wiredu) 1:30 p.m.
Mr. Speaker, I thank the hon. Member for Jomoro District, which is my adopted district, for bringing this issue up because I know very clearly that at Jewi Wharf and all the other areas, there are a lot of economic activities, especially cash crop production, coconut and food crop production, in terms of maize, in terms of plantain and others. Obviously, if the algae are around and disturbing the marine system, then we need to mobilize the appropriate resources to help them to solve that particular problem.
But in arguing this out, I think by now we should have a fair idea of how much it is going to cost. As has just been indicated by the hon. Member, this is not the first time and it is better for us to speed up so
that we can save the economic activities of those areas, especially of the fishermen. I saw either the hon. Member himself or some other persons including the Regional Minister walking along the beach, and we can actually feel that this is something we need to tackle. I believe those experts, the specialists, those who know how to tackle this issue must come out immediately to assist the nation to solve this particular problem.
So it is a very good motion by hon. Lee Ocran, Member of Parliament for Jomoro constituency; it is a very important issue he has raised. It has direct impact on economic activity in that area and I believe now that we have discovered oil in that area, we need to make sure the right things are done. I support this particular motion.
Mr. J. Y. Chireh (NDC -- Wa West) 1:30 p.m.
Mr. Speaker, fortunately, I am supporting this motion, with the Chief of Staff and Minister for Presidential Affairs looking at me directly. We are calling on Government to do something about this problem in the Jomoro and the Nzema areas. This time, it is not somebody who will go and tell him what the feeling of the House is; he himself is here.
But I would like to say that this matter requires urgent action. One of the ways through which it can be urgently addressed is that there is the portion which deals with the technical aspect -- scientific studies. What action should be taken, based on estimates that are appropriate to deal with the matter can be made immediately.
I would therefore urge that in the Government's desire to solve this problem quickly, the appropriate team should be assembled and at the same time the cost estimates be worked on as quickly as possible. This matter goes beyond the competence of any District Assembly or Regional Co-ordinating Council. This is a national problem. It affects health and
Mr. J. Y. Chireh (NDC -- Wa West) 1:30 p.m.


we do not know the long-term effect yet of this problem.

Therefore, I will urge that we should not say “why do you not go and get the District Assembly to do the estimates and bring it”? Or we call a Regional Co- ordinating Council to send some team. This matter is not like that. Therefore, I will urge that the relevant government agencies at the national level be instructed appropriately to take action.

This matter also affects the livelihood of the people and this is why it is urgent for the Government to act. We are all unanimous in this call and I will say that for the hon. Member of Parliament for Jomoro to bring this motion urging all of us, let us support him and urge Govern- ment to take action.
Mr. Second Deputy Speaker 1:40 p.m.
All
contributions should be very brief because we do not have much time.
I have not heard the voice of a lady
today, so hon. Deputy Minister?

Deputy Minister for Education, Science and Sports (Mrs. Angelina Baiden-Amissah): Mr. Speaker, especially coming from a fishing area and also from the Western Region, I rise to add my voice to the motion on the floor. I am aware of the problem of the Jomoro area as far as the fishing industry is concerned.

Mr. Speaker, Western Region actually derives its wealth from coconut industry and fishing activities. Unfortunately, the disease by name Cape Saint Paul Wilt has destroyed the coconut trees and so coconuts are not anything that we can rely on. Now, the concentration of the Western

Region is on fishing and farming in some other communities. Mr. Speaker, we are all aware of what algae can do. Algae are marine plants that are fed on by the fish.
Mr. Asamoah Ofosu 1:40 p.m.
On a point of order. Mr. Speaker, I think that in the hon. Member's attempt to contribute to this motion, she has made a rather serious statement which is quite misleading, that the wealth of the Western Region is derived from coconuts and fishing activities.
Mr. Speaker, we are aware of the gold mining in Tarkwa, cocoa from Juabeso Bia and all those areas which contribute more than coconuts and by way of fishing, as we are made to believe. And now we have even discovered oil in Jomoro. So Mr. Speaker, it is quite misleading; may she correct that.
Mrs. Baiden-Amissah 1:40 p.m.
Mr. Speaker, when I started making my contribution, I mentioned the coastal area. So talking about the coastal belt, our wealth comes from the fishing and coconut industries. I also mentioned farming communities. So the other aspect that he is mentioning is part of the wealth of the Western Region. But my concentration was on the coastal area of the Western Region. Since we have lost the coconut trees through the Cape Saint Paul Wilt disease, our concentration now is on the fishing industry. And all of us, especially those of us coming from the coastal areas are aware that the algae are marine plants which are fed on by fishes.
We all know of the food chain. The bigger fishes also feed on the smaller ones. But when algae become too much, when algae growth expands, it really affects the fishing industry in the sense that even the density of water is affected. So canoes cannot sail through the water. This is a
serious problem. And for the fact that when algae growth becomes too much, the fish even run away from the place --
So it is difficult actually to fish in areas where you have concentration of algae. And for the coastal areas, even in the lean season, you will see poverty rearing its head. And with algae growth, whether it is lean season or the bumper period, there is no fish for the fishermen to catch. It is for this reason that I consider this issue raised by the hon. Member for Jomoro as an emergency that the Government should tackle.
I am also aware that other hon. Members have brought up issues and made suggestions which we need to get the appropriate bodies to find out exactly what to do so that the Government can also tackle it.
Mr. Speaker, I also add my voice to that of all those who are saying that the Government needs to get people who are actually well versed in these areas to go in and do the necessary research and come out with the right response so that this algae growth which is actually affecting the fishing industry in the Western Region can become a matter of the past.
Mr. Speaker, with these few words, I support the motion on the floor.
Minister for Local Government, Rural Development and Environment (Mr. S. Asamoah-Boateng): Mr. Speaker, thank you for giving me the opportunity to add my voice to the motion and to sum up, as it were, as the Minister responsible for the environment.
Mr. Speaker, this motion is important and I thank my hon. Colleague, the hon. Member for Jomoro for tabling the motion which is supported by almost the whole House.
Mr. Speaker, it is true that these invasive aquatic weeds which the experts call the harmful algae blooms have been occurring in our coastline for a while. In fact, I am told and I am aware that the first detection was in 1993. And my hon. Colleague who was then the Deputy Minister for Environment did some work to tackle it.
But now it is becoming more and more frequent and I am told that although it used to be an annual event that comes in almost every year around this time of the year, now it has become very permanent. And the whole of the coastal area, from Elubo through to the Ankobra estuary, are all being covered by these harmful algae blooms. So Mr. Speaker, it is important that we address it.
Mr. Speaker, from my Ministry I can inform the House that the Environmental Protection Agency has undertaken some research on the issue and they have a desk to monitor and to report on the frequency. But as it has been said by the hon. Member who moved the motion, Mr. Speaker, this is a trans-boundary issue that affects the coastline from Guinea Bissau through to Angola. And Mr. Speaker, I am glad to also say that under the Guinea Current Large Marine Eco System Project, this issue has been discussed.
Now this project has been turned into an interim Guinea Current Commission and the Commission has in its agenda the solution for these algae blooms.
Mr. Speaker, I have also had cause to discuss this matter briefly with my hon. Colleague, the incoming Minister for Foreign Affairs, Regional Integration and NEPAD because it must be raised at the highest level for the two countries, especially la Cote d'Ivoire and Ghana to resolve. So as it has been said, mostly it is from pollution from land-based activities
Mrs. Baiden-Amissah 1:40 p.m.


from the land around the Abidjan area that engage the sea and cause these blooms.

Mr. Speaker, the Ministry is also aware and has set up what we call the Integrated Coastal Area And River Basin Management Plan. We have put a plan together and this is being discussed among the Abidjan Convention. Mr. Speaker, the Abidjan Convention -- under the Ministry -- Ministers get together to look at all the environmental issues concerning that particular subregion. And the Abidjan Convention has picked up this issue.

Unfortunately, because of la Cote d'Ivoire's political instability -- and I am glad to say that it is now almost resolved; and we thank God for that -- this matter would once again come up at our meeting which is to be held in Cape Town in early September. We are meeting the Nairobi Convention and this matter will come up and would be resolved and hopefully we can come to some conclusion and remove them, as it were.

As to the livelihood of the people, I am in support of some effort that we should put in to support the coastal people's livelihood; and that includes my own. I come from a coastal town called Kromantse, which also fishes. We go fishing -- a stock of the fishing community. It is important for us to know the depletion in our coastal waters which is affecting the livelihood of people who live on the coastline.

So it is a matter of concern that we should all put our attention to it and make sure that the sea, as we see it, can be depleted and we make sure that we restock the sea back to its normality and support the livelihood of the people who live there.

Mr. Speaker, I also want to take this opportunity to thank the agencies such
rose
Mr. Second Deputy Speaker 1:40 p.m.
Hon. Member for Ashaiman, do you have a point of order?
Mr. Agbesi 1:50 p.m.
On a point of order. Mr. Speaker, I heard the hon. Member saying that we will make sure that we stop the sea. I heard him say something like that and I was wondering whether he has the capacity, the ability, the means to stop the sea; I want clarification on the statement he has made.
Mr. Second Deputy Speaker 1:50 p.m.
Well, that is if you heard him right.
Mr. Agbesi 1:50 p.m.
He would stop the sea? I want to know how he would stop the sea.
Mr. Second Deputy Speaker 1:50 p.m.
Hon.
Minister, he says you said you would stop the sea, that is what he heard.
Mr. Asamoah-Boateng 1:50 p.m.
Mr. Speaker,
unfortunately, my hon. Colleague does not live on the coastline. Ashaiman is not part of the coastline. I can never stop the sea, and he knows, he probably was not listening to me. I said we would restock whatever is depleted.
Sometimes we have a plan to re- introduce the shrimps and the prawns in the estuaries which can easily go back when the tides are suitable for us to restock. So there is a plan to restock, not to stop the sea. How can one stop the sea? Is one God?
Mr. Speaker, as I said, the livelihood of the people must be supported. It is not only in the fishing industry, which is something we should do that is their
livelihood, but we should also look at other forms of occupation and profession such as aquaculture, even inland and other skilled profession that we can introduce in the community so that we can live and live well, not only on the fishing.
But also importantly, I am aware that we can go further into the coastline or into the sea to fish, not at the shore -- and in that respect, I am grateful that Govern- ment has put in place programmes to provide landing bases in Axim, Manful and Elmina so that fishing communities can get better-equipped boats which would go further into the sea and compete with international fishermen and women who come and invade our waters, in order that we can bring more fish and not only feed the people on the coastal area but the whole of the country; we all need fish to survive.
Thank you for allowing me, Mr. Speaker, to contribute to the motion; the Ministry is on top of this issue to resolve it.
Mr. Second Deputy Speaker 1:50 p.m.
Hon.
Deputy Minority Leader, just a few minutes, we are running out of time.
Mr. E. K. D. Adjaho (NDC -- Avenor/
Mr. Second Deputy Speaker 1:50 p.m.
Hon. Members, I think there would be extension of Sitting just for a few minutes after 2 o'clock. Please, go on.
Mr. Adjaho 1:50 p.m.
I think the outgoing Minister for Environment is not in the mood to leave that Ministry. But Mr. Speaker, I think this is a very important motion. Listening carefully to the hon. Minister for Local Government, Rural Development and Environment, he has made a lot of important interventions in
this debate. He did not limit his submission only to the Jomoro area, which clearly shows that the problem is all over the coastline of Ghana.
It might not necessarily be in the form of the particular weed that we are talking of -- algae; it might be in the form of other weeds and other things and I think that while we even indulge this motion, it is very important to send a very strong signal to Government that they should look at the coastline in a very holistic manner.
Mr. Speaker, as a result of the construction of the Akosombo Dam, the whole Lower Volta Basin, the livelihood there has been affected because the flow of the river is no longer swift and a lot of weeds have grown up there affecting livelihood and other things. So my only plea in this debate is that even as we take a special look at the Jomoro case, it is equally important that we look at the lower Volta Basin as a whole. Recently I heard one of the Members of Parliament (MPs) from the Lower Volta Basin -- specifically the MP for Shai Osudoku -- calling for compensation for the people who have been affected by the construction of the Akosombo Dam.
Mr. Adjei-Darko 1:50 p.m.
Mr. Speaker, this is a specific motion, not a Statement. So I do not know whether the Member on floor wants to amend the motion to cover the
Mr. Second Deputy Speaker 1:50 p.m.
Hon. Member, that is so. But he is riding on the wings of the motion that definitely when the motion is passed, we would not go over the ambit of the motion. He wants to remind us that after hon. Lee Ocran's motion they should also look at other areas. Please, hon. Member, as I hinted, we do not have too much time so if you can conclude.
Mr. Adjaho 1:50 p.m.
Mr. Speaker, but for his intervention, I would have completed my submission. But Mr. Speaker, that is a very brilliant intervention by the Minister of State in the Office of the President. Mr. Speaker, the Minister for Local Government, Rural Development and Environment did indicate that even Angola and all those places -- Maybe, he did not pay attention to that --
But Mr. Speaker, I even discussed the matter of amendment with the hon. Member and I decided to drop it for now. I discussed it with him as to whether he agreed to the principle and had no objection to it. But I thought that given the peculiar situation in the Jomoro area, we would take the motion while we draw attention to other problems on the coastline in terms of other weeds that are destroying livelihood on the coastline of Ghana.
Mr. Speaker, I think that once the hon. Minister is here, even as he leaves the Ministry, he would try and put it in his handing-over notes so that this matter can be addressed once and for all.
Question put and motion agreed to.
Resolved accordingly.
Mr. Second Deputy Speaker 1:50 p.m.
So hon. Lee Ocran, you have the singular, unique position to have the Private Member's Motion passed after a very, very long time. So the motion is carried. Hon. Deputy Majority Leader, I had indicated that there would be extended Sitting for a short time. What do you want us to do?
Mr. A. O. Aidooh 1:50 p.m.
Item 13 -- Mr. Speaker.
Mr. Second Deputy Speaker 1:50 p.m.
Hon.
Members, motion number 13, hon. Chairman of the Committee for Finance?
Suspension of Standing Order 80 (1)
Chairman of Committee (Nii Adu D. Mante) 1:50 p.m.
Mr. Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the Report of the Finance Committee on the Loan Agreement between the Government of Ghana and Stanbic Bank Ghana Limited for an amount of US$15,000,000.00 for the construction works at Flagstaff House may be moved today.
Mr. Appiah-Ofori 2 p.m.
Mr. Speaker, I beg
to second the motion.
Question put and motion agreed to.
Resolved accordingly.

Loan Agreement between the GOG and Stanbic Bank Ghana Limited

Chairman of the Committee (Nii Adu

Mante): Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Loan

Agreement between the Government of Ghana and Stanbic Bank Ghana Limited for an amount of US$15,000,000.00 for the construction works at Flagstaff House.
Mr. Speaker, I beg to present the Report of your Committee 2 p.m.
1.0 Introduction
The above Commercial Loan Agree- ment between the Government of Ghana and the Stanbic Bank, Ghana Limited to finance the construction and rehabilitation of Flagstaff House was laid in the House on Thursday, 13th March 2007 and referred to the Finance Committee for consi- deration and report in accordance with the 1992 Constitution and the Standing Orders of the House.
To consider the Agreement, the Committee met with the Chief of Staff, hon. Kwadwo Mpiani, the Deputy Minister for Finance and Economic Planning, hon. Dr. A. Akoto Osei and officials from the Ministry of Finance and Economic Planning as well as the Office of the President and reports as follows: 2.0 Purpose of the Credit
The purpose of the loan is to seek additional funds to supplement the rehabilitation and construction of the Flagstaff House.
3.0 Terms and Conditions of the Credit
The terms and conditions of the Credit are as follows:
Loan Amount -- US$15 million (Cedi equivalent)
Charges and Fees -- 0.75 per cent flat on the Loan Amount
Management Fee -- 0.5 per cent flat on the Facility
Amount Payable to the Arranger on the signing date and on
Interest Rate -- 3 months Libor plus a margin of
2.7
Repayment Period -- 36 months from the date of each 4.0 Observations
The Committee recalled that the House had earlier approved a loan facility from the Indian Government amounting to US$30 million to finance the construction and rehabilitation of the Flagstaff House in December 2005. Furthermore Government of Ghana also provided US$6.9 million to help finance the same project.
The Minister for Presidential Affairs however informed the Committee that these finances are not enough to complete the project. He explained that during the project implementation, there was the need to undertake some additional constructional and rehabilitation works on the site. These additional works include:
Constructing of Fence wall and Biogas Sewage Treatment Plant
Landscaping, including Garden Furni ture and computer ized Irrigation system
IT/PABX System
Rehabilitation of the Old Villa (Residence of the first President of Ghana)
Demolition of a number of semi- detached buildings to give way for Block “B” of Office Complex.
These works were necessary for the
Mr. Speaker, I beg to present the Report of your Committee 2 p.m.
successful implementation of the project. The demolition of the buildings was needed to prepare the site for construction. The rehabilitation of the Old Villa was to preserve the Old Villa as monument. Unfortunately, these costs were not taken into account during the preparation of the budgeted estimates of the project. This
thus led to a variation between the actual costs and the budgeted estimates hence the need for this credit facility.
Members further asked the Minister for Presidential Affairs how much the rehabilitation works currently going on would cost.
The Minister informed the Committee
In the early 1960s when Dr. Kwame Nkrumah was looking for a loan to build the present structure, the Job 600 and all that we have here, he was opposed. The amount involved at that time was between 500 and 800 million pound sterling and he was opposed but he stuck to his guns and went ahead and today, we have this edifice.
Mr. Speaker, if he had not stuck to his guns to build it, and if today we were going to build it, it would cost more than the amount of money he accessed to build it.
The Flagstaff House, if it is constructed or rehabilitated, would give the opportunity for the President to accommodate his guests there without any extra cost to the nation.
Mr. Speaker, fortunately, I travelled to
Algeria with your predecessor. When we went there -- a delegation of five, three from this side and two from the other side of the House accompanied the Speaker. When we went there, we were housed in an edifice owned by the State. It is made up of single rooms, double rooms and Suites; anything that one could access in any modern hotel was there. So it depended on the status of the person. Somebody could be in the suite; others would be in double rooms; and others would be in single rooms; and there was element of cost-saving.
So if the Flagstaff House is being rehabilitated to accommodate the President's offices, there is going to be cost-saving and a time would come when we are evaluating it, we would find out that the money sunk into it would be seen as a give-away thing.
So today, let us cast our minds back to the 1960s when we opposed the building of this place and see that if we oppose this one too, we are doing a harm to the nation. Everyone of us should join and approve this loan so that the project which had already been started would be completed for the benefit of the nation.

Question proposed.

Mr. Haruna Iddrisu (NDC -- Tamale

South): Mr. Speaker, I rise to oppose the motion for the approval of additional funding of $15 million to finance the construction and rehabilitation of the Flagstaff House. And in doing so, I would like to raise the following observations to buttress why this House must not give any additional funding for the purpose of the construction of a Presidential Villa or Palace.

Mr. Speaker, may I refer you to page 3 of your Committee's report, in particular, the second paragraph beginning with “These works” and more specifically with the last three lines -- It reads -- and Mr. Speaker, with your permission, I quote:

“This thus led to a variation between the actual costs and the budgeted estimates, hence the need for this credit facility.”

Mr. Speaker, as we speak, nobody in this House, not even the hon. Minister for Presidential Affairs knows the actual cost. He was here in November 2006 and he was asked a specific question as to the cost and he said he had no knowledge. So what actual cost is he varying with a varying figure today? I am referring to the Committee's report.
Mr. Kwadwo Mpiani 2 p.m.
On a point of
order. Mr. Speaker, if the hon. Member wants to quote me, he should do the right thing. I told the House that in cons- truction if he wants me to give the cost of any construction which has not ended, it is not possible. But I gave the cost at the time of the award of the contract. If he had ever built any house at all, he would understand what I am saying.
Mr. Second Deputy Speaker 2 p.m.
Yes,
hon. Member for Tamale South, his position is that even when you had a certain cost in mind, building is dynamic and that was the point he made that one

that the project was initially estimated at the cost of US$36.9 million. He explained that this was the figure used at the time of signing the contract. However, when he was asked the cost of the project when he appeared on the floor of the House, he indicated that some variations have been identified and did not know the cost off- hand. However, there was the need to incorporate these additional costs into the projected cost of US$36.9 million.

He consequently informed the Committee that the variations have been estimated at an amount of US$14,979,-713.44 and this loan facility is to be used exclusively to finance this variance.

The Committee noted that there is a difference of US$20,286.56 between the cost of the variations and the loan amount.

Members recommended that this difference should be added to the contingencies

estimates of the variation costs.

In considering this agreement, the Committee, jointly with leadership of the House, undertook a site inspection to examine and ascertain the extent of works currently going on at the project site. Members were shown some of the areas that have necessitated these variations in the project. Some members expressed satisfaction on the progress of work at the project site.

The Site engineers informed the Committee that the project is likely to be completed by 31st December 2007.

5.0 Conclusion

In view of the foregoing and the benefits to be derived from the project,

the Committee respectfully invites the House to adopt this report and approve by Resolution the Financing Agreement between the Government of the Republic of Ghana and the Stanbic Bank, Ghana Limited for an amount of fifteen million United States dollars (US$15 million) to finance the construction and rehabilitation of Flatstaff House in accordance with article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335).

Respectfully submitted.
Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben /Brakwa) 2 p.m.
Mr. Speaker, I beg to second the motion and in so doing I want to make a brief intervention.
residual balance daily
per cent per annum
drawn-down

could not categorically say that that would be the end. Please, go on.
Mr. H. Iddrisu 2 p.m.
Mr. Speaker, the hon.
Mr. Mpiani 2 p.m.
Mr. Speaker, I am sur- prised. The Hansard is there; the hon. Member can go and refer to the Hansard. I was asked the cost of the contract at the time the contract was given and I said the amount was $36.9 million. But then a Member went on to ask the cost at completion and I said that was impossible for me to give. He could refer to the Hansard and see that this is right in the Hansard.
Mr. Adjaho 2 p.m.
Mr. Speaker, with the
greatest respect, I refer you to Standing Order 48 (1) and (2) and that deals with quorum. Mr. Speaker, this is a very important matter. What we know as a matter of fact is that positions have been taken and the rules are very clear. We do not have the number of the Members of Parliament on the floor currently to transact business. I have counted and I am very clear in my mind that we are not up to that number and I would want to draw your attention to it. We are not even up to 70.
Mr. Second Deputy Speaker 2:20 p.m.
As the usual practice, we would allow some ten minutes to elapse and then we would see what happens. I suspend Sitting for a few minutes and then we would see what happens after ten minutes. The House is suspended.
The Sitting was suspended at 2.12 p.m.

Sitting resumed.
Mr. Second Deputy Speaker 2:20 p.m.
In view of the problem of quorum, the House stands adjourned till tomorrow 10.00 a.m. The debate on this motion would continue.
ADJOURNMENT 2:20 p.m.
  • The House was adjourned at 2.22 p.m. till 26 July 2007 at 10.00 a.m.