Debates of 30 Jul 2007

MR. SPEAKER
PRAYERS 10 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10 a.m.
Mr. Speaker 10 a.m.
Hon. Members , Correction of Votes and Proceedings - Pages 1…. 19.
Hon. Members, we have the Official
Reports for Wednesday, 11 th July, Thursday, 12th July, Friday the 13th July, Tuesday, 17th July and Wednesday, 18th July, 2007.
PAPERS 10 a.m.
-- 10 a.m.
Majority Leader (Mr. Felix Owusu- Adjapong) 10 a.m.
Mr. Speaker, the Chairman is not available and so I crave your indulgence for the Vice-Chairman to lay the Paper on his behalf.
By Mr. E. K. D. Bandua (on behalf of the Chairman) --
Report of the Committee on Subsidiary Legislation on the Labour Regulations, 2007 (L.I.
1833).
Mr. Speaker 10 a.m.
Hon. Majority Leader, what is the next item?
Mr. Owusu-Adjapong 10 a.m.
Mr. Speaker if we can take item 14 -
MOTIONS 10 a.m.
Mr. P. C. Appiah-Ofori - (Asikuma- Adoben-Brakwa) 10 a.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
GOG/Export-Import Bank Buyer's Credit and Concessional
Loan Agreement
Nii Adu Mante: Mr. Speaker, I beg to
move, that this honourable House adopts the Report of the Finance Committee on the Buyer's Credit and Concessional Loan Agreement between the Government of the Republic of Ghana and the Export- Import Bank of China for an amount of five hundred and sixty-two million United States dollars (US$562 million) for financing of the 400 Mw Bui Hydro-

electric Project.

1.0 Introduction

The Buyer's Credit Loan Agreement between the Government of the Republic of Ghana and the Export-Import Bank of China for an amount of five hundred and sixty-two million United States dollars (US$562 million) for financing of the 400 Mw Bui Hydroelectric Project was laid in the House on Tuesday, 24th July 2007 in accordance with article 181 (3) of the Constitution and referred to the Finance Committee for consideration and report, pursuant to Order 171(1) of the Standing Orders of the House.

To consider the agreement, the Committee met with the Minister for Finance and Economic Planning, hon. Kwadwo Baah-Wiredu, Deputy Ministers for Finance and Economic Planning, hon. Dr. A. Akoto Osei and hon. Prof. George Gyan-Baffour and officials from the Ministries of Energy and Finance and Economic Planning and reports as follows:

2.0 Background

The Bui Hydropower si te was discovered in the 1920s by Albert Kitson as part of the campaign by the British Government to develop potential hydroelectric power sites in Ghana.

Currently, the 400 Mw Bui hydro- electric project is considered to be the most technical and economically attractive hydropower site in Ghana after the Akosombo and Kpong power plants.

As members are aware, the Bui site has been the subject of many studies, namely: detailed studies by J. S. Zhuk Hydro- project of the USSR in 1966; a feasibility study by Snowy Mountains Eng. Corp. (SMEC) of Australia in 1976 and another feasibility study by Coyne et Bellier of

France in 1995. The feasibility study of 1995 was subsequently updated by Coyne et Bellier in October 2006. On the basis of this study, the project feasibility and economic viability was confirmed.

Although the Bui project is designed primarily for hydropower generation, it has irrigation potential for agricultural development. The irrigation potential

is about 30,000 ha and the suitable sites are in the downstream reaches of the dam site at New Longoro, Asantekwa, et cetera. The project also has potential for ecotourism and fisheries.

3.0 Terms and Conditions

The terms and conditions of the financing are as follows:

Concessional Loan

Loan Amount -- US$270,000,000.00

Interest Rate -- 2 per cent per annum (Fixed)

Grace Period -- 5 years

Repayment Period -- 15 years

Maturity Period -- 20 years

Management Fee -- 0.30 per cent flat

Commitment Fee -- 0.30 per cent per annum

Buyer's Credit

Loan Amount -- US$291,680,137.00

Interest Rate -- CIRR* 107.5 per cent (6.13 per cent)

Grace Period -- 5 years

Repayment Period -- 12 years

Maturity Period -- 17 years

Management Fee -- 0.30 per cent flat

Commitment Fee -- 0.30 per cent per annum

Government of Ghana's Contribution - US$60,000,000.00

Total Financed Cost -- US$621,680,137.00

4.0 Observations and Recommendations

The Committee observed that since the Concessional Loan is a bilateral agreement between the People's Republic of China and the Government of the Republic of Ghana, it will attract no guarantee and/or security. It will however be treated under full faith and credit of the Government of Ghana.

The Buyer's Credit Agreement on the other hand will be treated as a secured facility. To ensure the security for the payment of the credit, the following securities will be required:

Escrow of net revenues from the Power Purchase Agreement (PPA);

Receivables from the sale of up to 30,000 tonnes of main crop and 10,000 tonnes of light crop cocoa per annum to China under the Cocoa Sales Agreement (CSA);

Mortgage of the Land and Building, Equipment and Machinery of the Plant;

Insurance of the Loan by means of insurance policy in favour of the lender.

The Committee further observed that the project, when completed, would add 400 megawatts to the electricity generation capability of the country.

The project will also have potential multiple uses for fisheries, tourism and irrigation.

It was particularly noted that the completion of the project will improve the security of electricity supply to the northern sector of the country and also

improve on the country's potential to export power to Burkina Faso and la Cote d'Ivoire under the West Africa Power Pool (WAPP) arrangement.

The Committee was informed that based on the Environmental and Social Impact Assessment (ESIA) study conducted in October 2006, social impacts such as the loss of fauna and flora along the banks of the river, influx of migrant workers including cultural differences and potential social tensions are likely to be recorded.

Also, 1,710 people who mainly reside within the Bui National Park area would have to be resettled.

Due to the fact that some animals in the Bui National Park would be displaced by the project, Members expressed the need to equip the Game and Wildlife Department to effectively monitor and manage the Park to curb potential increase in hunting of these displaced animals by the local population.

It was further observed that as part of the requirements of the loan from EXIM Bank of China, the Ministry of Energy has entered into a Power Purchase Agreement (PPA) with the Electricity Company of Ghana (ECG) for the purchase of the energy to be generated from the Bui Plant. Tentatively, the price is set within the range of 3.5 -5.5 US cents/kWh.

The net revenues from the Power Purchase Agreement (PPA) would be kept in an escrow account to serve as part security for the loan.

The Committee was informed that the Ministry of Energy's obligations under the PPA would be assigned to the Bui Power Authority when it is set up and becomes operational.

Cocoa Sales Agreement (CSA)

The Committee further noted that pursuant to the conditions of the EXIM Bank of China Loan, the Ghana Cocoa Board and Genertec International Corporation of Beijing have entered into a Cocoa Sales Agreement (CSA) in which thirty thousand (30,000) metric tonnes of Main Crop Ghana cocoa beans would be allocated to Genertec International Corporation per crop year as part of measures to make cash available for the service of the debt.

It was explained to the Committee that this arrangement would not affect the cash flow and operations of the Ghana Cocoa Board as the value of the allocated cocoa beans would be set-off against export duty to be paid to the Government.

The Committee noted that this Cocoa Sales Agreement (CSA) would be in force for a period of twenty (20) years; thus for the entire tenure of the loan.

5.0 Conclusion

The Committee has carefully consi- dered the agreement and concludes that the project would be immensely beneficial towards ensuring the long-term security of Ghana's power supply.

The Committee therefore respectfully recommends to the House to adopt this report and to approve by Resolution, the Buyer's Credit Loan Agreement between the Government of the Republic of Ghana and the Export-Import Bank of China for an amount of five hundred and sixty-two million United States dollars (US$562 million) for financing of the 400 Mw Bui Hydroelectric Project in accordance with article 181 (3) of the Constitution, section 7 of the Loans Act, 1970, (Act 335) and the Standing Orders of the House.

Respectfully submitted.

[NII ADU MANTE] 10.10 a.m.

Mr. Haruna Iddrisu (NDC -- Tamale

South): Mr. Speaker, I beg to second the motion and to urge hon. Members to massively vote for this motion in order to enable Government source money for an important energy project.

Mr. Speaker, we are told that our

country is losing enormously from the current ongoing energy crisis. There is no doubt that an additional 400 megawatts of power in the next couple of years would better the electricity capacity of our country by way of generation.

Mr. Speaker, I am also particularly happy that when this matter came earlier and I made reference to buyer's credit agreement and that Ghana cocoa was being used as a mortgage facility, there were many on the other side who sought to protest. Today, I have been vindicated and absolutely there is nothing wrong with it.

There are many other projects in Ghana which came up as a result of such agreements. Mr. Speaker, hydro is cheap in terms of generation, but even today, we are told by the able Chairman of the Council of State that this country must consider going nuclear. Mr. Speaker, my view is that we should set a timetable in order to meet our energy objectives, one of which should be that by the year 2010, we want to be able to produce 5,000 megawatts of electricity, using the mix of hydro and thermal and possibly looking at nuclear in the future.

We also should resolve as a country that by the year 2015, we want to exceed or get to the target of 8,000 megawatts of electricity. We are very capable, Mr. Speaker, provided we can make judicious use of our national resources and provided we can stand by it as a commitment.

Mr. Speaker, the other time I expressed reservation about Bui and its effect on the Black Volta. When we went through the

Bui Authority Bill, we, from this side, were of the view that we should allow Volta River Authority (VRA) to manage it because they already have control of the Black Volta and its surrounding areas.

But nonetheless, I think that this is a worthy project, it would assure us supply of electricity in the next seven to eight years. I remember when the Committee met with officials from the Ministry of Finance and Economic Planning, the Minister for Finance and Economic Planning was present, and I said that we should set a realistic timetable.

They were talking about 2011 and I was of the view that they should not let this get to the Ghanaian public as it would whet their appetite that by 2011 they would have added additional megawatts of electricity. We should begin to set realistic timetables.

Mr. Speaker, the other important thing which would make this Bui thing work is the commitment from the Government of Ghana, and I would want the hon. Minister for Finance and Economic Planning, if he gets the opportunity maybe for purposes of summing up, to assure us. The Government is required to provide an additional 60 million US dollars. In all it is anticipated that 625 million dollars would be required for the full implementation of the Bui Project.

Government must be forthcoming as to how we are going to generate the 60 million dollars because sometimes when counterpart funding fails, the other source may also renege on some of its pledges and I think that it is important we are assured how the Government is going to raise the additional money.

Mr. Speaker, the other one has to do with a comment which has to do with an agreement that we would adjust in terms of how much we pay per unit of electricity, between 3.5 cents and 5.5 cents. I do not think that our tariff regime now is that realistic even though the Government makes a commitment in the agreement.

The other issue is that the Bui Agreement, we are told, is driven by Chinese law. I do not know what Chinese the hon. Minister understands except to rely on a Chinese interpreter; but it is important that when we are doing these negotiations we negotiate for them to have respect for our domestic laws. It means that in the event of any conflict, we only can rely on the Chinese interpretation of their law.

I think that it is also an issue we should look at but I urge hon. Members to massively support the approval of these sums of money. The Minister for Finance and Economic Planning must assure this House of the additional funding that is going to come.

Mr. Speaker, finally, we also requested

that we wanted to see the contract agreement which was signed with the Chinese company so that we would not be told a year later that because of variation -- Variation can only be based on the actual cost. When we do not know the actual cost, how do you come back asking for additional funds? They should bring us the contract agreement so that we know clearly what the obligations of the Government of Ghana are, what the obligations of the contractor are, and at what cost each of them is going to discharge its obligations.

With these few comments, Mr. Speaker, I associate myself with the motion and hope that the House would approve it.

Mr. Speaker, I was going to sit down
Mr. P. C. Appiah-Ofori - (Asikuma- Adoben-Brakwa) 10 a.m.


but I have just remembered another controversial issue about the escrow account. Sometimes when we sell the cocoa, we may get more value than what we are expected to pay the Chinese Government. So we would want the Ministry to be diligent in ensuring that the Chinese do not get away with our money.

If for instance they need hundred thousand tonnes of cocoa which may amount to maybe 10 to 20 million US dollars, and we are able to get more because the price of cocoa is good in the world market, it is only natural that the balance is returned to Ghana so that we can use it for other purposes.

Question proposed.
Mr. P. C. Appiah 10:20 a.m.
None

Asikuma-Odoben-Brakwa): Mr. Speaker, anybody in this country who would deny that the country has an energy crisis is dishonest; anybody who would also deny that the Government owes it as a duty to provide a lasting long-term solution to this problem is equally telling a lie. Indeed, anyone who would also deny that this loan if approved by Parliament would assist the Government to find a lasting solution or at least to reduce the burden on the nation would also be telling a lie. So there is the need for us to contract this loan.

Mr. Speaker, there is a provision in the

Agreement that thirty thousand tonnes of cocoa, the proceeds would be put in an escrow account to be used as collateral or as a security for this loan; ten thousand of this also in the lean season would equally be put in an escrow account. Mr. Speaker, the Committee on Finance was very worried about that. We asked ourselves whether this would not affect the cash flow of Cocoa Marketing Board.

So we made a trip to the Cocoa Marketing Board to meet the Chief Executive and his staff and we were convinced beyond any reasonable doubt that if this arrangement is allowed to go on in order for us to access the loan, the nation or Cocoa Marketing Board would not encounter any cash flow problems.

Mr. Speaker, the loan has three parts -- concessionary loan of US$270 million, buyer's credit of US$291,680,137 and Government of Ghana's own contribution of US$60 million. The total is around this figure of US$620 million. The interest rate is as little as two per cent for the concessionary loan, with repayment period of 60 years, given the total maturity period of 20 years.

But the buyer's credit has a grace period of only five years and repayment period of 12 years bringing the total to 17 years. We were convinced by the Minister for Finance and Economic Planning and his staff who were with us that raising money to finance this would be as easy as cutting through butter with a knife.

Mr. Speaker, going by the crisis facing us we should not waste time in giving approval in order that the Government would rush to access the facility in order for the country to begin to see signs of relief.

Alhaji Amadu B. Sorogho (NDC --

Abokobi-Madina): Mr. Speaker, I rise to associate myself with the motion and to call for its approval by the entire House. But before I make further comments, I want to draw your attention to what I may call a discrepancy in the figures that have been provided.

Mr. Speaker, the Report of the Finance
Mr. P. C. Appiah 10:30 a.m.


economic development plans, we would attain economic objectives more rapidly than we are doing now.

But Mr. Speaker, conspicuously absent in the Report is the fact that between the year 1994 and 2006, a certain company also was involved in the process. It is a company called, I think, Root and Brown (or Brown and Root) which actually entered into a memorandum of under- standing (MOU) with the Government to develop the Bui site. To that effect, we initiated the environmental impact assessment but somehow, for unexplained reasons, precisely in September 2001, the VRA wrote to the EPA to stop the environmental impact assessment.

I am raising this issue simply because if you look from the year 2001, it means that if the process had been continued, perhaps the Bui project would have been realised already and that would have added to the existing stock so that perhaps the predicament that we have in the energy and power sector would have been averted.

I would appreciate it very much, when it gets to the turn of the hon. Minister for Finance and Economic Planning to update us on these two issues that I have raised, that is the role of Root and Brown and what accounted for the suspension of that project, in particular the environmental impact assessment which is a valuable component of any project development.

Mr. Speaker, I would just finally say that it is a good project, no doubt; there is no need to debate this point. We are in a power crisis, but that power crisis has come about primarily because of these types of delays where projects started should be investigated using so many years from 2001 (we are now in 2007) for this project to come on board.

Mr. Speaker, I call on hon. Members to support this motion.

Minister for Finance and Economic

Planning (Mr. K. Baah-Wiredu): Mr. Speaker, we thank hon. Members for their contributions, and then the enquiries. With regard to the amount, I think the exact amount is at page 3. If you deduct 60 million from the total finance cost, it comes to 561,680,137. So I think it is the rounding off -- Government's contribution, as the hon. Member indicated, is obviously coming from the international financing agreements that we have done.

A lot of schemes have been done in such a way that this project can take off as quickly as possible. As the hon. Minority Spokesman on Energy indicated, it has a long history. The Report of the Committee is also very clear. The contributions of all agencies and groups have been recognised, and with regard to the Brown and Root's s issue, I believe we can discuss it in detail with the Environmental Protection Agency, the Ministry of Energy and others.

These are very important issues, most of which have been taken care of. So I think the hon. Member's enquiries obviously would be sorted out with the appropriate agency.

Mr. Speaker, on the issue of the escrow account, I think it is an account that will be managed by all of us. We have used this mechanism to enter into the Chinese market. The prices are at arms' length; they are world market prices, just like the prices which we have been charging others. The escrow account is being managed by the Government of Ghana and Exim Bank of China and whatever be the excess, immediately will be transferred into our account. So I believe the arrangements
RESOLUTIONS 10:30 a.m.
THIS HONOURABLE HOUSE 10:30 a.m.
H E R E B Y R E S O LV E S A S 10:30 a.m.
Mr. Haruna Iddrisu 10:30 a.m.
Mr. Speaker, I
beg to second the resolution.
Question put and motion agreed to.
Resolved accordingly.
Mr. Speaker 10:30 a.m.
Hon. Majority Leader,
next item, please.
Mr. Owusu-Adjapong 10:30 a.m.
Mr. Speaker,
if we can take item 17.
Suspension of Standing Order 80 (1)
Nii Adu Mante: Mr. Speaker, I beg to
move, that notwithstanding the provisions
Mr. Owusu-Adjapong 10:30 a.m.


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 the Republic of Ghana and the Export-Import Bank of China for an amount of thirty million United States dollars (US$30 million) for the Dedicated Security Information System Project (Phase 1) may be moved today.
Mr. P. C. Appiah-Ofori 10:30 a.m.
Mr. Speaker,
I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Loan Agreement between GOG and Export-Import Bank of China for
Dedicated Security Information System Project
Nii Adu Mante: Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Loan Agreement between the Government of the Republic of Ghana and the Export-Import Bank of China for an amount of thirty million United States dollars (US$ 30 million) for the Dedicated Security Information System Project (Phase 1).
Mr. Speaker, in so doing, may I present your Committee's Report. Mr. Speaker, I may read only the “Background”, and then the “Conclusion” thereof.
Mr. Speaker, may I respectfully
crave your indulgence to correct a small typographical error. The date of the Report should be 27th July 2007, and not 29th May 2007. With this, may I respectfully say I submit the Report to you.
1.0 Introduction
Mr. Speaker, the above loan agreement
was laid in the House on Tuesday, 24th July 2007 and referred to the Finance Committee for consideration and report in accordance with article 181 of the Constitution and the Standing Orders of the House.
To consider the loan agreement, the Committee met with the Deputy Minister for Finance and Economic Planning, Prof. G.. Y. Gyan-Baffour, the Chief Director for the Ministry of National Security, Mr. Harry Augustus Lemuel Imbeah and officials from the two Ministries and reports as follows:
2.0 Background
As hon. Members are aware, the security and emergency services in Ghana need a more secure and reliable communications system for efficient and effective operations. Such a reliable system can be a force multiplier, where less people will be able to operate and perform tasks that ordinarily greater numbers would have been needed for.
Currently, the security and emergency services in Ghana have separate independent communication systems that are mostly inefficient, ineffective and expensive to maintain. They are also difficult to operate and obsolete in technology. With the increase in crime sophistication and the rapidity of the incidence of crime, including other related emergencies, it has become necessary that the security and emergency services should also have adequate sophisticated means to make their operations effective.
Again, with the many high profile international conferences and the 2008 General Elections to be held in Ghana, a more reliable, modern and flexible communication system is imperative, at
this stage of our development as a nation. 3.0 Scope of Works
The project will be executed in two phases. Phase One will involve installation of the equipment in six regions, namely: Greater Accra, Volta, Central, Western and Ashanti.
Phase Two will cover the remaining four regions.
4.0 Terms and Conditions of the Loan
The terms and conditions of the loan are as follows:
Loan Amount
-- USD 30,000,000.00
Repayment Period -- 15 years
Grace Period -- 5 years
Interest Rate -- 2 per cent (Fixed)
Management Fees

-- 0.50 per cent

Commitment Fees -- 0.50 per cent

Grant Element -- 39.52 per cent

5.0 Observations

The Committee was informed that the Project will assist the national security agencies to modernize their communi-cation systems and to make them more efficient in ensuring security and timely delivery of information among national security agencies. It will also ensure rapid response and the ability to deal with emergency matters such as wars, diseases, and rebellion.

The Committee was also informed that the System known as CDMA GOTA (Global Open Trunking Architecture) System consists of 5 main parts, namely:

A Base Station Subsystem (BSS) with two (2) Base Switching Centre (BSC) and 180 Base Transmission Stations (BTS);

A Mobile Switching Subsystem (MSS) comprising 1 MSC, 2 MGW and 1 HLR;

A Packet Data Subsystem (PDSS) with 1 PDSN, 1 AAA to provide data transmission rates of 15306k for CDMA 20001x system and

307.2k for the CDMA 20001x Release A system; A Dispatching Subsystem (DSS) for GOTA (Global Open Trunking Architecture) operations;

Value Added Service to be provided by the SMSC.

The Committee was further informed that the project will enhance investor confidence and attract increased foreign direct investment capital for other sectors of the national economy.

The Committee noted that as part of its features, the CDMA GOTA System has the capacity to be used as a normal but secured cellular phone and also as a secured two-way push-to-talk radio, with data facilities. The System will connect all the country's entry points, sensitive border towns, districts, all vital points of the country and a separate secured net for all security and emergency units under the Ministries of Interior, Defence, National Security, Finance, Health, etc. and including all agencies connected with the security of the country.

All these areas can be served at the same time by this communication system which also has digital display. The system will be manned by an Agency, to be created under the National Security Ministry and be part of the Office of the President.

The Committee was informed that the CDMA GOTA system has peculiar advantages, some of which are listed below:

it is flexible because the digital system can be upgraded or modified at any time;

it is easy to operate and maintain; it is much secured for security operations and can locally be coded outside the manufacturer's own specifications;

it will reduce the overall telephone and other communications bill of the Agencies;

transportation needs and cost will be reduced because the Agencies will use radio for administration unless physical presence is needed;

the number of personnel needed for most of the operations for support could easily be solicited from others, due to easy communications;

reaction time to emergencies will improve;

command and control will be improved to ensure efficiency;

there will be good co-ordination among the security agencies that will ensure the vital co-operation amongst them;

security will be felt across the length and breadth of Ghana since the system will cover the whole country.

The technical team also informed the Committee that Phase 1 would be completed in seven months after commencement of the works.

The Committee was further informed that for Phase 1, 70 BST will be provided out of which 39 BTS will be required for the Greater Accra Region which will slightly extend to Central, Eastern and Volta Regions because of the nature of the Accra/Tema metropolises. Under this project, all regional, district capitals and some selected towns will be covered especially the nation's administrative, economic, commercial and conflict-prone centres. Also, the major border cities or towns, entry points of the country, main communications network like roads, railways, ports and waterways will be adequately covered.

The Chief Director for the Ministry of National Security explained to the Committee that the system is scalable and capable of being expanded to the capacity of 100,000 subscribers and more. He further informed the Committee that

those other emergency services, such as hos-pitals, ambulance services, etc would be on the system to ensure improvement in reaction time to emergencies nationwide.

The Deputy Minister for Finance and Economic Planning informed the Committee that the loan facility has a grant element of 39.52 per cent which is above the 36 per cent minimum threshold for concessionality and therefore it is concessional.

The Committee observed that the successful implementation of the project will have a positive impact on effective National Security by contributing significantly to Government of Ghana's (GoG's) development agenda which seeks to improve good governance and provide overall socio-economic well-being of the citizenry through modernization of all aspects of the national economy and society using information and communication technologies, assisting the national security agencies, rapid response and ability to deal with emergency matters such as war, diseases and rebellion and enhance investor confidence and attract increased foreign direct investment capital for other sectors of the national economy. 6.0 Conclusion

Having satisfied itself of the benefits to be derived from the project and the terms of the loan, the Committee respectfully recommends to the House to approve by Resolution the Loan Agreement between the Government of Ghana (GOG) and the Export-Import Bank of China for an amount of thirty million United States Dollars (US$30 million) for the Dedicated Security Information System Project (Phase 1) 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) 10:40 a.m.
Mr. Speaker, I beg to second the motion, and in so doing, I would make a very brief intervention because at Finance Committee level where both sides of the House were present, we were unanimous that the loan was in the proper direction, and that we should go for it.
My concern here is the repayment
period of 15 years. Normally, we have been contracting loans attracting 40 years' repayment periods. But this one is 15 years, with a grace period of 5 years. Interest rate is very little -- 2 per cent. So it looks as if our cash flow will not be adversely affected. And as we are desperately in need of this money, I recommend to everyone here to give approval so that we access it to boost the security of the country.
Question proposed.
Alhaji Sumani Abukari (NDC
-- Tamale North): Mr. Speaker, this particular loan was very well considered. We were very well briefed by the experts on the need for the loan, and the fact that it will enhance our security system in the country. Mr. Speaker, in fact, this particular system is long overdue, and for some of us, it is a pleasure that at long last Ghana is installing this type of project to enhance our security, to enhance connectivity between all security services -- the Fire Service, the Immigration, the Police, the Army, everybody; in fact, the Ambulance Service.
So Mr. Speaker, without much ado, I think I support this motion, and I call on all hon. Members to unanimously endorse the loan for this project.

[NII ADU MANTE] [NII ADU MANTE]
Mr. J. B. Aidoo (NPP - Amenfi East) 10:40 a.m.
Mr. Speaker, I also rise to urge hon. Members to give support to this motion and approve this facility.
Mr. Speaker, the purpose of the loan is very, very important. We have been expressing concern about the security situation in the country, particularly in respect of response to events. Mr. Speaker, many a time when armed robbery happens in places and people send distress calls to the police, it takes a very long time for such communication to get through and when they even get through, the response is not satisfactory.
Mr. Speaker, if communication within the security services is improved, the police and the other agencies would not need many men on the ground. Much of the work would be done through the communication network.
Mr. Speaker, we have also been told that this facility has a grant element of 39.52 per cent, which is above the 36 per cent minimum threshold for concessionality. This makes the facility very concessional. Mr. Speaker, it is a very good facility. It is to improve our security system in the country, it is to improve the response rate of our security and therefore I will urge all hon. Members to support the motion.
Mr. Simon Osei 10:40 a.m.
None

Bosomtwe): Mr. Speaker, I rise to lend my support to this motion and I would like also to urge fellow Colleagues to support the motion.

Mr. Speaker, our security services need a lot of improvement in the equipment and facilities that they use to protect us, and this facility is going a long way to provide similar facilities, especially in the communication network among the
Minister for Finance and Economic Planning (Mr. K. Baah-Wiredu) 10:40 a.m.
Mr. Speaker, we thank hon. Members for the contributions made. And as has been indicated, the security of the nation, the security of ourselves is very important and this dedicated security information system is really going to help. I hope that at any point in time, a reporting mechanism would be instituted to make sure that the Committee in charge of National Security, Defence and Interior would be informed.
Question put and motion agreed to.
Mr. Speaker 10:40 a.m.
Item 19 -- Resolution. Minister for Finance and Economic Planning?
RESOLUTIONS 10:40 a.m.
Minister for Finance and Economic Planning (Mr. K. Baah-Wiredu) 10:40 a.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 Loan Agreement between the Govern-ment of the Republic of Ghana and the Export-Import Bank of China for an amount of thirty million United States dollars (US$30 million) for the Dedicated Security Information System Project (Phase 1).
THIS HONOURABLE HOUSE 10:40 a.m.
H E R E B Y R E S O LV E S A S 10:40 a.m.
Mr. Speaker 10:40 a.m.
Leadership, the next item?
Mr. Owusu-Adjapong 10:40 a.m.
Mr. Speaker, if we can take item 22.
Nii Adu Mante: Mr. Speaker, may we stand down that item and move on to 26, with the permission of my Majority Leader.
Mr. Owusu-Adjapong 10:40 a.m.
I think that is all right. Mr. Speaker, item 26, page 12.
Mr. Speaker 10:40 a.m.
Yes, Chairman of the Committee?
Suspension of Standing Order 80 (1)
Nii Adu Mante: 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 Financing Agreement between the Government of the Republic of Ghana and the Agence Francaise de Development for a loan amount of €12.5 million to provide support for the rice sector in four regions of Ghana (Northern, Upper East, Upper West, and Volta Regions) may be moved today.
Mr. Haruna Iddrisu 10:40 a.m.
Mr. Speaker, I
beg to second the motion.
Question put and motion agreed to.
Mr. Haruna Iddrisu 10:40 a.m.


Resolved accordingly.
Mr. Speaker 10:40 a.m.
Item 27; Chairman of the Finance Committee?
Financing Agreement between GOG and AFD
Nii Adu Mante: Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Financing Agreement between the Government of the Republic of Ghana and the Agence Francaise de Development for a loan amount of €12.5 million to provide support for the rice sector in four regions of Ghana (Northern, Upper East, Upper West, and Volta Regions).
Mr. Speaker, in so doing, may I present to you your Committee's Report. Mr. Speaker, I may read only the background and conclusion thereof and hope the Hansard captures it in its entirety. 1.0 Introduction
The financing agreement between the Government of Ghana and the Agence Francaise de Development (AFD) was laid in the House on Friday, 27th July 2007 and referred to the Finance Committee for consideration and report in accordance with article 181 of the Constitution and the Standing Orders of the House.
To consider the financing agreement, the Committee met with the Minister for Finance and Economic Planning, hon. Kwadwo Baah-Wiredu, the Deputy Minister for Finance and Economic Planning, hon. Prof. G.. Y. Gyan-Baffour, and officials of the Ministry of Finance and Economic Planning and reports as follows:
2.0 Background
Rice consumption in Ghana has
increased in the last decade mainly as a result of the ongoing urbanization of the country and changes in consumption patterns. The increase has led to a surge in imports which has adversely affected both food security and the trade balance.
Rice consumption per capita has increased by approximately 140 per cent over the last ten years, from 15.4 kg to 37.5 kg per capita per year. Last year, about 400,000 metric tonnes of rice was imported valued at about one hundred and eighteen million dollars ($118 million).
Meanwhile, local production has been around 150,000 metric tonnes over the last ten years because of inadequate resources to invest in the sector.
Presently, investments in the sector amount to $27,365,000 covering 4,500 hectares. An amount of $24,000,000 has been invested in the Inland Valleys Rice Development Project which is expected to produce 20,250 tonnes annually whilst a total of $3,365,000 invested in the NERICA project is expected to produce 75,000 tonnes annually. Unfortunately, these investments are still inadequate to meet national demand.
This project however is in line with Ministry of Food and Agriculture's (MoFA's) objective of facilitating the production of food crops to attain self- sufficiency in food production, output processing and marketing systems. This is because rice has been expressly identified in the Food and Agriculture Sector Development Policy (FASDEP) as an important food crop that should be given special attention for food self-sufficiency.
3.0 Components of the Project
The main components of the project are as follows:
to develop land to provide adapted
infrastructure in lowland areas;
to build capacity of rice stakeholders such as farmers, processors and traders in order to assist them form farmer-based organizations;
to provide agricultural technical support to producers and improved technology to processors;
to facilitate access to credit needed for all activities along the commodity chain;
to sustain the actions of Ghana Rice Inter-Professional Body (GRIB) with a perspective of financial sustaina-bility by reinforcing the capacity of GRIB to answer the needs of its members, improving the dialogue between all stakeholders parti-cipating in the structure, and providing adequate resources to implement studies and other initiatives that would enhance the acknowledgement of locally pro- duced rice as a quality product on
the national market; and
to conduct adaptive research.
4.0 Cost of the Project
The total cost of the project is €17,310,000 and it would be financed through the following sources:
AFD Loan -- €12,500,000 representing 72.21 per cent
AFD Grant -- €1,300,000 representing 7.51 per cent
Government of Ghana Contribution --
€930,000 representing 5.37 per cent
Beneficiaries Contribution -- €790,000 representing 4.56 per cent
Ghana Rice Inter- Professional Body (GRIB) --
€140,000 representing 0.81 per cent Contribution

Rural Banks Contribution -- €1,650,000 representing 9.53 per cent

5.0 Terms and Conditions

The terms and conditions of the agreement are as follows:

Total Contract Amount -- €13,800,000.00

A. Grant -- €1,300,000.00 (9.4 per cent project cost)

B. Loan Amount -- €12,500,000

Grace Period -- 10 years

Repayment Period -- 20 years

Maturity Period -- 30 years

Interest Rate -- 1 per cent (Fixed)

Grant Element (B only) -- 58.37 per cent

Weighted Grant Element (A & B) -- 62.28 per cent

5.1 Tax Waiver

As part of the Agreement, the project is to be waived of taxes and duties on goods and services to be procured for the purpose of the project. A provisional assessment of the taxes and duties amounts to €213,508.50.

6.0 Observations

The Committee was informed of the following:

that the implementation of the project would improve rice production as well as the livelihood of farmers of Northern, Upper East, Upper West and Volta Regions of Ghana through the development of a sustainable economic activity based on the natural potential of the respective regions;

that the project would provide some support to the Ghana Rice Inter-Professional Body (GRIB) in order to continue the actions initiated through the Food Security and Rice Producers Organization Project (FSRPOP);

that the project is in line with the Ghana Poverty Reduction Strategy (GPRS)

also inadequate to support the project.

Members therefore urged the Ministry to conduct a comprehensive feasibility study into these projects so that realistic finances can be provided in bulk in order to realize the benefits of the project.

Members further noted that a challenge facing the local rice industry is marketing. The local rice products do not have enough market to make rice farming a viable venture hence unattractive to the local farmers. The Committee therefore recommends that steps should be taken to address this problem as it will contribute immensely towards the success of these programmes.

The Minister assured the Committee that the Ministry would take steps to address these concerns.

The Committee observed that the project, if completed, will provide a total of 16,250 tonnes of milled rice annually in addition to the existing production levels. It would also create jobs for additional 6,000 farmers.

7.0 Conclusion

The Committee having satisfied itself with the benefits to be derived from the project and the high concessionality nature, respectfully recommends to the House to adopt this report and approve by Resolution the Financing Agreement between the Government of the Republic of Ghana and the Agence Francaise de

Development for a loan amount of twelve million, five hundred thousand euros (€12.5 million) to provide support for the Rice Sector in Four Regions of Ghana (Northern, Upper East, Upper West and Volta Regions) in accordance with article 181 of the Constitution and section 7 of the Loans Act, 1970, Act 335.

The House is also invited to approve a tax waiver in the sum of €213,508.50 on goods and services to be procured for the purpose of the project.
Mr. P. C. Appiah 10:50 a.m.
None

Asikuma-Odoben-Brakwa): Mr. Speaker, thank you very much for giving me the opportunity to second this motion.

Mr. Speaker, what intrigues me is,

this facility is being sought for by the Government for use exclusively in the North, mainly northern Ghana -- Upper East, Upper West and the northern part of the Volta Region. This is an indication that the Government will go to wherever it will receive value for any expenditure in order to commit itself.

It is significant, Mr. Speaker, that we have arable land but we import rice. We have the human resources in the country to produce adequately to feed us but we do not give the people the adequate inputs and assistance to produce enough for us. We allow people to import rice thus competing with the local producers. Usually those who import these things have some other advantages and so whatever they bring in appear to be cheaper.

In Nigeria, Mr. Speaker, when the Government recognized that importation of rice was inimical to the national interest, importation of rice was banned com-pletely. They wanted to produce

and will reduce poverty, increase incomes of the rural population, and further provide credit to farmers and capacity building for farmers associations in the Northern, Upper East, Upper West and Volta Regions of Ghana.

The technical team informed the Committee that the project has a five (5) year duration period which will start this year and end in 2012, given the approval.

The Committee was informed that the project is to be waived of all taxes and duties that would be incurred on the goods and services to be procured for its purposes. A provisional assessment of the total taxes and duties amounts to

€213,508.50.

The Deputy Minister informed the Committee that the loan facility has a cumulative grant component of over 62 per cent and this exceeds the government requirement of 35 per cent. Thus the facility is concessional.

The Committee noted that the project is in the right direction; however, Members observed that usually projects are under-budgeted and this results in the incompletion of these projects because of lack of funds. This also leads to the approval of additional funds which are

TABLE P. 43 TABLE P. 44

TABLE P. 45

TABLE P. 46
R 10:50 a.m.
Dr. Ahmed Yakubu Alhassan (NDC -- Mion) 10:50 a.m.
Mr. Speaker, I rise to support the motion and to ask Members to vote for it. It is good that some support is coming to the rice sector, particularly in the regions that produce rice for this country.
It is also good that as part of the agreement, lands meant for rice production would be re-engineered for maximum production of rice. Facilities such as this must take into consideration the seasonable nature of rice production in the country. And I am disturbed that in July, 2007 we are now approving the loan when it is going to take five years for the loan agreement to elapse.
It is important that most of the
agreements being entered into take into consideration the seasons that drive rice production in the regions that are under consideration. It is also important that disbursement bureaucracies are taken into consideration so that disbursement is faster for the seasons to be met.
There is no doubt that rice as a sector has been crying for investment and to have spent $180 million importing rice in one year is a lot of money. But I do believe that what our rice sector requires is long-term planning such that short-term projects such as this one can buy into them. And in the next ten to twenty years, we may find ourselves being self-sufficient in rice production. It has happened before. In the 1970s Ghana produced enough rice and even exported some; and I believe that happened because there was careful planning, there was investment in the required sectors and therefore it was quite easy to arrive at very good conclusions.
Mr. Speaker, talking about long-term planning for rice production in Ghana means long-term financing plans for rice production in the country. I do believe that perhaps there are enough resources within the country for our local institutions such as the Agricultural Development Bank to be encouraged to provide long- term financing for sensitive areas of our agricultural sector such as rice that we are talking about now. I believe that with this type of attitude perhaps we may get the problem of getting rice production locally done and we can achieve some successes.
Mr. Speaker, I find that as part of the activities with respect to the money to be spent, rice variety development does not seem to feature very well even though there is mention of technology transfer. But I do believe that if we do not invest in the science for scientists to take into consideration consumer manners in developing varieties, I am afraid that we
may end up putting the money in the same varieties of rice that consumers do not want and in the process we may have lost.
It is true that Nericas are coming on stream but it is also important that we look at the technological development process and invest some money in there so that in the long-term, varieties that are produced by our scientists are also patronized by consumers and therefore there are no losses in the process.
With these few words, I support the motion and urge hon. Members to support it.
Alhaji M. A. Yakubu (NPP -- Yendi) 11 a.m.
Thank you, Mr. Speaker. I would also like to support this motion. I think it is an effort in the right direction. Mr. Speaker, anything that leads to pushing rice production forward in Ghana is a laudable step. Mr. Speaker, I believe, given the potential in Ghana, good land, hard working farmers, experience of the Ministry of Food and Agriculture's experts, that it is unquestionable that with all these advantages Ghana should be exporting much rice.
There are a number of countries like South Africa where they may not have the same quality of land that we have and yet they do not import rice. They eat what they produce, whether it is tasty or not tasty; no rice from any other country will come in.

Mr. Speaker, if we consider the fact that there was a time when rice production in Ghana was booming and rice produced in Ghana was everywhere, it means that Ghana can do it. All that is required is proper investment. I do not even agree that we have to crack our brains to plan.

The expertise is there. All that we need is reasonable investment.

Now, if we look at the fact that $180 million per annum is used to import rice and then we are happy with $30 million investment -- we should look at the ratio and we will find that we should be more proactive than this. We should be able to put three times of what we are using to import rice into rice production. All that we need to do is to provide the farmers with all the equipment and implements they require, to provide them with the fertilizer they require and bring in the necessary rice mills.

Individuals had them and they were doing well. Sometimes, people argue that the Ghanaian taste dictates the importation; we can provide the taste if we bring the necessary mills here, the expertise is there. So I think this is a good step and we should do more.

I believe that if we seriously give attention to rice production it will not be a question of a decade but within a few years Ghana will have sufficient rice for home consumption; self-sufficiency will be attained and we can in fact export rice to many countries.

So I think the effort to bring in this loan should be lauded and then the Ministry of Finance and Economic Planning and the Ministry of Food and Agriculture should be encouraged to aggressively look into this area so that in the next couple of years we should be talking of self-sufficiency, not a ratio of 150,000 metric tonnes to 400,000 metric tonnes. We should be talking of producing more than we are getting.

So I support this effort and say that we should do more than we are doing currently.

Dr. Benjamin Kunbuor (NDC

-- Lawra/Nandom): Mr. Speaker,
Alhaji M. A. Yakubu (NPP -- Yendi) 11 a.m.


in supporting this motion, I think it is important and fair to this House to draw attention to some difficulties. I am saying that because it is legendary in this House to normally have a large avalanche of loan agreements when the House is about to rise and as a result the Committee is normally put on a lot of pressure in terms of the detailed scrutiny that is required in terms of value for money. What is particularly more disturbing is that this report has actually come as a report of the Committee when indeed it is not the case. In principle, the Committee agreed that the loan made sense and it should be supported but we did indicate a number of concerns.

In fact, hon. Colleagues at the committee were interested in getting the Minister for Food and Agriculture to give them a general idea about the number of loan agreements we have actually entered into in relation to rice production so that it will give us an idea on how we could evaluate this particular loan agreement; particularly when you see page 5 of the report that is indicating the term, nature of this particular loan agreement that is spread across a very large area and whether we have not really under-budgeted and whether such loan agreements dealing with such piecemeal interventions would really be addressing the serious problems on the rice industry that we are seeking to address.

So one would have expected that at least, even if it was for five minutes, hon. Members of the Committee could meet and actually take ownership of this; and that was what was expected.

It is increasingly becoming clear that once a committee agrees in principle and a report is prepared they just ignore every other person of the Committee and come and lay the Paper and proceed to do

business with it. What is of concern to me is that I guess, there are good reasons why in our Standing Orders and rules governing this House, the committees must discharge the responsibilities imposed on them. Because by doing that, we are doing no good to the executive arm of Government that had brought the loan and we are doing no good to ourselves in terms of our own credibility and how we scrutinize these loan agreements.

I think that it should not occur again, that a report that is purported to be the report of the Committee is brought to this House, debate ensues, regardless of the merits of it when the minimum procedural requirements of getting other Colleagues of the Committee to have a look at the report is ignored.

It gets very embarrassing when you see that very, very crucial matters that were agreed to by the Committee do not find any reflection in the report. It is a very sad reflection of the Committee and I think I ought to put this on record in supporting the motion.

Mr. Isaac K. Asiamah (NPP --

Atwima-Mponua): Mr. Speaker, I am extremely happy that this House is considering this loan agreement of $12.5 million. My interest is the fact that this huge sum of money is going to the three northern regions and, of course, the Volta Region. It is important that we support rice production in this critical radius of this country and I hope it will eliminate the erroneous impression that some Ghanaians have about this Government's commitment to these very important four regions.
Alhaji Sumani Abukari 11 a.m.
Mr. Speaker,
on a point of order. My hon. Colleague is trying to address a political rally instead of talking to a very important issue in the country. We are talking of how to reduce rice importation into the country and in doing so improve on the rice production in the country. It is not a question of three regions of the country or quality of life of the people of the northern regions. It is a question of reducing and even broadly eliminating the importation of rice into the country. He should address himself to rice production for Ghana, not to the three regions. [Interruptions.] He should not try to politicize the issue.
Mr. Asiamah 11 a.m.
Mr. Speaker, I am
Mr. Abdul-Rashid Pelpuo 11 a.m.
Mr.
Speaker, I am coming on a point of order because the hon. Member is veering away from the real essence of the issue of approving a loan to alleviate the problem of huge importations of rice into this country and thinking that that small amount of money, 12.5 million euros, which is really insignificant, is a support to the three northern regions here; that amount is going to produce 16.5 million tonnes of rice to add to an existing 150 million tonnes which is still inadequate for
Mr. Speaker 11:10 a.m.
Hon. Member for Atwima-Mponua, please, speak to the motion and let us go on.
Mr. Asiamah 11:10 a.m.
Mr. Speaker, I am
saying this on evidence. Just last week there was a demonstration against the Government for ignoring the northern regions. Sometimes, it is up to us to be more truthful to ourselves. I am saying this on the floor of this House for the message to be sent clear to all and sundry that the demonstration that was held, that was supported by some of our hon. Colleagues here, is a misplaced demonstration, and that this Government is committed to providing quality life to the people of the Northern Region.
Mr. Speaker 11:10 a.m.
Hon. Member, speak to
the motion.
Mr. Asiamah 11:10 a.m.
Mr. Speaker, this will
provide employment and reduce poverty in these regions.
Mr. Speaker, the other issue I want

to touch on is the issue of providing guaranteed market for our farmers. Yes, we are doing our best by approving the loans to go out there. The farmers will produce but if we do not guarantee them ready market, we are going to have some difficulties. So it is important we guarantee ready market for our farmers and that can be done by patronizing what we are going to produce in this country. We need to patronize locally produced rice. It is important we do that.

Mr. Speaker, I do not think this House

cannot legislate on making sure that our second-cycle institutions compulsorily purchase locally-produced rice to feed our students. We can do it. We can ask the coordinating body of the school-feeding programme to make sure that they use locally-produced rice.

Mr. Speaker, another issue I want to

touch on is red-tapeism and bureaucracy. Sometimes we have moneys sitting at the banks for our farmers but the kind of hell that they go through accessing these loans is very, very unbearable. It is important that we make accessing our funds easier and less troublesome for our farmers. So they do not have to go through the hustle to access these funds. So the red-tapeism and bureaucracy should be reduced to the barest minimum.

Mr. Speaker, with these few words, I

thank you for the opportunity.

Mr. Pele Abuga (NDC -- Chiana/

Paga): Mr. Speaker, I would just pass a few comments on this loan.

First of all, we need to do a real

assessment of the numerous projects that we have commissioned in the North to try to increase production and tackle the rice problem of this country. Mr.

Speaker, we have had occasion to come under the URADEP Project, AGSSIP and many others. While we are busy at these numerous projects, the rice industry keeps sinking. So there is the need to evaluate and know exactly what has been going wrong with some of these loans that we approve and send into the sector.

Mr. Speaker, we also need to do

targeted funding. We have to target particularly very big irrigation projects strewn across the northern sector and other parts of the country. We need to take each of these projects and see how we can revamp and let them make a meaningful impact on the rice production industry in this country.

Mr. Speaker, if we approve any amount

of money and just dump it into the system, without adequate planning and without critical examination of the problems and the various aspects of whatever we pump into the sector, we are likely to run into very serious problems.

Mr. Speaker, whilst we are doing this,

we are also forgetting the small-scale producers. How do we fit them into the whole scheme? In the Report, it says that this project will benefit about 6,000 farmers and that the Committee observed that the project, if completed, would provide a total of 16,250 tonnes of rice. One wonders how this was assessed and how we arrived at the estimates that 6,000 farmers would be given jobs because of the loan that we are seeking to approve.

Mr. Speaker, as the hon. Ranking

Member of the Committee said, we need always to do long-term planning and critical assessment of the whole rice system in this country. Again, it has to go in conjunction with a policy that will determine how much rice we import into this country. This is because if we pump

this money into the rice sector and we keep importing rice into this country, I do not think it is going to yield the required results.

Mr. Speaker, we also need to have a global look at the policy of rice production in this country. As has been observed, if one pumps piecemeal amount into the system, it only gets lost in the bureaucracy and it makes no impact on the rice industry.

So I think that the hon. Minister would have to come and explain further what this loan implies. Is it going to establish mills for rice milling? Is it going to be for small-scale farmers? Is it going to be for irrigation? When one reads the Report, one finds that the whole thing about the loan is vague. One does not understand exactly what the loan is going to be used for.

Is it going to help train technical people who would advise rice farmers? How much of it is going to each of the regions that they have talked about and where does it go? Are they going to establish a yield rice project or programme to implement the project? One reads the whole thing and does not understand exactly what they are saying.

So I think that taking the advice of the hon. Ranking Member, there is the need for the Committee to meet the hon. Minister so that he explains in detail what it is about so that we can help to implement it.
Mr. Joe Danquah (NPP -- Tain) 11:10 a.m.
Mr. Speaker, I also rise to lend my support to the motion before the House.
Mr. Speaker, rice production is very dear to the hearts of all of us, looking at the volume of rice which we import daily, weekly, and monthly. I just want to urge the Ministry of Food and Agriculture to make sure that whilst we are talking about production, we look at storage facilities
Mr. H. F. Kamel (NDC -- Buem) 11:20 a.m.
Mr. Speaker, thank you for the opportunity. Mr. Speaker, in contributing to the motion, I would also like to add my voice to the concerns raised by hon. Kunbuor.
Mr. Speaker, it is important we took a serious view of the concern because as we speak now, it means that the report has come through the backdoor and that is not very good for us as an institution. So it is important that we take a serious view of such a process.
Mr. Speaker, however, I think that the motion is in order. It is consistent with our policy of growth. It is consistent with the international instruments that we are all committed to and it is consistent with our effort at reducing poverty. But Mr. Speaker, I am so passionate about rice production and it is important that I relate a few practical situations to this important institution.

Nii Adu Mante -- rose --
Mr. Speaker 11:20 a.m.
Chairman of the Finance
Committee, do you have a point of order?
Nii Adu Mante: That is so. Mr.
Speaker, this is in respect of the use of the words ‘through the backdoor' by my very good friend from Buem.
Mr. Speaker, I think the words ‘through the backdoor' is an indictment on the Committee's work. He must withdraw those words. Most hon. Members who have spoken this morning have been members of the Committee. He is not a member of the Committee and he rose to say the report has come ‘through the
backdoor'. It is a serious indictment on the Committee's work. I crave your indulgence to ask him to withdraw those words.
Mr. Speaker 11:20 a.m.
Hon. Member for Buem,
are you yielding to him?
Mr. Kamel 11:20 a.m.
Mr. Speaker, he wants to
clarify the situation.
Mr. Speaker 11:20 a.m.
Are you yielding to
him? Hon. Member for Buem, did you use the words ‘through the backdoor'.
Mr. Kamel 11:20 a.m.
Mr. Speaker, I used those
words and from the information I gather, the Committee was actually supposed to meet the Minister before they came out with the report; and this did not happen. [Interruption] -- Yes, this morning. That was the real situation.
Mr. Speaker 11:20 a.m.
Hon. Member for Buem,
this report has been laid; you could have taken objection to that, but you did not.
Mr. Kamel 11:20 a.m.
Mr. Speaker, if the words
are a bit unsavoury, I think that we just take it out and we continue; there is no malice intended.
Mr. Speaker, in the 1970s, my father of blessed memory was one of those who brought commercial rice farming into this country. He and the likes of the late Gushie-Na, Alhaji Sulemana, Alhaji Salifu Boforo whose daughter is also a Member of Parliament were very instrumental and actually at the forefront of rice production in this country.
I remember in those days, my father had about a thousand acres of land and these people also had similar sizes of farming land. It was a delight to realise the potential of rice production, especially in the North. In those days, my father could
harvest about 11,000 bags of rice and there was a point even when he had an airstrip on the farm and we had an aeroplane coming from Ejura farms to come and apply sulphate of ammonia.
Mr. K. Armah 11:20 a.m.
Mr. Speaker, I rise on a point of order to ask the hon. Member to tell us exactly where his father's farm was -- because 1,000 acres of farm, and 11,000 bags of rice, was a great effort that should have qualified him to be the National Best Farmer. So we want to know where the farm was so that we can all appreciate exactly what he is saying.
Mr. Speaker 11:20 a.m.
That is not a point of order. Hon. Member for Buem, please, continue.
Mr. Kamel 11:20 a.m.
Mr. Speaker, specifically I am talking about the Savelugu, Tamalegu and Nanton areas -- these were specific areas.
Mr. Speaker, I am raising these issues because the Northern Region has great potential for rice farming; it has the potential to produce for local consumption and for export. But in those days, the commitment was there and the structures were there and so rice production was really very viable.
rose
Mr. Speaker 11:20 a.m.
Hon. Member, do you have any point of order to raise?
Mrs. Chigabatia 11:20 a.m.
Yes. Mr. Speaker, the hon. Member is misleading this House. There is no place in the North known as Tamalegu -- [Interruption.] He said Tamalegu -- [Interruptions] -- I am talking to the hon. Member, so let him get up and defend himself. [Interruptions.]
Mr. Speaker 11:20 a.m.
Order! Let him continue. Hon. Member for Buem, please, continue.
Mr. Kamel 11:20 a.m.
Mr. Speaker, actually, if the hon. Member will care to know, because of the farming exploits of my father, my father was made the Boting- Na of Tamalegu; and that is for her information. [Interruption.]
Mr. Kyei-Mensah-Bonsu 11:20 a.m.
On a point of order. Mr. Speaker, my hon. Colleague is misleading this House. Mr. Speaker, he is talking so highly about the glory days of rice production and he said his father owned 1,000 acres or more of land. And Mr. Speaker, he says that at the height of the production, the father produced 11,000 bags of rice.
Mr. Speaker, it translates into only eleven bags per acre and this is the glory days of rice production that he is talking about. [Interruptions.] Mr. Speaker, these days when we are talking about 50 bags per acre, he is talking about only eleven bags and those are the glory days that he is alluding to. Mr. Speaker, he is misleading this House. [Interruptions.]
Mr. Speaker 11:20 a.m.
Order! Order!
Mr. Kamel 11:20 a.m.
Mr. Speaker, actually, I was very young at that time and these are some of the things. Mr. Speaker, but it is important that we revisit this whole idea of trying to exploit the full potential of rice production, not only in the Northern
Mr. Kamel 11:20 a.m.


Region but wherever rice farming in this country will be profitable.
Mr. Baah-Wiredu 11:20 a.m.
On a point of order. Mr. Speaker, I really want to know, first of all, if my hon. Friend is withdrawing that statement. Secondly, what was the real quantity produced so that we can know whether there was productivity in that aspect or not. Mr. Speaker, I would like our hon. Friend to tell us. What was the production per acre?
Mr. Speaker 11:20 a.m.
You do not have any point of order; let him continue.
Mr. Kamel 11:30 a.m.
Mr. Speaker, it is important that we take the issue of marketing very seriously. There is this erroneous impression not only in this country but in a lot of places that marketing is associated with buying and selling. That is absolutely wrong.
Actually, marketing is a process that starts even before production and it is important that if we want to take marketing seriously, as a channel for promoting agriculture, as a channel for promoting exports, then we should look at the issue of marketing from the professional perspective and begin to realise that we need to get professional marketing practitioners into the system.
For example, it should be possible for the Ministry of Food and Agriculture to begin to recruit professional marketers to give advice in the area of marketing to be able to pursue the right policies to yield good results. It is also important that we build the necessary linkages that would enhance the production of food crops in whichever programmes we want to pursue
as a nation. As I earlier mentioned, in those days we had the Seed Multiplication Unit and we had Nassia Rice Company. These were institutions that were really working and promoting the whole process of food production. Maybe, the Ministry should take it on board.

It is also important to make mention of the fact that this nation needs to muster all the political courage it needs. We need real political will if we want to pursue our agricultural policies to yield the necessary results. I remember that it is this very House took the necessary steps to give poultry and rice production some protection.

What is happening now is that rice production somewhere in New York, in the Americas and other countries enjoy a lot of subsidy and so their products come here and the prices are more competitive than what we produce here. This partly accounts for people's preference for imported rice.

But this very institution, knowing that and wanting to protect the rice industry, initiated certain steps. But these steps were side-stepped from somewhere. So we need the necessary political support. We need the necessary political will to source for funding to enact the necessary legislation to put in the necessary framework to also offer our farmers some form of protection.

With these few submissions, I wish to support the motion.

Mr. J. B. Aidoo (NPP -- Amenfi

East): Mr. Speaker, I thank you for this opportunity. Mr. Speaker, I am also rising to support the motion on the floor of this House. Mr. Speaker, my main concern is about the size of the loan we are taking.
Mr. Simon Osei-Mensah 11:30 a.m.
On a point
of order. Mr. Speaker, as much as I agree with my hon. Colleague that the amount is too small, we should not forget the fact that the production process never ends until the final product gets to the final consumer. Mr. Speaker, we are in this country where rice farmers have been complaining a lot that the little that they have produced they do not even have market outlets for them.
Mr. Speaker, I appreciate a lot and even wish to commend the Government for the calculated and conscious efforts that they are making to improve upon the rice sector so that the production sector would match the market availability. Other than that, if we inject too much funds into this sector without beefing up the market size, what we are going to have is that these people are going to produce and at the end of the day, the goods would not be disposed of and therefore, they would not produce in the subsequent years.
So the hon. Member should take these things into consideration before he starts saying that the amount is too small.
Mr. J. B. Aidoo 11:30 a.m.
Mr. Speaker, my
hon. Friend has not been patient. If he had exercised a little patience maybe, he would have understood the point I was going to drive home.
Mr. Speaker, we import rice into this
country to the tune of over $100 million annually and the amount we are looking for is just about one-eighth of what we spend on rice every year. Mr. Speaker, nothing prevents us from investing a whole year's amount for rice importation in the local rice sector.
Mr. Speaker, some time ago, we used
to have what was called Nzema mo, that is, Nzema rice, the brown rice and Mr. Speaker, everybody loved this rice. Today, it is virtually out of market. Why? Because when we buy the rice it is full of stones. So in response to what my hon. Colleague was saying, if we can de-stone our local rice, certainly, it will become very good for domestic use and so on and so forth.
Mr. Speaker, it is not only in the Northern Region that rice can be produced. In the forest areas, the wet valleys, rice can be produced with minimum efforts. Here, I believe that the Minister for Food and Agriculture and the Ministry of Finance and Economic Planning would have to put their heads together to look for more facilities to intervene in the rice sector so that we stop the importation of huge volumes of rice into this country.
Mr. Speaker, as far as local rice production is concerned and as far as the intervention in the rice sector, particularly in curtailing importation of rice is concerned, either we drink deep or we taste not.
Mr. Speaker, I am urging hon. Members to support the motion.
Mr. Clement K. Humado (NDC--
Anlo): Mr. Speaker, I thank you for giving me the opportunity to support the motion. I would like to make a few comments and observations on the implementation aspect.
Mr. Speaker, first of all, it is not wholly true that this intervention is the only one. I am aware of other rice programmes in the country under the International Fund for Agricultural Development (IFAD) grants taking place in the Western Region, Brong Ahafo, Ashanti Region and parts of Central Region, particularly in the inland valleys. So this particular one is a further
Mr. J. B. Aidoo 11:40 a.m.


loan to support rice development in the country.

Mr. Speaker, if we read some of the analysis of the rice sub-sector in Ghana, we would realize that the main reason why rice production in Ghana is declining is because of price competitiveness. The cost of producing rice in the country is higher when compared to the price of imported rice and this mainly is due to the policy environment of the Ministry and of Government.

The cost of production, for example, is high because of the expensive inputs -- inorganic fertilizers, pesticides and all that. Before 1998, there was much government support to the rice sector and with the withdrawal of subsidies, it has made rice production quite expensive in Ghana and this is why farmers cannot easily compete with foreign rice that is being brought into the country and has made the country to be very dependent on imported rice.

So in my view, it is a challenge to the Ministry of Food and Agriculture to take a second look at the policy environment to support rice production in this country, particularly looking at the lined items, the cost of inorganic fertilizers, the cost of mechanization, the cost of pesticides, and with the right policy interventions, I believe that the Ministry will be able to support the rice farmers and make optimum use of the loan that we are about to approve today.

Mr. Speaker, I would also like to touch on another aspect of policy that has to do with tariff. About two or three years ago, on the floor of this House, first we took steps to reduce the tariffs on imported rice. Some of us at that time thought that it was not in the right direction because

that would signal to the rest of the world that imported rice would be cheaper than the locally-produced rice. At that time, it was blamed on WTO regulations but Mr. Speaker, I subsequently checked that and found it not to be true.

In Ghana we have a binding ceiling on the tariff for rice and we did not exhaust that ceiling. Therefore, the argument that the tariff for rice was not acceptable on the basis of WTO regulations is not correct. So I would urge the Ministry again to take a second look at the tariff on rice and to see what support they can give to the local farmers through adjusting the tariff on imported rice in favour of our local farmers.

Mr. Speaker, my last point has to do with the regions of coverage. I am delighted that Volta Region has also been included in this particular loan. Volta Region has immense potential for rice production, starting from Aveyime through Afife through the inland valley bottom off Santrokofi around Hohoe and all the way to Krachi and Nkwanta in the north. I believe that the loan is in the right direction, and I will also urge my Colleagues to support the approval of this loan.
Mr. Baah-Wiredu 11:40 a.m.
Mr. Speaker,
I would thank hon. Members for the contribution so far made towards this loan. I think we can leverage the amount, especially through our local banking schemes, now that Agricultural Develop- ment Bank and others have got some of the resources to help all of us. I think we have taken note of the irrigation system that must help us. I know that in Ouagadougou they are using drip irrigation which is very simple. They have also the saga project, which is harvesting of rainwater, obviously to make sure that they do proper farming.
With regard to the issue concerning the Minister for Food and Agriculture, I think we have taken it on board. The Minister for Food and Agriculture has explained to our hon. Colleague some of the concerns that were raised on Saturday. Mr. Speaker, long-term funding is very important and that is exactly what we are trying to do in terms of this International Capital Funding and other arrangements.
So on that note, we thank hon. Members for their contributions, for example, on the seasonal nature of rice and the need for us to lengthen that one, and the quick disbursement of funds which we are sure would take place.
We thank you, Mr. Speaker, and we thank hon. Members for their con- tributions.
Mr. Speaker 11:40 a.m.
Minister for Food and
Agriculture, do you want to say a word? Please, be brief.
Minister for Food and Agriculture
(Mr. Ernest A. Debrah): Mr. Speaker, thank you for this privilege. I want to take this opportunity to thank hon. Members for the various contributions that they have made. In fact, they have brought to the fore the changing habits of Ghanaians with regard to rice consumption.
Ten years ago, rice consumption in Ghana was low. Now, rice consumption in Ghana is very high and that calls for all of us to ensure that we increase production and increase productivity to meet consumption.
Mr. Speaker, rice infrastructure is quite expensive and it takes a lot of money to do rice infrastructure. So what we are doing now is trying to source investment
avenues to increase rice production in this country. We are doing a step-by-step approach and we are looking at other avenues of supporting rice production. But that notwithstanding, I want to make some few comments on some issues hon. Members have raised on the floor.
In the first instance, people think that the Government is not supporting farmers in rice production. I want to say that all the farm machinery that we have brought into this country -- tractors, et cetera -- are sold to farmers at two-thirds the price. That is, Government subsidizing it by thirty-three per cent. Again, agro inputs that come into this country come in duty free. So all agro inputs that come into this country -- fertilizers, pesticides and others, weedicides -- come into the country without duties.
Mr. Speaker, one hon. Member talked about the total loan agreement. I was not around when the issue was raised but I will find out the total loans that we have contracted and the total amount and let the hon. Member know that.
With regard to marketing that somebody talked about, that was a key constraint but I want to inform Members that rice inter- professional bodies have now signed an agreement with the Ghana School Feeding Programme, and that it is only local rice, that will be the first preference of the Ghana School Feeding Programme. This means that unless we do not have local rice, Ghana School Feeding Programme will always rely on locally-produced rice. So it is that some subvented Ministries like Defence, Health and Education are also supplied with produced-in-Ghana rice. Because of this, right now, you do not find any paddy rice stocked anywhere; and this is a very good incentive for our farmers to grow more rice.
Finally, I want to say that with regard
Mr. Speaker 11:40 a.m.


to the issue of varieties, we are aware of that and we are working on it to ensure that we get some uniform quality of rice. Because people produce different varieties of rice, you find in one batch different varieties of one particular rice. We are working on it to bring uniformity. We are selecting a few to be grown or supported to be grown throughout the country. We are also looking at the quality of rice.

So all the mills that we are bringing in right now, we will bring them in with de-stoners so that produced-in-Ghana rice will then have similar quality, if not better than the imported rice. And I want to inform hon. Members -- I have said it on the floor of this House and I want to repeat it -- that Ghana rice has better nutritional quality than imported rice. I want to urge hon. Members to consume produced-in- Ghana rice.

With these comments, hon. Speaker, I hope Members will fully support this loan.

Question put and motion agreed to.
Mr. Speaker 11:40 a.m.
Item 28 -- Resolution,
Minister for Finance and Economic Planning.
RESOLUTIONS 11:40 a.m.
Minister for Finance and Economic Planning (Mr. Kwadwo Baah-Wiredu) 11:40 a.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 Financing Agreement between the Government of the Republic of Ghana and the Agence Francaise de Developpement for a loan amount of €12.5 million to provide Support for the Rice Sector in Four Regions of Ghana (Northern, Upper East, Upper West and Volta Regions);
THIS HONOURABLE HOUSE 11:40 a.m.
H E R E B Y R E S O LV E S A S 11:40 a.m.
Mr. Speaker 11:40 a.m.
Item 29 -- Minister for Finance and Economic Planning.
Waiver of Tax in Respect of Financing Agreement between the
GOG and AFD
Mr. Kwadwo Baah-Wiredu 11:40 a.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 may exempt any statutory corporation, 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, vehicles, materials and services to be procured totalling US$213,508.50 in respect of the Financing Agreement between the Government of the Republic of Ghana and the Agence Francaise de Development for a loan amount of €12.5 million to provide Support for the Rice Sector in Four Regions of Ghana (Northern, Upper East, Upper West, Volta Regions).
N O W T H E R E F O R E , T H I S 11:40 a.m.
Mr. Speaker 11:40 a.m.
Hon. Members, we
will now take item 5 - Chairman of the Committee.
Suspension of Standing Order 80(1)
Chairman of the Committee (Mr. F. W. A. Blay) 11:40 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 Twelfth Report of the Appointments Committee on H.E. the President's nominees for Ministerial and Deputy Ministerial appointments may be moved today.
Mr. P. C. Appiah-Ofori 11:40 a.m.
Mr. Speaker,
I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. Speaker 11:50 a.m.
Item 6 -- Chairman of the Appointments Committee?
Twelth Report of the Appointments Committee on the President's
Nomination for Ministerial Appointments
Mr. Blay 11:50 a.m.
Mr. Speaker, I beg to move, that this honourable House adopts the Twelfth Report of the Appointments Committee on H.E. the President's nominees for Ministerial and Deputy Ministerial appointments.
1.0 Introduction
1.1 Pursuant to articles 78 (1), 79 (1) and 256 of the Constitution, His Excellency the President communicated to Parliament for prior approval, his nomination of the following persons for appointment as Ministers and Deputy
Ministers:
1. Mr. Abraham Ossei Aidooh -- Minister for Parliamentary Affairs
2. Ms. Esther Obeng Dappah -- Minister for Lands, Forestry and Mines
3. Mr. Godfrey T. Bayon -- Minister of State at Ministry of Transportation
4. Mr. Ken-Wuud Nuworsu -- Deputy Minister for Manpower, Youth and Employment
5. Mr. Kofi Osei-Ameyaw -- Deputy Minister for Tourism and Diasporan Relations
6. Ms. Victoria Bright -- Deputy Minister at the Office of the President
7. Rev. Dr. Akwasi Owusu-Bi -- Deputy Minister, Trade, Industry,
Private Sector Development and
PSI 11:50 a.m.
Mr. Speaker, the last sentence, reads as follows 11:50 a.m.
“The Committee recommends by majority vote that the House disapproves of his nomination.”
Mr. Speaker, with regard to Ken-Wuud Nuworsu as well, I would wish that the House takes particular notice of the last sentence as well which reads as follows:
“The Committee recommends by majority vote that the House approves of his nomination.”
Alhaji M. Al-Hassan Yakubu 11:50 a.m.
Mr. Speaker, I beg to second the motion.
Question proposed.
Minority Leader (Mr. A. S. K. Bagbin) 11:50 a.m.
Mr. Speaker, I have a difficulty in seconding the motion because I have some reservations to raise -- objection to some portions of the Report -- and I will be calling on the House not to proceed to give prior approval to some nomi-nations.
The Appointment Committee, I must say, did its best within a short period, giving opportunity to the public and the nominees to come clean as to whether they were capable or suitable to ascend to the high office of either Minister of State or Deputy Minister of State.
A lot of them discharged themselves very creditably and from the Report, you can see that the Committee had no problem in unanimously recommending them for approval.
Minority Leader (Mr. A. S. K. Bagbin) noon


Mr. Speaker, the Committee came across a few names that I believe need to be queried and some of us are recommending to the House that, for instance, in the case of Ms. Victoria Bright we may need to do a further check-up.

Mr. Speaker, I have read the Report. I

know that at the committee level we told the Chairman of the Committee to cross- check from the High Commission whether the mere filing of the form constitutes renunciation of the citizenship of the country, that is, the United Kingdom.

I have read a quotation of the rules as to renunciation by non-British citizens of their British status if they acquire a dual nationality. I am raising this issue because I do not believe that the mere filing of the form constitutes enough renunciation. I know that the nominee, from the documents she submitted to us, filed her forms not on the 17th as stated here; it was on the 16th of July, 2007. That is the date of the letter that she submitted.

I think that there is still a process to follow before one finally renounces a citizenship. The fact that one just files it does not mean one has renounced it.

I believe that because of that initial legal issue the Committee actually did not go further to assess the nominee.

The question as to whether she has registered as a voter also came up and her initial reaction was so arrogant that the members were peeved and -- In fact, there was a spontaneous reaction from almost all the committee members regarding the way she responded, and the members simply said, “No, you have to go and produce documents on those issues”.

I think that it is proper that we re- examine that nominee. That is the position I want to put forward, that it is important that we re-examine that nominee.

The second nominee I think we have

to look at is Rev. Dr. Akwasi Owusu-Bi. I think that the Committee unanimously decided to recommend to this House not to give prior approval. That was the decision of the Committee.

So I think it might be a secretarial mistake when they said “a majority vote”. It was a unanimous decision by the Committee that even though he is a Reverend Minister, it came out clearly before the Committee that he was of little integrity. He was of little integrity because the Reverend Minister, right down from the beginning was very untruthful to the Committee; his answers were so contradictory. Definitely, let me assure hon. Members that he said, “You do not need to go through any seminary to be called a Reverend”, and that his Ministry was Rhema (something) Mission.
Mr. Hackman Owusu-Agyemang noon
On a point of order. Mr. Speaker, I am a member of the Committee; I am not disputing some of the issues raised. But I think, on that issue, we did agree that there are several ways of being inducted into the priesthood or becoming a pastor.
I think that for that particular faith, that is how they go about it and we accepted that. That is a correction that I want to make to my hon. Friend's submission. I am a member and I was there full-time and I think we need to get this right.
Mr. Bagbin 12:10 p.m.
Mr. Speaker, I did
state that “he stated”. I said, ‘he stated
that, “You do not have to pass through a seminary to be called a Reverend Minister,”. I just raised it because I want hon. Members to have it in their minds the type of Reverend Minister that we have so that they do not leave here with the impression that it is somebody who has gone through the formal institution of training before he became a Reverend. I am not saying that one cannot be called a Reverend, otherwise you can -- but it is important for that to be made known to the House.
Mr. Speaker, for example, he initially
stated that he had to, together with some others, get the opportunity to execute a contract which was awarded to them. In fact, he had a problem with the word “contract”. He said it was a “feasibility proposal” and that was in 2005. We managed through cross-examination to get him to say that it was in 1999/2000.
Mr. Speaker, again, initially he denied
being an Assembly member. We got him to accept that at that time he was an Assembly member and later when we investigated, he was even the Presiding Member of the Assembly.
He said he did a research into building materials and got the Assembly to give him money to construct teachers' bungalows and that during the rainy season the whole project collapsed and became zero. The Assembly asked him to refund the money with interest. It took him five years to refund the principal without the interest. As at today, he has not paid the interest.
So from the interaction we saw that for us to be giving our power, our authority, our resources to such a person as a Deputy Minister, I believe, would not be in the interest of the nation. So, Mr. Speaker, we unanimously agreed that we would dis-
recommend his appointment as a Deputy Minister of State.
With regard to Ken-Wuud Nuworsu, it
is true that the decision is that the majority believes that he should be given the nod. Let me be part of the minority. I think that he should not be given the nod. I think that we need to look for some more information on the nominee.
The issues that came up were that the Serious Fraud Office (SFO) should be given the opportunity, for example, to testify as to whether the reports on him, were made available to him because he denied ever seeing that report; he had no knowledge of it. It is the same with the Commission on Human Rights and Administrative Justice (CHRAJ), the same with the Audit Report which all had negative findings against the nominee when he was the Regional Director of the National Disaster Management Orga- nisation (NADMO).
Mr. Speaker, I know that we would
not be fighting the personal battles of any husband but it is important that in bringing forward these nominees, their per-formance, their records of working in public office should be of critical consideration in whether we should approve or disapprove of the candidates.

I think that from the reports before the

Committee, the nominee, Mr. Ken-Wuud Nuworsu, when given the opportunity to serve the nation, had found himself wanting in many respects, and as I said, with this plethora of reports on him where he has mishandled resources, mishandled his own credibility, I think we should not be rewarding such dishonesty; we should not be rewarding such dysfunctionality.

I believe we should be giving signal to the country that when you are given the opportunity to serve, you should serve
Mr. Bagbin 12:10 p.m.


with credibility and trust, and you should come out with some degree of honesty and integrity; I do not think he meets that degree.

I would strongly urge this House that

if we are minded to go on with the Report today, we should not give prior approval to Ken-Wuud Nuworsu. Alternatively, if we are not minded to consider his case, he should go back to the Appointments Committee, chaired by my hon. good Friend, the First Deputy Speaker for us to go further into those reports and bring the Commissions -- these are consti-tutional Commissions and statutory bodies -- to confront him with their findings and let him react for us to have a better picture of him before we can approve him.

I believe that there are precedents in this matter, even on some occasions we had to bring chairmen of political parties to confront nominees at the Appoint- ments Committee. The Committee itself had to move to places in the country to crosscheck on evidence that had come to its knowledge and at the end of the day when the Committee was sure that those were just mudslinging, and that there was no credibility in those reports, the people were given the opportunity to serve.

We have a long list, but we have only found problems with this number of nominees and I think the Appointments Committee should be commended because I know that before His Excellency the President came out with the nominees he might have done some background checks; but it is not possible to get all the information.

We have been able, with the support of civil society, to unearth additional information about the nominees and I think that should be taken into consideration in

deciding whether to appoint or not appoint the personalities involved.

In this case I urge that this House should start giving the signal of dis- appointing those presidential nominees. Therefore, in supporting the motion, I would rather submit that we should approve the motion subject to the three that I have just mentioned.

Mr. Speaker, our hon. Colleague Members of Parliament who had the opportunity of catching the President's eye and appearing before us, I must say, comported themselves well. They did not take advantage of the fact that they were Members of the House to try to show any kind of airs, airs of importance or the fact that they were Colleague Members, that we were not going to look deep into their backgrounds.

I think they did well and we should commend the hon. Members of this House who happened to catch the eye of the President. However, it is important for all of us in this House to be mindful of the constitutional provisions because it can knock one off balance, especially the issue of dual nationality and whatever positions one can occupy. We need to be very mindful of them.

I know that the latest, the newly

christened Majority Leader did well and I think that it is long overdue -- He has been with us in this House for a long time and I think he is capable of handling the position of Majority Leader. That constitutionally controversial Ministry of Parliamentary Affairs which I know he would not be comfortable occupying -- I welcome him to that seat and assure him of our co-operation, our togetherness in this herculean task of building democracy in Ghana.

Mr. Speaker, I support the motion.
Mr. Speaker 12:10 p.m.
Hon. Minority Leader,
if you look at page 13 of the Report, the “Recommendations” by the Committee deals with 13 and not 14 nominees. In other words, this Reverend Doctor's name does not appear at all, it does not appear so we are dealing with 13 nominees and not 14.
Mr. Bagbin 12:10 p.m.
Mr. Speaker, you are
drawing my attention to the fact that he has not been recommended.
Mr. Speaker 12:10 p.m.
Not at all. So it does appear that the problem is with items 4 and 6, that appears to be the problem.
Minister for Women and Children's
Affairs (Hajia Alima Mahama): Mr. Speaker, I am a member of the Appoint- ments Committee and at the last meeting the conclusion of the Committee was as represented on page 13. I therefore find it difficult for page 4, under the recommendation of Mr. Ken-wuud Nuworsu -- It is written that the Committee recommends by majority vote that the House approves his nomination and this again was echoed by the hon. Minority Leader with respect to Ken- Wuud Nuworsu.
Indeed, it was a consensus and we
rose
Mr. Speaker 12:10 p.m.
Hon. Member for
Tamale South, do you have a point of order?
Mr. Haruna Iddrisu 12:20 p.m.
Mr. Speaker, rightly so. Mr. Speaker, I need your guidance. The hon. Minister for Women and Children's Affairs, if allowed to continue, would not only be misleading this House but indicting the Chairman of this important Committee. Mr. Speaker, the Committee's Report was laid. If she had objections -- She sat there and the Committee's Report was laid; we had to even suspend our Standing Orders. She was there and we had approved of it.
Indeed, when the Chairman of the Appointments Committee was presenting the Report, he was emphatic when it came to the last two lines of these particular nominees; he said this House must take note of the following -- So Mr. Speaker, she is completely out of order, if she wants to recommend, she should do so but not to indict the Committee and its Report.
Hajia Mahama: Mr. Speaker, my
Dr. Benjamin Kunbuor 12:20 p.m.
Mr. Speaker,
on a point of order. Mr. Speaker, I am rising on a point of order because this is a very simple matter that we seem not to understand. What actually happened at the Committee was that we were approving most of the members by consensus but when it got to the particular case of Mr. Ken-Wuud Norwusu, approval was given but it was a majority approval; and the two scenarios are different.
So the Report rightly captures what happened, that the majority recommended approval but it was not by consensus like in the case of all the others. This is where the difference arises.
Mr. Speaker 12:20 p.m.
Hon. Members, I think we would make progress. Is it the decision of the House that this list of 13, excluding 4 and 6 -- The House has approved by consensus all except 4 and 6; is it the decision of the House, by consensus? [Hon. Members: Yes] -- Then the problem is with 4 and 6. Hon. Members, the decision of the House is that the approval has been given in respect of all the persons, by consensus, except 4 and 6. We will concentrate on 4 and 6 now.
Mr. Osei Kyei-Mensah-Bonsu 12:20 p.m.
Mr. Speaker, I thought the Chief of Staff and Minister for Presidential Affairs had a very important intervention in this matter, I thought we would rather listen to him before we make further progress -- [Interruption.]
Mr. Speaker 12:20 p.m.
Majority Chief Whip, the problem is this that where we have no problem let us deal with that.
Mr. Kyei-Mensah-Bonsu 12:20 p.m.
Mr.
Speaker, I believe this is a very sensitive matter and I thought that because of the way the Minority Leader had intervened -- Otherwise, it would seem as if we want to roll over some of the issues that he has raised. And so I believe that because we have consensus on most of them, let us hasten slowly and approve of who we have to approve, though as he said, if we had to stand one or two down for further investigations, Mr. Speaker, that could easily be done so that we do ourselves a lot of good.
Mr. Speaker 12:20 p.m.
Majority Chief Whip,
the House has approved by consensus the list except two, that is it.
Chief of Staff and Minister for
Presidential Affairs (Mr. Kwadwo Mpiani): Mr. Speaker, I want to draw hon. Members attention to the candidate referred to as number 4, that is, Mr. Ken- Wuud Nuworsu. I am speaking on his behalf taking consideration of the issue raised by the hon. Minority Leader.
I believe I listened to him well and his concerns were based on two main issues; one, on morality; and two, and more importantly -- [Interruptions.] Mr. Speaker, I think I heard the hon. Minority Leader saying he would not speak on behalf of any husband, I think I heard him say that, and that is why I am referring to that. And two and more importantly, reports -- [Interruption.]
Mr. Bagbin 12:20 p.m.
Mr. Speaker, on a point
of order. Mr. Speaker, I just want to correct him. I did say we would not fight the battle of any husband, that is what I stated.
Mr. Mpiani 12:20 p.m.
Mr. Speaker, for the hon.
Mr. Mahama Ayariga 12:20 p.m.
Mr. Speaker,
on a point of order. Mr. Speaker, the hon. Chief of Staff and Minister for Presidential Affairs indicated that he is speaking on behalf of the nominee, Mr. Ken-Wuud Nuworsu.
Mr. Speaker, I want to find out whether he can, in this House, speak on behalf of somebody. Mr. Speaker, if he is making a case for the House to approve Ken-Wuud, he can go ahead and do that, but to say that he is here to speak on behalf of Mr. Ken- Wuud, I have some doubts as to whether he properly can do that.
Mr. Mpiani 12:20 p.m.
Mr. Speaker, the main lesson I want to draw on this question of husband -- Mr. Speaker, in the Bible a lady was accused of adultery and he was reported to Jesus Christ -- [Inter- ruptions] -- Mr. Speaker, Jesus took a stone and called all of them there and said, he who is without sin let him first cast this stone -- [Interruptions.]
Mr. E. T. Mensah 12:20 p.m.
Mr. Speaker,
on a point of order. Mr. Speaker, on the quotation that the hon. Chief of Staff and Minister for Presidential Affairs quoted a short while ago, at that instance people around made direct allegation against the woman, but this one, the Minorrity Leader did not make any allegation. He said his is not to fight a battle or we are not here to fight the battle of any husband.
If the hon. Chief of Staff and Minister
for Presidential Affairs listened to the vetting, the Chairman of the Committee even put the first question to him and we did not see that as accusing him on grounds of morality. So I think the hon. Chief of Staff and Minister for Presidential Affairs is out of order.
Mr. Mpiani 12:20 p.m.
Mr. Speaker, as I said,
Mr. Mpiani 12:20 p.m.
Mr. Speaker, I believe if
Mr. Speaker 12:30 p.m.
Hon. Members, may
I draw your attention to Standing Order 172 (4), the second part thereof.
“. . . Parliamentary approval of persons recommended for appointment shall be by secret ballot or by consensus.”
Unless there is an agreement in respect of the two we shall have to go by this. So please, direct your attention to this.
Mr. Mpiani 12:30 p.m.
Mr. Speaker, let me go
to the other issues. I want this House to know that Mr. Ken-Wuud Nuworsu is still the Regional Director of NADMO. If any of these alleged reports were true, Mr. Nuworsu would have been reported long ago because these reports are made to Government.
Mr. Speaker 12:30 p.m.
Order! Order!
Dr. Kunbuor 12:30 p.m.
Mr. Speaker, I think
the hon. Minister for Presidential Affairs and Chief of Staff is grossly misleading

this House. Firstly, his inappropriate quo-tation of casting the first stone was not read within the context of the fact that he should not also invoke the name of the Lord in vain.

Mr. Speaker, what we are to consider here is in relation to a report before this House. The report has raised an issue in relation to a married woman, which the hon. Minority Leader indicated he does not intend to engage in, and what he had engaged in was not because he was seeking to cast a stone but that the whole essence of prior approval is for this House to get the President the best men.

It is not about casting stones and witch- hunting; it is about getting the best men to serve the President. That is the essence of that process and that is the essence of this report; it has nothing to do with casting stones.
Mr. Speaker 12:30 p.m.
Leadership, unless there
is an agreement, we shall have to proceed by secret ballot. Leadership, we do not have to waste time on this matter.
Majority Leader (Mr. F. K. Owusu- Adjapong) 12:30 p.m.
Mr. Speaker, we have got consensus on all the list submitted except the two. We need some further exercise on the matter and I have therefore discussed with my Colleague the hon. Minority Leader and the Leadership and want to suggest that we suspend decision on the two and vote for the rest on the matter that is unanimous -- [Inter-ruptions.]
Mr. Speaker 12:30 p.m.
Order! Order!
Minority Leader (Mr. A. S. K.
Bagbin): Mr. Speaker, I believe the position stated by the hon. Majority Leader is what we agreed upon and which is in conformity with the recommendations I made, that we defer the decision on the two and then take a decision on the remaining eleven names and the Appointments Committee would have the opportunity of cross-checking on those issues and
then we come back to the House properly.
Mr. Blay 12:30 p.m.
Mr. Speaker, I believe that
is the essence of what we are doing here -- democracy -- give and take; and it is a question of deference. We came out with the report of the Committee on what took place and I am glad that the House in its own wisdom has taken certain decisions with regard to the two.
At our meeting, because there was controversy over the two and at the end of the day a decision was taken and we brought it to you and you have also agreed -- I will thank hon. Members for whatever it is. If the House asks your Committee that we do a further job on these two nominees, Mr. Speaker, we are definitely obliged.
Having said so, I thank hon. Members for their various contributions. I would say not much contributions have been made on the other nominees and that shows that we all agreed in toto as it was by consensus. On that basis, I would thank you. I would also thank the media for their support and their coverage of the work that we did.
But I would further ask them that in future work that we do with regard to nominees, they must also take a little step further by bringing out any objections/ petitions that they think need to be considered by the Committee to the fore; other than that, later on they would come out to blame us for what we are doing.
Just as the Minority Leader said, we did our work to the best of our ability and I thank hon. Members for showing their approval for whatever we have done.
Question put and motion agreed to.
Resolved accordingly.
Decision on two nominees deferred.
Mr. Speaker 12:30 p.m.
I shall communicate the
Mr. Speaker 12:30 p.m.
Hon. Members, item
9 -- Attorney-General? Order! Order!
Mr. Owusu-Adjapong 12:40 p.m.
Mr. Speaker, if we can finish with item 30 on page 15 of the Order Paper.
Suspension of Standing Order 80 (1)
Nii Adu Daku Mante: 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 Request by the Government of the Republic of Ghana to borrow from the International Capital Market up to US$750,000,000 to support the implementation of the Medium-Term Investment Plan may be moved today.
Mr. Appiah-Ofori 12:40 p.m.
Mr. Speaker, I rise to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. Speaker 12:40 p.m.
Item 31 -- Motion.
Finance Committee's Report on Request by GOG to Borrow from
International Capital Market
Nii Adu Daku Mante: Mr. Speaker,
I beg to move, that this honourable House adopts the Report of the Finance Committee on the Request by the Government of the Republic of Ghana
to borrow from the International Capital Market up to US$750,000,000 to support the implementation of the Medium-Term Investment Plan.
Mr. Speaker, I will read only the
background, observations and conclu- sions.
MR. FIRST DEPUTY SPEAKER
Dr. Kunbuor 12:40 p.m.
On a point of order. Mr. Speaker, I think this particular motion really needs your guidance, because if you see this motion it is actually contingent to motion number 7 which deals with the Supplementary Estimates that are currently before this House. And I thought that it is after that motion has been taken that this particular facility which is a fraction of it becomes relevant; otherwise we are anticipating that particular Supplementary Estimates that are before this House. So should we approve this particular facility which is the aspect of Supplementary Estimates, and the Supplementary Estimates happen to fall through then we do not have any legs to stand on.
So I was actually of the view that perhaps, the Supplementary Estimates provide a better context for actually taking this particular loan agreement. Since the rules of the House do not permit anticipating what eventually the House would deliberate on and there is no way we can debate on this loan agreement without anticipating the Supplementary Estimates, I want your guidance, Mr. Speaker, on this matter.
Mr. First Deputy Speaker 12:40 p.m.
I honestly
cannot give you guidance here. I want the reaction of the Chairman of the Committee or indeed, the Leader of the House.
Mr. A. O. Aidooh 12:40 p.m.
Mr. Speaker, I think
I will agree with my hon. Colleague.
Mr. First Deputy Speaker 12:40 p.m.
Chairman

of the Committee, what do you say to that?

Nii Adu Daku Mante: Mr. Speaker, so

be it. And I would ask the hon. Minister for Finance and Economic Planning to therefore read the Supplementary Estimates.
Mr. First Deputy Speaker 12:40 p.m.
And
the Minister for Finance and Economic Planning, what do you say to that too?
Mr. Baah-Wiredu 12:40 p.m.
Mr. Speaker, we
do not have any objection; we can start with motion 7, complete it, and then move on to other one.
Mr. First Deputy Speaker 12:40 p.m.
Very
well. Hon. Members, the motion itemised as 31 will be deferred for a while whilst we go back to item number 7.
[Debate resumed at column 2957] Suspension of Standing Order 80 (1)
Mr. Baah-Wiredu 12:50 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 Supplementary Estimates for the year 2007 may be moved today.
Nii Adu Mante: Mr. Speaker, I second the motion.
Question put and motion agreed to.
Resolved accordingly.

Supplementary Estimates for 2007
Minister for Finance and Economic Planning (Mr. K. Baah-Wiredu) 12:50 p.m.
[NII ADU MANTE] Mr. Speaker, I beg to move that; This honorable House adopts the Supple- mentary Estimates for the year 2007.
TABLE OF CONTENTS 12:50 p.m.
SUPLLEMENTARY ESTIMATE 12:50 p.m.
ESTIMATES 12:50 p.m.
SECTION ONE 12:50 p.m.
SECTION TWO 12:50 p.m.
SUPPLEMENTARY ESTIMATE 12:50 p.m.
PAYMENTS 12:50 p.m.
-- 12:50 p.m.
RECEIPTS 12:50 p.m.
SECTION THREE 12:50 p.m.
Dr. B. Kunbuor (NDC -- Lawra/ Nandom 12:50 p.m.
Mr. Speaker, I rise to second this motion and to draw attention to a number of fundamental issues that we need to take on board; since this idea of supplementary estimates is a learning process. Mr. Speaker, the hon. Minister is coming to this House under article 179 (8) which provides two clear pre-conditions for supplementary estimates.
First, that the amount that was appropriated in the previous Budget was insufficient, secondly that the need has arisen for expenditure for a purpose for appropriation to be made. It is in this context that one looks at what exactly is required in the Supplementary Estimates, and we need to register that quite clearly.
Mr. Speaker, if you look at the main areas where it is expected that expenditure would take place, we have the Volta River Authority (VRA); the Electricity Company of Ghana (ECG); the Bui Hydro Dam; the purchase of TAQA shares; Nsawam-Apedwa dualisation; CAN 2008; Tamale, Kumasi and Takoradi Airports, and Borrowing from the International
Capital Markets.
Mr. Speaker, it is quite clear that in
relation to a number of these matters, appropriations were duly made in the 2007 Budget. That is why one needed to see in the Report the second leg of the need that has arisen outside this appropriation that was made. If you look at paragraph 394 of the 2007 Budget, you see a number of items there.
VRA in collaboration with the Mines had concluded an arrangement to provide 80 megawatts by April 2007. One hundred and twenty-five (125) megawatts was supposed to be coming from the Osagyefo barge which was going to be operational, in the words of the report by August 2007. The Ministry and other entities were also to collaborate and come up with another 300 megawatts thermal power plant. Expansion on the Takoradi International Company (TICO) was to generate 110 megawatts and construction was expected to begin.
If you look at the Schedule, you see quiet clearly that in that Budget, about ¢36,333,000 less IGF was committed actually to the energy sector. And one wanted to see quite clearly how inadequate this particular funding is and the extent to which they have drawn on this funding for one to come under article 178 in terms of a need arising or lack of provision.
The second thing that we have is that, there was equally in that Budget an amount of ¢279,516,000(?) donor counterpart to this particular energy sector crisis that was one of the main pillars of the 2007 Budget, and this can be found in Appendix 5 of the 2007 Budget. Of course, we would add the ¢90,000,000(?) HIPC that was supposed to be used to address this issue.
Mr. Speaker, in the light of all these, one would have expected to see, firstly, that insufficient amount was appropriated in that Budget and perhaps that is why
Dr. B. Kunbuor (NDC -- Lawra/ Nandom 12:50 p.m.


TABLE P. 14

TABLE P. 15
Dr. B. Kunbuor (NDC -- Lawra/ Nandom 1 p.m.


there is a need to make an appropriation. And that did not come out quite clearly in my mind in relation to these supple- mentary estimates.

If we look at the Nsawam-Apedwa “dualisation”, you will see at paragraph 539 of the 2007 Budget that donor support for 41 kilometres had actually been secured to implement that particular project. I do not know whether bringing it back into the Supplementary Estimates is to increase it beyond the 41 kilometres because it is presented here as mobi- lization, in other words, the initial sum that is actually required to enable the contractor move to the site. I am using this again within the context in which we have to deal with Supple-mentary Estimates.

Mr. Speaker, of course CAN 2008

has been a matter that has been with us for the past two years. One is not too clear in his mind the extent to which we have not adequately provided for it and what suddenly has arisen in relation to these projects that we think we need to make appropriations. I hear the Kumasi, Takoradi and Tamale Airports are supposed to be developed out of these Supplementary Estimates in relation to CAN 2008 because the stadia in these particular locations are going to be part of CAN 2008.

Yet we know clearly that as we stand now, and by the time these Supplementary Estimates are actually approved, it would be impossible to actually upgrade these airstrips or airports to the level at which they can be used for 2008 because aviation construction is not just like any other construction.

Of course, we were told by the hon. Deputy Minister that yes, should it not even be completed we would have already

started a whole process of refurbishing these particular airports. I think that this expenditure can appropriately be captured in the 2008 Budget because it is very, very unlikely that these three airports can be concluded to serve the purpose for which we are actually seeking these estimates.

The more difficult and problematic area is the borrowing from the international capital market which certainly was anticipated in the 2007 Budget. Indi- cations were given about the institutional arrangements that were to be put in place in the country to really serve as a facilitator for making sure that we can go into the capital market. Now we see its practical manifestation in some global bonds which they intend to go to the international capital market to borrow.

Mr. Speaker, the private capital market at the international level is quite a serious matter and that is why I want to be sure that we have actually thought through the implications. I am saying this because when you take our constitutional arrangement, particularly article 181 and the Loans Act and when you tag the $750 million to this as the basis of raising money from the capital market, then it creates a difficulty; because that article requires that when you are going to actually get involved in this type of international economic transaction, the terms and conditions must be spelt out clearly.

But what we have now is a general blanket cheque to raise from wherever they can find the money in the international capital market to the tune of $750 million.

My worry here is, what will happen in relation to the specific amounts that would be raised? Will it mean that after approving this $750 million blanket cheque, when we enter the international capital market, there would be no recourse

TABLE P. 16
Dr. B. Kunbuor (NDC -- Lawra/ Nandom 1 p.m.


to this House on each of the specific locations that we are raising the money?
rose
Mr. First Deputy Speaker 1 p.m.
Hon.
Appiah-Ofori, are you on a point of order?
Mr. Appiah-Ofori 1 p.m.
Yes, Mr. Speaker. Mr. Speaker, unfortunately my very good Friend is misleading the House. Mr. Speaker, anytime the Government brings its Budget here, it contains proposed loans to be contracted. So we approve the Budget and when the Government goes in to contract it, the terms and conditions are brought before us. This is similar to what is here. So let us put this aside and go ahead and consider this.
Mr. Speaker, thank you very much.
Mr. First Deputy Speaker 1 p.m.
For your information, hon. Dr. Kunbuor, that is what your hon. Colleague is drawing your attention to, that it is not a specific loan contract, that whatever it is, it would be brought here for it to be discussed.
Dr. Kunbuor 1 p.m.
Thank you, Mr. Speaker.
I do not know whether that was on a point of order or a point of information. But if it was a point of information, it has not assisted this House because what we are interested in is what is contained in the Committee's report. There is nowhere either in the Committee's report or in the supplementary narrative that has been given by the hon. Minister for Finance
and Economic Planning that such an arrangement, as hon. P. C. Appiah-Ofori is suggesting, exists; and that is what makes it very significant.
You cannot go into the international capital market implying things; it is not a place for implications.
Mr. Baah-Wiredu 1 p.m.
Mr. Speaker, I
think on this particular issue, my good Friend knows that we referred to the Loans Act, 1970, section 11 (3); and with your permission I read:
“The National Assembly may not- withstanding anything in this section, by resolution request that any particular agreements or classes of agreements shall be brought before it for further approval before they shall come into operation, and no agreement in respect of which such a request has been made shall come into operation.”
I think at that meeting we all said that this is a new territory we are all charting and we need to learn as much as possible. Members with questions and other things can bring them up so that we would move on. In the long run it is Ghana that would be better of because with the exception of South Africa no other African country south of the Sahara has ever gone to the international capital market.
I believe that whatever stage we get to, we resort back to the House. So it should not be a problem for all of us at all but rather sourcing of funds which can be easily and immediately available to us will enrich our development.
Dr. Kunbuor 1:10 p.m.
Thank you, Mr.
Speaker. I guess we are not speaking at cross- purposes; we are saying almost the same thing. But I wanted it on record that indeed that is the situation.
Mr. Speaker, lastly, when you look at the figures in the report and the attachment to the Supplementary Estimates, there are still quite a lot of difficulties. If you take page 3 of the narrative that has been given, you see quite clearly that for Volta River Authority (VRA) investments, it is about GH¢188,849,800. Now when you come to look at the amount that is involved and you come to look at what is at page 2 of the Committee's report, you find it very, very difficult to really tell whether we are keeping faith with the request that has been stated in the estimates. when you look at the figures there you do not see any correspondence with what is in the Supplementary Estimates. And we have at some point, Mr. Speaker, approved and adopted a report only to find out subsequently that it is not reflective of what the particular agency or the Ministry of Finance and Economic Planning has actually filed.
In winding up, I hope that the Minister will try to reconcile the figures in terms of paragraph 3 which says that the Committee observed that the money for which authorization to spend are being sought would be obtained as follows -- and then it indicates all of them. Then you come to the Supplementary Estimates and you see that the amount allocated to the Ministry of Energy would be used to finance various investment activities of the Volta River Authority (VRA), Electricity Company of Ghana (ECG) including upfront commitment of Government for the construction of the Bui Dam.

When you look at this and you look at all the narratives that are there, I do not know whether the figures actually tally. There might be a reason why the differences have come up but I think in the winding-up, the hon. Minister will try and
Mr. P. C. Appiah-Ofori (NPP -- Asikuma-Odoben-Brakwa) 1:10 p.m.
Mr. Speaker, I sincerely support the approval of the supplementary estimates before us but I have some observations to make.
Divestiture will yield $500 million and when translated into cedis, it is Gh¢467,450,000. At the committee, when we tried to find out from the Minister which state assets were going to be divested, he disclosed that they were going to divest Ghana Telecom (GT) and Westel. I do not support it. I do not support the idea that we sell state property, we sell the hen that lays the golden egg. If we continue to do this, we are laying the foundation for the destruction of this country.
I recollect that Areeba granted the
Government $20 million. If Areeba, a foreign company could manage its affairs and be able to give the Ghana Government $20 million and we have a similar asset and we want to sell it, we want to privatize it, we want to divest it, then we are not taking into consideration the long-run interest of the country.
Let me repeat what I said: Areeba, some time last year or so, granted Ghana Government $20 million, free of charge; gift from profits made in this country. If that company was able to give the Ghana Government $20 million then it had acquired a lot and repatriated.
In Ghana we are lucky to have the same or similar facility and we say we are going to sell ours. Instead of managing it in order to generate more, we want to sell it. I am saying that if we begin to sell our national assets, we are laying the foundation for the destruction of this country, when some of us may not be alive. I do not support the Government selling GT.
Mr. Edward Salia 1:10 p.m.
On a point of order.
Mr. Speaker, my very good Friend does not seem to understand the Telecom sector so he is misinforming this House. The Ghana Government will not sell landlines to westel and Ghana Telecom. Landlines are the phones that come to your house and every telecom company is providing them. Ghana Government will not be selling to anybody, so he should not misinform us.
Mr. Appiah-Ofori 1:10 p.m.
Mr. Speaker, the
Mr. Opare-Ansah 1:10 p.m.
Mr. Speaker, my
hon. Colleague is totally misleading this House. Indeed, if Government divests its interest in Westel and Ghana Telecom, it is the same market that the current entities are serving which is the very districts that Government has promised to send these lines to which the new owner would have to serve to be able to make revenue.
So I fail to see the connection in what he is saying, that when the Government sells some of its shares in these entities then the Government's programme of extending services to these places would be stopped.
Mr. Appiah-Ofori 1:10 p.m.
Mr. Speaker, I
Mr. Opare-Ansah 1:10 p.m.
Mr. Speaker,
indeed, even under the current regime, the Government does recognize that it is difficult to attract investors to rural and deprived communities and as a result there is a separate programme under GIFTEL and other similar arrangements to try and get access to the underserved and the deprived communities.
So even if the Government does not divest its shares in Westel and Ghana Telecom, these entities, as they exist today, would not be getting to these places as fast as the Government would want to see them. And divesting its interest, I believe, does not change the position of GIFTEL in ensuring that services get to these areas.
Mr. First Deputy Speaker 1:10 p.m.
Hon.
Member, it appears that hon. Appiah-Ofori has his opinion and he is convinced about what he is saying. I think you should allow him to canvass his point.
Mr. Appiah-Ofori 1:10 p.m.
Mr. Speaker, let
us try as much as possible to put party sentiments aside and think of what is good for the nation -- Because the Government is not God, the President is not God who sees everything. The Constitution requires that certain actions of the Government should be brought here for us to see. It is our duty to look at things critically and where there are lapses, we correct them for the benefit of the country. We do not say that ‘yes', the Government has brought it and therefore we should just follow it.
I am saying that the Government needs money but we should not go and sell property, sell assets to come and finance the budget, and that the Government should tread cautiously. I urge the Government not to go and sell these facilities that we have; we should retain them, manage them properly to maximize wealth. If properly managed, it will be as successful as Areeba and will even serve the country.
Mr. First Deputy Speaker 1:10 p.m.
Yes, hon. Ahi -- [Laughter.]
Mr. Osei-Mensah 1:20 p.m.
Mr. Speaker, I have never been in the boxing ring, so I cannot be hon. Ahi.
Mr. First Deputy Speaker 1:20 p.m.
Hon. Member, I wish you could wait for your turn.
Mr. Osei-Mensah 1:20 p.m.
Mr. Speaker, if I could land on this.
When mobile phones were introduced into this country, it was only One-Touch which Ghana Telecom issued. I bought my chip at ¢2 million. Later, since Areeba and others came onto the scene, we have been buying the chip at ¢20,000, ¢40,000 and some of them even around ¢10,000.
Mr. First Deputy Speaker 1:20 p.m.
Hon. Member, that is why I said wait for your turn. When you wait for your turn, you might canvass this point to convince the House. But in the interim, allow hon. Appiah-Ofori to express his opinion on the matter.
Hon. Appiah-Ofori, continue.
Mr. Appiah-Ofori 1:20 p.m.
In a nutshell, Mr. Speaker, whilst I support the Govern-ment's effort to introduce this supplementary budget, I do not support the idea of divesting Westel and Ghana Telecom.
Another issue I want to raise is in the expenditure of it. Mr. Speaker, if you look at the Auditor-General's Report to this House -- [Interruption] -- What is that?
Mr. First Deputy Speaker 1:20 p.m.
Hon. Member for Asikuma-Odoben-Brakwa, please address the Chair. If you do not have much to say, please could you take your seat and let somebody else contribute.
Mr. Appiah-Ofori 1:20 p.m.
Mr. Speaker, if you look at the accounts prepared by the Auditor-General's Department to this House you would see that after we had approved supplementary budgets for government, at the end of the year actual expenditures exceeded the budgeted expenditure.
After all these supplementaries have been added together at the end of the year, they report “adverse variances”; and these adverse variances are incurred by the Government without prior authori-zation
Mr. Appiah-Ofori 1:20 p.m.


by Parliament, in accordance with article 178. So we approve today and at the end of the year, it has been exceeded.

Just in 2005, the Government spent over ¢1.2 trillion in excess of the approved budget which included the supple-mentary. So my position here is that, if we approve this one, the Ministry of Finance and Economic Planning should control it effectively so that when the accounts come to us there should not be any ‘adverse variance'; or if there is any, it should be insignificant.

Unless we do so, we will be wasteful. The money that should go into bringing this country on a level of prosperity will go to waste.
Mr. Moses Asaga (NDC -- Nabdam) 1:20 p.m.
Mr. Speaker, thank you very much. Already, the hon. Ranking Member has supported the supplementary budget. So in following suit, I would have to support it. But if I were given the initial opportunity, I would have said that Leadership should meet with the hon. Minister for Finance and Economic Planning.
This is because I have seen certain discrepancies when it comes to matching of expenditure and resources vis-a-vis the year that we are talking about. We are talking about the Supple-mentary Budget for 2007, we are not talking about a budget of 2008 and we must be very, very careful. I am now going to show some of the discrepancies.
Prof. Gyan-Baffour 1:20 p.m.
Mr. Speaker, I heard my hon. Friend on the other side of the aisle saying that the financial year ends in November; it does not end in November,
it ends in December.
Mr. First Deputy Speaker 1:20 p.m.
He has
already corrected himself.
Mr. Asaga 1:20 p.m.
Mr. Speaker, I wish he could save his time to look at these important issues.
Mr. Speaker, first of all, if you look at the payment sector, it is being said that an amount of approximately $42 million will be used for purchasing the West African Gas Pipeline gas. For the whole of year 2007, there will be no gas available to purchase and I thought the hon. Minister for Finance and Economic Planning should have been consulting the hon. Minister for Energy on this issue.
Prof. Gyan-Baffour 1:20 p.m.
Mr. Speaker, I think my hon. Friend is actually confusing everybody right now. When you look at item 15, page 4 of the Supplementary Estimates it reads:
“Mr. Speaker, the West African Gas Pipeline is expected to come on stream before the year ends. A necessary prior condition for the VRA to offtake the gas is that an escrow account to cover 3 months supply of gas from the pipeline to VRA is expected to be created. This amount will also be put in the reserve fund.”
It is into the escrow account that we are going to put this money, and that is a requirement or condition precedent to effectiveness. So we want to look ahead and put that money into that escrow account so that come the time that it is ready, we are not found wanting.
Mr. Asaga 1:20 p.m.
Mr. Speaker, as rightly alluded to by the hon. Deputy Minister for Finance and Economic Planning, this is an expenditure that will be in 2008. Therefore, if there is lack of resources, we have to look at things that are for 2007. This is because in the 2008 Budget anyway, they will be accounting for it. The point I am making is this -- [Inter- ruptions.]
Prof. Gyan-Baffour 1:20 p.m.
Mr. Speaker, this pipeline will come on stream, as I said, by the end of this year -- [Interruptions.] What do you mean by it is not true? So we have to put the money there so that we do not get to the time, when it is ready, and we may not have the money.
Mr. First Deputy Speaker 1:20 p.m.
I think you have made your point, but let him continue.
Mr. Asaga 1:20 p.m.
Mr. Speaker, I still want to put on record that we will not get gas from the West African Gas Pipeline this year, and I want to challenge the hon. Deputy Minister for Finance and Economic Planning that come 31st December, if we do not get it, he must resign and if we get it, I will also leave my seat. [Inter- ruptions.]
Mr. Speaker, we are talking of Ghana. The Ministry of Finance and Economic Planning is not abreast with the timetable for the production of the gas. Just two weeks ago, the West African Gas Pipeline seminar was held at Novotel and we members of the Committee on Energy were in attendance. Volta River Authority (VRA) and Ministry of Energy officials were also there and we were told that free gas will flow in April and compressed gas in June 2008. Therefore, why should we be putting money in an escrow account?
Mr. Baah-Wiredu 1:20 p.m.
Mr. Speaker, last
week we also had a meeting with all the stakeholders and the assurance that gas will be flowing before the end of the year was made.
As politicians, we all have to plan. That is why we are managers. We plan, organize, direct and control. We compare the standard against the actual, and wherever there is a deviation, we make changes. We have been assured that this thing will happen. So he cannot say that. He has his story and I have my points; and the facts are here.
As a nation, we cannot hold ourselves to ransom. We need to be planning, and that is exactly what we are doing. And we are running on accrual basis.
Mr. First Deputy Speaker 1:20 p.m.
Let us allow the hon. Member to land.
Mr. Asaga 1:30 p.m.
Mr. Speaker, I still insist
Mr. A. S. K. Bagbin 1:30 p.m.
On a point of order. Mr. Speaker, I think the House is being misled. The issue that hon. Moses Asaga is raising is an issue of where to put the money; do we put it in a supple-mentary budget or we wait for the substantive budget which will also come before the end of the year?
The expenditure is mostly to be made in 2008, and he is saying that the 2008 Budget will still come before the end of the year. So if we are to put money there, escrow account, it should be in the substantive Budget for 2008, not in the Supplementary Budget, where the expenditure is to be made before the end
Mr. A. S. K. Bagbin 1:30 p.m.


of 2007; that is the issue he is raising.
Mr. K. Mpiani 1:30 p.m.
Mr. Speaker, this is a point of order against the removed Ranking Member for Energy.
Mr. Speaker, I do not really see the difficulty here. Mr. Speaker, it is just like when you are asked to pay, say, rent advance for two years. It is an expenditure over two years and at the time you are paying for it, you have to make an allowance for it. This one, under the agreement, you have to pay three months into an escrow account to enable you to use the gas.
Therefore, if you do not pay, they will not allow you to use it. So even though you may have the use of gas in 2008, under the agreement, you will have to pay for it now. Therefore, you must account for it at this stage.
Mr. Asaga 1:30 p.m.
Mr. Speaker, the Minister for Presidential Affairs is being very simplistic comparing a Government Supplementary Budget to an ordinary worker's rent advance. Mr. Speaker, we are here for real serious business. [Interruption.]
Mr. Mpiani 1:30 p.m.
Mr. Speaker, maybe the hon. Member was not listening to me; I was not looking at the whole Supple- mentary Budget; I was referring to the specific item he referred to, that is the advance payment for gas. You will use the gas maybe next year, but under the agreement, you have to pay now. Go and look into the agreement for the supply of gas; it is in there. It was before the House sometime ago.
So if hon. Members have forgotten, they should refer to the agreement. Under the Agreement, this is what you have to do.
Mr. First Deputy Speaker 1:30 p.m.
Please, allow the hon. Member to land; you have a minute to land.
Mr. Asaga 1:30 p.m.
Mr. Speaker, the Minister for Presidential Affairs' comparison is still wrong, in the sense that when you pay a rent advance you immediately enter into your accommodation. This rent advance is for several years and months to come, so it is not the same. So Mr. Speaker, I still stand by my point.
Mr. Speaker, when we are giving facts and other Colleagues think that we are not really on top, it is quite unfortunate. For example, we are talking of divestiture proceeds of ¢500 million, and then a euro bond flotation. I do not believe that all these will materialise before the end of the year. So if these are going to some sources, I think we should be very careful the way we capture them in a supple- mentary budget.
Because at least, the way I would understand a supplementary budget is when your resources are very certain, for example, excess revenue, then that one, you can hold onto it and say these are my resources. But these are things that depend on the international capital markets; these are issues that depend on certain factors that are not very certain. The Deputy Minister can be shaking his head, but that is the reality we have.
rose
Mr. First Deputy Speaker 1:30 p.m.
Since he has mentioned you or referred to you, I will give you the floor.
Prof. Gyan-Baffour 1:30 p.m.
Thank you. Mr. Speaker, I am rising on a point of order. Mr. Speaker, the hon. Member knows very well that I am not going to resign my job because of what he is saying, anyway. If he wants it, he should have kept it. But he could not keep it, so that one is another issue.
But Mr. Speaker, the main issue is that budgets are not based on actual monies sitting anywhere. Even the national Budgets, they are expectations of revenue that would flow in. So whatever we do here are based on expectations; and we do not have the money sitting there. If we say that we are going to borrow money, that is an expectation and so we can draw a budget based on that, if we understand the underlying concept of budget.
It can be the Annual Budget or the Supplementary Budget, they are all based on estimates and not actuals. That is why at the end of the year we give you the actuals because that is what the Budget actually should be -- an estimate. we do not have the revenue available; taxes are not available at the beginning of the year or in November, but we actually do budget against them -- expenditures against them. Mr. Speaker, that is the issue.
Mr. Asaga 1:30 p.m.
Mr. Speaker, again, I do not want to go into this issue because then it shows that even in our budgeting system we are wrong, because supple- mentary budget should be a very rare issue. Supplementary budget should not be an annual ritual. It means that your forecasting has a problem, and it is poor. And if I were them, I would not do that kind of forecast. So Mr. Speaker -- [Interruption.]
Mr. Baah-Wiredu 1:30 p.m.
Mr. Speaker, a plan is a plan; nobody knows tomorrow; we plan. Mr. Speaker, in Britain budgets are read in March, but around December there is a pre-budget statement which is given out. The International Monetary Fund (IMF) presents two or three reports in a year. So Mr. Speaker, the budgets that we have been doing, the underlying factors, all the indicators have been properly considered. we should do it because we have got the potential to get it.
Mr. Speaker, there was a time that we
did not have any sovereign credit rating; we did not have it -- [Interruption] -- They did not have it, because their inflation rate was too bad. Their inflation was bad, interest rate was bad and everything was not good. Now, there has been a considerable improvement. He cannot tell me that last year the currency devaluted by 100 per cent. In their time, the year 2000, it devalued by 100 per cent. So Mr. Speaker, these are the realities -- [Interruptions.]
rose
Mr. First Deputy Speaker 1:30 p.m.
Hon. Kunbuor, I am not giving you the floor. The hon. Member was on a point of order. I believe you are not raising a point of order against his point of order. Have you finished, hon. Minister? [Interruption.]
Mr. Baah-Wiredu 1:30 p.m.
The Budget has been properly considered; the supple- mentary has been done. If it was not necessary, it would not have been put in the Constitution, anyway. Why do we have article 179(8)?
Mr. Asaga 1:30 p.m.
Mr. Speaker, the point that I am making is that, in a budget forecast, at least, one should be realistic in one's forecast and the deviation should not be very huge, as we are seeing now.
In any case, when the Minister talks as if he has all the facts, and that nobody else -- For example, he mentioned that only South Africa has done a euro bond; I have an article here and I would read -- “West Africa's debut, 350 million euro bond issued from a Nigerian financial institution” -- [Interruption]-- What does that mean? So when we are making statements, we have to be very careful about the kinds of statements -- [Interruption.]
Mr. First Deputy Speaker 1:30 p.m.
Hon. Asaga, will you please take your seat. I believe there is a motion on the floor; we are speaking to it. It is not a debate among the two of you, trying to browbeat the other in terms of grasp of other facts and other knowledge, no matter what it is. Let us speak to the issue on the floor.
Mr. Asaga 1:40 p.m.
Mr. Speaker, I thought that that was the path I wanted to tread. And I am just adding to Government's wisdom by saying that these are the issues that we are looking at and I thought that the Minister for Finance and Economic Planning should rather be happy that we are raising these issues so that if after this Supplementary Budget they need to sharpen certain edges then we do it together, because the Euro Bond market is not as easy as we are seeing it.
Divestiture of state assets has a lot of implications. For example, we were just talking of Agricultural Development Bank; little did we know that the Trades Union Congress (TUC) would come out with a statement that they may not support it. So I am saying that these are not very certain and we must tread cautiously when we are using them as revenues for government budget. This is the point that I am making.
Mr. Speaker, in the Budget they are also talking of the Energy Sector. That has become a big challenge and we have always said that we need to do more in the Energy Sector. But if you look at the amount of crude oil that is being bought, it is very, very huge, especially for the emergency generators. Now, it meant that the Ghana Government needed to do something so that we would not be encountering this very huge fuel cost that
Mr. Baah-Wiredu 1:40 p.m.
Mr. Speaker, I
rose
Mr. First Deputy Speaker 1:40 p.m.
Hon.
Minority Leader, do you want to make any contribution?
Mr. Bagbin 1:40 p.m.
Yes, Mr. Speaker. Mr.
Mr. First Deputy Speaker 1:40 p.m.
I thought
you wanted to make a contribution -- then leave the rest to me to decide.
Mr. Bagbin 1:40 p.m.
Mr. Speaker, I will make my contribution but usually they speak before I -- [Interruption.]
Mr. First Deputy Speaker 1:40 p.m.
I specifically insisted that there were others. On this particular case I wanted somebody else to make a contribution. So if you want to make a contribution, then go ahead. Let me for once ignore him; make your contribution. Upon the appeal made by the Minority Leader, maybe, I will give you a minute.
Mr. Haruna Iddrisu (NDC -- Tamale South) 1:50 p.m.
Mr. Speaker, thank you for your indulgence. Ordinarily, this Supple- mentary Budget should pass as a matter of course because everybody wants government business to succeed. But Mr. Speaker, in contributing to this motion I heard the hon. Minister for Finance and Economic Planning make reference to South Africa and the novelty of wanting to raise money through such facilities as the US $750,000,000.
I have with me here the Constitution of the Republic of South Africa. Mr. Speaker, when it comes to approval in respect of loans, the character form of South Africa is different from Ghana; and that must be established. If he so wants I will give him the specific reference.
But Mr. Speaker, I am saying so because I want to raise a matter on constitutionality. I want to crave your indulgence to read article 181 (4) (a) of the Constitution of Ghana and in doing so to say that, we need to do more with this Supplementary Estimates rather than just rush it through because Government needs additional funding. Mr. Speaker, with your permission I read:
“181 (4) An Act of Parliament enacted in accordance with clause 3 of this article shall provide --
(a) that the terms and conditions of a loan shall be laid before Parliament and shall not come into operation unless they have been approved by a resolution of Parliament.”
Mr. First Deputy Speaker 1:50 p.m.
Hon.
Member, I believe you were, outside when this item was being debated.
Mr. H. Iddrisu 1:50 p.m.
Mr. Speaker, I have
been here throughout.
Mr. First Deputy Speaker 1:50 p.m.
Hon.
Mr. H. Iddrisu 1:50 p.m.
Mr. Speaker, the
fact that hon. Dr. Kunbuor raised it -- It is Kunbuor. I have a different opinion on this matter, not Dr. Kunbuor's view. He has expressed it. I listened to their explanation. They said South Africa -- and I am telling you that I have the South African Constitution here.
Mr. First Deputy Speaker 1:50 p.m.
Hon. Member, raise the issue you want to raise.
Mr. H. Iddrisu 1:50 p.m.
Mr. Speaker, I am
saying that in respect of the loan, I do know that when we get approval for the Supple-mentary Budget we will come to a loan, which loan is what will be used to fund the Supplementary Budget. And Mr. Speaker, let me refer you to their Supplementary Estimates. It is very, very worrying that in a matter of this nature they are not depending on tax revenue.
They know that the most reliable source of funding any activity under government obligation is tax revenue. In this case,
Prof. Gyan-Baffour 1:50 p.m.
On a point
of order. Mr. Speaker, I think the hon. Member is misleading everybody. What is before us now is not the loan. What is before us now is the Supplementary Budget. So if he has any question or issue about the loan, can he please reserve it till the appropriate time. This is about the Budget. Let us approve the Budget and then the loan comes in.
But Mr. Speaker, saying that the most reliable source of revenue is taxes, I do not know what he means by that. Taxes, we will have to go and collect; right? And of course, this divestiture and dividends come in without anybody making any effort at all. So to say that it is the most reliable, I do not see where the reliability is coming from.
Mr. H. Iddrisu 1:50 p.m.
Mr. Speaker, may I refer to page 9 of the Supplementary Estimates of the Budget Statement and to bring the hon. Professor and Deputy Minister at par with the discussion going on. They should read their projected additional receipts in the very first column. They are saying that capital market borrowing, US $375,000,000 from divestiture. This is what they anticipate as their revenue in order to fund the Supplementary Budget and the activities defined in it. So my comments are more than relevant to the debate that is going on.
I am saying that, Mr. Speaker, with your indulgence, even with the divestiture receipts -- and that is where I want to premise my comments on. They are saying that they anticipate, and Mr.
Speaker, may I quote paragraph 23 of the heading on receipts -- Mr. Speaker, the main source of revenue to fund the additional expenditures are inflows from the divestiture of Ghana Telecom and westel.
Prof. Gyan-Baffour 1:50 p.m.
Mr. Speaker,
I think the US$375,000,000 that he is referring to is not from divestiture. It is actually coming from the capital market. So I do not know what he is confusing everybody with. We are not going to get it from divestiture; we are not going to get it from where -- [Interruptions.] He never said we are not going to get it from divestiture.
Last year when we submitted the Budget we anticipated this and we have been working on it day in, day out, so we are quite sure that we have reached a point where we can actually access this; and that is why we are bringing it before you. We do not just get up and bring anything to you. If that were the case we could have brought it six months ago. We are bringing it now because we are very sure that we are going to have this access. That is why we are bringing them here.
Mr. H. Iddrisu 1:50 p.m.
Mr. Speaker, I was
just drawing attention to the expectation. If you read paragraph 3 of the Supple- mentary Estimates and in particular paragraph 26, what we anticipate to get from the divestiture of Westel and Ghana Telecom -- Mr. Speaker, as Ranking Member on Communications Ghana Telecom is not and cannot be valued at anything less than one billion US dollars even by -- I am happy the former Minister for Communications is here. Now, if you take one billion dollars, by the words of
Mr. H. Iddrisu 1:50 p.m.


the Minister for Presidential Affairs, only last week they anticipated that they would download some 66 per cent of GT shares.
rose
Mr. First Deputy Speaker 1:50 p.m.
Hon.
Ayariga, are you on a point of order?
Mr. Ayariga 1:50 p.m.
Mr. Speaker, I want to
seek your guidance on an important matter regarding what we are debating. Mr. Speaker, he is moving to a second topic and that is why I must intervene.
Mr. First Deputy Speaker 1:50 p.m.
He is
moving to what?
Mr. Ayariga 1:50 p.m.
Mr. Speaker, he is
moving to a second issue. We were discussing the international capital market.
Mr. First Deputy Speaker 1:50 p.m.
we are
not discussing that; he is making his contribution.
Mr. Ayariga 1:50 p.m.
No, Mr. Speaker. I am
seeking your guidance on this issue so if you may permit me.
Mr. First Deputy Speaker 1:50 p.m.
what is
the issue you want to raise?
Mr. Ayariga 1:50 p.m.
Mr. Speaker, I want your
Mr. First Deputy Speaker 1:50 p.m.
But that
has been said on this floor. That is exactly what has been explained. Were you paying attention?
Mr. Ayariga 1:50 p.m.
Mr. Speaker, I listened
to the Minister for Finance and Economic Planning and what I heard him say was that this is a new area. He referred to South Africa as the only country in Africa that has ventured into that area, and Ghana is now venturing into that area -- [Inter- ruption] -- And Mr. Speaker, I want us to be clear; is he saying that because it is a new area we do not have a regulatory framework that should guide us as to how to get into that area?
Mr. First Deputy Speaker 1:50 p.m.
Hon.
Member, are you asking me the question or you are asking him the question? Is that the direction you want?
Mr. Ayariga 1:50 p.m.
If you are minded, Mr.
Speaker, to ask the Minister for Finance and Economic Planning to clarify to us exactly what procedure he intends to adopt in relation to this area which he himself admits is new. That way we can all take a collective decision.
Mr. First Deputy Speaker 1:50 p.m.
Hon.
Ayariga, at the appropriate time, please file a question on that. Hon. Member for Tamale South, I am giving you one more minute to wind up.
Mr. H. Iddrisu 1:50 p.m.
Mr. Speaker, thank
you, but I want to say that on important matters such as this we should have enough time to thoroughly evaluate it and deal with the matter.
rose
Mr. First Deputy Speaker 1:50 p.m.
Hon. Kan-
Dapaah, is there any problem?
Mr. Kan-Dapaah 2 p.m.
Yes, Mr. Speaker. I thought it would be useful if I could come in by way of point of information because I thought it would clarify -- [Inter-ruptions.]
Mr. First Deputy Speaker 2 p.m.
Hon. Member, I have given you the floor. Maybe, when you give the information, I would be in a position to come back to hon. Ayariga.
Mr. Kan-Dapaah 2 p.m.
Mr. Speaker, I have
been talking to hon. Sallas-Mensah and we sort of agreed that this is an area that we all have to study and explore further. But I think it is important to point out that what we are doing with this is no different from what we had done whenever a Budget had been presented to this House.
Mr. First Deputy Speaker 2 p.m.
Hon.
Kan- Dapaah, I believe that point has already been made. Hon. Member, I said I wanted to give you one minute. So you have a minute.
Mr. H. Iddrisu 2 p.m.
Thank you, Mr.
Mr. First Deputy Speaker 2 p.m.
Hon. Members, it is about 2 o'clock and just a little more -- about fifteen minutes extension to deal with the issue that we are on now because it is already getting to 2 o'clock. I am telling you that the extended
Sitting is getting on.
Mr. H. Iddrisu 2 p.m.
Mr. Speaker, what
Government anticipates to get from the divestiture of Westel and Ghana Telecom (GT) in my view is abysmally low and they must relook at it. GT is not worth less than $1billion and if you are divesting up to 66 per cent of it, that alone should be able to bring $500 million they expect from the combined effect of the sale of Westel and GT is the point I wanted to drive home. You cannot divest 66 per cent and with something expected from Westel you would still be getting something in the region of $500 million.
May I refer you to paragraph 19, pages 4 and 5 of the Supplementary Estimates -- There is a paragraph on African Union and AGOA and they have brought these Supplementary Estimates pursuant to article 179 of the Constitution of Ghana.

Mr. Speaker, let me read the last sentence of paragraph 19 for you. Mr. Speaker, with your permission, I quote:

“An amount of $95.4 billion is needed to pay for the preparation and the hosting of these two international meetings.”

They are over, what monies do they need for what preparation and for hosting what?

They should have known and they should have anticipated that and I am
Mr. First Deputy Speaker 2 p.m.
You must be landing by now.
Mr. H. Iddrisu 2 p.m.
Subsidies to VRA
for VALCO -- what are they subsidizing VALCO for? A few years ago, they were here telling us that it was condemnable that the NDC left a huge debt subsidizing TOR. Today, they have abandoned that principle and value and they are putting in $19 million for non-functioning VALCO. They must give us an explanation.
Is VALCO working? Why are we sending $19 million there? And they want us to approve it for them -- It is here; it is stated -- ‘subsidies for VRA, for VALCO and NED'. There are many questions around this Supplementary Estimates that we need to look at. I have no problem even with the stadia; they came here and got approval.
Mr. Speaker, finally, I have with
me here, the estimates when we were approving allocation for the Ministry of Energy. They asked for an approval -- to quote the then Deputy Minister for Energy, Mr. K. T. Hammond -- $2.5 trillion and for supplementary they want $8 trillion.
Their supplementary -- If they were eating, they did not provide enough to begin with. Now that the person says he is not satisfied, they are giving more than they gave him as his actual meal; it is not acceptable.
Mr. Speaker, on the energy crisis, we
are demanding that they must come back and give this House a report. When they came for the $2.5 trillion their argument was that they were expecting $1.5 trillion from Multilateral Debt Relief Initiative. They should come and tell us that it has not come, they have not gotten the money and now they want to proceed and rely on loans; then we can understand them.
But we would not give them an additional money when they have not demonstrated to -- [Interruptions] -- Mr. Speaker, by saying ‘we', they well know that we are the representatives of the people. The people of Ghana will not give them additional money to add to the $2.5 trillion when it is un accounted for and you are asking for $8 billion.
Mr. Joe Ghartey 2 p.m.
On a point of order. Mr. Speaker, the hon. Member who just spoke used the word ‘we' and
people asked that ‘you and who?' and then he replied that ‘everybody knows that we represent the people of Ghana'. Mr. Speaker, he represents the people of his constituency; I represent the people of my constituency. The people of my consti- tuency have a completely differently view from his, and so he should talk about his constituency. But I assure him that even in his constituency, there are people who will disagree with him.
Mr. H. Iddrisu 2 p.m.
Mr. Speaker, I am ending on a very interesting note and to remind the Attorney-General that we swore an oath to defend this country and I am here in Parliament speaking on behalf of the people who elected me and even those who did not. I have an obligation to the people of Ghana.
We are saying that ‘account for'. Let the Ministry of Energy come to this House and account for whether or not they got the $2.5 trillion, how they invested it, all the emergency initiatives they were to take -- We need to know. If the multilateral debt has not arrived, and they now want to switch gear and move towards a loan, they should say so.
Mr. Joe Ghartey 2 p.m.
Mr. Speaker, with the greatest of respect and also respect to my dear Collague, I take article 88 of the Constittuion very seriously. He says that we swore an oath to defend the Constitution of the people of Ghana. Is he suggesting that what I said is subversive? Indeed, he has to apologise and withdraw.
I am the Attorney-General and so if he says after I make a comment, that we
Mr. Bagbin 2:10 p.m.
On a point of order. Mr. Speaker, the hon. Minister for Justice and Attorney-General misunderstood every-thing that hon. Haruna Iddrisu said because he challenged his use of the word ‘we'. So he was trying to let him understand that the ‘we' was used in the context of the fact that we swore an oath here to defend the people, not the statement that the hon. Minister made. That was why he raised the issue. So, Mr. Speaker -- [Interruption.]
Alhaji A.S. Boniface 2:10 p.m.
Mr. Speaker,
Mr. First Deputy Speaker 2:10 p.m.
Hon.
Bagbin, I thought you were on your feet.
Alhaji Boniface 2:10 p.m.
Mr. Speaker, I
thought you called me; he sat down.
Mr. First Deputy Speaker 2:10 p.m.
Very well, you are now on your feet. Do you want to make an intervention or are you raising a point of order?
Alhaji Boniface 2:10 p.m.
Mr. Speaker, I
am raising a point of order against the Minority Leader. My point of order is that he said the hon. Attorney-General and

Minister for Justice did not understand hon. Haruna Iddrisu. we are in a state of ambiguity. If hon. Haruna Iddrisu or he thinks that this hon. Member is thinking some way, he is also thinking that hon. Haruna Iddrisu is thinking another way.
Mr. First Deputy Speaker 2:10 p.m.
Very well,
you disagree with him. Let him continue.
Mr. Bagbin 2:10 p.m.
Mr. Speaker, the
Mr. First Deputy Speaker 2:10 p.m.
Order.
Hon. Members, let us have some order here. The hon. Minority Leader is on his feet so please, let us listen to him.
Mr. Bagbin 2:10 p.m.
Mr. Speaker, we definitely
agree with Government that there is the need for us to have additional funding in the form of a Supplementary Budget to cover the gap in financing some of our projects for the year.
Mr. Speaker, the objections that are
being raised are to make sure that we do not misuse the instrument of supple- mentary budgeting. There are a lot of the items mentioned here which should have been anticipated because they were known to have been programmed for this year and that moneys should have been allocated for those activities in the main Budget.
Mr. Speaker, if the moneys allocated in
the main Budget are insufficient then they could come back with the Supplementary Budget and try to convince this House to approve more for them to complete that.
That has not been the case and that is why some of these objections are raised. These are activities that were known long before and nothing was done about them.
Mr. Speaker, there is another area that
I thought we should have tackled first. I thought we should have taken the motion on item 31 on the Order Paper, when we had approved and known the source of the funding. I am stating my position. Then in the Supplementary Budget we know that these are areas that we have agreed upon for the Government to go to for moneys to use as the supplementary budget funds. That is the view that I was holding but I am told that some hon. Members preferred us approving the Supplementary Budget first before going to the source of funding.
Mr. Speaker, my Colleague the hon.
Minister for Finance and Economic Planning did indicate that this is a new area and they would want us to try to fashion out a clear procedure of how to handle this venture into the international capital market and as a tool for, even possibly, not just supplementary budgeting but also funding our major Budgets.
It is an area that definitely in this country, is not properly developed. Even we have had to always discuss the procedure for handling supplementary budgets and I think that this procedure we are ironing out could be clearer, more transparent and a better procedure of handling the Supplementary Budget.
I just want to request from my colleagues in the Ministry of Finance and Economic Planning and Government to try as much as possible to make a little bit more available information on the status of the main Budget. We should know more about the main Budget. How come that we are coming for a supplementary? This is because we have had this amount; we have used this revenue; we are not meeting the budgeted figure or we have generated more money, excess revenue, and we need to use it for one, two, three areas. We need
to have that kind of information.
When new areas are proposed then there is a problem with the provisions of the Constitution. We have to look at them carefully. These are controversial areas. So we will want to urge that the hon. Minister for Finance and Economic Planning and his able deputies should look at that area critically.
Again, as stated by hon. Haruna Iddrisu, anytime we approve any loan or credit facility for the Government and they are unable to access it, it is important that we get information on that inability. So we know that even though we have approved and authorised them to go to this area for this facility, they have not been able to access it.
We know that there is a problem of processing some of the authorisations that we have given them, especially some of the loans that we have raised questions on. when they are unable to do that they should please inform the House. We all want to, as much as possible, enhance the culture of transparency, openness and the democratic culture that we want to cultivate to get this country moving faster than we are doing.
Mr. Speaker, I have gone through the Supplementary Budget. I see that the areas that are being mentioned are very, very critical and dear to the heart of Ghanaians. The issue being raised would be seen in the eyes of Ghanaians as technicalities. They want to see development, they want to see things move. It is these technicalities that we also use to try to protect their interest and therefore it is important that we raise the technicalities from time to time to make sure that governance is more transparent.
So we will insist that even with the
approval of the Supplementary Estimates, anytime that Government proceeds to access any of the facilities, the loan agreements be brought to this House with clear additional information that will convince this House that we are getting this amount and we are using it for this purpose. It is very, very important.
I recall that either the hon. Minister or his Deputy, in response to an issue hon. Dr. Ben Kunbuor raised, assured the House that these loan agreements would be coming to the House again for deliberations and approval. We hope to see them before us. In fact, that is why initially I raised the issue that there was no need to bring this matter because it was raised already in the main 2007 Budget and therefore what was needed after our approval was the individual loan agreements that they had to bring forward to us.
That is the time that we need to, once again, debate and approve them but this time we are going to do it three times. After approving them in the main Budget, they have come again with them in the Supplementary Budget; they would be bringing the loan agreements again, the third time and I think that the cost involved in doing all this is not prudent and we should not continue it. 2. 20 p.m.
The Supplementary Budget is, I can
say, a welcome development; we have the stadia that are dear to the hearts of Ghanaians. We would want to see them improved but I just want to plead with my hon. Colleagues that when you continue to overflog the supplementary budget instrument, the provisions become ineffective and it also gives indication of your projections. It is not every year that you should be coming with supplementary budgets; it is not a good thing.
I think your budgeting should be such
Mr. Bagbin 2:10 p.m.


that you can estimate to know that we can get this -- Once in a while, yes, but we should not get a supplementary budget every year.

With these comments I support the motion.
Mr. Kwadwo Baah-Wiredu 2:10 p.m.
Mr.
Speaker, whenever you are looking at a budget, you look at two sides, the receipts side and the spending side. Whenever it is possible to get extra money, then you have to do so. I think the provisions of article 179 (8) are very relevant. No deadlines were given when the Constitution was being made and you need to supplement whenever it is necessary.
Mr. Speaker, as a Member of
Parliament, I like the idea of being here almost everyday to provide the appropriate information, I enjoy it like any other hon. Member of Parliament and we shall always be here to provide the appropriate information.
On the issue of the state of the economy in the mid-year, I think we are in the process of doing that; the first draft is ready and we have discussed it with hon. colleagues. But I wanted us to get as much information as possible. So those points have been well taken.
The other issues raised are also there because you cannot separate completely the international capital market and the supplementary as we are doing now. We are all used to borrowing from the bilaterals and the multilaterals and more often than not the terms and everything comes before we approve everything and go in for the loan. But in going to the international capital market, the investors would obviously like to see that we have the working document, we have the approval and when the details come, obviously we shall come back.
So we should all rest assured that we
shall provide as much information as possible. But under no circumstances should anyone of us think that by presenting a supplementary budget, it means that you did not understand your estimates. Never! That one can be subjected to a different debate altogether but I believe that when the money is available -- because we have to be very, very careful to make sure that there is a certainty with regard to the receipt side of it.
That was why some of the information needed to be delayed. So I just want to assure hon. Members that the points raised are valid and we shall always provide the appropriate answers and as hon. Members of Parliament we shall always be here to give the details.
There is nothing barring us as hon. Members of Parliament, even at the level of the committee system, to invite hon. Ministers, invite directors and others. When I was a Member of the Public Accounts Committee, we used to invite even headmasters to come here. So we have to do it and there is nothing preventing us. There is the need for transparency and accountability and we are all for it.
So Mr. Speaker, I thank hon. Members for the contributions and I believe that we shall always be making some progress.
rose
Mr. First Deputy Speaker 2:10 p.m.
Dr. Kunbuor, are you rising on a point of order? He has already landed -- [Interruption.]
Mr. E. D. K. Adjaho 2:10 p.m.
Mr. Speaker, I just want the hon. Minister to clarify one point before you put the Question; and that is with regard to the US$171 million that we approved for VRA last year. I just want to know whether it is different from the figures that have been quoted in the Supplementary Budget. That is all, Mr.
Mr. Baah-Wiredu 2:10 p.m.
That was the multilateral debt relief for 2007 which was given to them, to the Ministry of Energy. So that money was allocated to the Ministry of Energy. That is the money from the International Monetary Fund (IMF), the World Bank and African Development Bank (ADB) for 2007. So it is different from what we are providing and I think they have provided all the details of their requirement -- It is unfortunate we do not have copies -- from Electricity Company of Ghana (ECG) and VRA and the Ministry of Transportation. So if you did not get copies, we shall always provide all those details.
Question put and motion agreed to.
Resolved accordingly.
Mr. First Deputy Speaker 2:10 p.m.
Hon. Majority Leader, I want to be guided.
Mr. A. O. Aidooh 2:10 p.m.
Mr. Speaker, let us go on to item 31.
Mr. First Deputy Speaker 2:10 p.m.
Hon. Members, we turn now to item 31 which was started and had to be deferred.
GOG/International Capital Market Medium-Term Investment Plan
Nii Adu Daku Mante: Mr. Speaker, I
Mr. Bagbin 2:10 p.m.
Mr. Speaker, just a preliminary objection to that motion. I believe strongly that if you look at the motion and the report from the Committee, you do not need that kind of approval from us in Parliament -- the report of the Finance Committee on the request of the Government of Ghana to access the International Capital Market to raise
up to US$750 million to support the implementation of medium-term invest- ment plan.
This is a matter that was put in the 2007 Budget which we approved as a House. So you do not need to come back to us again on that issue. It is when they are accessing the loans that they have to come back with the specific terms on the loan agreement and the rest for us to look at.
Mr. First Deputy Speaker 2:10 p.m.
Your
position on the matter is that it is superfluous; is it not so? Hon. Minister for Finance and Economic Planning, what do you say to that?
Mr. Baah-Wiredu 2:10 p.m.
Mr. Speaker, these
are some of the terms which must precede the entry. There should be evidence that, before the sovereign House, it has been presented. At the time that we were presenting the Budget we got some information but now we have been able to get even the lead managers and you need to know. The councils -- and it is in the report -- [Interruption] -- that one can be left to the Leadership of the House and as far as we are concerned, I think we are ready to move on. So let us agree.
Mr. A. O. Aidooh 2:10 p.m.
Mr. Speaker, this
issue was discussed but the view that prevailed was that approval given in the Budget contained no parties; there were no parties and terms were in the agreement. Except that they were authorized to borrow up to US$750 million; but there were no terms. The Loans Act has provision to the effect that the House can give this approval. And my view is that because the terms given would vary, we are given a range in the terms to borrow within.
When they have gone and obtained the specific terms we have to give another approval. That is my view. But the Act also empowers this House to give an approval upon which they would proceed to give the parties and then that would

contain the range of the terms and when they have gotten the specific ranges they come back for another approval. That is what the Loans Act says.
Dr. Benjamin Kunbuor 2:30 p.m.
Mr. Speaker, to be honest with you, almost all we are talking about in this Report that we want to consider could have been done administratively or even by a statement. Pursuant to the Budget by the hon. Minister for Finance and Economic Planning, it could have been stated that based on what we have done we are now proceeding to go in.
This is because paragraph 2 talks about the Committee's meeting to consider an agreement. An agreement between who and who? There is no agreement that we are considering. Particularly, if you go to page 3, it has been stated, the fact that you have joint lead managers and that you have an issue format, you have your period of maturity; and all these are the basic essentials of going into the capital market. These are not the terms for each specific chunk of capital that we are going to raise.
If they had brought something like an agreement to enter into with, say, Citi Bank, UBS in terms of the responsibilities and obligations arising out of appointing them as joint lead managers, then we could even consider that. But as at now, what is the agreement between who and who? What we just want is the authority to go into the capital market; and we already have that authority. I do not know how we are going to come out with this as an agreement that the Committee has considered. It cannot be an agreement.
But I suspect that it is perhaps because the capital market, as I have always known, particularly the private capital market -- [Interruption.] The difficulties,
as we all said, that we are venturing into the unknown -- and I can guess that is what is triggering off this situation. Because when an individual enters or a private company enters the capital market, it is very clear as to the type of regime he is going in to, the type of disclosure regimes he is going to be exposed to.
For a sovereign country it is likely to be a bit more complicated because they would want to have a number of assurances. Because what they can do with a defaulter of an individual as against a sovereign state are completely different and so the measures are bound to be stringent. And that is why we are saying that in the national interest, they should proceed with the mechanics. Go in with the first one and let us see what the terms are, bring it to this House, we would get it through and then eventually it guides us even perhaps to revise this format that we are having.
But if we go ahead and say there is already an issued format but we have not seen it, you already assume that there is a joint lead managers and Parliament has no role in the appointment of the lead managers, and on what computations or analysis you arrived at the five to ten years maturity period, one is not too clear then -- You cannot have a maturity period from five to ten unless you have done a serious analysis of the type of financial instrument that you are going in for; and they vary in the international market.
That is why we are saying that we need to get the specific instrument that we are dealing with and then when you bring it to the House, all of us would be the better for it in deciding how we proceed from there. Otherwise, if we proceed as if we are entering into an agreement coming under, as the Committee report suggests, article 181, I am not sure this really falls properly under article 181 -- [Inter-ruption.] I am
Mr. First Deputy Speaker 2:30 p.m.
Hon.
Member, have you finished?
Dr. Kunbuor 2:30 p.m.
Yes.
Mr. P. C. Appiah-Ofori 2:30 p.m.
Mr. Speaker,
on a point of order. Mr. Speaker, section 7 of the Loans Act states that the terms and conditions of loans being contracted by the Government must be laid before Parliament for approval; and this was lifted and brought into the Constitution in article 181. Now what is before us, is it a loan? In my opinion it is not. But if we are considering, Mr. Speaker, that when you are trying to transact an international business and the matter is being brought -- it is a different thing.
But if we are treating it as a loan, then it is yet to be a loan. If we have given approval in the Budget, it does not conclude that we should go and contract a loan. It is when we have actually assessed and reached an agreement that they would bring the terms and conditions before us for consideration. So it is my considered opinion that we should take action and let us get the terms and conditions as a form of loan before we consider it.
Mr. E. K. D Adjaho 2:30 p.m.
Mr. Speaker, I
believe that there is a general government policy in terms of entering the International Capital Market, that has been announced as government policy. There is no problem with that; that policy has been approved as part of the financial policy of Government.
The duty of this House is very clear under article 181 and under the Loans Act. Is there any agreement before us? Who are the parties to the agreement? What are the specific terms of the agreement?
Alhaji. M. A. Yakubu 2:30 p.m.
Mr. Speaker, it appears things are going the reverse direction. Usually, it is Parliament that will cry that certain actions are taken without the permission of Parliament. Now, it is the hon. Minister who is bringing to Parliament matters that he thinks we should get Parliament involved in and then Parliament is saying no.
I think there is no problem in view; I think a greater laxity is being given to the hon. Minister that he can go and source anything. The general principle is that that is acceptable, that is lawful. It is only when there is a specific loan that should be brought, that it should be brought before the House.
So I think the hon. Minister for Finance and Economic Planning should be happy that it is agreed in the House that he has the authority to do that, that he has no ropes tethering him. I think that we should easily agree on this.
Mr. Moses Asaga 2:30 p.m.
Mr. Speaker, I think
that I am following the same trend that the hon. Second Deputy Speaker is following. I would like to re-emphasize the fact that the hon. Minister is going now to do all the negotiations, come back with fair terms

and conditions and then when they come back we are going to approve it. We know that this is a novelty; it is innovative and, of course in 2009, we would pursue it also. Therefore, there is no problem at all. So Mr. Speaker, you can put the Question.
Mr. A. O. Aidooh 2:30 p.m.
Mr. Speaker, the
House's position is carried in the form of legislations and the House authorizes things to be done in a like manner. Mr. Speaker, the approval given in the Budget is not the equivalence of the House's resolution in this matter, so whatever it is, if I may say, whatever it is worth, let us, Mr. Speaker, err on the side of caution and give the Minister express authority. Mr. Speaker, let us arm the hon. Minister with express authority by way of a resolution of this House, to authorize him to go for these negotiations.
I therefore would suggest, Mr. Speaker, that in spite of the document that was circulated, the body of the legislation does not make reference to any of the company managers. It ceases to equip the hon. Minister with the authority to enter the market and borrow the sum specified. I would therefore suggest that this House proceeds and resolve as such so the Minister may venture into the market with express authority.
I also understand, Mr. Speaker, that there is the need for this as a requirement, as a condition and therefore, Mr. Speaker, it costs us nothing. So let us resolve that the hon. Minister is empowered to enter the market and borrow these sums. I would therefore suggest that we allow the hon. Minister to use our resolution and have our support.
Mr. First Deputy Speaker 2:40 p.m.
Then I
will put the Question --
Mr. A. O. Aidooh 2:40 p.m.
Mr. Speaker, the motion was not fully moved before there were objections by our hon. Colleagues.
Mr. First Deputy Speaker 2:40 p.m.
Hon.
Mr. Kyei-Mensah-Bonsu 2:40 p.m.
Mr.
Speaker, the point he was making was that the hon. Member was on the floor imploring this House to adopt the motion and thereafter the resolution when he was stopped right in the middle by the Minority Leader who intervened. So let him move the motion before you put the Question. That is what the Deputy Majority Leader is saying.
Mr. First Deputy Speaker 2:40 p.m.
Very
well, I thought we have already debated the issue, but if you want to formally move the motion so that we pass the vote on it then let me go ahead.
Mr. John Mahama 2:40 p.m.
Mr. Speaker, a
preliminary objection was raised to which you did not give any ruling. What we said was that it is superfluous if they are coming under the Loans Act. Maybe they can come under some other authority to seek our permission. Under the Loans Act there is no agreement. The Committee's report says, “to consider the agreement”, Which agreement? There is no agreement before this House.
Mr. Speaker, they are just saying we should adopt the Committee's report under the Ministry's request. The powers of Parliament are very important and they must be used judiciously and prudently to do the right thing. Mr. Speaker, the Minister has the right to enter into any market he wants to, to look for loans. All that we are saying is that when he gets
those loans, he should bring the terms and conditions here and let us approve them. That is all.
He is telling us, “give me permission to” -- When he goes to Japan or China to look for money do we give him permission? We do not give him permission. When he finds the terms and conditions he should bring them and we would approve them for him.
Mr. A. O. Aidooh 2:40 p.m.
Mr. Speaker,
section 11(1) and (2) of the Loans Act states and with your permission, I may read:
“1. The National Assembly may, if it thinks fit, by resolution approve from time to time standard terms and conditions of agreements for the purposes of sections 7 and 10 of this Act and up to such limits as the National Assembly may by resolution prescribe.
2. where the National Assembly has approved any terms and conditions under sub-section (1) of this section, any agreement entered into by the Government in the terms and conditions so approved and within the limits prescribed of the National Assembly shall come into operation in accordance with its terms and without the need for further approval of the National Assembly.
3. The National Assembly may, notwithstanding anything in this section, by resolution request that any particular agreements or classes of agreements shall be brought before it for further approval before they shall come into operation and no agreement
in respect of which such a request has been made shall come into operation without such approval. . . .”
Mr. Speaker, therefore this exercise we are doing falls squarely under the Loans Act, especially sections 11 (1), (2) and (3).
Mr. Adjaho 2:40 p.m.
Mr. Speaker, I have
Mr. A. O. Aidooh 2:40 p.m.
Mr. Speaker,
when we speak of standard terms and conditions, we do not talk about parties. Those standard terms and conditions can then apply to any party. You do not have to have a party in your mind before you set common standards and conditions or terms.
Mr. Adjaho 2:40 p.m.
Mr. Speaker, section
11(1) which he has quoted is on the Order Paper. It talks about agreements and when you are talking about agreements, there must be parties to agreements. Who are the parties to the agreement? That section 11(1) of the Loans Act mentioned agreements and when you are talking about agreements, there must be parties to the agreements. Who are the parties to the agreement which is before us now?
Mr. A. O. Aidooh 2:40 p.m.
Mr. Speaker, I am sure my hon. Colleague does not understand what I read. I said that what the situation requires is that this House must set standards, terms and conditions after we come to agreements. For this section to be done, there is no need for an Agreement. These are the terms that you
Mr. A. O. Aidooh 2:40 p.m.


fit into the agreement, so we do not need a party.

So there is no need for any agreement; these are terms and conditions that would help you have an agreement. For instance, you do not need parties; what we need is to set terms and conditions which would then be used to form an agreement. It is that point that we need parties, not before then.
Mr. Kwadwo Mpiani 2:40 p.m.
Mr. Speaker, both sides of the House agree that this is an innovation; it is the first time the country has decided to go to the international market to borrow. At this stage, you do not know which banks or institutions would subscribe to the loan we want. We are not the first country to do this. It is a process and Mr. Speaker, all what these international institutions ask is that a country which is coming to borrow from the international market should have a resolution of its Parliament, that they have the power to come and borrow.
Mr. Speaker, even though I am not a lawyer, if you look at article 181(5) of our Constitution -- I believe the framers of our Constitution realised that the situation of this nature can arise and that is why they gave Parliament the power to modify if something like this happens.
Dr. Kunbuor 2:50 p.m.
Mr. Speaker, the hon.
Minister is misleading this House. Nobody has come to this House to proceed under article 181(5). The report that we have is actually proceeding under article 181 and so when he is shifts the front here, there is a problem. But why this difficulty has arisen is just a very simple matter.
With reference to section 11 of the Loans Act, if we had before us a committee's report that was requesting us to set terms and standards for venturing into the private capital market, all these issues would not have arisen. But where they are having a problem is proceeding
under an inappropriate area and des- cribing it as an agreement, without parties.
So if you agree that there is a statutory use of some specific terms, standards and terms, what makes it so difficult actually repeating those in this rather than wanting a resolution for standard terms for this type of arrange-ment that we are going into?

As the hon. Minister was saying, it is indeed a virgin territory for Ghana. That is the more reason why the terms and standards ought to be set by a parliamentary resolution. So if you proceed on this committee's report, you are unlikely to achieve what you want. So what they should do is to, perhaps, simply withdraw it, and come properly under section 11 and the matter is finished, instead of all these heat that we are generating.
Mr. Baah-Wiredu 2:50 p.m.
Mr. Speaker, I
think at the committee meeting at Golden Tulip, I made it very clear that this one will come under 181 (5) because really you will get the money on the day that you go to the market. This is not like going to Exim Bank or the World Bank and sitting down to negotiate with them. Some of the terms are the purpose for which you want to use the money, that is, the infrastructure.
I think you have the lead managers like City Bank and UBS. The issuer -- one of the parties -- is Ghana Government (the Republic of Ghana) and then the maturity period normally is a range of 5 - 10, subject to market conditions.
Mr. Speaker, even there is an indicative rate of 6.625 per cent to 6.75 over a certain period. These things are there and they are broad, and that is why the modifications are necessary. So what is needed now is that we need the resolution to assure everybody that this is representing the sovereign country -- Ghana. But normally, the terms and conditions which we are used to under
Mr. First Deputy Speaker 2:50 p.m.
Hon.
Members, I think it has been a ding-dong thing. Someone raised an objection to that and I am obliged to make a ruling one way or the other.
I have listened to the arguments. You all agree that this is an uncharted area; we are making a move forward. This is the strategy, or I will say, the format that has been brought before us. We all agree that it is non, strictly speaking, very committal, in the sense that whatever happens, at the end of the day, it will be brought before this House.
It is a way forward, and just as the hon. Second Deputy Speaker specified, we as Parliament should be in a position in our oversight role to encourage the Executive to bring all information, all documents and all activities for us to scrutinise. At this particular moment, I believe if this is the way this is to come up, I will not stop it. If one is not interested in the resolution or the motion for it, one could of course, appropriately vote against it. In the interim, therefore, I would ask the Chairman to move the motion.
This is my ruling on the matter.
rose
Mr. First Deputy Speaker 2:50 p.m.
Hon.
Mr. First Deputy Speaker 2:50 p.m.
Unfor-
tunately, I did not notice.
Mr. Ayariga 2:50 p.m.
Mr. Speaker, if you
Mr. First Deputy Speaker 2:50 p.m.
Are you
going back to it or -- ?
Mr. Ayariga 2:50 p.m.
Mr. Speaker, with your
Mr. First Deputy Speaker 2:50 p.m.
I am allowing you by my kind permission, yes.
Mr. Ayariga 2:50 p.m.
Mr. Speaker, thank you.
Mr. First Deputy Speaker 2:50 p.m.
Hon.
Member, if you are going back to it; you are out of order.
Mr. Ayariga 2:50 p.m.
Mr. Speaker, let me
finish. Mr. Speaker, unless I finish you would not know what I am going to say.
Mr. First Deputy Speaker 2:50 p.m.
Hon.
Ayariga, I say you are out of order. Take your seat and let us continue. Honestly, I have gone through this and we have listened to it, and I have tried as much as possible sitting here to see through the pros and cons of it. And I think I honestly want to say that this is what I have arrived at. Hon. Chairman of the Committee?
GOG Request to Borrow from International Capital Market (ICM)
  • [Debate resumed from column
    • rose
    Mr. First Deputy Speaker 2:50 p.m.
    Hon. Member, he is moving a motion and you are raising a point of order, I believe. What is your point?
    Dr. Kunbuor 2:50 p.m.
    On a point of order. Mr. Speaker, this particular report is proceeding under an inappropriate order of this House. And one cannot -- What we have in this report is neither an agreement nor a financial transaction.
    Mr. First Deputy Speaker 2:50 p.m.
    I have heard your argument.
    Mr. Kyei-Mensah-Bonsu 2:50 p.m.
    Mr. Speaker, my hon. Colleague, I believe, is completely out of order. A motion has been moved but it has not been seconded. So what is before the House? Mr. Speaker, clearly, there is nothing before the House for him to object to.
    Mr. First Deputy Speaker 2:50 p.m.
    Hon. Kyei-Mensah-Bonsu, take it easy. I think we are all trying to exchange ideas and improve upon what we have been doing here. New issues arise, and new methods and so on and so forth -- Therefore, be a little patient to whatever anybody is saying and allow me also to rule on it. You have raised the point and I have heard your argument.
    I think it is a question of repackaging
    the argument that has gone on now. I would allow him to proceed, please. Hon. Chairman of the Committee, you were moving a motion, were you not?
    Nii Adu Mante: Mr. Speaker, and in so doing may I present to you; your committee's report. Mr. Speaker, I will read only the conclusion, and I would ask the Hansard to capture the entire report as having been read in extenso.
    1.0 Introduction
    The request by the Government of Ghana to borrow up to US$750,000,000 from the International Capital Market to support implementation of medium-term investment plan was laid in the House during the forty-second Sitting of the Second Meeting of Parliament held on Thursday, 26th July, 2006 and referred to the Finance Committee for consideration and report in accordance with article 181 of the Constitution and Order 171 (1) of the Standing Orders of the House.
    To consider the agreement, the Committee met with the Minister for Finance and Economic Planning, hon. Kwadwo Baah-Wiredu, Deputy Ministers for Finance and Economic Planning, hon. Prof. George Gyan-Baffour and hon. Dr. A. Akoto Osei, as well as officials from the Ministry of Finance and Economic Planning and reports as follows:
    2.0 Background
    Members would recall that the 2007 Budget and Economic Policy Statement announced a number of initiatives to raise resources to support an accelerated infrastructure development project to support the Government's medium-term development plan.
    with the termination of the IMF programme on October 31, 2006, the Government seeks to diversify its sources of funding by accessing the global capital
    market.
    This capital market borrowing has become necessary due to the following reasons:
    Funding sourced from multilateral and bilateral sources have long lead times from conception to disbursement;
    Concessional funding sources have limited amounts making it difficult to undertake large infrastructural projects;
    The global bond market promises to be significantly cheaper than borrowing domestically even after adjusting for possible exchange rate depreciation.
    3.0 Purpose of the Borrowing
    The purpose of the bond issue is to raise capital to undertake priority infrastructure projects including:
    Volta River Authority (VRA) power generation and transmission;
    300 Megawatt Tema Thermal Project;
    Power Transmission;
    Electricity Company of Ghana (ECG) distribution and sub- transmission network expansion project;
    230 kilometre Accra-Kumasi toll highway.
    4.0 Indicative Terms
    Issuer -- Republic of Ghana
    Joint Lead Manager -- Citi and UBS
    Issue Format -- Eurodollar
    Maturity -- 5-10 years (subject to market conditions)
    5 year coupon indicative rate as at 06/07/07 -- 6.625 per cent - 6.725 per cent
    10 year coupon indicative rate as at 06/07/07 -- 7.125 per cent - 7.22 5 per cent
    5.0 Observations
    The Committee was informed that the Ministry of Finance and Economic Planning and the Bank of Ghana have undertaken significant preparations for Ghana's entry into the global bond market. Steps already undertaken in this direction include:
    a. A Capital Markets Committee (CMC) constituted as a joint committee of the Ministry of Finance and Economic Planning (MOFEP) and the Bank of Ghana (BOG) to advise on Government's participation in international and domestic bond markets. The Committee is under the chairmanship of the Second Deputy Governor of the Bank of Ghana.
    b. The CMC has held extensive consultations with international investment bankers to establish the feasibility of Ghana entering the global capital market and received positive feedback.
    c. The CMC has held consultations with Ministries, Departments and Agencies (MDAs) on major infrastructural projects that could be funded with proceeds of the sovereign bond and has identified priority projects.
    The Committee was also informed that
    Mr. First Deputy Speaker 2:50 p.m.


    as a first time issuer, Ghana will be able to raise up to US$750 million on the global financial market as indicated by inter- national investment bankers.

    The Committee observed that in the 2007 Budget and Economic Policy Statement, the Minister for Finance and Economic Planning outlined two major initiatives towards ensuring that all projects to be financed with the proceeds of the debt have been thoroughly analyzed in economic terms. These measures include:

    The setting up of a specialized Project and Financial Analysis (PFA) Unit to carry out detailed analysis of all proposed projects and to monitor their implementation. The unit will additionally provide technical support for all government agencies initiating projects. The unit will be initially assisted by international experts.

    T h e s e t t i n g u p o f G h a n a Investment Corporation to serve as the Government's investment arm, partnering with private sector investors for infrastructure development.

    The Deputy Minister for Finance and Economic Planning, hon. Dr. A. Akoto Osei explained to the Committee that even though US$750 million is targeted to be raised, only US$375 million would be used in the first year.

    The Committee also observed that the two international banks (Citigroup Global Markets Limited and UBS Limited) were appointed as lead managers of the bond transaction through a competitive selection process under the Public Procurement Act, 2003 (Act 663).

    In order to build local capacity on major international transactions, three Ghanaian firms have been appointed as co-managers to assist the lead managers. These firms are EDC Stockbrokers, Databank Financial Services and New World Investments.

    6.0 Conclusion

    The Committee has carefully examined the request and concludes that it will help raise the needed capital to accelerate infrastructure development in the energy and transport sectors in support of an accelerated economic growth of the country.

    The Committee therefore respectfully recommends to the House to adopt this report and to approve by Resolution, the Government of Ghana's request to access the International Capital Market to raise up to US$750 million to support the implementation of the medium-term investment plan in accordance with article 181 of the Constitution, section 7 of the Loans Act, 1970 (Act 335) and Standing Orders of the House.

    Respectfully submitted.
    Prof. Gyan-Baffour 2:50 p.m.
    Mr. Speaker, I beg to second the motion.
    Question proposed.
    Mr. Moses Asaga (NDC -- Nabdam) 3 p.m.
    Mr. Speaker, even though this is a good innovation because of the procedure which is very clear, I rise to oppose the motion, and I am doing so because already we have not been given the opportunity for the supposed learning curve that we were just talking about. We are saying that the Government does not need a resolution
    from Parliament to go into the market to source funding. We are saying that we have confidence in the Ministry of Finance and Economic Planning; and we are saying that they can go ahead and get firm terms about this Euro Bond issue, and come back to us for approval. I think that that method is highly acceptable.

    Mr. Speaker, for example, I did not think that it was Parliament that gave the hon. Minister for Finance and Economic Planning the powers to go and recruit EDC Stock Brokers, Data Bank Financial Services and New World Investment. We did not give them that power. Are they telling us that by this debate, we can then tell them that we do not want, for example, New World Investment or Data Bank Financial Services and then they would agree?

    So once you have the powers, you go into the market and that is why we have Syndicated Loan Markets. So you would go and source whatever sources you have and all the consortiums that are involved and then you bring it to Parliament and then we would try to approve.

    An example of what the Government did about three or four years ago was the International Financial Consortium (IFC) Loan. When they were going into the market to source the one billion dollar facility which was from a consortium, Parliament did not give them any authority to go and look for the money. They went and looked for the money; they brought the agreement and then we approved it here.

    So Mr. Speaker, I think that the practice so far is being flouted and if we flout the practice, the Legislature with this precedence we would be hijacking what is an Executive role, and that is what I am

    speaking against; that we do not have to take the role of the Executive. Because they are in the Ministry of Finance and Economic Planning; because they are competent, they know what they can do for the good of Ghana, but if they are saying that we must empower them, then we must also be asking for very firm terms.

    For example, for someone to say that a euro bond should have a range -- [Interruption] -- But at the end of the day they do not have a range; they can have five years; they can have ten years; so if they tell me that I should give them a range to go and negotiate, what powers have I then given to them because they are still in the range? Assuming they have come back with ten years, would I say I did not ask them to go for ten years but I was thinking of five years?

    Then, Mr. Speaker, this document given to us, we do not even have the pricing of the bond for example; we do not know the face value of the bond. Is it $1,000 face value? Is it a $10,000 denomination? We do not know that. Secondly, we do not know the issue price, is it at a discount of 99 per cent? Or is it at a premium of 101 to 105 per cent? All these we do not know. Mr. Speaker, we do not even know the flotation cost.

    Normally, anytime they bring us a loan agreement, we know the arrangement fee, we know the commitment fee and others. Here we do not know the flotation cost, we do not know what is going to be the management fee, we do not know what is the underwriting fee, we do not know what is the selling concession fee. So how can we be empowering them to go blindly into the market which they themselves say they do not understand?

    I would think that it is better for Government to go into the market and get us firm conditions and terms. Also,

    [NII ADU MANTE] [NII ADU MANTE]

    sometimes, you even go negotiating and your lead manager would tell you that he could no longer support this particular transaction because of the conditions on the market.
    Mr. Mpiani 3 p.m.
    On a point of order. Mr. Speaker, I do not think the House is debating the terms of this transaction. I think when I got up I explained that, fortunately, we are not the first country to have gone into this market to find money. I said it is a precondition that we must have a resolution of our Parliament that we have been entitled to come and ask for this money.
    When we have this resolution and then when we have the terms then we come back to Parliament to say these are the terms; then Parliament would have a look at them. But nobody at this stage would be able to know the terms of such a transaction.
    Mr. Asaga 3 p.m.
    So Mr. Speaker, it
    means that all along, we were right. If this is the definition he has, that was not the information given to the Finance Committee when we were dealing with this issue and therefore -- Even the Report is inconsistent, the indicative terms he has brought to us were also not necessary and
    Mr. Baah-Wiredu 3 p.m.
    On a point of order. Mr. Speaker, all that my hon. Friend is saying is the basis for which we needed to get the resolution to move ahead. The uncertainties in the path that we are charting are very clear. In fact, we get the money the day that everything has been completed. It is just completely unlike what we are used to.
    So what we need is the resolution that, yes, it is a condition precedent; let us move ahead and do it. Because, at the committee meeting all these were brought up. At the committee meeting nobody misled the Committee. He was there; everybody was there, what did we say about it?
    Mr. First Deputy Speaker 3 p.m.
    Yes, the
    hon. Minister for Finance and Economic Planning was on a point of order, have you finished?
    Mr. Baah-Wiredu 3 p.m.
    Yes.
    Mr. First Deputy Speaker 3 p.m.
    Yes, hon. Asaga, continue.
    Mr. Asaga 3 p.m.
    Mr. Speaker, I think there is a new information from the hon. Minister for Presidential Affairs to the hon. Minister himself and to the Chairman of the Committee and the Ranking Member of the Committee. For me this new information is very relevant and therefore, if it is very relevant, they need to go and restructure the wording of this whole document and we would give them the resolution to go.
    Mr. Owusu-Adjapong 3 p.m.
    Mr. Speaker,
    I have had a preliminary discussion with
    my Colleague the Deputy Minority Leader and I thought we had reached a stage when we would be talking more about technicalities. I do not think anybody is arguing against what we intend doing. There is a view that we should have gone under Standing Order 180 (5), and things like that. I want to plead that I have my Colleague, the Minority Leader and the hon. Kunbuor, who has been working hard as the Ranking Member for about ten minutes, while we take item 20 to enable me sort out things with him; I believe we can make progress.
    Mr. First Deputy Speaker 3 p.m.
    Hon.
    Deputy Minority Leader, is that the understanding that you need? Just about five minutes private meeting? The debate is suspended; it is not abandoned.
    Mr. Adjaho 3 p.m.
    Mr. Speaker, we would not do anything that would frustrate the business of this House, therefore any discussions that would facilitate the business and the interest of this nation, we are interested in that.
    Mr. First Deputy Speaker 3 p.m.
    I am
    glad to hear that from you. In that case, just as the usual channels, if it should go through, maybe, what I have to do is that I would move on to some other item. But then we would come back to it assuming you do not reach any compromise on that.
    Mr. Owusu-Adjapong 3 p.m.
    If we can
    take item 20, while I have discussions with them.
    Mr. First Deputy Speaker 3 p.m.
    Item 20? Very well. In that case, hon. Members, I would defer the debate for a while, whilst we move to item 22 on the Order Paper.

    Suspension of Standing Order 80 (1)

    Nii Adu Mante: 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 the Republic of Ghana and the African Development Fund for an amount of UA14,870,000 (US$22,400,000 equivalent) to finance the Ghana Component of the Ghana-Togo- Benin 330 kV Power Interconnection Project may be moved today.
    Mr. P. C. Appiah-Ofori 3:10 p.m.
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolve accordingly.

    GOG/ADF Loan Agreement

    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 the Republic of Ghana and the African Development Fund for an amount of UA14,870,000 (US$22,400,000 equivalent) to finance the Ghana Component of the Ghana-Togo- Benin 330 kV Power Interconnection Project.

    Mr. Speaker, in so doing I crave your indulgence to present the Report of your Committee.

    1.0 Introduction

    The Loan Agreement between the Government of the Republic of Ghana
    Mr. P. C. Appiah-Ofori 3:10 p.m.


    and the African Development Fund for UA14,870,000 for financing of the Ghana component of the Ghana-Togo-Benin 330 kV Power Project was laid in the House on Friday, 27th July 2007 and referred to the Finance Committee for consideration and report in accordance with article 181 of the Constitution and Order 171 (1) of the Standing Orders of the House.

    To consider the agreement, the Committee met with the Minister for Finance and Economic Planning, hon. Kwadwo Baah-Wiredu, the Deputy Minister for Finance and Economic Planning, hon. Prof. G. Y. Gyan-Baffour, officials from the Volta River Authority (VRA) and others from the Ministry of Finance and Economic Planning and reports as follows:

    2.0 Background

    The loan facility from the Fund to the Government of Ghana amounting to UA14,870,000 (US$22.4 million equi- valent) is to help in the financing the Ghana component of the Ghana-Togo- Benin 330 kV Power Interconnection Project in order to improve reliability and optimize production cost of power within the West African subregion.

    This project forms part of the Coastal Transmission Backbone (CTB) identified as a priority for the development of the West African Power Pool (WAPP), a co-operative power pooling mechanism for integrating national power system operations. The goals of the WAPP include the following:

    i. improvement of system reliability and power quality throughout the subregion;

    ii. the lowering of system costs by increasing economic trading of energy within the subregion;

    iii. optimizing the utilization of energy sources in the sub-region and managing more effectively and efficiently the subregion's seasonal and weather-related imbalances.

    3.0 Project Description

    The project will have the following outputs:

    (i) 338 km of 330 kV single circuit line from the Volta substation (near Tema) in Ghana through Mome Hagou in Togo and to Sakete in Benin;

    (ii) Extension of the 330 kV Volta substation;

    (iii) a new 330 kV substation at Mome Hagou; and

    (iv) extension of the 330 kV Sakete substation.

    4.0 Components of the Project

    The main components of the project are the Transmission lines, Substations, Environmental measures and Consultancy services.

    A. Transmission Line

    A single circuit 330 kV phase overhead transmission line with a capacity of 625 Mw will be erected from Volta in Ghana through Mome Hagou in Togo and to Sakete in Benin. Each phase will have two alumimium conductors with a steel reinforcement.

    The line will be supported by steel lattice-type towers equipped with a ground wire and an optic fibre guard wire (OFGW) of lightning protection. The OFGW could

    be used for telecom-munications. B. Substations

    The substation in Ghana will be extended to accommodate the 330 kV transmission line to Mome Hagou in Togo and a new transformer which will increase the power flow capacity between the 330 kV and 161 kV substations by 333 MVA. Associated equipment which will also be installed includes a reactor for voltage control, four circuit breakers, switches as well as protection and metering hardware.

    A new 330 kV substation will be erected at Mome Hagou in Togo to connect the 330 kV transmission lines from Volta in Ghana and Sakete in Benin.

    C. The environment measures consists of the siting of the right ways, access roads and the substations which would require expropriation of lands, structures, crops and fruit trees. In addition, environmental experts would be recruited for the monitoring of the environmental measures. Environmental audit and environmental management would also be carried out.

    The environmental experts would be posted to the Volta River Authority (VRA) and Communaute Electrique du Benin (CEB).

    D. In Consultancy Services Super- vision -- the Volta River Authority (VRA) and CEB would be provided with a consultant to review contractor's designs, calcu-lations and drawings, supervise the installation of equipment, monitor environmental measures, train VRA and CEB staff on environmental management, assist in the testing and commissioning of the project installations and audit of project accounts in Ghana and Benin.

    The Consultant will prepare the implementation progress reports and

    [NII ADU MANTE] assist VRA and CEB to prepare the project completion reports. 5.0 Project Cost -- (Ghana Portion)

    The total cost of the Ghana portion

    of the project is UA27.97 million out of which UA20.95 million is the foreign cost and UA7.02 million is the local cost.

    The African Development Fund (ADF), International Development Association (IDA) and Volta River Authority (VRA) will finance the project.

    The ADF Loan will be UA14.87 million (US$22.40 million equivalent) repre-senting 53.1 per cent of the total project cost. The IDA has committed UA8.12 million as part of the foreign cost.

    The Volta River Authority will meet part of the local cost with an amount of UA4.93 million.

    6.0 Terms and Conditions of the ADF Loan

    The terms and conditions of the ADF loan are as follows:

    Loan Amount

    -- UA14,870,000 (US$22,400,000

    equivalent)

    Interest Rate -- No interest charge

    Service Charge -- 0.75 per cent per annum on the principal amount of the loan

    disbursed and outstanding

    from time to time

    Commitment Charge -- 0.50 per cent per annum on undisbursed amount of the loan

    Grace Period -- 10 years

    Repayment Period
    -- 3:10 p.m.
    Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben/Brakwa) 3:10 p.m.
    Mr. Speaker, I beg to second the motion and in so doing I would like to make a very brief intervention. If one reads the document supporting this loan and the Report, one sees that this is an attempt by the Government -- [Interruption.]
    Mr. First Deputy Speaker 3:10 p.m.
    Hon.
    Members, the background noise is too much and most of us can hardly hear the contributions on the floor. I would plead with you, particularly, those around this
    side to pay attention to what is happening or at least, not to make too much noise, for us to continue the work. Hon. Appiah- Ofori, you must also speak through the microphone.
    Mr. Appiah-Ofori 3:10 p.m.
    Mr. Speaker, as I was saying, this is an attempt by the Government to solve some of our problems relating to our energy crisis if this loan is accessed and we join the pool. If we are in difficulty, as we are today, we will be able to get help from the West African pool. It is a loan which we should not have any quarrel about.
    The loan is payable over a period of 40 years with a moratorium period of ten years, and virtually there is no interest on it at all. We only have a service charge of 0.75 per cent and a commitment charge of 50 per cent. Indeed, it is a give-away, the duty component amounts to $3.9 million, and as I have been saying over and over again, this will not constitute any cost or loss to the nation if we give our approval.
    I therefore pray the House to give absolute support and approval in order for the Government to access it for the benefit of the country.
    Question put and motion agreed to.
    RESOLUTIONS 3:10 p.m.
    Mr. Baah-Wiredu 3:10 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 (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 Loan Agreement between the Government of the Republic of Ghana and the African Development Fund for an amount of UA14,870,000 (US$22,400,000 equivalent) to finance the Ghana Component of the Ghana-Togo- Benin 330 kV Power Intercon- nection Project.
    THIS HONOURABLE HOUSE 3:10 p.m.
    H E R E B Y R E S O LV E S A S 3:10 p.m.
    Mr. Baah-Wiredu 3:20 p.m.
    Mr. Speaker, I beg to move, that
    THIS HONOURABLE HOUSE IS 3:20 p.m.
    RESPECTFULLY REQUESTED 3:20 p.m.
    Mr. A. O. Aidooh 3:20 p.m.
    Mr. Speaker, Motion No. 36 -- there was some disagreement but I understand that it has been resolved.
    National Communications Authority Annual Report, 2005
    Mr. First Deputy Speaker 3:20 p.m.
    what is to be done? Chairman of the Committee, the debate was continuing or what? What was happening?
    Mr. Frederick Opare-Ansah 3:20 p.m.
    Mr.
    Mr. First Deputy Speaker 3:20 p.m.
    Hon.
    Member, it should be what?
    Mr. Opare-Ansah 3:20 p.m.
    The figures as
    captured in the Report are as they should be. That is what we were talking about the other day. We have asked the hon. Minister to produce the breakdown in due course as was requested by the Ranking Member of the Committee. So we call on Members to vote for the adoption of the Report.
    Mr. Haruna Iddrisu 3:20 p.m.
    (NDC --
    Tamale South): Mr. Speaker, I ordinarily would not want to pose a problem even

    TABLE P. 246
    R 3:20 p.m.
    Mr. First Deputy Speaker 3:20 p.m.
    Hon. Members, then I will put the question just as has been stated. Maybe, at your committee meeting it has been agreed in principle that the Minister for Communications comes to the House later on, today or tomorrow but later in the year, to provide a detailed purchase prices paid by the various operators.
    Question put and motion agreed to:
    That this honourable House adopts the Report of the Committee on Communications on the National Communications Authority Annual Report for the year 2005.
    Suspension of Standing Order 80 (1)
    Mr. Appiah-Ofori 3:20 p.m.
    Mr. Speaker, I am a member of the Committee and I beg to second it.
    Question put and motion agreed to.
    Resolved accordingly.
    Report of the Committee on Subsidiary Legislation on the Labour
    Regulations 2007 (L. I. 1833)
    Chairman of the Committee (Mr. F. A. Agbotse) 3:20 p.m.
    Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Committee on Subsidiary Legislation on the Labour Regulations,
    2007 (L.I. 1833).
    Mr. Speaker, in so doing I present the report of the Committee. Mr. Speaker, I would like the Hansard Office to capture the Report in full while I read parts of it.
    1.0 Introduction
    1.1 The Labour Regulations 2007, L.I. 1833 was laid before Parliament on Thursday, 21st June, 2007 in accordance with article 11(7) of the Constitution and Standing Order 77 of the House. Mr. Speaker referred the Regulations to the Committee on Subsidiary Legislation for consideration and report pursuant to Standing Order 166 of the House.
    2.0 Deliberations
    2.1 The Committee held a total of three sittings to consider the referral. The Minister for Manpower, Youth and Employment, hon. Boniface Abu-Bakar Saddique, Mr. Joseph Aryittey and Opanin Obeng Ofosu of the Labour Commission and Mrs. Sabina Ofori Boateng, Legal Consultant, Office of Parliament were in attendance at the invitation of the Committee to assist in its deliberations. The Committee is grateful to them for their attendance and input.
    3.0 Reference Documents
    3.1 The Committee referred to the underlisted documents in considering the Regulations:
    a. The 1992 Constitution;
    b. The Standing Orders of Par- liament;
    c. The Labour Act, 2003 (Act 651);
    d. I.L.O. Convention on Labour.
    4.0 Background
    4.1 By virtue of section 174 of the Labour Act, the Minister responsible for Labour is empowered to make by Legislative Instrument Regulations:
    For securing compliance with p rov i s ions o f in te rna t iona l convention relating to labour made applicable to Ghana whether before or after the commencement of this Act;
    Relating to the performance of the National Tripartite Committee;
    Providing for the conditions and procedures for granting licences to private employment agencies;
    Prescribing the fees for licences granted under the Act;
    Prescribing the scale of fees chargeable by private employment agencies; and
    Generally for the carrying into effect the provisions of the Act.
    The Regulations in reference were made pursuant to the above provisions for the effective and efficient implementation of the Labour Act.
    5.0 Object of the Instrument
    5.1 The L.I. 1833 seeks to establish procedures and processes for employment agencies and organized labour to collaborate with Government in the promotion and management of labour and related issues including fair labour practices, and industrial relations generally in the mutual interest of employees, employers and Government.
    6.0 Observations
    6.1 The Committee observed that the Regulations consists of seven parts, namely employment agencies, conditions of employment, organized labour, employment of persons with disability, health and employment, restriction on recruitment and miscellaneous provisions.
    6.1.1 Employment Agencies
    The Committee noted that this part requires employers to make available employment data in accordance with specifications provided for in the schedule as well as the provision of vocational
    Chairman of the Committee (Mr. F. A. Agbotse) 3:20 p.m.


    guideline facilities for the youth. The procedures and processes including the requirements for private entities to establish private employment agencies are also provided for in this part.

    6.1.2 Conditions of Employment

    Part two makes provision for the right of a worker to be trained by the employer having regards to the relevance of the training and the job requirements, and further guarantees a worker's right to confidentiality of data. It also enjoins the employer to specify the period of probation where it constitutes a condition in the contract of engagement.

    This part also enjoins the Chief Labour Officer, subject to the direction of the Minister to determine appropriate hours for manual work and other types of work likely to be injurious to the health of an employee. It also prohibits an employer from engaging young persons in hazardous work, victimization, remunera- tion and related issues particularly during interdiction. 6.1.3 Organised Labour

    The Committee also noted that the determination of categories or classes of organized labour to which collective bargaining certificates may be issued is provided for in this part. It also provides opportunity for advisors to members of the National Tripartite Committee established under the Act to attend meetings of the Committee and for the establishment of a permanent Secretariat to facilitate the activities of the Committee.

    6.1.4 Employment of Persons with Disability

    The Committee is satisfied that this part makes provision for the establishment of Disablement Unit for persons with disability; the duties of such units are also specified. This part further imposes

    obligation on public employment centres to attach disablement units to such centres for the purpose of registering persons with disability in search of employment.

    It further enjoins employ-ment agencies whether private or public to put in place necessary facilities for the creation of easy assess for persons with disability and also file quarterly returns on vacancies to be filled by persons with disability. Provision is also made for employers who engage persons with disability to benefit from tax rebate determined by the appropriate Minister.

    6.1.5 Health and Employment

    The Committee further observed that this part enjoins the employer to provide for the occupation safety and health of employees at work including periodic reports to the Chief Labour Officer, medical examination of workers and also identifies the list of essential services including water supply, electricity generation, health and hospital services, sanitary services, air traffic control and fire fighting services provided for in the Act.

    6.1.6 Restriction on Recruitment

    This part restricts employers from recruiting persons under the age of 18 and trafficked persons for employment, provides for the prohibition of human trafficking including forced labour, slavery, servitude or the removal of organs. Employers are also enjoined under this part to furnish the Immigration Service with the names of persons engaged in foreign contracts and employments, and the conditions attached to such employments.

    The consent of the worker with the endorsement of the Chief Labour Officer are made conditions precedent for the assignment of contracts by the employer. An employee engaged under foreign contract is empowered to be accompanied to the place of employment by his nuclear family including children below the age

    of 16. It also amongst others provides for penalty in relation to contracts obtained fraudulently.

    6.1.7 Miscellaneous Provisions

    This part covers offences, revocation and savings, transitional provisions and interpretation.

    7.0 Recommendations and Conclusion

    The Committee has examined closely the object and provisions of the instrument and is of the considered view that they are in conformity with the Constitution, the Labour Act and the procedural requirements specified in Standing Order 166 of Parliament. The Committee therefore recommends that this House allow the Labour Regulations, 2007 (L.I. 1833) to come into force with the effluxion of time.
    Mr. First Deputy Speaker 3:20 p.m.
    Thank you, Chairman of the Committee.
    Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben/Brakwa) 3:30 p.m.
    Mr. Speaker, I beg to second the motion and by so doing, I would like to make a brief intervention.
    Mr. Speaker, the Committee sat on the
    Legislative Instrument and with us were all those who matter in the labour industry. The Attorney-General's Depart-ment's representative was there. We scrutinized the original Legislative Instrument and whatever changes that ought to be made were made and the final output is what is before the House. There is no problem with it. I therefore recommend to the House for its absolute adoption.
    Question proposed.
    Mr. Kenneth Dzirasah (NDC -- South Tongu) 3:30 p.m.
    Mr. Speaker, I wish to say that the Legislative Instrument is in the right direction. It has fulfilled all the constitutional and legal requirements. It is intended to give teeth to the Labour Act so that the otherwise volatile labour front may settle and we have less and less industrial actions.
    On this note, I support the motion.
    Mr. First Deputy Speaker 3:30 p.m.
    Hon. Members, at the end of the debate -- this is definitely not a contentious issue; it has been agreed upon -- I will put the question.
    Question put and motion agreed to.
    Resolved accordingly.
    Mr. A. O. Aidooh 3:30 p.m.
    Mr. Speaker, motion number 20.
    Mr. First Deputy Speaker 3:30 p.m.
    Hon. Members, my brief is that we continue with the debate on motion number 20 on the Order Paper. Is that the impression, hon. Chairman of the Committee?
    Nii Adu Mante: Mr. Speaker, we were about to wind up when an issue was raised as to quorum.
    Mr. First Deputy Speaker 3:30 p.m.
    Hon.
    Member for Tamale South, Mr. Haruna Iddrisu, I understand you had done almost all your allocated time and was left with a few seconds to wind up.
    I would increase it to two minutes
    more.
    MOTIONS 3:30 p.m.
    Mr. Haruna Iddrisu (NDC -- Tamale South) 3:30 p.m.
    Mr. Speaker, I stated categorically, and I hope to repeat same, that we are opposed to this. And I had just started advancing my argument when the hon. Deputy Minority Leader raised the issue of quorum, for which reason the House had to adjourn.
    But in so doing, Mr. Speaker, I still maintain my opposition and urge hon. Members to vote against this particular motion. In particular, let me refer you to the last three lines of the second paragraph of page 3 -- and I would have very much wished that the hon. Minister for Presidential Affairs were present in order that he could assist this House in taking this important decision. Mr. Speaker, I beg to quote:
    “This thus led to a variation between the actual cost and the budgeted estimates hence the need for this credit facility.”
    Mr. Speaker, there has never been an actual cost to the presidential palace. The hon. Minister for Presidential Affairs appeared before this House on 16th November, 2006. Indeed, when he was asked, he said he would only give the actual cost at the end of the construction period. So where from the variation? One can only vary appropriately between an actual cost and something else. He himself admitted that there is no actual cost.
    So what are they varying? In any case, even if there ought to be a variation -- [Interruptions] -- Maybe, I should allow the hon. Minister for Presidential Affairs
    to take his seat.
    Mr. Speaker, in order that I am not misquoted, I said -- The hon. Minister is now here. Page 3 of your Committee's Report reads:
    “This thus led to a variation between the actual cost and the budgeted estimates hence the need for this credit facility.”
    And I am saying that there has never been an actual cost and I dare the hon. Minister for Presidential Affairs to challenge me. If there is an actual cost, he should state it now. Budgeted cost -- Yes, they came via the Indian facility asking for US$30 million for a presidential palace and then US$30 million for rural electrification.
    Mr. Kan-Dapaah 3:30 p.m.
    Mr. Speaker, I think
    we need to be careful with the choice of words here. Actual cost is the actual cost that would be incurred at the end of the contract or a particular point of the contract. So when he used “actual”, he probably was talking about “estimate”, and I think he should be using the right word, the estimated cost is what he wants to say.
    Mr. H. Iddrisu 3:30 p.m.
    Mr. Speaker, there is
    no use of the words “estimated cost”. He should read page 3 of the Committee's Report well. There is no actual cost and there has never been an actual cost. That is my argument. And maybe they can take lessons from other Ministries - For the Tamale Water, Mankessim Water and Cape Coast Water Projects there is an actual cost. We know that it is going to be €45 million.
    Mr. Kwadwo Mpiani 3:30 p.m.
    Mr. Speaker, the
    Mr. H. Iddrisu 3:30 p.m.
    Mr. Speaker, I had referred you to the Hansard of 16th November, 2006; he, the hon. Minister for Presidential Affairs said that he would only know the cost at the end of the construction. Therefore -- [Interruptions.]
    Mr. First Deputy Speaker 3:30 p.m.
    Hon. Member, continue, do not go back because I gave you a few more minutes; if you exhaust it I would be forced to --
    Mr. H. Iddrisu 3:30 p.m.
    So going by the Committee's Report, since the actual cost is not known there cannot be a variation. And to that effect, we remain vehemently opposed to it.
    Mr. Appiah-Ofori 3:30 p.m.
    Mr. Speaker, what the hon. Member is saying is not absolutely correct.
    Mr. Speaker, in the course of a construction, we have what we call addendum. we may incur additional cost and attach the original cost to be executed by the substantive contractor and therefore, at this juncture the 15 per cent theory does not work. So this matter is proper and people should probably begin to agree with us and get this approved
    once and for all.
    Mr. First Deputy Speaker 3:30 p.m.
    Hon. Member, I would still continue to give you one more minute to finish.
    Mr. H. Iddrisu 3:30 p.m.
    Mr. Speaker, the original cost is not known. What they have done periodically is to come out that the $30 million is not adequate; they asked for 6 million US dollars and they are now asking for 15 million US dollars. It brings the cost to over 51 million US dollars but we still do not know the actual cost yet; they say 69 per cent of it is completed.
    Mr. Speaker, we are saying that there is no justification. We can only increase it if we know the actual cost. Indeed, the Committee's Report is further speculating that the 51 million US dollars at the end of the day will still not be enough. That means that we may end up say, giving the Ghanaian public a bill of US$100 million in the name of a presidential palace. That is not right.
    Mr. Hackman Owusu-Agyemang 3:40 p.m.
    Mr. Speaker, my dear nephew and hon. Colleague is a little bit mistaken. Even if we have an estimated cost -- forget about the actual cost -- and as we expend and develop the project, we find that our estimate has fallen short of the projected level that we require -- He does not seem to be listening. Is he listening?
    You have your estimated cost and as the project proceeds, you will get to a stage that you will realise that the amount of money you have will not be enough, so you will ask for more money. Variations only come when there is a change in the scope of works and at the end of it, when things get out of hand. But for now, you still should be able to say that for the estimated cost, you are falling short of “x” million dollars and that is precisely what is happening.

    So I think that the hon. Member of Parliament for Tamale South has got all his brief a bit confused and he is only criss-crossing, which is making it a little bit more murkier. Otherwise, it is a straightforward issue of the estimated cost not being enough and asking for a pad-up to finish it, that is what it is.
    Mr. First Deputy Speaker 3:40 p.m.
    Hon.
    Haruna Iddrisu, you still have about one minute.
    Mr. H. Iddrisu 3:40 p.m.
    Mr. Speaker, I believe that in insisting on my one minute, you will take note of the unnecessary interven- tions -- or necessary interventions -- [Interruptions.]
    Mr. First Deputy Speaker 3:40 p.m.
    I have given you one more minute. Hon. Haruna Iddrisu, you have taken more than --
    Mr. H. Iddrisu 3:40 p.m.
    Finally -- [Inter-
    ruptions] -- I said necessary or unnecessary.
    Mr. Owusu-Agyemang 3:40 p.m.
    I take strong
    exception to this almost impetuous remark of saying that interventions by senior Members, senior Colleagues of this House are unnecessary. He is out of order and he must withdraw. He is being too impertinent, he must withdraw, Mr. Speaker. It is unacceptable; it is unparliamentary.
    Mr. H. Iddrisu 3:40 p.m.
    Mr. Speaker, he is
    being even more insulting by referring to my comment as impetuous. But that notwithstanding, comments may be necessary or unnecessary.
    Mr. Speaker, finally, if you take --
    Mr. Owusu-Agyemang 3:40 p.m.
    Mr. Speaker, I insist on the withdrawal.
    Mr. First Deputy Speaker 3:40 p.m.
    Hon.
    Hackman Owusu-Agyemang, you insist, but you leave the ruling to me. I think he should continue.
    Mr. H. Iddrisu 3:40 p.m.
    Mr. Speaker, I did
    not even specifically tie any person's comments to the necessary or unnecessary, it could even include some of the comments we are all making.
    Mr. Speaker, finally, if you look at the
    appendix attached to the request for this 15 million USD, paragraph (c) reads and I quote:
    “Landscaping including garden furniture and computerised irrigation system -- USD 2 million.”
    Then you come down again, (g), you have “furniture, furnishings and interior decorations -- USD 5 million.” Why? What is furniture in (c) and what is furniture in (g)? That is why we are saying that this is a bad facility. I am holding the paper attached to the loan agreement. If you are coming, come clear. You want USD2 million for furniture and gardening; you want another USD5 million, and you have put furniture and furnishing there again.
    Mr. Speaker, with all respect, the Ghanaian taxpayers' money must be used judiciously and we are saying that even construction of fence wall -- This is not the first time, when we are going to -- In any case, the Flagstaff House already has a fence wall. We know, it has a proper fence wall. They are asking for $1.4 million dollars only for the purpose of fence wall.
    Mr. Speaker, this is a bad loan; we should not increase it for the Minister
    for Presidential Affairs. He must come properly with the agreement which was signed with the Indian Government and tell this House how much of the Indian USD30 million has been spent, and how much has been spent from the Consolidated Fund. Then we will know and appreciate the kind of work; and then we can vary our position.
    Other than that, Mr. Speaker, we are vehemently opposed to it and we think that they should not rely on their “majoritarian” presence in getting this bad facility through, because they think they have the numbers.
    Attorney-General and Minister for
    Justice (Mr. Joe Ghartey): Mr. Speaker, I urge all my Colleagues to support this motion.
    Mr. Speaker, we have described the works that are being done in that vicinity variously as Presidential Palace, the Project Flagstaff House and so on and at every time we must be careful as to what we are approving or what we are being asked to do, what it is in respect of.
    Mr. Speaker, that entire area includes
    where His Excellency the First President used to stay and stretches, indeed, to an old military barracks which was the Headquarters of the West African Frontier Force. Indeed, that is why it is called the Flagstaff House.
    Mr. Speaker, the purpose of this 15
    million US dollars is not so much to do with what has already been approved. Indeed, it is to rehabilitate and reconstruct the barracks that adjourn the Presidential Palace which was constructed during the Second world war.
    Mr. Speaker, is it being said -- [Interruptions] -- Mr. Speaker, I would ignore all the comments from next door,
    Mr. H. Iddrisu 3:50 p.m.
    Indeed, Mr. Speaker, one of the reasons why we are moving from the Castle, in my view, is that we are moving away from our past. Since Independence, what we have done is that, we have kept ourselves in a castle, a relic of slavery and oppression. Only Osagyefo Dr. Kwame Nkrumah stayed at Flagstaff House.
    Today, the same Flagstaff House is being rehabilitated, our First President whom we all have great admiration for, his house is being rehabilitated. The barracks are being moved from there, and we are being told that we should oppose this very important motion.
    Indeed, it was the just-approved Deputy

    We are also purging ourselves of our past -- our slave past -- and at the same time, we are rehabilitating our soldiers, some of the best soldiers in the world. They are very good in terms of peacekeeping and we are putting them in a place which is befitting of soldiers, not Second World War soldiers. It is befitting of soldiers in Ghana at 50. We are thinking of Ghana after 50.

    Indeed, for that purpose, Mr. Speaker, I will recommend to my Colleagues on both sides of the House that unless my Colleagues on the other side know

    that it will be difficult for them to win the elections so they may not occupy that position, I urge them to support the motion.

    Mr. Speaker, I am grateful.

    Dr. B. Kunbuor (NDC -- Lawra/

    Nandom): Mr. Speaker, I find myself unable to support this motion for completely different reasons than what is being canvassed, and that is why I think we always need to be a bit patient and a bit more detailed in how we deal with issues of this nature.

    The policy decision to do whatever they

    want to do with Flagstaff House is entirely a matter for Government; we have since gone past that. The issue at stake here is about additional financial facilities to go and address whatever problems that have been created there.

    Mr. Speaker, the first point I want to raise is this; if you look at the variations that we have and starting from the loan agreement with Stanbic Bank, the purpose in the agreement is for the rehabilitation of Flagstaff House. Rehabilitation and renovation of Flagstaff House, that is the context in which they went and got the loan from Stanbic or they want to get the loan facility from Stanbic. what do you have here in terms of the variations? They are asking for the variations for the construction of the seat of Government and the Presidency.

    To be fair to the Minister, this matter was raised at the committee level and he indicated that they can always go back to the bank and change this. And I said by any stretch of imagination or interpre- tation of the principle of rule of law, I did not see how two parties could enter into agreement and one party would have the option of just going to change it as and

    when he wanted.
    Mr. Mpiani 3:50 p.m.
    On a point of order. Mr.
    Speaker, I never, never said that the loan was for renovation of Flagstaff House. My attention was drawn to it and I said whoever put that thing there was wrong. It was for the construction of a new place, offices and residencies. It was not for the renovation of anything and I think that the hon. Member is aware that when my attention was drawn to it, I said whoever stated that was wrong.
    Dr. Kunbuor 3:50 p.m.
    Mr. Speaker, I am
    holding here the Loan Agreement and it is for the attention of the hon. Minister for Finance and Economic Planning. Paragraph 2 is on the purpose of the loan and Mr. Speaker, with your permission, I want to quote:
    “The loan shall be used exclusively for the renovation of the Flagstaff House.”
    I did not put it there. And he does not know who put it there that again begins to tell us about the seriousness of this loan. I did not put it there. That is paragraph 2 in the Loan Agreement that he has brought to this House for which he justifies that $15 million should actually be added. And I drew his attention to it that he could not go and contract a loan exclusively for a purpose and come with a variation for something that is completely different. That is the first difficulty that I have. But
    Mr. Ghartey 3:50 p.m.
    On a point of order.
    Mr. Speaker, I have great respect for my friend and Colleague, hon. Dr. Kunbuor. But we all know that what he is reading as the object of the loan is not necessarily part of the Agreement. It falls within the recital process. [Interruption] -- Mr. Speaker, knows that I always keep very quiet when anyone is speaking. Indeed, I know people will also keep quiet. Thank you very much for keeping quiet.
    I am saying that in a loan agreement what he has just described is usually in the definition clause. I will argue that what you say is the refurbishment and renovation of the Flagstaff House includes the object for which we are asking for the loan because the Presidential Palace is not a rebuilding of the Flagstaff House. That was why I said at the beginning when I was making my submission that we have used some of these terms rather loosely.
    Sometimes we call it Presidential Palace; sometimes we call it Flagstaff House. Flagstaff House is where Dr. Nkrumah used to stay and have his offices. Indeed, it is not a major issue. I know that my very learned Colleague is coming to more major and serious issues. I think he would take this intervention in good faith.
    Dr. Kunbuor 3:50 p.m.
    Thank you, hon.
    Mr. Mpiani 3:50 p.m.
    Mr. Speaker, I am really
    surprised about the remarks of the hon. Member. First, the document he is holding is a draft, and this matter was raised --
    He is right. The matter was raised and the understanding at the committee meeting was that what has been stated is wrong and that it should be changed. Mr. Speaker, he is holding a draft agreement; it is not the final agreement, it is a draft.
    Dr. Kunbuor 3:50 p.m.
    So my original point
    Mr. First Deputy Speaker 3:50 p.m.
    Hon.
    Kunbuor, I believe I have given you this floor and you are making your point. [Interruption] -- The hon. Member also advised that you have already made a very good point that there are more serious points you want to make and not on that one. Could you go ahead?
    Dr. Kunbuor 3:50 p.m.
    Mr. Speaker, I want
    to put it on record that if he brings a document to guide a parliamentary committee to arrive at a decision and he comes later to the floor of the House to run away from that very document then he should tell us, in the absence of the real Agreement, what is going to assist the Committee; that is the point. Should he say that this is not the Agreement -- It is a draft and so it is subject to change, that is entirely your point. But let me go to the more fundamental question.
    Mr. Speaker, if we were actually to adopt this Report as it stands, we are going to run into very serious difficulties. Page 3 indicates clearly the constructional and additional works that are expected to be done at the site for which they are calling this House to actually adopt and these include --
    “the construction of fence wall,
    biogas,
    landscaping,
    IT/PABX system;
    Dr. Kunbuor 3:50 p.m.


    rehabilitation of the old villa;

    demolishing of a number of semi- detached buildings, et cetera.”

    Respectfully, Mr. Speaker, these are exactly not all of the terms or the issues that were brought to the Committee to be varied. In fact, a total amount of furniture and furnishings, contingency and consultancy service fees are all part of the $15 million that we are seeking. So if we adopt the Report less this amount, a total amount of about six something million dollars would not have been captured in this Report for this House to adopt. So I am just drawing his attention to the fact that should he want to proceed with this Report and it is adopted in this House, it means that he is leaving out the very variations that the hon. Minister himself has brought. And they are here.
    Mr. Ghartey 3:50 p.m.
    Mr. Speaker, I just
    wanted a clarification from my hon. Friend. Mr. Speaker, he said it excludes -- But Mr. Speaker, I thought that he said the Report includes these things. I wanted a clarification; I did not get that point.
    Dr. Kunbuor 3:50 p.m.
    Mr. Speaker, it looks
    like when there is a preset mind, it is even difficult to help somebody mourn his dead. [Laughter.] He has his funeral and I have come to join him mourn and then he is not even allowing me to mourn. I am telling him that he has come to ask for $15 million and he has indicated with an attachment what variations he has which amounts to the $15 million.
    But the motion we are debating now is to adopt a Committee Report that excludes as much as $6.8 million. That is why I say that this Report cannot be adopted without doing injustice to the request that
    Mr. Simon Osei-Mensah 4 p.m.
    On a point
    of order. Mr. Speaker I think we all have to re-examine the motion on the floor and look at the English that we are considering very critically. Mr. Speaker, let me go over the motion. Motion 20 --
    “…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.”
    It is not saying “on” the Flagstaff House. [Interruption]. The “at” here is being used to describe the area. If it had been “on”, it would have been only that structure. But once it is “at”, we are talking of a place, an area and that area is where the Presidential Lodge is located. Mr. Speaker, it is simple English and we have to understand this. We do not have to confuse the public.
    Dr. Kunbuor 4 p.m.
    Mr. Speaker, I just
    wanted to save time and that was why I did not want to go quoting. In fact at page 2 of the Committee's report it is stated and Mr. Speaker, with your permission I quote --
    “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 rehabilitation works on the site.
    These additional works include:
    Constructing of fence wall and
    biogas… treatment plant;
    Landscaping including Garden Furniture and computerized irrigation system;
    IT/PABX system;
    Rehabilitation of the Old Villa … and
    Demolition of … semi-detached buildings . . .”
    This is all that the committee report has captured and this is supposed to be the justification for the $15,000,000.00. And I am saying that this does not do justice to what the Minister himself brought to the Committee which beyond these three also includes furniture and furnishings and interior decoration works, contingencies and consultancy services. The total amount, when you disaggregate it, goes up to $6.8 million out of the $15,000,000.00. I am asking, should we adopt this report will it include the $6.8 million that have been left out?
    Mr. First Deputy Speaker 4 p.m.
    Hon.
    Member, do you want explanation from the Minister.
    Dr. Kunbuor 4 p.m.
    I am actually drawing
    Mr. Second Deputy Speaker 4 p.m.
    Hon.
    Mr. Kyei-Mensah-Bonsu 4 p.m.
    Mr.
    Speaker, the words which have been used here are very succinct and unambiguous and I believe that everybody here understands what the words mean. Mr. Speaker, the operative clause is -- “These additional works include:” -- Mr. Speaker, and we have a list of five items and the
    language and tenure of this construction should be obvious to my hon. Colleague.
    “These . . . works include:” They are not exclusive of those that have been stated here. And so for him to base his argument on the fact that what we are approving here is, Mr. Speaker, unmeri-torious by inference -- Mr. Speaker, I do not know where exactly he is coming from and where he is going to land. Mr. Speaker, he is misleading this House.
    Dr. Kunbuor 4 p.m.
    Mr. Speaker, when you are getting into legal niceties -- I did not intend to get into that. Any person that wants to treat this issue the way it is will use the phrase “it includes but not limited to”; that is the proper drafting language for one to understand -- [Interruptions] -- Please, wait. If you do not understand the drafting language, let me explain it to you. If you intend to have an open-ended -- We are not just flying in the air. There is a documentation that has been brought to us for which we are supposed to assist to approve US$15,000,000.00.
    I am telling him that the committee report has not captured the US $15,000,000.00 and he is telling me that when public money is involved here you should imply by simply -- [Inter-ruptions.] --
    Mr. S.K. Boafo 4 p.m.
    On a point of order.
    Mr. Speaker, I think my learned Friend and hon. Member is not opposed to this idea of having the rehabilitation or construction work done. We are only worried about semantics -- words -- So please allow us to go on and agree to this because it is for all of us. Let me say this: if you look throughout the whole country -- [Interruption] -- on the whole, even countries around us, we can talk of heritage sites, monuments and other things yet we do not have anything.
    If you are only afraid of words, let us say so because as lawyers we never agree
    Mr. S.K. Boafo 4 p.m.


    on words, only the judge will give his judgement. Please, let us go ahead with the debate.
    Dr. Kunbuor 4 p.m.
    Mr. Speaker, I am surprised that when a loan agreement of this nature is being brought and accompanying it is a committee's report inviting the House to adopt -- [Interruption.]
    Mr. W. O. Boafo 4 p.m.
    On a point of order. Mr. Speaker, the hon. Ranking Member was saying that the Chief Whip was misleading this House when he said the items were beyond the number stated in the report because he said the normal expression which is used is “includes without limitation”. Mr. Speaker, this is the American version [Laughter.]
    It is the American version and the origins of our jurisprudence is not American, it is British. And he the hon. Ranking Member was trained in the British tradition where the expression “includes”, if you go to the Interpretation, that is what is used, and not “includes but without limitation”.
    Mr. Speaker, the work of this House, to my mind, should not confine us to the document they gave us to read only. If we are given any document, we will need to research on the material. when the items are mentioned in the material, you read it carefully and you have to look for the bill of quantities and the bill of quantities will give you the exhaustive list of what is intended to cover the amount being sought for. So he is misleading this House by asking us to confine ourselves to the items stated in the document only.
    He should look for the bill of quantities and he will see that even my Ministry is included in the items; and that is four hundred thousand dollars to put up bungalows for soldiers who reside around the Flagstaff House and are to be resettled
    Dr. Kunbuor 4:10 p.m.
    Thank you, Mr. Speaker.
    Mr. Speaker, I do not claim any pretensions to have been trained in either America or the United Kingdom on the law of interpretation. At best, I have been trained in the law of Interpretation of Ghana. Whether it is British or American, I do not know that. All I do know is the law of Interpretation in Ghana.
    But I guess again that we are missing the essence of the issues that I am raising. In fact, all what I would have been interested in is to indicate clearly -- Because most hon. Members of this House do not have the benefit of the last variation that came to the Committee. If you look at the first variation that came, it is a completely different arrangement in terms of figures -- the one that came on the 23rd of March and the one that came on the 19th of July.

    So there is a reason why this argument is being raised, in terms of whether we are abandoning some of the items. We are changing the variations as the documents come to Parliament and I do not think this is just a flimsy matter that we should gloss over. I have no doubt whatsoever in terms of their interest that they need to push to get this project through. I have no doubt at all. All I am simply cautioning them about is that they ought to fulfil that interest in a manner that is consistent with the procedures and laws of this country.

    I cannot come and change your policy for your Government. If you decide that

    your national policy is one of renovating the Flagstaff House, that is entirely your executive decision. What I am saying is that, you have come to this House to ask us to approve some monies for you and there are a lot of difficulties with the processes. That is what your attention is being drawn to it and you think there is nothing wrong with that.

    As we stand now, they even want us to be able to support a loan for which agreement we have not seen. They are saying that what I am holding is a draft, but that was what was made available to the Committee.
    Mr. Mpiani 4:10 p.m.
    On a point of order. I just
    want to correct the hon. Member that, there is nothing like “Your Government”; it is “Our Government”. It is the Government of this country and so it is “our Govern- ment” and not “your Government”.
    Dr. Kunbuor 4:10 p.m.
    Perhaps, the burdens of

    Mr. Speaker, the second important

    point that I want to raise again has to do with the history of this particular loan agreement and whether it was properly thought through. I am saying so for a number of reasons. I was given the answer by the hon. Minister that yes indeed, this project was well thought of but put it on the ground against the facts and you will see the difficulties. We started with $30 million; we moved to $6.9 million and we are coming to ask for $15 million dollars more.

    The question is, have we thought

    through this project in terms of costing? That, for me, is the difficulty. And that becomes serious that even between

    March and July, the figures for variations have changed very, very substantially. If you see the first variation that was brought on 23rd March, they are asking for the demolition of a two semi-detached building at a cost of $400,000. With what you have got on the 19th -- less than six months it has gone up to $1.4 million.

    If we come to deal with the IT/PABX systems and we come to deal with the general services and garages and fuel pumps, they had initially come up with a figure of $1million and this variation has gone up to $2.9 million within three months.

    So the question that I ask is, if they had thought through this project, beyond the additional request for funds -- Even variation within three months is changing so radically. Where are we going to stop? Because should the hon. Minister assure this House that perhaps he needs another one hundred million loan to complete the project, perhaps, that is what he would have brought and we know this House would have discharged its obligation.

    But from what we are dealing with, it begins to tell somebody that we have started, they have forced us to take the steps, and because we have taken the first unconfident steps, we do not know where to stop. That for me, is what is worrying about this project.

    I will not be surprised that even

    after another week we get another loan agreement that is requesting this House to make additional funds -- That is why I am raising the question as to whether we have really sat down and thought through this particular project, particularly, in terms of its financial implications. And I think that we need to look at these issues very, very closely before we deal with this matter.
    Mr. First Deputy Speaker 4:10 p.m.
    Hon. Dr.
    Kunbuor, I will give you one more minute
    Mr. First Deputy Speaker 4:10 p.m.


    and that will be all.
    Dr. Kunbuor 4:10 p.m.
    Thank you, Mr. Speaker.
    Mr. Speaker, talking for myself, and in accordance with my responsibility in this House, I do not think that I will be able to look at any Ghanaian in the face and say that we have correctly gone through the processes to actually approve this loan facility. For that particular purpose, it is actually my humble view that much as this project is a project that has to be implemented because monies have already been committed and if it is stopped it will amount to -- I am not sure the form in which we are handling it in this House is the proper way to deal with the problem and that is why I am unable to support this motion that is before the House.
    Mr. First Deputy Speaker 4:10 p.m.
    Hon.
    Members, that will be all for this debate. Hon. Members, it has been a continuation. My understanding is that we started this debate and it has continued and for that reason, I gave the Ranking Member so much time. If I had known that several people were going to contribute, I would have given them two, three or five minutes. But I have been told the debate had started earlier and it was only a continuation.
    So please, hon. Members, I will end it, unless the hon. Deputy Minority Leader would want me to give a dispensation by giving one more person the opportunity to contribute; I will do that, or even if the hon. Deputy Minority Leader himself wants to make a contribution.
    Mr. Adjaho 4:10 p.m.
    Mr. Speaker, we had
    Mr. First Deputy Speaker 4:10 p.m.
    That is
    not correct.
    Mr. Adjaho 4:10 p.m.
    Mr. Speaker, it is true
    that this matter had been on the Order
    Mr. First Deputy Speaker 4:10 p.m.
    Hon.
    Deputy Minority Leader, do you want to make a contribution?
    Mr. Adjaho 4:10 p.m.
    Mr. Speaker, I want to
    Mr. First Deputy Speaker 4:10 p.m.
    If you
    want to yield to someone else, I will allow you to do so. I will allow one person to contribute. Yes, hon. Dr. Ahmed?
    Mr. Adjaho 4:10 p.m.
    I will let hon. Collins
    Mr. First Deputy Speaker 4:10 p.m.
    Hon.
    Ahmed, start your contribution.
    Mr. Adjaho 4:10 p.m.
    Mr. Speaker, you asked
    Mr. First Deputy Speaker 4:10 p.m.
    Hon.
    Deputy Minority Leader, are you denying hon. Dr. Ahmed the opportunity also to talk?
    Mr. Adjaho 4:10 p.m.
    Mr. Speaker, I cannot do
    that but this is an arrangement that has been made. I will be comfortable when he speaks, I do not have any problem. But it is an arrangement --
    Mr. First Deputy Speaker 4:10 p.m.
    It does not

    Maj. (Dr.) (Alhaji) Mustapha Ahmed

    (retd.)(NDC-- Ayawaso East): Mr. Speaker, ordinarily, I should have been happy for the beautiful edifice that will spring up within my community; the Flagstaff House sits in East Ayawaso constituency where I am the Member of Parliament. But I find it rather difficult to support this motion for a few reasons.

    First of all, I believe the Minister for Presidential Affairs is very familiar with the area and he knows that one of the major roads that leads to the Flagstaff House is the Kanda Highway and then we have the Kaokudi/Nima gutter aborting this very important road.

    Since 2001, no work has continued on the drain construction that started from the Korle Lagoon, through Paloma to the Airport area and this particular drain has become a big hot issue. Indeed now it has even transcended to become a human right issue for the people of the community.

    I believe that I would whole-heartedly be able to support this motion if I have an assurance that in next year's estimates, there would be some vote by the Ministry of Local Government, Rural Development and Environment to do this job.
    Mr. Asamoah-Boateng 4:20 p.m.
    On a point
    of order. Mr. Speaker, my hon. Colleague wanted some assurance that the Nima gutter would be done before he would
    wholeheartedly support the motion on the floor. I would encourage my hon. Colleague and all of my hon. Colleagues in the House to support this motion, especially for him because this edifice would brighten his community; and he has acknowledged that. It would enhance the community.
    But on the gutter, I have already mentioned that to his community leaders that we would do something about it. The assurance is given. So the hon. Member should go ahead and vote for the motion and we would all support him. I have given him my wholehearted assurance.
    Maj. (Dr.) (Alhaji) Ahmed (retd): I believe that Mr. Speaker himself will not feel very comfortable seeing such a huge contrast of this edifice as against the stark poverty that confronts our people within the community.
    Mr. Speaker, I also mentioned the
    Mr. Owusu-Adjapong 4:20 p.m.
    On a point
    of order. Mr. Speaker, I think my hon. Colleague is trying to mislead this House. This very House has approved of a loan for the completion of the Job 600 and as we sit now there is a committee that has been set up by Mr. Speaker to work on the implementation. I am told that even today, they met and therefore this is a misleading statement.
    If he wants to talk about the Nima drainage, I think we can all support him to get more money to support the Flagstaff
    Mr. Owusu-Adjapong 4:20 p.m.


    House so that they include even the Nima drainage in the Flagstaff House.

    Maj. (Dr.) (Alhaji) Ahmed (retd): Mr. Speaker, at the moment, our country is also confronted with the energy crisis. I think if you asked nine out of ten Ghanaians, what is the major problem facing the country now, I believe they would say that the major problem is that of the energy crisis. I had thought that the Government would rather channel these funds into the short-term programme for finding a solution to this crisis.

    I also find the variations so wide that I
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Member, I did tell you that I was giving you just two minutes. Rather, you have taken about five minutes. Can I let some other hon. Member contribute?
    Maj. (Dr.) (Alhaji) Ahmed (retd):
    Mr. Speaker, I believe that I have made a few of my concerns known to the House. Thank you very much.
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Collins Dauda, two minutes for you.
    Alhaji Collins Dauda (NDC --
    Asutifi South): Mr. Speaker, I rise to oppose this motion. I believe that good leadership is one that shows care for the welfare and the well-being of the people it represents. Again, good leadership is one that shows concern for the plight of the people it represents.
    Mr. Speaker, Ghana is confronted with
    Mr. Kofi Frimpong 4:20 p.m.
    On a point of
    order. Mr. Speaker, the hon. Member there is seriously misleading the House. When the construction of the presidential palace, as they call it, came to the floor of this Parliament they said all these things, yet the project is still going on. Is he saying that because some people do not have classrooms, people do not have drinking water in his place, because of all these things, the Accra International Block was constructed -- Is he saying that at the time the $22 million that was given to Mrs. Cotton, there was no poverty in Ghana?
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Member, you are out of order.
    Mr. K. Frimpong 4:20 p.m.
    The hon. Member
    took money to buy a Land Cruiser. Before then, he did not have a Land Cruiser. Some of them bought BMWs and Mercedes Benz cars. There was poverty in the country but they bought all these cars. Why did he not give the money to his people?
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Frimpong, you are out of order.
    Alhaji Dauda 4:20 p.m.
    Mr. Speaker, my hon.
    Colleague has to go back to the Antoa Shrine and apologise to the people of Antoa for making this intervention. It is so baseless and useless.
    Mr. Speaker, I am simply saying that
    in a country where we have very serious crisis in the energy sector, one would have thought that the NPP Government
    Mr. Kyei-Mensah-Bonsu 4:20 p.m.
    On a
    point of order. Mr. Speaker, I believe the words that my hon. Colleague, hon. Collins Dauda has just used on the hon. Kofi Frimpong, the Member for Kwabre West, are very unparliamentary.
    Mr. First Deputy Speaker 4:20 p.m.
    what did
    you hear him say?
    Mr. Kyei-Mensah-Bonsu 4:20 p.m.
    Mr.
    Speaker, he said his intervention was baseless and useless.
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Kyei-Mensah-Bonsu, what is your problem with that?
    Mr. Kyei-Mensah-Bonsu 4:20 p.m.
    Mr.
    Speaker, my problem is that those words are unparliamentary. They are offensive.
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Kyei-Mensah-Bonsu, the words may be robust but I would refuse to say that they are unparliamentary. Let him continue.
    Mr. Kyei-Mensah-Bonsu 4:20 p.m.
    Mr.
    Speaker, with respect, today is the last day and in deference to the Chair, I do not think that such convoluted and obtuse language should be allowed in this House.
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Kyei-Mensah-Bonsu, I have ruled on that. Would you take your seat and let him continue?
    Alhaji Dauda 4:20 p.m.
    Mr. Speaker, my hon.
    Friend, the “bogus man” as I call him always, I am glad, has been overruled by Mr. Speaker.
    Mr. Speaker, but the point is this 4:20 p.m.
    let
    Mr. Mpiani 4:20 p.m.
    On a point of order. Mr.
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Minister for Presidential Affairs, you are out of order. Hon. Dauda, continue. I gave you two minutes and you have already spent one hour.
    Alhaji Dauda 4:20 p.m.
    Mr. Speaker, with
    your indulgence, I would kindly plead with the most powerful controller of this Government to add on to my salary so that I would be able to part with a little for my constituency.
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Dauda, I did say that he was out of order and you are still spending your time only replying to that? I would deduct it from whatever time I give you.
    Alhaji Dauda 4:20 p.m.
    Mr. Speaker, this
    Government has a policy of addressing residential accommodation in our universities and this policy is the in-out- out-out policy.
    rose
    Mr. First Deputy Speaker 4:20 p.m.
    Hon.
    Member, what is your point? Hon. Dauda, just a minute.
    Mr. Isaac Asiamah 4:30 p.m.
    Mr. Speaker, I
    think my hon. Colleague is misleading the House. Mr. Speaker, it is important that as a Parliament we consider strengthening

    very vital institutions of our democracy. Mr. Speaker, we cry, wanting the Job 600 to be completed, so what is wrong if we are putting up a decent accommodation as offices for the highest officer in this country, the President? If we are complaining that we do not have these things and we are crying for decent offices, what prevents the highest office holder too to have a decent accommodation? Let us not be hypocrites; we cry for better houses, we are crying for decent and comfortable vehicles.
    Alhaji Dauda 4:30 p.m.
    Mr. Speaker, I would
    plead with my hon. Colleagues who are uncomfortable with this contribution I am making to reflect soberly on the issues I am raising. Mr. Speaker, the people of this country are looking up to us to provide basic social amenities for them --
    rose
    Mr. First Deputy Speaker 4:30 p.m.
    Hon.
    Mahama, I have seen you are on your feet. What is the problem? Are you rising on a point of order?
    Mr. Mahama 4:30 p.m.
    Mr. Speaker, I think it
    Mr. First Deputy Speaker 4:30 p.m.
    what is
    your point of order?
    Mr. Mahama 4:30 p.m.
    Mr. Speaker, we are
    Members of Parliament. The hon. Minister for Presidential Affairs has never stood for election as a Member of Parliament and
    Mr. First Deputy Speaker 4:30 p.m.
    Hon.
    Members, let us have some order.
    Mr. Mahama 4:30 p.m.
    Mr. Speaker, I have
    not finished making my point. He is misleading the whole nation. The hon. Minister for Presidential Affairs has never stood for election under the Fourth Republican Constitution for Parliament -- [Uproar!] -- Mr. Speaker, day in, day out, Members of Parliament are using their salaries to resolve problems of poverty in their constituencies. We are paying school fees; we are paying hospital bills, including Mr. Speaker yourself -- [Interruption.]
    Mr. First Deputy Speaker 4:30 p.m.
    Hon.
    Member, do not drag me into this.
    Mr. Mahama 4:30 p.m.
    Mr. Speaker, I believe
    that statement he made was very wrong -- to ask hon. Collins Dauda whether he used part of his salary to alleviate poverty in his constituency. Mr. Speaker, we do it everyday and I want it to go on the record. Mr. Speaker, in any case, when he was in Parliament in the Third Republic he did not donate his salary to alleviate poverty.
    Mr. First Deputy Speaker 4:30 p.m.
    Hon.
    Minister, since you have been mentioned in this matter, do you want to make a point? Go ahead.
    Mr. Mpiani 4:30 p.m.
    Mr. Speaker, the hon.
    Member changed the tone of his original statement. I want to tell the hon. Member that even in the Fourth Republic I contested the primaries and lost. [Interruption] -- And Mr. Speaker, I believe the hon. Member was very young, maybe an infant, in 1979, otherwise he would not have come to this House to say that I have never contested the elections. I was a Member of this House and a very important Member of this House.
    Alhaji Dauda 4:30 p.m.
    Mr. Speaker, the only reason that has been assigned for this in- out-out-out policy is lack of resources. If indeed we lack resources and we do not set our priorities right and students are not getting accommodation -- [Inter- ruption.]
    Mr. Joe Baidoe-Ansah 4:30 p.m.
    Mr. Speaker,
    I have been trying to catch your eye for some time. The hon. Member said that this Government has a policy which is in-out- out-out. Mr. Speaker, I would want the hon. Member to know that the universities in this country make their own rules and that it is a university rule. The universities make their own rules and so it is wrong for him to say that it is a government policy.
    Mr. Speaker, a lot of the government
    policies come through this House; he is a Member of the House and I do not expect him to look at the universities from that view.
    Mr. Baah-Wiredu 4:30 p.m.
    Mr. Speaker, I
    think my hon. Friend is just playing to the gallery. A nation has got a budget and its resources are allocated as such. The Flagstaff House project that we are looking at has been budgeted for and we are working on it. This particular building was built in 1965; and is this building not necessary? Somebody has to put it up so what he is just trying to do is to create ill- will and it is unacceptable and improper.
    The whole lot of buildings that have been put up throughout the whole country -- This particular project that we are talking about is to create employment and his own Member of Parliament for that area even wants more to be done. What are we saying? We have budgeted for it and we have allocated the resources so let us use the resources as they are. If he does not want to vote for it then he may vote against it. We are making history today; if he votes for it, that is all right, if he votes
    against it, that is all right. We should go ahead Mr. Speaker, and vote for it.
    Mr. First Deputy Speaker 4:30 p.m.
    Hon.
    Minister, you have made your point so allow him. Hon. Dauda, I would give you one more minute.
    Alhaji Dauda 4:30 p.m.
    Mr. Speaker, I agree
    Mr. Simon Osei-Mensah 4:40 p.m.
    Mr. Speaker,
    on a point of order. Sometimes I listen to some of my hon. Colleagues and I wonder. Mr. Speaker, let us go to the three most deprived regions in this country: Upper East, Upper West and Northern Region. If you go to almost every community we have palaces in those communities; are they saying there is no poverty in those communities? Are they telling us that the chiefs do not think about their people, that is why they put up palaces for them- selves?
    Mr. Speaker, he mentioned that we are not putting up structures at the universities. Let us go and do a census; let us check from 1992 up to date; this Government has put up more structures at universities than what they have done. [Interruptions.] Mr. Speaker, what is the hon. Member
    Alhaji Dauda 4:40 p.m.
    Mr. Speaker, it is
    Mr. First Deputy Speaker 4:40 p.m.
    Hon.
    Members, please, those who are speaking through the microphones when they have not been called, I think that is improper, that is absolutely unacceptable. I understand when we make a little more noise at the background but we want to have a little order here. So please do not interfere with the public address system when one person is on the floor. Hon. Member, I am giving you 30 more seconds to finish.
    Alhaji Dauda 4:40 p.m.
    Finally, Mr. Speaker, I would want to say that posterity would never forgive us and particularly the NPP Government -- for misdirected priorities, for setting priorities wrongly, as they have done here.
    Mr. Speaker, on this note, I urge my
    hon. Colleagues to vote massively against this motion; we do not want it.
    Question put and motion agreed to.
    Mr. First Deputy Speaker 4:40 p.m.
    Hon. Members, we now go to item number 21 and that is the Resolution.
    RESOLUTION 4:40 p.m.
    Minister for Finance and Economic Planning (Mr. Baah-Wiredu) 4:40 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 (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 Loan Agreement between the Government of the Republic of Ghana and Stanbic Bank Ghana Limited for an amount of US$15,000,000.00 for the construc- tion works at Flagstaff House.
    THIS HONOURABLE HOUSE 4:40 p.m.
    H E R E B Y R E S O LV E S A S 4:40 p.m.
    Mr. First Deputy Speaker 4:40 p.m.
    Leader
    of the House, what do I do now?
    Mr. Owusu-Adjapong 4:40 p.m.
    Mr. Speaker,
    Motion 33, please.
    Suspension of Standing Order 80 (1)
    Chairman of the Committee (Nii Adu Mante) 4:40 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 Fidelity Bank for an amount of US$11,800,000 to support the Ghana
    @ 50 Celebrations may be moved today.
    Mr. Joe Baidoe-Ansah 4:40 p.m.
    Mr. Speaker,
    I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    Loan Agreement between Government of Ghana and Fidelity
    Bank to Support Ghana @ 50 Celebrations
    Chairman of the Committee (Nii Adu Mante) 4:40 p.m.
    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 Fidelity Bank for an amount of US$11,800,000 to support the Ghana @ 50 Celebrations.
    Mr. Speaker, in so doing may I present to you and the House your Committee's Report.
    1.0 Introduction
    The Loan Agreement between the Government of Ghana and Fidelity Bank for an amount of eleven million, eight hundred thousand dollars to pre-finance the Ghana @ 50 Celebrations was laid in the House on Friday, 23rd March 2007 and referred to the Finance Committee for consideration and report in accordance with article 181 of the 1992 Constitution and Order 174 (1) of the Standing Orders of the House.
    To consider the loan agreement, the Committee met with the Chief of Staff and Minister for Presidential Affairs, hon. Kwadwo Mpiani, Minister for Finance and Economic Planning, hon. Kwadwo Baah- Wiredu, Deputy Ministers for Finance and Economic Planning, hon. Prof. George Y. Gyan-Baffour and hon. Dr. A.
    Chairman of the Committee (Nii Adu Mante) 4:40 p.m.


    Akoto Osei, officials from the Ministries of Presidential Affairs and Finance and Economic Planning and reports as follows: 2.0 Purpose of the Loan

    The purpose of the loan is to finance the Ghana @ 50 Celebrations project against receivables to be allocated in the National Budget over the next five years.

    3.0 Terms and Conditions of the Credit

    The terms and conditions of the Credit are as follows:

    Loan Amount

    -- US$11,800,000

    Arrangement Fee -- 0.5 per cent flat on the Facility payable to the Arranger on the signing date.

    Interest Rate -- (a) Fidelity Bank's Base rate

    currently at 19.5 per cent

    (b)

    Minus the Margin

    Repayment Period -- (including Grace Period)

    Final Maturity Date
    -- 4:40 p.m.
    Mr. Kwadjo Opare-Hammond 4:40 p.m.
    Mr. Speaker, I beg to second the motion.
    Question proposed.
    Maj. (Dr.) (Alhaji) Mustapha Ahmed

    the Budget we gave $20 million: it was not a loan. Please, the records must be set right.
    Mr. Abayateye 4:40 p.m.
    Thank you very much for the correction. We approved a budget of $20
    Mr. Mpiani 4:40 p.m.
    Mr. Speaker, on a point of information. This very House approved the
    $11 million to be spent. It is in the Budget. And the House also approved that this should be obtained through a loan. So what we are requesting for is to get the resolution to go
    and get the loan because if you look in the Budget for 2007 this House approved $11.8 million equivalent for the 50th Anniversary Celebration. So it is not a new sort of request.
    Mr. Abayateye 4:40 p.m.
    Mr. Speaker, the
    simple question is why is it here today? If we had approved it why is he here today? Mr. Speaker, we do not approve loans by budget, no; that is why he is here today. It is today that we will approve or disapprove the loan. What happened in the Budget is that they drew a programme for the whole year; there were many items; we can agree to some, we can disagree to some, but the majority would vote for the Budget. when it comes to item by item it does not prevent us from opposing the item that you disagree with.
    Mr. Mpiani 4:40 p.m.
    Mr. Speaker, the hon.
    Member can oppose the item, but I am giving him information that this House approved and gave the Minister for Finance and Economic Planning the power to go and borrow the $11.8 million -- [Interruptions.] Please, so he comes here for the resolution. You can oppose it; but what I want the House to know is that
    Mr. First Deputy Speaker 4:50 p.m.
    Hon. Member, are you rising to support it or to be speak against it?
    Maj. (Dr.) (Alhaji) Mustapha (retd): Mr. Speaker, first of all I need some guidance.
    I do not know whether this amount is for the first anniversary of our 50th independent celebration. If it is not, I would not be able to support this motion. This is because I find it very ridiculous that something that we have already concluded -- We have finished cele- brating our 50th Independent Anniversary and we are still asking the taxpayer to support a motion to borrow money, $11.8 million to pre-finance Ghana @ 50 Celebration?

    Mr. Speaker, Ghana @ 50 was supported with an amount of US$20 million. Apart from that there were several donations from individuals and corporate organisations and institutions within this country to support the celebration and looking at the crisis that confronts the nation at the moment I do not think it is very prudent for us to continue to borrow money to celebrate Ghana @ 50. We should be able to use this money to execute some projects that would be of direct benefit to our people.

    We are talking about poverty, we are talking about education, we are talking about difficulties even with our health insurance scheme and I believe that this money could be applied in any of these areas that I have mentioned which could be beneficial to our people.

    Mr. Speaker, with these few words I wish to appeal to all hon. Members of this august House to refuse to approve this loan request.
    Mr. Alfred W. G. Abayateye (NDC -- Sege) 4:50 p.m.
    Mr. Speaker, I rise to ask hon. Members
    to refuse to approve this loan. Not quite long ago we approved a loan of US$20 million in this House for the celebration of the 50 years' anniversary of the country.
    Mr. Owusu-Adjapong 4:50 p.m.
    Mr. Speaker, my hon. Colleague is seriously misleading this
    House. We have never approved a loan of $20 million for Ghana @ 50 Celebrations in this very House; we have never approved a loan of such nature. I am aware that as part of
    Subject to the relevant approvals, the facility will be repaid over a maximum tenor of 5 years, inclusive of one (1) year Grace Period on the repayment of capital that may be agreed by the Arranger after further consultation with the borrower. The outstanding capital will be repaid in equal and consecutive quarterly or half yearly instalments, the first one falling one (1) year after the expiration of the agreed Grace Period (each a “Repayment Instalment”).
    Subject to market appetite as determined at syndication, but in any event no longer than 5 years from the signing date.
    0.5 per cent flat on the Facility Amount payable to the Arranger on the signing date and on residual balance yearly.

    Subject to satisfaction of the condi- tions precedent, the drawing period will be no longer than 12 months from the date of signing the facility letter.

    At the Borrower's election, 3 to 6 months. Interest will be payable in arrears at the end of each Interest Period.

    it is not anything new; it is in the Budget. If you go into the Budget you would see that it was approved.
    Mr. Abayateye 4:50 p.m.
    Mr. Speaker, it is very
    Mr. First Deputy Speaker 4:50 p.m.
    Hon.
    Member, would you please go ahead and make your point.
    Mr. Abayateye 4:50 p.m.
    As I said earlier, the Budget made a provision of $20 million for the celebration, various Ghanaian individuals and corporate bodies made donations which were freewill; letters were sent to corporate bodies asking them -- [Interruption.]
    Mr. Kyei-Mensah-Bonsu 4:50 p.m.
    Mr.
    Mr. First Deputy Speaker 4:50 p.m.
    Hon.
    Kyei-Mensah-Bonsu, I did correct the hon. Member on the floor just now if you heard me right. I did tell him that this

    is not a new loan; as a matter of fact, it was approved in the Budget and they are coming specifically, according to the hon. Minister, now for the loan.
    Mr. Kyei-Mensah-Bonsu 4:50 p.m.
    Mr.
    Speaker, the point is, the hon. Minister has never said that we had approved of the loan, it was not so. That is what he has ascribed to the hon. Minister.
    Mr. First Deputy Speaker 4:50 p.m.
    I think he has been corrected, so let him now finish. Hon. Member, continue.
    Mr. Abayateye 4:50 p.m.
    Mr. Speaker, letters were sent to corporate bodies to also make donations. Some did it, not because they wanted to, but because they were asked in the letter to do so. Again, in the foreign missions the embassies collected monies for the celebrations -- [Interruption.]
    Mr. A. Kan-Dapaah 4:50 p.m.
    Mr. Speaker, I
    would like your guidance on this matter and if my hon. Friend, Dr. Kunbuor can also help, I would be grateful because I think there is a fundamental principle here. They needed $11.8 million to finance the activities. It was stated in the Budget and it was approved; the principle had been approved. We come today for the loan itself to be approved.
    [NII ADU MANTE] I think the only issue we can talk about are the terms and conditions of the loan; we do not have to go back to the need for that loan. I am asking the hon. Dr. Kunbuor to help me on this matter because I think he is fundamentally wrong and he should not be doing what he is doing.
    rose
    Mr. First Deputy Speaker 4:50 p.m.
    Hon.
    Dr. Kunbuor I have not even asked you -- Well, if you want to make any input I will allow you.
    Dr. Kunbuor 4:50 p.m.
    It is because my name
    was mentioned to offer some assistance and I am saying that the difficulty that is being raised is completely a different arrangement. The principle or the policy could have gone through the so-called Budget Statement. [Interruptions.] wait a moment. I do not know why when we listen to some words, because we have always used them in the negative, we think that the word is negative.
    When you say that something is “so- called”, that is a definition that has come to be accepted. [Interruptions.] Please, you just develop butterflies when it is not necessary.
    What I am saying is that the issue that is coming up is that the original $20 million is now loaded with an excess baggage and we think that if we do not unpack that baggage we would never get our way clear

    TABLE P. 423
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    Mr. First Deputy Speaker 4:50 p.m.
    You have
    made your point, let him continue.
    Mr. Abayateye 5 p.m.
    Mr. Speaker, our missions abroad also raised moneys; as at now the total amount raised in the missions abroad, we as the representatives of the people have not been made aware of. And with all these the programme is ongoing; the celebration has ended; no rendering of account has been made and a further provision in the Budget -- It means that because a provision in the Budget has been made it should be -- [Interruption ] -- He has not been called.
    Mr. First Deputy Speaker 5 p.m.
    Hon.
    Member, I have called him; let him talk.
    Mr. Kyei-Mensah-Bonsu 5 p.m.
    Mr.
    Speaker, we have freedom of speech; but I believe such speech must be substantiated, and based on truth.
    First of all my hon. Colleague made a very serious allega-tions: he said people and companies were asked to contribute, many did not want to contribute but they did so only because they were asked to do so. Mr. Speaker, it means that some individuals and companies were compelled to pay. Mr. Speaker, can he substantiate the allegations he has made? That is the first thing.
    Then he talks about foreign missions Having been asked to raise money. Mr. Speaker, again, can he clarify the situation for us because I am not too sure that what he is saying is the exactitude? Yes, he
    must provide his information; he cannot just make blanket statements and get away with it.
    Mr. Abayateye 5 p.m.
    Mr. Speaker, I say so again; letters were sent to corporate bodies in Ghana to make contributions; if they did not send the letters they would not have made the contributions. Ghana Embassy in The Netherlands raised moneys -- [Interruption ] --
    Mrs. Gifty Eugenia Kusi 5 p.m.
    On a point of order. Mr. Speaker, he continues to mislead this House, and the whole country. Can he give us copies of those letters that were sent to people to compel them to contribute? Foreign Missions -- can he give us evidence? Can he substantiate? Mr. Speaker, he should not be allowed to go free with this statement. Mr. Speaker, he is misleading the whole country.
    Mr. Abayateye 5 p.m.
    And all the cedi component raised in the country, as at now, as representatives of the people, we do not know whether it was one cedi raised or two cedis raised. A provision has been made in the Budget which -- [Inter-ruption.]
    Mr. E. A. Owusu-Ansah 5 p.m.
    On a point of order. Mr. Speaker, my hon. Friend on the other side is misleading this House. A little while ago he said the 6th March celebration has ended. Mr. Speaker, it has been drummed into everybody's ear that it is a year-long celebration; it started from 6th March this year, and it is ending next year. So for anybody, particularly, a Member of this august House to come over to say that the celebration has ended is very unfortunate and very myopic indeed. It is not true, he is misleading us.
    Mr. First Deputy Speaker 5 p.m.
    Yes, I will still give you one minute.
    Mr. Abayateye 5 p.m.
    Mr. Speaker, I would
    are scattered all over the country. This capital city of ours, at the time before independence, was in total darkness; we had to spend money on those things. The money was not used for drinks; so the hon. Member should note that the money was not meant for 6th March. That is wrong.
    Mr. Agyepong 5 p.m.
    Mr. Speaker, the hon. Member knows that these shouting and others would not help us. Mr. Speaker, when there is this topic before us, let us analyse it and go into it critically and seriously -- because I am not speaking for and on behalf of the Minority; I am speaking for, and on behalf of the nation and the country.
    Mrs. Gladys Asmah 5:10 p.m.
    On a point of order. My hon. Colleague is trying to confuse the House. Mr. Speaker, the celebration of the 50th Anniversary is still ongoing. It is a whole year affair. Mr. Speaker, the Ministry of Fisheries is planning to have a regatta. We were supposed to have had it from Aflao to Axim in May; but the Ghana Navy informed us that the month that was picked for the regatta, the sea would be too turbulent so we should have it in November.

    Mr. Speaker, there has been a request to the Secretariat for funding for this regatta which will start from Aflao to Half Assini. It is still ongoing and we are there asking for money for our part of the 50th celebration. Mr. Speaker, it is still ongoing.
    Mr. Agyepong 5:10 p.m.
    Mr. Speaker, it is still ongoing, but it is only the unwise who
    like to conclude by saying that due to the failure of the Secretariat to render accounts, at least of the cedi component raised by various Ghanaians and corporate bodies who donated, I call on the whole House to reject this because no proper record is being kept.
    Mr. E. A. Agyepong (NPP -- Abetifi) 5:10 p.m.
    Mr. Speaker, I have looked at the Report of the Finance Committee, of which I am a member but I am inclined to believe that I cannot in all sincerity support this request. [Hear! Hear!]
    Mr. Mpiani 5:10 p.m.
    On a point of order. Mr. Speaker, when we requested the funding, we did not request it for March 6. That is erroneous. We requested it for the celebration of our independence for a full year. And Mr. Speaker, unfortunately for us, when we talk of celebrations, we are only thinking of our birthdays, when it is nothing but food and drinks -- [Interruption] -- No, this is not --
    With your permission let me read some of the items which these moneys were used for -- [Interruption] -- Yes, we purchased vehicles -- [Interruption] -- We are using the vehicles in the country. We have built houses, the houses are there, and we are to pay for some of the houses. We renovated the Independence Square -- [Uproar] -- Everybody can see that. Every regional capital was given money to build Jubilee Parade Grounds; they

    takes money to celebrate his birthday. That is the job.

    Secondly, I was on the cars; here, they

    said, sale of cars, that is, Appendix B. Mr. Speaker, and they have stated here, when you go to Appendix 3, what we are going to use the present loan for; cars are again being budgeted for. What is that? You sell the cars and buy some in. The cars that were bought in December, what are they for?

    Mr. Speaker, it is stated here as “vehicles” and then when you go on these vehicles that were bought, included 50 Mercedes Benz saloon cars, 40 Jaguars, 45 Chryslers and 50 BMWs; these are all in the Report and what I am saying is that in one breath, they are selling the cars and in another breath they are going to take a loan and buy new cars into the system. Why are we doing that? I cannot understand and appreciate this.

    Again, Mr. Speaker, I thought when

    one is going for a local syndicated loan, there is nothing like an arrangement fee. Here, there is an arrangement fee of 0.5 per cent. Maybe, the hon. Minister for Parlia- mentary Affairs would probably look at that and explain to us. There is also the management fee, which is 0.5 per cent. As far as I am concerned, when I look at the interest rate, maybe, if we add the margin

    to the base rate, this might be considered adequate. But these two items that are showing in the bid make it difficult.

    Again, I say that the fact that it is budgeted for in the Budget does not mean that we should utilize it. It is the unwise that would go for a loan to -- We must cut our coats according to our cloth, Mr. Speaker.
    Mr. Mpiani 5:10 p.m.
    Mr. Speaker, I support this very important motion -- [Interruptions.]
    Mr. Mahama Ayariga (NDC --
    Bawku Central): Thank you, Mr. Speaker, for the opportunity to contribute to the motion on the floor of the House. Mr. Speaker, I think it is important for us to look closely at some paragraphs of the Committee's Report.
    Mr. Speaker, according to the Report of the Committee, the object of this loan is that, it should be used to settle arrears of various infrastructural developments undertaken as part of the Ghana @ 50 Project. Mr. Speaker, let us look at the list of items that are covered by this particular loan agreement. And let me indicate that there are those who have argued that because there is an approval to this particular issue in the policy statement, we cannot go back and look at exactly what is to be done; we should simply focus on the terms of the loan. We also need to look at the objects of the loan.
    Mr. Speaker, it is being proposed, first of all, to pay for some infrastructural
    Mr. Mpiani 5:20 p.m.
    Mr. Speaker, the first, and one of them is the restoration of the Independence Square. Mr. Speaker, we are told that the initial $20,000,000.00 that we approved ¢16,874,000,000 was used for initial payments for the restoration of the Independence Square and out of this $11,800,000.00, we are told again that ¢7,400,000,000.00 is going to be used for the Independence Square rehabilitation.
    Mr. Speaker, what I am simply asking us to do is that let us add ¢7,400,000,000.00 to ¢16,800,000,000.00 and the indication is that just for the rehabilitation of the Independence Square we are spending not less than 25,000,000,000.00 old Ghana cedis.

    Mr. Speaker, with all due respect, we are clearly not privy to the contract documents and the bill of quantities, et cetera: But it is unimaginable that that Independence Square was restored, not constructed, was restored with a total of over ¢25 billion. Mr. Speaker, could it be that we spent ¢25 billion just to restore the Independence Square?

    Mr. Speaker, the second thing we are told is that we spent ¢61.4 billion to make advance payments for the vehicles that were imported and we are expected to pay an additional amount of ¢36 billion. The total therefore for the vehicles that were imported is ¢97.5 billion. So Mr. Speaker, we are being told that Ghana decided to spend ¢94 billion to purchase vehicles for the celebration of our independence

    anniversary.

    Mr. Speaker, let me do a little mathematics here in relation to recovery because we are also told that proceeds are expected from the sale of these vehicles. And the question that I ask is, if you look at the cost of importing the vehicles, the total is ¢97 billion and we are told that we would be selling the vehicles at about ¢145 billion.

    If you look at the expected proceeds -- projected revenue from operations (Appendix 2) among the revenue for the operations would be sale of vehicles. And if you look at the sale of vehicles, we have sale of vehicles class ‘A' totalling ¢72.1 billion and sale of the balance of the fleet of vehicles totalling ¢69.2 billion. If you put the total together, you are getting about ¢141 billion. Mr. Speaker, so we have ¢97 billion against ¢141 billion.

    The question is, does the amount for the purchase of the vehicles include the total cost involved? These are vehicles purchased by the State. It is even the case that we are calculating the total cost of the vehicles. And when selling the vehicles, are we going to add all the taxes, et cetera, so that the nation does not run at a loss in the sale of the vehicles, if indeed we are going to recover ¢140 billion from the sale of the vehicles?

    Mr. Speaker, I would like to have the assurance from the hon. Minister when he is winding up, whether the sale of the vehicles would take into consideration the real cost of the vehicles or we are going to just do a give-away exercise.

    Mr. Speaker, the second issue is that we are told that one of the sources of revenue regarding the operations is going to be outstanding payment from private developers on leased land. Mr. Speaker, this is outstanding payment; and we are told that the outstanding payment is ¢28.4 billion. Mr. Speaker, what is not captured

    in this particular Report is, what is the total payment from private developers on leased lands? That one we are not told. We are only told about the outstanding payment from private developers.

    Mr. Speaker, the hon. Minister should also let us know who is taking the money ultimately because this land on which the developments took place, I believe, is land that was taken from the communities for the construction of public property-- housing. Later on we converted it into land to be developed for this particular anniversary celebration -- the housing -- and we are giving it to private developers.
    rose
    Mr. First Deputy Speaker 5:20 p.m.
    Hon. Member, it appears there is a point of order.
    Mr. Ghartey 5:20 p.m.
    Mr. Speaker, with respect, my Colleague knows that this matter is before the High Court, Accra. The matter is pending and he just should not talk about it. He is just giving judgment in Parliament that he knows that -- So please, he should not talk about this matter. He knows that our rules do not permit us to do that. He is a lawyer as well as an hon. Member of Parliament and he knows that.
    Mr. Ayariga 5:20 p.m.
    Mr. Speaker, thank you very much. I hope that he was listening because earlier on -- He did not appear to have heard what hon. Dr. Benjamin Kunbuor said. If he was listening to me,
    Mr. Ghartey 5:20 p.m.
    Mr. Speaker, this is
    what I am saying. He started by saying that he knows that the land that was taken belonged to some people -- it was taken and it is private land. Indeed, what he is repeating is simplistic; it is a simplistic interpretation of the law. The matter is before the court. What he is saying is one very simplistic view. There are other views. So he should wait for the high court to hear the matter and decide on it -- Court of Appeal or Supreme Court.
    With respect to him, he does not qualify to be in the High Court, the Court of Appeal or the Supreme Court. He should keep his views to himself. Let the court decide it.
    Mr. Ayariga 5:20 p.m.
    Mr. Speaker, I am not
    Mr. First Deputy Speaker 5:20 p.m.
    Hon.
    Ayariga, all that the hon. Attorney-General has told you, and I would say it is a good advice, is that on any matter before the court when you are making any comment, be circumspect. Please, avoid that and let us continue.
    Mr. Ayariga 5:20 p.m.
    Mr. Speaker, the basic
    Mr. Kofi Osei-Ameyaw 5:20 p.m.
    Mr. Speaker,
    the hon. Member said he was not seeking to impress the Minister for Presidential Affairs. What does he mean by that?
    Mr. First Deputy Speaker 5:20 p.m.
    You are
    out of order.
    Mr. Ayariga 5:30 p.m.
    Mr. Speaker, so we
    would need to know the total amount that we would gain from the lease of the land.
    Mr. Speaker, the other item on the -- [Pause.] The Committee has also reported that it was informed that revenue expected to be realized from the operations of the Ghana @ 50 Secretariat is estimated at ¢264.4 billion. Mr. Speaker, if you look at the revenue, you would also notice that we are getting an amount of ¢40 billion from the Common Fund. This is clearly a recycling of public money.
    If you are getting ¢40 billion from the Common Fund for the sale of souvenirs, you have not done anything; you have simply compelled the districts to cede an amount of money that was meant for their use to the Scholarships Secretariat. You have not achieved much. If you had told us that you sold the souvenirs to the general public and you had gained ¢40 billion from the sale of the souvenirs to the public, then we would know that the State is making money out of the sale of the souvenirs. But here, we are taking
    ¢40 billion from our Common Fund and simply putting it in the Scholarships Secretariat. So we have not achieved much in terms of trying to recover the cost, ultimately to the State, involved in the celebration of the Ghana @ 50 event.

    Mr. Speaker, let me indicate that even the $20 million that we were compelled to approve in spite of the public pro-testations and the protest of some Members of this House, we believe that that was too much for the celebration of the 50th Anniversary. Now we are being told that we should approve an additional $11.8 million.
    Mr. First Deputy Speaker 5:30 p.m.
    Hon. Ayariga, you have less than half a minute to finish.
    Mr. Ayariga 5:30 p.m.
    Mr. Speaker, where guinea worm is next to Sudan and we choose to spend $31 million on the celebration of Ghana @ 50 is just unacceptable. I believe that these figures are not figures that should be countenanced by is in this House. we should not lend our support to such use of public money. We hold the public purse in trust for the people of this country and we should not allow the public purse to be mutilated the way that it is being done by those who are responsible for the management of the finances of this country.
    On that note, I urge my hon. Colleagues to vote against this particular proposal
    Mr. Ayariga 5:30 p.m.


    to give $11 million to the Ghana @ 50 Secretariat to defray its debt.
    Minority Leader (Mr. A. S. K. Bagbin) 5:30 p.m.
    Mr. Speaker, thank you for the opportunity to register my opposition to the motion before the floor. Definitely, we on this side of the House totally disapprove the management of the State resources in such a reckless manner. We are aware that through the Budget we granted Government $20 million -- [Interruption]
    Mr. Baah-Wiredu 5:30 p.m.
    Mr. Speaker, it is completely unacceptable for the Minority Leader to say that we are spending recklessly. We budgeted for, and sought approval for -- we brought them here. On the HIPC money that the other hon. Member talked about, he has written for his constituency -- Did he not take part of the HIPC money?
    This report has even indicated when
    you dispose of the items, the monies that you are going to get. He actually men- tioned it and when we have budgeted for something and we have discussed it, how can the Minority Leader, a very intelligent gentleman, turn around and say that it is reckless dispensation of money? It is completely untrue. What he is saying is unacceptable; it is not wanted and it is not true; let me tell him.
    Mr. Bagbin 5:30 p.m.
    Mr. Speaker, if you look at page 5 of the report, paragraph two, it was further observed that a total of ¢22 billion was also realized from corporate sponsorships and other donations. This amount was used to support service activity expenditures. The paragraph capturing the ¢22 billion does not reflect in any of the accounts that they presented to us. We do not know where that ¢22 billion has gone to.
    My hon. Colleague, the hon. Minister for Finance and Economic Planning, I thank you very much for acknowledging my intelligence. The only thing is that you have to wait and see why I used those terms. Whether,you accept it or not, I will state my point of view. I think that, it is important that this House is told how that ¢22 billion was utilized.
    Again, if we are to go by this report, we are going for a loan of $11.8 million from a bank in Ghana and we are paying an interest rate of about 16.5 per cent to 19 per cent minus the margin. The margin is 3 per cent. So we can say 16.5 per cent on the dollar. There is nothing in this report to say 16.5 per cent of a cedi; the report talks about the dollar.
    Prof. Gyan-Baffour 5:30 p.m.
    Mr. Speaker, I think the hon. Minority Leader is misleading everybody. The point is that the bank that we are borrowing the money from is a Ghanaian bank; it is a bank here so we are not going to use interest rates from the United States because we are quoting it in the dollar. We are not even going to take dollars from them; we are going to take cedis.
    Why should we go and take dollars from them to make cedi payments? We are collecting cedis from them which is only quoted in dollars. So what is his problem? In fact, it is even lower than that bank's rate and that is why we are referring to it as nineteen point something minus the margin of three. So it is lower than the interest rate that pertains in this country. And we have to be applauded even for getting a rate lower than that.
    Mr. Bagbin 5:30 p.m.
    Mr. Speaker, my hon. Friend the Deputy Minister for Finance and Economic Planning, has simply fortified my point. If they are taking the money in cedis, why not tell us that they are taking the money in cedis but they have quoted it in dollar? They quoted a loan amount of $11.8 million. This House is going by the documents we have been given and we are led by the report from the Committee. I am referring to the report from the Committee.
    Prof. Gyan-Baffour 5:30 p.m.
    Mr. Speaker, let me try and explain why the figures were quoted in dollars. He is misleading everybody. In the budget, we have that $100 million there for all these short-term loans; they are quoted in dollars. We do that because that is what the agreement that we have with the IMF will allow -- $100 million for short-term loan. That is the window.
    So to actually be able to get the total to that $100 million, we quote all of them in dollars and when you look at the Budget, on the last page here, page 349, we have all of them quoted in dollars as well as in cedis. So it is not a question of because we are borrowing and we quoted in dollars, the interest rate should be an American interest rate. That is not the issue. The issue is that we are borrowing it from Ghana and so the interest rate in Ghana has to be applied.
    Mr. Bagbin 5:40 p.m.
    Mr. Speaker, again my very good Friend, the hon. Deputy Minister for Finance and Economic Planning, if he is listening, I have the Budget Statement here with me. If in the Budget, the figure $11.8 million is quoted and on the right hand side, the equivalent in cedis is quoted but then in the Report, which we are to adopt on the floor of the House, that cedi equivalent is dropped, what is the intention?
    Mr. Speaker, we are not adopting this
    now. We are now adopting the Report and definitely my hon. Colleague, the hon. Deputy Minister for Finance and Economic Planning is aware that the cedi equivalent will not be what is stated in the Budget today. The cedi equivalent today, according to the value of the Ghanaian cedi is now higher than this. According to the value of the Ghanaian cedi, the value is not the same.
    Mr. Speaker, on page 4, the last
    paragraph, it is stated that the Committee was further informed that a total of 300 vehicles were purchased as part of the project. These vehicles include 50 Mercedes Benz saloon cars; 40 Jaguars; 35 Chryslers; 50 BMW 7 Series; 40 Peugeot 607s -- [Hear! Hear!] -- and 35 VW Passats -- [Hear! Hear!] . . . Others are 25 Benz buses and 25 Zonda buses. [Hear! Hear!] These are the 300 vehicles. We are told that these vehicles are being -- [Interruptions.]
    Mr. Simon Osei-Mensah 5:40 p.m.
    Mr. Speaker, the argument that the honourable and respectable Minority Leader was making about the interest rate and was saying in relation to dollars -- I think the motion that we are considering is to adopt the Report of the Finance Committee. And in the second paragraph of page 4 of the Report, it is stated and I beg to quote:
    Mr. Simon Osei-Mensah 5:40 p.m.


    “It was noted that even though the loan amount is stated in dollars, it shall actually be accessed in cedis (thus the cedi equivalent of US$11.8 million).”

    So Mr. Speaker, sometimes, it is not necessary to be going into certain things and writing everything at each stage. The Report is clear so all that we are talking about is that the interest rate is in relation to the cedi equivalent of the $11.8 million because that is how the money is going to be accessed. As per the Report, it is not going to be accessed in dollars and we are adopting the Report of the Finance Committee. I think the interest rate is in relation to the cedi equivalent.
    Mr. Bagbin 5:40 p.m.
    Mr. Speaker, this point
    of order even came very late. But he has simply fortified the issue. How much is the equivalent? He should tell me.
    Mr. First Deputy Speaker 5:40 p.m.
    Hon.
    Minority Leader, speak to the chair. But maybe the hon. Member may be minded to say something to that.
    Mr. Osei-Mensah 5:40 p.m.
    Mr. Speaker,
    when the hon. Minority Leader started his argument, he said the loan amount has been quoted in dollars. And for that reason, the interest rate is going to be charged on the dollar and I am drawing his attention to the statement in the report that we are going to access the money in cedi equivalent of the $11.8 million. For that reason, the interest rate is not on the dollar but on the cedi equivalent. The issue of how much is the cedi equivalent is not what he was raising. His argument was that the interest rate was in relation to the dollar, which I am trying to tell him is not right. The interest rate is in relation to the cedi equivalent of the $11.8 million.
    Mr. Kyei-Mensah-Bonsu 5:40 p.m.
    Mr. Speaker, I have been up for a while but I did not catch your eye. The hon. Minority Leader appears to have gone beyond the issue that I wanted to raise.
    Mr. Speaker, he made an important statement to the effect that Government is minded to hide something in respect of the cedi value of $11.8 million. That was the inference, that if we are not minded to hide something then what are we doing. In cedi terms now, $11.8 million is equivalent to -- that is even if one used ¢9,500 for a dollar -- only GH¢11.2 million. So the impression should not be created by the hon. Minority Leader that somebody wants to hide something -- that the figure in cedi terms is larger or more huge than what obtains here.
    Mr. Speaker, the hon. Minority Leader is misleading this House and misleading himself and the entire nation.
    Mr. Bagbin 5:40 p.m.
    Mr. Speaker, the hon. Majority Chief Whip knows that it is incongruous to have that kind of rate he has used for the Ghana cedi, which is in
    value terms, higher than the US dollar at an interest rate of around 20 per cent when the US dollar that it is higher than is having it at 6 per cent. He must know that in economic terms, it does not work out at all.
    Mr. First Deputy Speaker 5:40 p.m.
    Hon.
    Minority Leader, you are addressing us and we are listening to you. So please, address the Chair.
    Mr. Bagbin 5:40 p.m.
    Mr. Speaker, I was saying
    Mr. First Deputy Speaker 5:40 p.m.
    Hon.
    Minority Leader, I thought that you will not engage yourself in that kind of thing Address the Chair.
    Mr. Bagbin 5:40 p.m.
    Mr. Speaker, another
    Mr. First Deputy Speaker 5:40 p.m.
    Hon.
    Minority Leader, we are listening to you. Do not be distracted by whatever is happening. Speak to the Chair and let us continue.
    Mr. Bagbin 5:50 p.m.
    He has lost his cool. I do
    not know why. Mr. Speaker, if you look at the issue
    of advertisement, there are a number of media houses with the opportunity to serve and be paid. I have no problem with the media houses that have been itemized. But the question is, why are others left out since we all serve the nation? This is because the audience of Daily Guide is not the same as the audience of Public Agenda.

    Mr. Speaker, the audience for Peace FM is not the same audience for Adom FM. How come that some houses have been itemised for assistance to do the advertisements and not others? These are issues that we have to raise because we are developing democracy, even if we are minded to approve this, we want equity; we want equality; we want fairness; we want justice and social justice at that.
    Mr. Mpiani 5:50 p.m.
    Mr. Speaker, the Kente
    there is not for our President. Our President will not spend that much money on Kente cloth; it is visiting Presidents and other dignitaries who came in here.
    Mr. Bagbin 5:50 p.m.
    Mr. Speaker, I do not
    know whether the Presidents who are coming are not our Presidents. They are our Presidents, including our President himself. Are you telling me that he will not be a beneficiary of this Kente? Forget it. Mr. Speaker, and that amount for visiting Presidents -- Our President is also a visiting President; he is always outside -- [Interruptions] -- It is ¢321.875 million; that is only for Kente.
    Mr. Speaker, let us go to diaries, presidential diaries -- ¢5.261 billion. HIPC Ghana! Mr. Speaker, let us move on to calendars, Jubilee calendars -- ¢575.552 million. Mr. Speaker, if you have a country like Ghana, where the Parliament House has a perennial water problem, where hon. Members are sometimes compelled to stop debate and go home, is it prudent
    Mr. Bagbin 5:50 p.m.


    for you to bring visiting Presidents, give them Kente and bring them to Parliament House where they cannot even get water in the washroom? Oh, Mother Ghana! And when I use the term, my Friend the hon. Minister for Finance and Economic Planning would rise up and say it is unacceptable.

    Mr. Speaker, the visiting Presidents will
    Mr. Owusu-Ansah 5:50 p.m.
    On a point of
    order. Mr. Speaker, 25 million dollars was earmarked for improvement on the Parliament of this country; that money has not been traced up till today. Hon. Members should rather consider the matter that is before us. Because if they bring in matters about water not flowing in the House, that would remind us about the 25 million dollars that went down the drain;and that has not been traced till today. And if that money had been traced, and had been used for the purpose for which it came to the country, probably we would have had water running through our taps.
    Mr. First Deputy Speaker 5:50 p.m.
    Hon.
    Minority Leader, will you please wind up.
    Mr. Bagbin 5:50 p.m.
    Mr. Speaker, my hon.
    Friend, the Regional Minister for Ashanti worked with me at the Census Office and he knows how to get statistics. He knows where he can get that figure from and he knows that what he is saying here today is untrue. We do not play politics with such matters. He and I have known each other for many years; he knows where the money went so he should not say these things on the floor of the House.
    Mr. Speaker, it is important that we
    Mr. Owusu-Ansah 5:50 p.m.
    On a point of
    order. Mr. Speaker, the learned Minority
    Mr. Bagbin 5:50 p.m.
    Mr. Speaker, if he did not

    The hon. Member should go and look at the Official Report. Mr. Speaker, yes, the items that were to benefit from the 25 million included the Job 600. But that money went into genuine projects which we are benefiting from, including -- [Interruptions] -- Please, you have asked the question and I am answering -- including where we have the Council of State now.

    Mr. Speaker, let me just end by saying that we completely disagree with Government on the use of our money -- the way it is being done.

    Mr. Speaker, for example, we are aware of the attempt at planting seedlings and when you look at the items here -- item 8, item 13 and item 16, you can see item 2, item 3; they are all on supply of seedlings. I am aware that even up North where, for example, in Wa we have a problem with water supply, these seedlings were being planted to be watered. And there is no water to water them and they have withered and died away. What kind of word would I use for this kind of expenditure?

    Mr. Speaker, we are totally opposed

    to the Government going in for this loan

    in order to celebrate our 50 years of independence. The Golden year, like some of us said, we would want to celebrate it but we do not go for loans to celebrate our birthdays. I have never gone for a loan to celebrate my birthday. Hon. Hackman has never gone for a loan to celebrate his birthday. You cut your coat according to your size; and I believe that that is what we are asking for. Thank you very much, Mr. Speaker.
    Mr. Hackman Owusu-Agyemang 6 p.m.
    Mr. Speaker, when my birthdays are over I do not argue about them because it is past; it is gone. We have finished the birthday so what are we arguing about all these things for?
    Mr. Mpiani 6 p.m.
    Mr. Speaker, as I have
    stated in this House before, and I think this has been reinforced by the hon. Minority Leader, when we talk of celebration the idea which gets into people's mind is fun-making, drinks and therefore he was saying that nobody borrows for a birthday. I will agree with him. Nobody would have to borrow for his or her birthday. But everybody would have to borrow if you are in a country and you are inviting people to come in. You must get them a place to sleep. We are not the first country to invite other Heads of State to come to our country.
    Mr. Speaker, as a matter of fact, hon. Speaker invited Speakers from Africa to come here. When they came we had to provide them with accommodation. We had to give them vehicles to ride in. Were we expected to let them come in without giving them vehicles and a place to sleep?
    Mr. Speaker, the hon. Minority Leader was saying that the hon. Member behind
    me should not play politics. That is exactly what the hon. Members opposite are doing. They are playing to the gallery. I want to assure them that Ghanaians are very discerning and Ghanaians know what this Government is doing for them; so what they are saying is not going to change Ghanaians.
    Dr. Kunbuor 6 p.m.
    On a point of order. Mr.
    Mr. First Deputy Speaker 6 p.m.
    Hon.
    Member, if you want to raise a point of order, go ahead.
    Dr. Kunbuor 6 p.m.
    My point of order is
    Mr. First Deputy Speaker 6 p.m.
    Hon.
    Kunbuor, take your seat. I think you are out of order.
    Mr. Mpiani 6 p.m.
    Mr. Speaker, hon. Ayariga got up complaining about the work at the Independence Square. He himself said he does not know what is involved yet he stands up to say that the cost is unimaginable. What sort of confusion is that? He does not know the work involved; he is still condemning the figure. What sort of thing is that? [Interruption.]
    Mr. Ayariga 6 p.m.
    On a point of order. Mr.
    Speaker, he is constructing a Presidential palace and he says he does not know how much it costs. He said he does not know how much it costs. In fact, he said it in this House that we should approve money for him to go and continue construction
    Mr. Ayariga 6 p.m.


    when he does not know how much it costs.
    Mr. First Deputy Speaker 6 p.m.
    So hon.
    Ayariga, what is your point? You said, you have not seen it and you are reiterating that you have not seen it, so what is your point?
    Mr. Ayariga 6 p.m.
    Mr. Speaker, so the indication that this is total confusion, I am trying to explain, it is not confusion. I am simply comparing what I saw when I went there during the national reconciliation exercise with what I saw recently -- [Interruption.]
    Mr. First Deputy Speaker 6 p.m.
    And he
    describes it as confusion. So let him continue.
    Mr. Mpiani 6 p.m.
    Mr. Speaker, there was this question of vehicles which the hon. Member for Abetifi and the hon. Minority Leader spoke on. I will forgive the hon. Minority Leader because his consti-tuency is different from that of the hon. Member for Abetifi. The hon. Member for Abetifi should not be forgiven because he comes from an area where we have very good traders and those traders -- [Interruption.]
    Mr. Bagbin 6 p.m.
    Mr. Speaker, point of
    order -- objection! The Minister for Presidential Affairs says he has forgiven me but he will not forgive him. Is that a threat? The hon. Minister for Presidential Affairs forgiving me -- But the hon. Minister for Presidential Affairs
    Mr. Mpiani 6 p.m.
    Mr. Speaker, I forgive
    Mr. E. A. Agyepong 6 p.m.
    Mr. Speaker, the
    hon. Minister for Presidential Affairs said that the hon. Member for Abetifi cannot be forgiven. Please, tell him it is only God who can forgive but not he.
    Mr. First Deputy Speaker 6 p.m.
    Hon.
    Member, it is a figure of speech; please, let us continue.
    Mr. Mpiani 6 p.m.
    Mr. Speaker, when I met
    the Committee I told them that everything was done according to the Procurement Law. I informed the Committee that we have invited the Auditor-General to come and audit the accounts of the Secretariat and at the appropriate time I will put the audited accounts before this House.
    rose
    Mr. First Deputy Speaker 6 p.m.
    Hon. Deputy Minority Leader, what is it that you want?
    Mr. Doe Adjaho 6:10 p.m.
    Mr. Speaker, the
    hon. Minister is seriously misleading this House. He did say that he invited the Auditor-General to come and audit the accounts. The Auditor-General is not subject to any authority under the Constitution. Even when the President wants him to do something he has to do it through the Council of State. If that is the kind of things they did to the Auditor- General then God bless Ghana.
    Mr. First Deputy Speaker 6:10 p.m.
    Hon.
    Deputy Minority Leader, you are out of order.
    Mr. Mpiani 6:10 p.m.
    Thank you, Mr. Speaker.
    So this money being requested for, Mr. Speaker, is not for party work. We have AU housing -- Hon. Members might have seen the houses at the Ridge and the La area. Mr. Speaker, we have an Independence Square which was in a very deplorable state and we were inviting people from all over the continent -- Ghana is a special country -- Our 50th Independence Celebrations attracted people from all over the world. Mr. Speaker, we were not inviting these people to come, with the greatest respect, to have a place like Nima and ask them to go there -- With the greatest respect, we had to put our House in order to bring them here.

    Maj. (Dr.) (Alhaji) Ahmed (retd): Mr.

    Speaker, I just want to assure the Minister that when I get back to my constituency I will tell them exactly what he has said. Thank you very much.
    Mr. First Deputy Speaker 6:10 p.m.
    Fair
    enough. Let him continue.
    Mr. Mpiani 6:10 p.m.
    Mr. Speaker, I picked my
    words from him. When we were debating the Flagstaff House he just told us that a magnificent building around this poor area. These are not my words, but his -- [Laughter.] Mr. Speaker, we decided that at least, this year during our 50th Anniversary Celebrations each regional capital will have a place where they can meet on important occasions and we had to put money in there.
    Accra was in total darkness. Under normal circumstances it should not be the responsibility of the Secretariat of our 50th Independence Anniversary to provide light. But they have done it and we invited people from all over the world.

    Maj. (Dr.) (Alhaji) Ahmed (retd):

    Mr. Speaker, again, the Minister says that he quoted from me and that I had stated that the Presidential palace was being put up close to a poor area. I never said so. Again, Mr. Speaker, whilst the Ghana @ 50 celebrations is going on, the hon. Minister is saying that the comments of the dignitaries who came was that Accra had very clean streets. I would like to point out to him that in the Frankies area in Nima and the Chief Cargo area in Nima the rubbish was uncollected for almost three days and it was overflowing. I had to call the contractors to come in the night to collect the refuse.
    Mr. First Deputy Speaker 6:10 p.m.
    what is
    your point, hon. Member?
    Maj. (Dr.) (Alhaji) Ahmed (retd): Mr.
    Mr. First Deputy Speaker 6:10 p.m.
    You are
    out of order. Let him continue.
    Mr. Mpiani 6:10 p.m.
    Mr. Speaker, I thank
    him for his information. I will inform the Mayor of AMA about the problem he has in his constituency. Mr. Speaker, so let us look at this as a national affair and put Ghana on a very high pedestal. We are being praised for what we put up, especially on 6th March and therefore, Mr. Speaker, I want to ask both sides of the House to approve and vote for this motion.
    Mr. First Deputy Speaker 6:10 p.m.
    Hon.
    Members, at the end of the debate, I will put the Question.
    Question put and motion agreed to.
    Mr. First Deputy Speaker 6:10 p.m.
    Hon.
    Members, we now move to item 35 and it is for Minister for Finance and Economic Planning.
    RESOLUTION 6:10 p.m.
    Mr. Kwadwo Baah-Wiredu 6:10 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 (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 Loan Agreement between the Government of Ghana and Fidelity Bank for an amount of US$11,800,000 to support the Ghana @ 50 Celebrations.
    THIS HONOURABLE HOUSE 6:10 p.m.
    H E R E B Y R E S O LV E S A S 6:10 p.m.
  • [Resumption of debate from column 2968]
    • Mr. First Deputy Speaker 6:10 p.m.
    Yes, hon.
    Dr. Kunbuor, I want to hear you.
    Dr. Kunbuor 6:10 p.m.
    Yes, Mr. Speaker,
    the issue had to do with the proper constitutional provision that we needed to come in and it became clear that we needed to deal with what looks like some confidence document for them to proceed on this arrangement. So when we went out, we tried to remodel the original agreement. The Attorney-General did the draft and they brought it and showed it to me and that is what is before the House.
    Mr. First Deputy Speaker 6:10 p.m.
    Very well.
    Then the Attorney-General to move the motion. Yes.
    Attorney-General and Minister for
    Justice (Mr. Joe Ghartey): Mr. Speaker, before we went out, there was this very long discussion about the nature of this particular transaction and we thought that it was exactly this kind of transaction that was envisaged under article 181 (5) when we asked for modification.
    So in consultation with the Chairman of the Committee we have taken out the provisions to the Loans Act and we have
    restricted ourselves to the provisions of the Constitution which I believe give Parliament the power to pass the resolution that we are about to pass.
    Mr. First Deputy Speaker 6:20 p.m.
    Can I find out something else? Have you therefore distributed to the House this new rendition of the report?
    Mr. Ghartey 6:20 p.m.
    Yes, Mr. Speaker.
    Mr. First Deputy Speaker 6:20 p.m.
    In that case, I would put the question.
    rose
    Mr. First Deputy Speaker 6:20 p.m.
    Are you raising a point of order against the Speaker?
    Mr. Ayariga 6:20 p.m.
    Not to raise a point of
    Mr. First Deputy Speaker 6:20 p.m.
    Hon. Member, I believe you were here, the heated debate was not about any finance; it was about the way the report had been crafted. In fact, about the resolution all that hon. Members wanted to know was that -- Some other Members said that it did not conform to the ordinary loans that we have been contracting in accordance with our Constitution.
    Mr. Ayariga 6:20 p.m.
    So they should tell us what is new about this, what have they made -- [Interruption.]
    Mr. First Deputy Speaker 6:20 p.m.
    Please, I
    Mr. First Deputy Speaker 6:20 p.m.


    am speaking so if you could take your seat.

    what has been done is that all of them

    have discussed it. The understanding, so far as I am concerned -- and I believe that is what those who want to discuss it want -- is that there is a need for a comfort, some kind of resolution for even any bank or any institution you want to deal with, which will agree to deal with you, to advance some loan or for the Government to access some loan. And if that loan is accepted, the loan would be brought here to the House.

    Now, what I believe has been done between hon. Kunbuor, the Attorney- General and the others is that they have re-crafted it to the point that it is non- committal and yet gives comfort to any official, particularly, the Ministry of Finance and Economic Planning in going out there to deal with any financial instituion so that a loan could not be above $750 million, the terms of which would be brought here.

    I believe they are not going for a bulk loan at once but they are going to maybe negotiate for some loans. But this House will definitely have the control and would be informed and would look at it -- whatever it is. This is the way I understand it. If I am wrong, let hon. Kunbuor tell us.
    Dr. Kunbuor 6:20 p.m.
    Yes, I wanted to draw
    attention to some procedural matters that hon. Ayariga is indicating. It is because of some changes that have taken place that it was expected that perhaps the Chairman would present the matter and then we take it up from that point, drawing specific attention to where the changes have been effected.
    Mr. First Deputy Speaker 6:20 p.m.
    Very well,
    I think the mistake was mine, when I did call on the Attorney-General to make a move because I was advised by the Majority Leader that it was appropriate that the ownership of this motion before us was that of the Chairman of the Committee for Finance. So I would call upon him to speak to the motion. Yes, hon. Chairman of the Committee?
    Nii Adu Mante: Mr. Speaker, having
    regard to your advice certain portions of the Report were corrected, beginning from paragraph one, the last but one line -- In accordance with article 1, particularly clauses 5 and 6 of the 1992 Constitution. The previous wording was and with your permission I quote:
    “In accordance with Article 181 of the Constitution and Order 171 (1) of the Standing Orders of the House.”
    That was the previous rendition. This has been rephrased. In the second paragraph, the word “Agreement” was mistakenly captured. The word “request” should have been the proper word and for that matter in this new report, the word “request” has been captured.
    Mr. Speaker, when you come to the
    Conclusion, we have added one more paragraph which originally was not captured and with your permission I quote:
    “The Minister agreed to submit to Parliament the prospectus and other consequential documents relevant to registration and listing.”
    Mr. Speaker, that is the new rendition we have in the Report and with this I am done.
    Mr. First Deputy Speaker 6:20 p.m.
    So, you
    have substituted it with that of the earlier one, have you not?
    Nii Adu Mante: That is so, Mr. Speaker.
    Mr. First Deputy Speaker 6:20 p.m.
    On that score, I will put the Question on item 31 on page 15 of the Order Paper.
    Question put and motion agreed to.
    Mr. Adjaho 6:20 p.m.
    Well, Mr. Speaker, I was
    not able to catch your eye before you put the Question. [Interruptions.] But Mr. Speaker, it is important that we are sure that we are doing the right thing. Mr. Speaker, are we saying that by this motion, which would be followed by the consequential resolution, we are now authorizing Government to go to the capital market -- by those who voted for this motion? Are we also saying that the terms or details would be brought to this House for approval? -- [Interruptions]
    rose
    Mr. First Deputy Speaker 6:20 p.m.
    Are you on a point of order, hon. Majority Leader?
    Mr. Owusu-Adjapong 6:20 p.m.
    I was just
    trying to be sure what procedure we were using. I thought we had finished with item 31 and I was going to suggest that we now move to item 32.
    Mr. First Deputy Speaker 6:20 p.m.
    We would go to that, but be it as it is, he is a very senior Member of this House and if he rises, I am obliged to give him a hearing.
    Mr. Adjaho 6:30 p.m.
    Mr. Speaker, I want to be very clear because I do not see how when Government was going to China to negotiate for these facilities, it was government decision which was right. They brought it and we approved it.

    Mr. Speaker, there is a clause there. The last paragraph of page 5 -- would

    the documents be brought to this House for our information or for approval? That is all; because it is not clear. That is an addition to the Report; it is a new paragraph. Is it going to be brought to this House for approval or for our infor- mation? Let us get the records straight.
    Mr. First Deputy Speaker 6:30 p.m.
    Hon.
    Members, I will now move on to the Resolution flowing from the motion.
    Mr. Baah-Wiredu 6:30 p.m.
    Mr. Speaker, I beg
    Mr. First Deputy Speaker 6:30 p.m.
    Hon.
    Minister, before you do that let me give the floor to hon. Deputy Minority Leader.
    Mr. Adjaho 6:30 p.m.
    Mr. Speaker, we are all
    here because we want to do business.
    Mr. First Deputy Speaker 6:30 p.m.
    That is
    why I am giving you the floor again.
    Mr. Adjaho 6:30 p.m.
    Mr. Speaker, a new
    Mr. First Deputy Speaker 6:30 p.m.
    Hon. Doe
    Adjaho, this House is a master of its own rules and regulations. We do not even bind ourselves by whatever was done yesterday or today. If any matter is brought before this House, you and the other hon. Members have equal rights. Indeed, it is your obligation and responsibility to make changes as and when you want. I am not too sure you want us to put it inside that if any matter is brought here, because of the way it has been crafted, we would be bound to go one way or the other. It is not so.
    Mr. Adjaho 6:30 p.m.
    Mr. Speaker, thank you very much. But the point being made here is that, would the document be brought here? We have to be very clear in our minds. If it is going to be brought here then we do not have any problem. But if it is not going to be brought here for approval, then some of us are opposed -- [Interruption.]
    Mr. First Deputy Speaker 6:30 p.m.
    For sure,
    it would be brought here for approval. Hon. Minister for Finance and Economic Planning, go ahead.
    Some hon. Members -- rose --
    Mr. First Deputy Speaker 6:30 p.m.
    I will not entertain another point of order. Hon. Minister, go ahead.
    RESOLUTION 6:30 p.m.
    Mr. Baah-Wiredu 6:30 p.m.
    Mr. Speaker, I beg to move, that
    wHEREAS by the provisions of article 181 (5) of the Constitution the terms and conditions of any international business or economic transaction to which the Govern- ment of Ghana is a party 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;
    BY THE PROVISIONS of article 181 (6) a “loan” includes any monies lent or given to or by the Government on condition of return
    THIS HONOURABLE HOUSE 6:30 p.m.
    H E R E B Y R E S O LV E S A S 6:30 p.m.
    Mr. K. Osei-Ameyaw 6:30 p.m.
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    Mr. Owusu-Adjapong 6:30 p.m.
    Mr. Speaker,
    item 9 on the Order Paper, a very short amendment to an existing Bill with virtually no amendments by the Committee. If we can take items 9, 10 and 11 on the Order Paper, I am sure we would have come to the end of the exercise.
    BILLS -- SECOND READING 6:30 p.m.
    Mr. J.A. Ndebugre (PNC -- Zebilla) 6:30 p.m.
    Mr. Speaker, I rise to support this motion. The only two matters I want to raise are one, that we take note that a penalty unit has since the Fine Penalty Units (Amendment) Regulations, 2005, L. I. 1813 came into force a penalty unit is now equivalent to ¢120,000 or GH¢12.
    Therefore, especially the Committee on Subsidiary Legislation, when they are dealing with subsidiary legislation insofar as penalties are involved, must take this into account because the tendency is to impose penalties like 2,000 penalty units, 3,000 penalty units without adverting our attention to the value of the penalty unit which is now ¢120,000 or GH¢12.
    The second one is that there is also the tendency to continue to quote penalties in pecuniary terms instead of penalty units. This is one of the mischiefs that this legislation seeks to cure. So henceforth, all penalties must be quoted in terms of penalty units and not pecuniary figures, like ¢5 million or ¢2 million or ¢500,000.
    Mr. Speaker, these are the two important matters I want to raise, and having raised them I urge all hon. Members to support the motion.
    Question put and motion agreed to.
    The Statutory Instruments (Amend-

    ment) Bill was accordingly read a Second time.

    Suspension of Standing Order 128(1)
    Mr. Joe Ghartey 6:30 p.m.
    Mr. Speaker, I beg to move, that notwithstanding the provisions of Standing Order 128 (1) which require that when a Bill has been read a Second time it shall pass through a Consideration Stage which shall not be taken until at least forty-eight hours have elapsed, the Consideration Stage of the Statutory Instruments (Amendment) Bill may be taken today.
    Question put and motion agreed to.
    Resolved accordingly.
    BILLS -- CONSIDERATION 6:30 p.m.
    STAGE 6:30 p.m.
    Chairman of the Committee 6:30 p.m.
    (Mr. Osei-Ameyaw): Mr. Speaker, I beg to move, clause 1, subclause (2), line 2, delete “two hundred” and insert “one hundred and fifty”.
    Question put and amendment agreed to.
    Clause 1 as amended ordered to stand part of the Bill.
    6. 40 p.m.
    Long Title - An Act to amend the
    Statutory Instruments Act, 1959, No. 52 of 1959 to Increase the Penalty that may be imposed in Statutory Instruments.
    Mr. Osei-Ameyaw 6:30 p.m.
    Mr. Speaker, I beg
    to move, Long Title - line 1, at end delete “of 1959”.
    Question put and amendment agreed to.
    The Long Title as amended ordered to stand part of the Bill.
    Suspension of Standing Order 131(1)
    Attorney-General and Minister for Justice (Mr. Joe Ghartey): Mr. Speaker, I beg to move, that notwithstanding the provisions of Standing Order 131 (1) which require that when a Bill has passed through the Consideration Stage, the Third Reading thereof shall not be taken until at least twenty-four hours have elapsed, the motion for the Third Reading of the Statutory Instruments (Amend-ment) Bill may be moved today.
    Mr. Osei-Ameyaw 6:30 p.m.
    Mr. Speaker, I beg to second the motion.
    Question put and motion agreed to.
    Resolved accordingly.
    BILLS -- THIRD READING 6:30 p.m.
    Mr. Owusu-Adjapong 6:30 p.m.
    Mr. Speaker,
    I believe this is the right time for us to end the Sitting for the day but I want to remind hon. Members that there would be this special ceremony to honour our own son, uncle, father and former Secretary- General of the United Nations. I am pleading that hon. Members should come on time - [Interruption] -- It is the usual 10.00 o'clock.
    Mr. First Deputy Speaker 6:30 p.m.
    Hon.
    Members, on that note, the House stands adjourned till tomorrow, 31st July, 2007 at 10.00 a.m.
    ADJOURNMENT 6:30 p.m.