Debates of 10 Nov 2009

MADAM SPEAKER
PRAYERS 10:25 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:25 a.m.
Madam Speaker 10:25 a.m.
Hon Members, we commence with the Correction of Votes and Proceedings dated Friday, 6th November, 2009. Pages 1-5?
Maj. Derek Yaw Oduro (retd):
Madam Speaker, the Committee on Food, Agriculture and Cocoa Affairs left Accra at adjournment on Thursday for the Brong Ahafo Region, Northern Region and Upper East Region. We spent about eight days and we came back on Friday. We have been marked absent since Thursday up to date.
Madam Speaker 10:25 a.m.
You are on which
page?
Maj. Oduro (retd): Madam Speaker,
page 5, on “The following Hon Members were absent”.
Madam Speaker 10:25 a.m.
Page 5, number what?
Maj. Oduro (retd): Madam Speaker,
we are ten in number and all of us have been marked absent. It starts from Hon Abdul-Karim, Iddrisu (Alhaji); Hon Adu- Asare, Kojo; Hon Humado,Clement Kofi; Hon Ayeh-Paye, Samauel; Hon Debrah, Ernest Akobour; and myself, Hon (Maj.)

Oduro, Derek Yaw. So Madam Speaker, we have all been marked absent.
Madam Speaker 10:25 a.m.
But you were here?
Maj. Oduro (retd): Madam Speaker,
we were on a committee assignment in the Brong Ahafo, Northern and Upper East Regions.
Madam Speaker 10:25 a.m.
Pages 6 and 7?
Prof. [Emeritus] Samuel Kwadwo
Amoako: Madam Speaker, on page 7, the last sentence of number five, beginning from page 6,
“The Votes and Proceedings of . . .”
Something is missing there. I think it is “. . . of the Seventh Sitting as corrected were adopted as the true recording of proceedings.” A few words are missing after “of”.
Madam Speaker 10:25 a.m.
Yes. That is correct.
Any more correction on pages 7 and 8?
The Votes and Proceedings of Friday, 6th November, 2009 as corrected is adopted as the true record of proceedings.
We move on to the Official Report of
Thursday, 5th November, 2009.
Hon Members, Correction of the Official Report of Thursday, 5th November, 2009, any corrections?
Hon Members, in the absence of any corrections, the Official Report of Thursday, 5th November, 2009 is hereby adopted as the true record of proceedings.
We now move to the Official Report of
Friday, 6th November?
Prof. [Emeritus] Amoako: Madam
Speaker, on column 371, the statement attributed to me, line 6, it reads:
“. . . November 13 but when you look at item 3 on the first page, I have something on the Budget . . .”
I do not believe I said that; it is, “it has something on the Budget”.
And again on column 372, a statement that is attributed to Mr. First Deputy Speaker, the last line, it reads:
“ . . . .Votes and Proceedings there is another way of going by it.”
I do not believe Mr. First Deputy Speaker said that, it should be “. . . another way of going about it.”
Madam Speaker 10:35 a.m.
Any other correction?
Hon Members, the Official Report of Friday, 6th November, 2009 as corrected represents the true record of proceedings.
Question time - Hon Members, we
have a number of Urgent Questions to be responded to by the Minister for Energy, Minister for Finance and Economic Planning, and Minister for Health. There are also a number of Questions to be answered by the Minister for Energy and I hope Hon Members would be mindful of the time for Questions and also the supplementary questions, we will be quick with them. We have seven Questions.
Hon Members, let us go to item 3 (a)
- the Urgent Question stands in the name of Hon John Duoghr Baloroo (Lambussie) -- [Pause.] Is the Hon Minister here, the Minister for Energy?
Mr. A. S. K. Bagbin 10:35 a.m.
Thank you very
much, Madam Speaker, and we welcome you back to your cool seat.
Mr. Bagbin 10:35 a.m.
Madam Speaker, I want
to crave your indulgence to allow the Deputy Minister for Energy to answer the Questions in place of the Minister for Energy, and I would seek the indulgence of my Hon Colleagues to allow him to do so. The Minister for Energy himself is out of the country and the Questions concerned are Urgent ones and therefore, we could not delay them to await the arrival of the Minister for Energy.
So we brought them and hope that the House would permit the Deputy Minister for Energy to answer these Urgent Questions. So Madam Speaker, I urge the House to do so.
Madam Speaker 10:35 a.m.
Yes, thank you,
Hon Majority Leader. I do not think there is any objection. So the Hon Deputy Minister for Energy, you have your first Question from Hon Baloroo (Lambussie). Can you read your Question, please?
URGENT QUESTIONS 10:35 a.m.
MINISTRY OF ENERGY 10:35 a.m.
Mr. Baloroo 10:35 a.m.
Madam Speaker, the
said school is a community school and when they wanted to start that school, a lot of people were displaced and relocated.
Now that they are undertaking this electrification project, what programme or plan do they have for these people who were inconvenienced in terms of electricity provision?
Mr. Buah 10:35 a.m.
Madam Speaker, as I stated
earlier, the Ministry is currently working to complete the project in the Piina area. The delay occurred as a result of the community's failure to provide the low voltage poles. It has been resolved and we are working on the community. I am very sure that the communities that are in the area would all be factored in so that the necessary electricity could be provided to these communities.
Mr. Baloroo 10:35 a.m.
Madam Speaker, the
Lambussie-Karni District is one of the new districts that were created by the last Administration and the district is faced with a lot of infrastructural problems. The District Assemblies Common Fund is woefully inadequate for us to be able to buy the low tension poles as he mentioned, so because of that the programme is actually behind schedule.
The District Assembly cannot buy the -- [Interruptions.] We should have patience and listen carefully - Be patient and listen carefully.
Madam Speaker 10:35 a.m.
Order!
Mr. Baloroo 10:35 a.m.
What measures is the Ministry taking to help with this electrification project because the District Assembly is not in a position to buy more low tension poles?
Mr. Buah 10:35 a.m.
Madam Speaker, the National Electrification Scheme that was started in 1990 and was projected to ensure that the entire country has electricity in 30 years has really gone on for 19 years and we have made a lot of progress.
We have also noted that there are a lot of communities that are still behind. I stated the other day when I came before the House that the Ministry of Energy had undertaken a comprehensive review of the programme and had identified regions that were not within the national average of 60 per cent. I think Upper West Region is one of the regions that are really behind, and we are doing everything to ensure that accessibility to all these communities has reached the national average.
We project to have at least 80 per cent of electrification in the next five years and I am sure that the Lambussie community is going to be one of the communities that would likely be beneficiaries.
Madam Speaker 10:35 a.m.
Finished - Any
other supplementary questions?
rose
Madam Speaker 10:35 a.m.
Yes, Hon Minority Leader?
Mr. Kyei-Mensah-Bonsu 10:35 a.m.
Madam
Speaker, the Hon Deputy Minister has said that the National Electrification Scheme started in 1990 and we are 19 years into it. Did he say that the National Electrification Programme started in 1990?
Mr. Buah 10:35 a.m.
Madam Speaker, yes. It started in 1989, 1990 and we are in 2009, so we are 19 years. The National Electri- fication Scheme, the National Electri- fication Programme, that is correct.
Madam Speaker 10:35 a.m.
Yes, Hon Minority Leader, is it a second question?
Mr. Kyei-Mensah-Bonsu 10:45 a.m.
Madam
Mr. Buah 10:45 a.m.
Madam Speaker, I was
referring to the National Electrification Programme (NEP). This programme started -- because at the time that it started -- There are two things: We have the National Eletrification Scheme and the Self-Help Electrification Programme (SHEP). When the programme started in 1990, Madam Speaker, we had at the time 15 per cent of the entire country with electricity, but what was very sad is that five per cent of rural communities that was made up of 70 per cent of the population did not have electricity.
In fact, that was why the programme started. And then it was realized that the only way we could speed up the programme was to involve communities and that is how the SHEP came in. And the programme was that if communities were able to provide low voltage poles and they were within 20 kilometres of an existing grid, then they would be connected. So indeed, the programme started and it was envisioned that the programme would continue for 30 years to 2020. And the point I made was that we are 19 years within the programme and we have
undertaken a comprehensive study and now, we have the national average at 60 per cent.
rose
Madam Speaker 10:45 a.m.
No, you cannot ask a third question, can you? [Inter- ruptions.] I thought you were entitled to only one question? Are you going to ask a third question?
Mr. Kyei-Mensah-Bonsu 10:45 a.m.
If you insist that I should ask - [Interruption.]
Madam Speaker 10:45 a.m.
I will not insist; I wanted to find out from you whether you were entitled to three questions.
Mr. Kyei-Mensah-Bonsu 10:45 a.m.
Madam Speaker, clearly, the Standing Orders provide for that, that we could ask three questions. But of course, I would defer to your Chair, if you say that, maybe given the exigencies of the time, I may ask two questions, I would oblige.
Madam Speaker 10:45 a.m.
It would help me too if you let me know whether you would be entitled to three questions or whether it depends solely on my discretion.
Mr. Kyei-Mensah-Bonsu 10:45 a.m.
Madam Speaker -- [Interruption.]
Madam Speaker 10:45 a.m.
If it does, I will allow you a third question.
Mr. Kyei-Mensah-Bonsu 10:45 a.m.
Very well. Madam Speaker, the Hon Deputy Minister has quoted two dates, that it started in 1989, then in another breath, he says it started in 1990. Madam Speaker, would he be definitive about this? When did it start? 1989 or 1990?
Madam Speaker 10:45 a.m.
Hon Deputy Minister, that is the last question from him, so try and answer -
Mr. Buah 10:45 a.m.
Madam Speaker, I will make it very simple for the Hon Minority Leader; 1990.
Madam Speaker 10:45 a.m.
Thank you. Can we move to the second Urgent Question which stands in the name of the Hon Member for Asunafo North, Mr. Robert Sarfo-Mensah.
Fuel Shortage in Accra, et cetera (Cause)
Mr. Robert Sarfo-Mensah asked the Minister for Energy the cause of the fuel shortage in Accra and other parts of the country recently and what pragmatic actions had been instituted to forestall future occurrence.
Mr. Buah 10:45 a.m.
Madam Speaker, a few weeks ago, it was reported that some stations in the country had no fuel to supply to consumers. Our investigations revealed however, that there had been sufficient stocks of fuel at the Tema Oil Refinery (TOR), at the Accra Plains Depot and the Silo depots collectively. All organs have been operational and there has not been any slowdown in supplies to the market by these depots.
We have also been made aware that TOR and the other bulk distribution companies have embarked on enforcing their credit policies following the rampant abuse of the credit facility by some oil marketing companies (OMCs). The credit policies include ensuring that all OMCs have adequate financial guarantees from their banks and also that these OMCs adhere to the credit amounts supported by these guarantees in the credit periods of 14 to 21 days.
Our understanding is that supplies to some OMCs were cut and were only resumed when these OMCs paid their
arrears to TOR and bulk distribution companies while some OMCs who could not make the payments, were allowed to resort to the “cash-and-carry” arrange- ment.
The cause of the apparent shortages in the country was due to TOR and the bulk distribution companies' strict application of the credit policies, which implies supplying free oil to those OMCs that were in good credit standing with them. The reported shortage was not due to insufficient petroleum product supply in the country.
Meanwhile, the Ministry has directed the National Petroleum Authority (NPA) to review the licences of existing OMCs to determine their technical and financial capabilities to do business under the present circumstances.
Thank you, Madam Speaker.
Mr. Sarfo-Mensah 10:45 a.m.
Madam Speaker, I would like to find out from the Hon Deputy Minister, what pricing regime has been put in place now to ensure that the OMCs would no more be in debt so that there would be regular flow of fuel to every part of the country, especially, my consti-tuency, Asunafo North. [Pause.]
Madam Speaker 10:45 a.m.
Hon Deputy Minister, can you answer the question?
Mr. Buah 10:45 a.m.
Madam Speaker, if I heard the Hon Member right, he wanted to -- I want to make sure I understand the question clearly.
Madam Speaker 10:45 a.m.
Yes, Hon Member, can you repeat your question?
Mr. Sarfo-Mensah 10:45 a.m.
Madam Speaker, in his Answer, he said it was because some of the OMCs were owing, that is why they
were not being supplied with the products, hence the shortage in some parts of the country. And I wanted to know what new pricing regime has been put in place to ensure that in future we do not encounter such problems again, especially in my constituency, Asunafo North.
Mr. Buah 10:45 a.m.
Madam Speaker, I think that the Answer I gave was to explain the relationship with TOR and the bulk distribution companies and their relationships with the OMCs. Purely, this is a business relationship and that has nothing to do with Government. TOR is enforcing the credit policy to make sure that the OMCs are paying for the petroleum products that they are supplied. We all know that TOR had liquidity problems and as a result has had difficulty establishing letters of credit (LCs) with the banks.
We all know also that steps have been taken to ensure that TOR's financial position is actually cleaned. We all know that a transaction advisor has been put in place to ensure that this happens. This has in turn given confidence to the financial world that TOR is on the path of financial recovery. But among those steps, we realize that OMCs owe TOR and the bulk distribution companies.
This is simply in order to make sure that TOR and the bulk distribution companies make sure that these OMCs are paying for their outstanding debts so that they can be supplied with the petroleum products. And I think this is in line with the effort by TOR to really revive itself.
rose
Madam Speaker 10:45 a.m.
That is your last
question.
Mr. Sarfo-Mensah 10:45 a.m.
Madam Speaker, I would like to find out from the Hon
Deputy Minister whether he is assuring this House and the whole nation that with the measures put in place so far, we would not envisage any fuel shortage in the near future.
Madam Speaker 10:45 a.m.
Hon Deputy Minister?
Mr. Buah 10:55 a.m.
Madam Speaker, as I stated earlier, the oil marketing companies that owe Tema Oil Refinery (TOR) were cut off, and so if you are in a community where you belong to an oil marketing company (OMC) that has credit problems with TOR, and you are on the list of those that owe, then you will possibly have that problem. What we are doing is to make sure that the oil marketing companies that are not technically and financially viable, are cut off.
We have directed the National Petroleum Authority (NPA) to begin the process of making sure that this happens. Possibly, if those OMCs are not viable then there is going to be possible acquisition and then we will allow those that are effective and functioning to really serve the people of Ghana. I understand the impact of the shortages in some of the communities, but I think this is exactly what is being done to make sure that the ordinary people of Ghana get the services that they pay for, and we are making sure that we have all the OMCs that work, that are paid for what they get so that they can provide the optimum service for the people of Ghana.
rose
Madam Speaker 10:55 a.m.
I think you have
asked three questions. Have you asked three questions -- [Interruption] -- Yes? No, you are not a Leader, so I will not give you the fourth question. Yes?
Mr. C. S. Hodogbey 10:55 a.m.
Madam Speaker, I would like to ask the Hon Deputy Minister, since previous administrations have failed to build pragmatic measures, will he consider building up a strategic oil reserve so that we do not have to have this situation happening?
rose
Madam Speaker 10:55 a.m.
Hon Deputy Minister?
Mr. Bagbin 10:55 a.m.
Madam Speaker, I think
this is a substantive Question dealing with Bulk Oil Storage and Transport (BOST) and not with TOR. I think that maybe, the Hon Member should come properly.
Madam Speaker 10:55 a.m.
Lest you have another question, we will not allow that question.
Yes, Hon Member?
Mr. Kwaku Agyeman-Manu 10:55 a.m.
Madam Speaker, I want to find out from the Hon Deputy Minister, that the fuel shortage situation in the country is a bit worse in the rural constituencies than in the big urban areas. I am just coming from the constituency; people are now buying fuel from la Cote d'Ivoire to Nkrankwanta for consumption. What measures is he taking to address the rural areas specifically with products that they need urgently?
Mr. Bagbin 10:55 a.m.
Madam Speaker, to start
with, his question is based on wrong premise. There is no fuel shortage in the country now. Now, there is no fuel shortage -- [Interruption] -- So if he says there is fuel shortage, it is not true. [Interruption] -- Madam Speaker, the Answer the Hon Deputy Minister had just given has amply demonstrated the fight for the rural-folk because these are products that are collected by oil companies, they are sold by the oil companies, and they do not return the moneys to TOR; and he
is saying that they should allow them to go with money.
They are given credits for some days; they go and sell, they do not return the money, they say “now, return the money before you load”, and then he is saying that -- what rural-folks again? [Pause.] Come on, we are rather fighting for the poor so they do not take their money for granted.
Madam Speaker 10:55 a.m.
Yes, the Hon Majori-ty Leader took objection to the question; that it implied a shortage of oil, and that there is no shortage of oil. I think -- [Interruption.]
Mr. Kyei-Mensah-Bonsu 10:55 a.m.
Madam
Speaker, I believe the Hon Majority Leader intervened to make a statement, and whatever rules that he is applying, I cannot simply locate them in our rules. Madam Speaker, a question is asked of the Hon Minister -- the Hon Deputy Minister is holding fort for the Minister; the Majority Leader can only proffer an opinion regarding the admissibility of a question, and Madam Speaker, it is for you to rule, but he gets up and makes a statement. I do not find any place in our rules by these interjections that he has been engaging in these days.
Madam Speaker 10:55 a.m.
I do not think he is out of order -- [Hear! Hear!] -- A lot of you have been out of order with so many things; he was making a statement, and I think the important point, as I got it, was that the question implied there was a shortage of petrol, and there is not; and I agree with him. So I agree; I will disallow that question. Any other question? Quickly, please, we are wasting time. Yes, last question?
Mr. Kojo Adu-Asare 10:55 a.m.
Madam Speaker, I want to ask the Hon Deputy Minister, to what extent these operations of the tanker drivers and the OMCs whose debts situation at the moment has somehow affected the operations of TOR -- I want to find out, to what serious extent because the question standing is -- [Inter-ruption.]
Madam Speaker 10:55 a.m.
Please, ask your
Mr. Adu-Asare 10:55 a.m.
All right, Madam
Speaker. Madam Speaker, to what extent have their operations or their inability to pay their bills affected supplies to these rural areas that it is being questioned by the Hon Member?
Mr. Frederick Opare-Ansah -- rose
-- 10:55 a.m.
Mr. Buah 10:55 a.m.
Madam Speaker, as I stated earlier, it is as a result of the -- [Inter- ruption.]
Madam Speaker 10:55 a.m.
Is it a point of
order?
Mr. Opare-Ansah 10:55 a.m.
Madam Speaker, that is so.
Madam Speaker 10:55 a.m.
Yes, let us hear you.
Mr. Opare-Ansah 10:55 a.m.
Order 67 1(b). Madam Speaker, the question as put forward by the Hon Member is argumentative; and the Standing Orders do not agree to us putting questions that contain an argument. He is putting forward the argument that the effect of non-payment of tanker drivers after taking or delivery of oil from TOR is causing fuel shortages in the rural areas, and I do not
think that this question should be allowed.
Thank you.
Madam Speaker 11:05 a.m.
Hon Member, he had asked a question which I thought was perfectly in order, following after the main Question and you are raising a point of order under Order 67 (b). Is it correct?
“ A Question shall not contain any arguments, expression of opinion, inferences, imputations, epithets or controversial, ironical or offensive expressions or hypothetical cases.”
Is that the point? I do not see how it comes in. I think he should answer the question. Answer it if you can, what you have to say; if you cannot, you say so.
Mr. Buah 11:05 a.m.
Madam Speaker, as alluded to earlier, it is because of the oil marketing companies (OMCs) inability or failure to pay for the petroleum products. This has resulted in the liquidity problems of Tema Oil Refinery (TOR) and it has also resulted in TOR not being able to raise letters of credit (LCs) but it is taking steps to make sure that all these OMCs pay for what they collect.
I think that what is being done here is really a fight to make sure that they bring some sanity in the oil business to make sure we have OMCs that are effective, that have the technical and financial ability, capability to operate and if they are not able to do so, then there would be possible acquisitions and make sure that the people of Ghana, especially people in the rural communities will get the service they need. And this is what we are doing.
Mr. Opare-Ansah 11:05 a.m.
Madam Speaker,
now that it is clear that the issue of the OMCs owing TOR is not argumentative
Mr. Opare-Ansah 11:05 a.m.


and it is a matter of fact, can the Hon Deputy Minister tell the House how much those OMCs are owing TOR? We want the specific amounts each OMC owes TOR because he is telling us it is not an argument, it is a statement of fact. So he should kindly tell this House how much each OMC is owing TOR.
Madam Speaker 11:05 a.m.
Hon Member, look
at the Question that was asked. “…what pragmatic actions had been instituted to forestall future occurrence?” And you are asking how much, so I think he will need time if you want to ask such a question.
Mr. Opare-Ansah 11:05 a.m.
Madam Speaker,
if you will permit me, the Hon Deputy Minister in his Answer is telling us that as part of the reasons why the situation is as is in the rural communities, it is because OMCs are owing TOR. We thought that this was argumentative, it could provoke debate, one could debate as to whether indeed, that is the situation or not but he is being emphatic and stated it as a matter of fact that indeed, the OMCs are owing TOR.
Madam Speaker 11:05 a.m.
Amount, is it not it?
Mr. Opare-Ansah 11:05 a.m.
Madam Speaker,
we just want to know how much these OMCs are owing TOR.
Madam Speaker 11:05 a.m.
It is a full Question which he has to - Hon Member, if Ministers come before the House, they must give us factual answers and if you ask such a question and he does not have the answer, then it has not helped us at all. So I think this is a new Question that needs to be answered properly.
Mr. Opare-Ansah 11:05 a.m.
Madam Speaker,
you will agree with me that for the Deputy Minister to come to the floor and tell
Parliament that the OMCs owe TOR, I am sure he must have an idea how much they owe TOR.
Madam Speaker 11:05 a.m.
An idea?
Mr. Opare-Ansah 11:05 a.m.
An idea how much
they owe TOR, Madam Speaker.
Madam Speaker 11:05 a.m.
Or the correct
figure?
Mr. Opare-Ansah 11:05 a.m.
Madam Speaker,
a fair idea will do.
Mr. Bagbin 11:05 a.m.
Madam Speaker, I
believe this is a substantive Question because the OMCs are many and if he wants a specific answer, he should come properly by a substantive Question and they bring the list of the OMCs and how much they owe TOR so that that will clarify the whole issue.
Madam Speaker 11:05 a.m.
I think the question
must come properly; so I will not allow this question.
Mr. Kyei-Mensah-Bonsu 11:05 a.m.
Madam

Mr. Hackman Owusu-Agyemang

- rose --
Madam Speaker 11:05 a.m.
I will listen to you but I want to listen to him.
Mr. Hackman Owusu-Agyemang 11:05 a.m.
Madam Speaker, it looks as if this morning the Leader is on the trail which is -- I mean the Majority Leader. The Hon Deputy Minister is there -- the Hon Deputy Minister is perfectly capable of saying that he must come back - but everything, he seems to be tele-guiding these things and I think that he is almost out of order. I think the Majority Leader should restrain himself. All that he is doing is to derail the line of action
The Hon Deputy Minister is perfectly capable of saying what it is. Allow the people to ask their questions and allow the Hon Deputy Minister to answer them. He always seems to be thwarting the effort of Hon Members who want to ask the questions.
I think he is out of order; the Hon Majority Leader is out of order.
Madam Speaker 11:05 a.m.
Hon Member, I
think as Leader, he has the rules and if he is just drawing my attention to the rules, then he will not be out of order. If you think he is coaching, that is a different matter. But if the question falls outside the rules or inside the prohibited rules, then can he not draw attention to it?
Mr. Owusu-Agyemang 11:05 a.m.
Madam
Speaker, I know that the rules are very well known by you but what he seeks to do is to draw our attention to the rules but to explain the raison detre for several things and then always to deflect the question -- I am sure the Hon Deputy Minister is capable of answering them. That is the essence of parliamentary debate and practice. We want to enjoy it, so let him go ahead and answer the questions. That is all that I am saying, Madam Speaker.
Mr. Kyei-Mensah-Bonsu 11:05 a.m.
Madam
Speaker, it is important to observe that in this particular question, the Hon. Deputy Minister himself has not told us that he is not properly constituted to answer it. Madam Speaker, it is not for nothing that our Orders provide that -- Order 60 (3) says --
“A Minister shall not take more than tree weeks to respond to a question from the House”.
Madam Speaker, the three-week period, which is normally even exceeded , is to give the Minister adequate time to prepare.
Madam Speaker, Order 62 (1) provides 11:05 a.m.
“Questions may be asked of Ministers relating to public affairs with which they are officially connected proceedings pending in Parliament or any matter of administration for which such Ministers are responsible”.
Madam Speaker, with respect, this
particular question relates to a matter of administration to which the Hon Deputy Minister is connected and the Deputy Minister has not told us that he is incapable of answering it. If the Deputy Minister should tell us that “Well, can you, please, give me enough time to prepare?” that may be acceptable. But in particular when he himself had alluded to this that it is so because the OMCs owe after taking three weeks, Madam Speaker, are we saying that the Deputy Minister by giving this answer, is not aware of the state of indebtedness of the OMCs? Otherwise, why would he feed us with this Answer?
Madam Speaker, I believe that it lies in
the bosom of the Minister to answer this question. If he is not capable of answering or if he is not sufficiently prepared to answer the question, let him tell this House so. It is not for anybody to say that the Deputy Minister is not prepared, so he should be forgiven.
Mr. Bagbin 11:05 a.m.
Madam Speaker, to start

Madam Speaker, I was on that seat for eight years. [Hear! Hear!] Madam Speaker, apart from that the Minority Leader is completely out of order and has misled the good people of Ghana. This Question is an Urgent Question, it is not a Question that has been on notice for him to use three weeks to prepare and come and Answer. This is an Urgent Question.
Mr. Bagbin 11:05 a.m.


So the Order that he quoted is irrelevant. The proper Order is Order 64 and he should read it.

Again, Madam Speaker, it is the duty of every Member of Parliament, not just Leadership, every Member of Parliament, to try to draw Madam Speaker's attention to the rules of the House and I am doing so under Order 68 - sorry - 69 -- [Uproar] -- under supplementary.
An Hon Member 11:05 a.m.
They are Orders 68 and 69. There is something on Order 68 - [Interruptions.]
Mr. Bagbin 11:15 a.m.
Well, I did not want to continue to read from Order 68 because Order 68 is relevant, but what is more exact and to the point is Order 69 - that is why I am referring to Order 69. Those of you who even come to the House without Standing Orders, you better learn to bring them to the House. And Madam Speaker, Order 69 (1) says and I quote:

Listen, you are a lawyer -

“. . . but a supplementary Question must not be used to introduce matter not included in the Original Question.”

Are you with me? [Interruptions.] “Not included in the Original Question”. That is where it applies. So the matter he is referring to, is not included in the
Mr. Joseph B. Aidoo 11:15 a.m.
Madam Speaker, with specific reference to my constituency, whereas there was no shortage of premium and diesel, there was severe shortage of kerosene -- [Interruptions.]
Madam Speaker 11:15 a.m.
Order! Order, please.
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Madam Speaker - [Interruption.]
Madam Speaker 11:15 a.m.
I thought he was
asking a supplementary question?
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Madam Speaker, we have not really finished with this business because I believe the conduct of business in this House must be regulated by our rules of procedure. The Hon Majority Leader was just informing that I was on the wrong track because I was referring to the general provision on Questions.
Madam Speaker, he is completely wrong. Madam Speaker, there is no Standing Order relating to the time frame for Urgent Questions. Let him show us where it is. There is no time frame and so he is completely misleading this House. The general application applies.
Madam Speaker, the Orders 69 and 64 that he spoke about, do not talk about any time frame for asking Urgent Questions and that is why I quoted the Order in respect of Questions. And Urgent Questions are subsumed in ordinary Questions. I believe he gets that correctly.
Madam Speaker, but beyond that a Question is asked of the Hon Minister -- the Majority Leader could come in on a point of order regarding whether or not it may be admissible but it is for
you to pronounce on it. And for the Hon Minister to say that “I am capable of answering”, in spite of the fact that maybe, it is not directly flowing from it. But in this particular case, when he himself has given a statement to the effect that the oil marketing companies (OMCs) owe, which is what has engendered the problem.
Then indeed, if anybody asks a question that ensues from the Answer, the person could not be deemed to be off tangent.
So Madam Speaker, I think ultimately, the pronouncement should come from either you or the Hon Deputy Minister and not anybody including the Hon Majority Leader who intervened on the Question. Madam Speaker, I stand by what I have said, the final pronouncement should come from either you or the Hon Deputy Minister and certainly not the Hon Majority Leader. Madam Speaker, that is the rule in this House.
Madam Speaker 11:15 a.m.
I will take one last contribution, then I will rule on this matter.
Papa Owusu-Ankomah 11:15 a.m.
Madam Speaker, apropos what we are discussing, indeed, the very essence of Question time is to let the Hon Minister give information to the House on matters relating to his Ministry generally and in particular matters in respect of which Questions have been posed.
So Madam Speaker, generally, we should allow the Hon Deputy Minister to give us information. If we resort to this sort of technical objections and so forth, it may rather impede the work of the House. Here is a case where the Hon Deputy Minister has stated that OMCs owe; certainly, he may not have the details
available but he may also have the details available. So as much as possible, I am appealing to Madam Speaker to permit Hon Ministers to give us the information. If they do not have the information, of course, we may then understand it.
Thank you very much.
Madam Speaker 11:15 a.m.
I think we should cut a long story short. Hon Deputy Minister, do you have the information?
Mr. Buah 11:15 a.m.
Yes, Madam Speaker - [Interruptions.]
Madam Speaker 11:15 a.m.
Yes, let us have the last word from the Hon Leader.
Mr. Bagbin 11:15 a.m.
Madam Speaker, for the record, I do not want us to turn our rules into what is referred to as technicalities that might not be necessary. All rights have responsibilities and duties have obligations. To iron out a peaceful process for us to conduct business, the rules, from experience, we are not re-inventing the wheel - from experience, have couched out a way, the procedure, regulated them for us. We cannot refer to that as technicalities.
My very good Friend, Hon Papa Owusu-Ankomah was on this seat before when I was the Minority Leader and he knows very well how dear we hold our rules because there must be a limit. You cannot just open it out, there are no limitless rights. “Man is free yet in chains”, that is the adage. The rules are clear. My Friend tried using verbal gymnastics -- [Laughter] - urgency cannot extend to three weeks, as he was quoting. It cannot be. When you say urgent, you mean urgent, it cannot be three weeks as he was quoting.
So Madam Speaker, I am simply not giving a final ruling, I am not, I am
Mr. Bagbin 11:15 a.m.


contributing to the issues so that Madam Speaker can properly rule. I do not rule. I was contributing and I quoted it. I quoted Order 69. So Madam Speaker, I do not want it to be said that when I intervene, I am giving a ruling. No, I am not taking away the power of Madam Speaker, but it is my duty to at least, assist in the administration of the House.
Madam Speaker 11:25 a.m.
Thank you, Hon Majority Leader, I will now rule.
Hon Deputy Minister, can you answer the question for him, if you can, do so?
Mr. Buah 11:25 a.m.
Madam Speaker, I want to thank the Hon Majority Leader for the intervention.
Madam Speaker, I think my Hon Majority Leader was right when he said that, this is a question that needs to be prepared and brought to the House. But the reason why this is important is because the list of OMC's that owe keeps changing. As we get them to pay, we update the list and I do not want to give this Honourable House any erroneous list. So I will be happy if the Honourable House will give me a chance, we can give them a much updated list.
Madam Speaker 11:25 a.m.
Thank you, Hon Deputy Minister. Can I have one last question on this Question because we have a lot of Questions and we have to move on -
rose
Madam Speaker 11:25 a.m.
Is this a supple- mentary question?
Mr. J. B. Aidoo 11:25 a.m.
Yes, it is a supple-
mentary question.
Madam Speaker 11:25 a.m.
Yes, last one.
Mr. J. B. Aidoo 11:25 a.m.
Madam Speaker, with specific reference to my constituency where there was no problem with premium and diesel, there was a severe shortage of kerosene. Will the Hon Deputy Minister attribute the shortage of kerosene in my constituency to the liquidity problems of the OMC's?
Mr. Buah 11:25 a.m.
Madam Speaker, specifi- cally, there were inaccuracies in the system, I do not know the specifics of his constituency, but I am very sure that it falls within the OMC's situations that I have described.
ANNOUNCEMENTS 11:25 a.m.
Madam Speaker 11:25 a.m.
Yes, we have finished with this Question now.
Hon Members, my attention has been drawn to the fact that we have some important visitors here.
Hon Members, I have the pleasure to introduce to you Members and Officers of our sister Parliaments in Africa, who are attending a training programme on Financial Oversight Function of Parliamentarians: Tools and Mechanisms for Optimum Government Budget Analysis, being organised jointly by the Parliamentary Centre and the Austrian Development Co-operation.
They are:
Hon N. Masebo -- Malawi
Hon D. Kankhwani -- Malawi
Hon C. Kaphamtengo Yona -- Malawi
Mr. Felix Bello 11:25 a.m.
None

Malawi

Hon F. Kanzama -- Zimbabwe

Hon R. Ndava -- Zimbabwe

Mr. Christian Ratsakatika -- Zimbabwe

Hon D. Sibanda -- Zimbabwe

Hon Rose Akol -- Uganda

Hon John Odit -- Uganda

Hon Sarah Nyombi Nansubuga -- Uganda

Ms. Jane Rose Ikiror Semakula -- Uganda

Hon Esther M. Banda -- Zambia

Hon Highvie H. Hamududu -- Zambia

Hon Sydney Chisanga -- Zambia

Ms. Monica K. Sampa -- Zambia

Hon Members, on behalf of the House and on my own behalf, I wish them a successful training session and a happy stay.

Can we now move on to the next
Mr. Bagbin 11:25 a.m.
Madam Speaker, I just wanted to plead with you to allow the Hon Deputy Minister to answer all the Questions on Energy before we move to the next Minister. There are some more Questions on Energy, numbered 132 and 144; so after that he could be discharged to go before we move to the next Minister.
Madam Speaker 11:25 a.m.
Yes, I think that is in order.
Hon Members, can we move to Question 132 standing in the name of Hon Attuquaye Armah (Trobu-Amasaman).
ORAL ANSWERS TO QUESTIONS 11:25 a.m.
MINISTRY OF ENERGY 11:25 a.m.
Mr. Armah 11:25 a.m.
Madam Speaker, in the Answer of the Hon Minister, he made mention of the fact that the two communities would be considered under the subsequent phase. May I ask him when specifically will this subsequent phase commence?
Mr. Buah 11:25 a.m.
Madam Speaker, the Ministry is currently reviewing the next phases of the programme. We are reviewing communities that would benefit; we have funds available and we are working to secure more funds to make sure that we achieve the goal of a hundred per cent electrification and I am sure that these communities will all be considered under this review.
Madam Speaker 11:25 a.m.
Any other supple- mentary questions?
Mr. Opare-Ansah 11:25 a.m.
Madam Speaker, can the Hon Deputy Minister tell us what the current phase of this project is and when he expects it to be completed?
Mr. Buah 11:25 a.m.
Madam Speaker, currently, we are on phase four (4).
Mr. Opare-Ansah 11:25 a.m.
Madam Speaker, the Hon Deputy Minister failed to answer part of my question. I said, the current phase, and when it would be completed?
Mr. Buah 11:25 a.m.
Madam Speaker, the current phase four, we project that about 2,000 communities would benefit; it is starting from the beginning of this coming year until we exhaust the funds that we have available, possibly, at the end of the year.
Madam Speaker 11:25 a.m.
I think it is answered, “at the end of the year”. Is it not?
Mr. Opare-Ansah 11:25 a.m.
Madam Speaker, my question was “when it would be completed?” He said it would start at the end of the year. I want “when it would be completed?”
Mr. Buah 11:25 a.m.
Madam Speaker, the phases are normally determined by availability of funds and I stated the funds that we have available are going to be used to start the phase four (4) and once we finish those funds, that phase would be completed, and we would seek for more funds and start another phase. So once funds are exhausted, the phase will come to an end.
Madam Speaker 11:25 a.m.
Yes, can we move to the next Question - Hon Albert Kwasi Ziga (Ketu South)?
Appollonia Bio-Gas Plant (Revival)

Q. 144. Mr. Albert Kwasi Zigah asked the Deputy Minister for Energy what plans his Ministry had to assist and revive the Bio-Gas plant at Appollonia, a suburb of Ashaiman, for commercial use.
Mr. Buah 11:25 a.m.
Madam Speaker, the Renewable Energy Demonstration Centre at Appollonia requires rehabilitation. Consequently, provision has been made in the 2010 Budget Estimates for the rehabilitation. The facility will be converted into a stand alone renewable energy demonstration centre to include other renewable energy technologies. Meanwhile, the community is being connected to the national electricity grid.
Mr. Zigah 11:35 a.m.
Madam Speaker, the import of this Question is to use the energy from the Bio-Gas to supplement the existing energy supply but in the Hon Deputy Minister's Answer, he said:
“The facility will be converted into a stand alone renewable energy demonstration centre….”
May I know from the Hon Deputy Minister what other related energy will benefit from the demonstration centre?
Madam Speaker 11:35 a.m.
Hon Deputy Minister, did you get the question?
Mr. Buah 11:35 a.m.
Madam Speaker, please, the question again.
Madam Speaker 11:35 a.m.
Hon Member, can you speak louder, please?
Mr. Zigah 11:35 a.m.
Madam Speaker, may I know from the Hon Deputy Minister what other related energy would benefit from the demonstration centre at Apollonia?
rose
Madam Speaker 11:35 a.m.
Hon Member, is it a point of order?
Mr. E. T. Mensah 11:35 a.m.
Madam Speaker, the Hon Member has introduced another matter which offends Order 69 (1) and which states:
“. . . a supplementary Question must not be used to introduce matter not included in the Original Question.”
So Madam Speaker, I want you to overrule him.
Mr. Zigah 11:35 a.m.
Madam Speaker, the Answer to the Question reads as follows:
“The facility will be converted into a stand alone renewable energy demonstration centre to include other renewable energy technologies. . .”
And I am asking the Hon Deputy Minister, what other related energy will benefit from the demonstration centre?
Mr. Buah 11:35 a.m.
Madam Speaker, solar energy will be part of that.
Mr. Opare-Ansah 11:35 a.m.
Madam Speaker, we have school children up there listening to our proceedings this morning and some of us here are not as savvy as the Hon Deputy Minister and his technical men. Would he be kind enough to tell us what he means by “renewable energy technology”?
Mr. Buah 11:35 a.m.
Madam Speaker, I am not sure what the Hon Member is asking about me, but when we talk about renewable energy, we are talking about solar, wind and other sources of energy that are not thermal or hydro. [Inter-ruptions.]
Mr. George Kofi Arthur 11:35 a.m.
Madam
Speaker, in the Hon Deputy Minister's Answer, he said:
“Meanwhile, the community is being connected to the national electricity grid.”
This energy plant has been in existence for sometime, is the Hon Deputy Minister telling us that when it was in operation, there was no electricity for the plant? What source of energy were they using?
Mr. Buah 11:35 a.m.
Madam Speaker, when this project was inaugurated in 1991, it was established as a demonstration centre; it was to serve a small community, and the community has since expanded and had outgrown the capacity of this very plant to supply and that is why the community is being connected to the national grid, as I said.
Mr. S. K. B. Manu 11:35 a.m.
Madam Speaker, for purposes of our brothers and sisters up there, when the Hon Member for Suhum (Mr. Federick Opare-Ansah) asked the question, in answering, the Hon Deputy Minister said he was not too sure what the Hon Member was saying and went on to give an answer. The answer showed clearly that he was genuine, when he said he did not understand the question. [Interruptions.]
Madam Speaker 11:35 a.m.
I will allow the Hon Deputy Minister but I was going to ask if you were not satisfied with his

answer, whether you yourself have the definition. But let us hear from the Hon Deputy Minister.
Mr. Manu 11:35 a.m.
If I were the Hon Deputy Minister, I would have given the definition. [Laughter.]
rose
Madam Speaker 11:35 a.m.
Hon Member, actually, I was going to disallow the question because the Hon Member who asked the question was satisfied with the answer. But he has asked another question, so let us hear from the Hon Deputy Minister whether he can give us a definition.
Mr. E. T. Mensah 11:35 a.m.
Madam Speaker, on a very light side, I heard Hon Balado Manu say if he were the Deputy Minister, he would have answered it. For eight years, he did not catch the eye of former President Kufuor, I do not know when he is going to catch anybody's eye to be a Deputy Minister.
Mr. Manu 11:35 a.m.
The explanation is, why the whole E.T. Mensah was silent this time. [Laughter.]
Mr. Buah 11:35 a.m.
Madam Speaker, I think the short definition of “renewable energy” is the energy forms which are self renew- able. [Interruption.]
rose
Madam Speaker 11:35 a.m.
Is it on the same renewable energy? Well, since the rule says we cannot argue about the answers, I think we accept it. I think we have even spent an hour already and we will finish with this Question and thank the Hon Deputy Minister for coming. Please, come again when we invite you.
We now move to the Urgent Question from Hon Dr. Owusu Afriyie Akoto, Member of Parliament for Kwadaso. Let us find out if the Hon Minister is here. Is the Hon Minister for Finance and Economic Planning here?
Mr. E. T. Mensah 11:35 a.m.
Madam Speaker, the Hon Minister for Finance and Economic Planning is unavoidably absent and I therefore, wish to seek your leave to allow the Hon Deputy Minister for Finance and Economic Planning to answer the Questions in his stead.
Madam Speaker 11:35 a.m.
I do not think there is any objection. Hon Deputy Minister? Hon Member, can you ask your Question?
Dr. Owusu Afriyie Akoto 11:35 a.m.
Madam Speaker, may I thank you for giving me the floor to address an issue which is of very great significance to the economy of this country. [Interruption.] Before I ask this Urgent Question, may I draw the attention of the House to Order 60 (3) and I quote:
“A Minister shall not take more than three weeks to respond to a question from the House.”
Madam Speaker 11:35 a.m.
Hon Member, we have been on vacation, as you know, or were you expecting your Urgent Question to be answered during the vacation?
Dr. Akoto 11:35 a.m.
Madam Speaker, this was before the vacation, it was more than a month before the vacation.
Madam Speaker 11:35 a.m.
As we explain over and over again, it is a process, so we are
happy your Urgent Question is before the House.
Hon Member, please, ask the Question.
URGENT QUESTIONS 11:45 a.m.
MINISTRY OF FINANCE AND 11:45 a.m.
ECONOMIC PLANNING 11:45 a.m.
Madam Speaker 11:45 a.m.
Hon Deputy Minister, please speak up, I cannot hear you.
Mr. Kwetey 11:45 a.m.
Madam Speaker, what I said is that, over the last few months, the cedi actually has started appreciating against the US dollar. In the beginning of the year, especially in the first three months of the year, the cedi suffered some depreciation. But subsequently, the rate of depreciation started slowing down and by the time we hit July, there was a turn- around. So available statistics from Bank of Ghana indicates that the cedi appreciated by 1.74 per cent in August, by 1.67 per cent in September and by 0.74 per cent in October, 2009 respectively.
Madam Speaker, it is also worth
Mr. Kwetey 11:45 a.m.


Now, to answer the direct Question

- [Interruptions.] Madam Speaker, to answer the Question, the last NPP Administration paid out 70.46 per cent of the net Free On Board (FOB) price of cocoa to farmers during the 2008/2009 crop season. In the current season 2009/2010, the NDC Government has paid our hard-working farmers 71.06 per cent of the net FOB price. So this clearly indicates that we actually have started paying at least 70 per cent of the world market price of cocoa.
Dr. Akoto 11:45 a.m.
Madam Speaker, the Answer given by the Hon Deputy Minister is misleading and I will demonstrate this very clearly - [Inter-ruption.]
Madam Speaker 11:45 a.m.
Oh! Oh! Hon Member - Hon Akoto, let us not argue, it is against the rules.
Dr. Akoto 11:45 a.m.
Madam Speaker, October, 2008 when the world market price of cocoa was around $2,300 per metric tonne, the Government at the time -- [Interruption.]
Madam Speaker 11:45 a.m.
Hon Member, ask a question. We do not argue with our Ministers when they come -- [Inter- ruptions.]
Dr. Akoto 11:45 a.m.
Madam Speaker, does the Hon Deputy Minister know that in October, 2008 when the world price of cocoa was $2,300 per ton, the price to the farmer at that time until 15th of October this year, was GH¢1,632 per metric tonne, which, taking account of the exchange
rate, was $1,444.00? Now $1,444.00 -- [Interruption] -- compared to the dollar rate at the time that the price the farmer was given works out at 62.8 per cent?
The price that has been awarded on the 15th of October in 2009 which is equivalent to -- [Interruptions] -- 2008 is only 43.9 per cent of the world price and not 70 per cent of the world price. Does the Hon Deputy Minister agree that this is a deception?
Mr. E. T. Mensah 11:45 a.m.
None

Alhaj i Mohammed-Mubarak Muntaka -- rose --
Madam Speaker 11:45 a.m.
Yes, I think he has asked the question now. He has asked the question, so let us hear the answer. Hon Deputy Minister?
Mr. Kwetey 11:45 a.m.
Madam Speaker, the answer is straightforward. Our cocoa is sold at the world's forward sales price, whereas the average of the prevailing spot world market prices are normally used in the computation of the share of the FOB price for our farmers.
Let me just clarify it a little. In the 2008/2009 season, the average price in the world market stood at $2,300. The exchange rate statistics available from COCOBOD and Bank of Ghana stood at $1.13. Now, that works to -- in the tonnage produced in that year, that is 2008 -- 650,000 tonnes. That works, if you deduct insurance, freight, commission et cetera, gives you a net FOB of GH¢2.3 million and that works into a percentage of 70.46 which, if you want to get it in quantum and minimal terms became 1.5 million per tonne paid to the farmer.
So the computation is not done on monthly basis as the Hon Member is seeking to allude, it is done on the basis of the average, what we call, price fall for the
year because we do forward sales on the basis of computation, done on yearly basis.
Dr. Akoto 11:45 a.m.
Mr. Speaker, I still believe that the figures being churned out -- [Interruptions] -- Will the Hon Deputy Minister agree with me -- [Interruptions.]
Madam Speaker 11:45 a.m.
He is asking a question now, so let us hear the question.
Dr. Akoto 11:45 a.m.
Madam Speaker, will the Hon Deputy Minister agree with me that the world price of cocoa has been sky- rocketing in the last one year, especially in the last three months because of the shortage of cocoa on the world market, the deficit is reflecting in rising prices which has taken the world market price to the highest in 30 years -- [Interruption.] And will the Hon Deputy Minister -- [Interruption.]
Mr. E. T. Mensah 11:45 a.m.
On a point of order. [Interruptions.] Madam Speaker has given me the floor, please.
Madam Speaker, the Hon Member who just spoke, soliciting opinion, offends Standing Order 68 (5) and I quote:
“No Member shall address the House upon any Question, nor in asking the Question shall any argument or opinion be offered.”
So Madam Speaker, he is out of order and I respectfully request that he should be ruled out.
Madam Speaker 11:45 a.m.
Hon Member, ask a question. I think he is right, you were suggesting whether he would agree with you, but ask him a question. Put it in a question form, if you can.
Dr. Akoto 11:45 a.m.
Madam Speaker, will the Hon Deputy Minister agree with me that -- [Interruptions.] Would the Hon Deputy Minister give us the price of cocoa on the world market at the time of the
increase on the 15th of October when it was announced and what proportion of it in terms of dollars the farmers are to receive?
Mr. Kwetey 11:55 a.m.
Madam Speaker, in answering the preceding question, I did explain that the computation is done on the basis of the average world market price. [Interruptions.]
Madam Speaker 11:55 a.m.
Order! Order!
Mr. Kwetey 11:55 a.m.
For the season, 2009/2010, the average price on the world market was computed on the basis of $2,400; the previous year was $2,300. Now, on the basis of that average world market price, and on the basis of the 1.46 depreciation of the currency which was the basis used and expected tonnage for this year, which is expected to be 700,000 tonnes, it gives us a net subsidy of GH¢3.107 million which translates, using the 71.86 per cent that I have mentioned earlier, into per tonnage pricing of GH¢2.2 million.
An Hon. Member: Madam Speaker, in computing the prices paid to cocoa farmers in Ghana, is it only determined by the tonnage of world market price of cocoa or other variable value of FOB?
Madam Speaker 11:55 a.m.
Hon Minister, did you get the question or do you --
Mr. Kwetey 11:55 a.m.
Madam Speaker, I would not say I understood the question fully, but from the understanding I have, let me try to explain what the information I have is.
The FOB value is arrived at using the cost, insurance, freight price. Then out of that we subtract insurance, we subtract freight, bank charges, superintendent fees and commissions. But the remaining amounts become the FOB value which

is available to COCOBOD for sharing to the stakeholders, and the stakeholders are largely farmers. We have others like the haulers, et cetera.
Prof. Gyan-Baffour 11:55 a.m.
Madam Speaker, does the Hon Deputy Minister know that the price that we arrive at, what we give to the cocoa farmers are not only based on the FOB price as percentage, but also we take into consideration the prices pertaining in our neighbouring countries, like the one in la Cote d'Ivoire, otherwise, we have the tendency that people will likely smuggle cocoa out, and that can he tell us whether this was taken into consideration in actually coming out with the price of cocoa for this year?
Mr. Kwetey 11:55 a.m.
Madam Speaker, I wish to submit that, yes, all these important considerations were taken on board in the determination of the price.
rose
Madam Speaker 11:55 a.m.
You have had your question.
Prof. Gyan-Baffour 11:55 a.m.
It is subsequent to that.
Madam Speaker 11:55 a.m.
I do not want us to breach the rules, please. Yes, Hon Member, is it a new question? Is it a supplementary question?
Dr. M. O. Prempeh 11:55 a.m.
It is a supple- mentary question. Madam Speaker, I would like my Hon Friend to come back to the Dispatch Box and tell Ghanaians why last year, the cocoa farmer was paid equivalent for a bag of cocoa, $100 and this year he is being paid $80.00 per bag, per the exchange rate - Last year the cocoa farmer was paid $1,020,000.00 per a bag of cocoa. This year -- and the exchange rate of one is to one and he is being paid $80.00; would he tell us if he is managing Ghana's finances well, that is why our farmers are being cheated?
Mr. E. T. Mensah 11:55 a.m.
Madam Speaker,
Madam Speaker 11:55 a.m.
Order! Order!
Mr. E. T. Mensah 11:55 a.m.
He concluded by offering an opinion which offends the Standing Orders - [Interruptions] -- He should listen to himself.
Madam Speaker 11:55 a.m.
I was not allowed to even listen to the objection. I was not allowed; can I hear the objection?
Mr. E. T. Mensah 11:55 a.m.
Madam Speaker, the Hon Member, in concluding his question, offered an opinion - [Uproar!] -- that the farmers are being cheated because they were being paid the equivalent of US$100.00 but now the equivalent is US$80.00 and therefore, the farmers are being cheated. That is an opinion.
Thank you, Madam Speaker.
Madam Speaker 11:55 a.m.
I think that part of your question, “does he not think that” -- So, please. All right, rephrase it.
Dr. Prempeh 11:55 a.m.
Hon Deputy Minister, please, tell the average Ghanaian cocoa farmer, why last year, for a bag of cocoa, the Government paid $100.00 and this year you are paying $80.00? [Interruptions.]
Madam Speaker 11:55 a.m.
Let us hear the answer. Hon Deputy Minister?
Mr. Kwetey 11:55 a.m.
Madam Speaker, I had answered that question earlier by explaining clearly that for the previous season, that is the 2008/2009 season, the per tonne price that was paid to our cocoa farmers stood at 1.532 million and for this year, the per tonnage pricing that is paid to our cocoa farmers stands at 2.208 million. I do not know how much more clear we

can make it, that what is being paid to our farmers this year is far more than we paid to our farmers last year.

Thank you very much, Madam Speaker.
Mr. Owusu-Agyemang 11:55 a.m.
Madam Speaker, I think that the Deputy Minister needs to be explained to and schooled that one does not answer questions here, that: “I do not know how much clear I can be.” That is completely unacceptable in this House. He is not a Member of Parliament, so maybe, that is why he does not know. If he says to an Hon Member: “How much clearer I was”, it is completely out of order and that is not acceptable here. He must withdraw it and explain it properly. He cannot talk in that manner in this House. [Hear! Hear!]
Nana Akomea 11:55 a.m.
Madam Speaker, the Deputy Minister used to be the Propaganda Secretary of the National Democratic Congress (NDC) -- [Uproar!] Madam Speaker --
Madam Speaker 11:55 a.m.
Hon Member, please, ask a question; do not make a statement. If you have a question, ask him.
Nana Akomea 11:55 a.m.
Madam Speaker, the Deputy Minister used to be the Propaganda Secretary of the NDC. He has said to us that - [Interruptions]
Madam Speaker 11:55 a.m.
Yes, Hon Member, please, ask a question.
Nana Akomea 11:55 a.m.
Madam Speaker, he has said to us that the cedi is doing very well compared to the dollar. All that we are asking him is that in dollar terms, how much is the cocoa - [Interruptions.]
Madam Speaker 11:55 a.m.
Order! Order! Let us hear his question. [Interruptions.] Hon Members, if I am not allowed to listen, I cannot rule. I have not even listened to the question because of the noise. So if an objection is taken, I would not even
know the question that he asked before he objected. So Hon Member, can you speak out?
Nana Akomea 11:55 a.m.
Madam Speaker, we have been told by the Deputy Minister, in answering the question, he mentioned the dollar and the performance of the cedi in relation to the dollar and we are happy about it. We are just asking him that in dollar terms, therefore, how much is the cocoa farmer getting? That is all that we are asking.
Madam Speaker 11:55 a.m.
Yes, Hon Member, I think that is a straightforward question. Can you answer it?
Mr. Kwetey 11:55 a.m.
Madam Speaker, -- Mr. Sampson Ahi - rose -
Madam Speaker 11:55 a.m.
Hon Member, I will come to you.
Mr. Kwetey 12:05 p.m.
Madam Speaker, may I explain that I did not mean any harm at all in using the words “how much clearer I was”; I am sorry. What I meant to say was that it was unambiguous, it was unequivocal, and it was crystal clear.

I think the dollar equivalent can easily
Mr. Sampson Ahi 12:05 p.m.
Madam Speaker,
is the Hon Deputy Minister telling us that given the world market price in 2008/2009, the Government then paid 70.65 per cent to farmers, but now, given the same world market price, the Government is paying 71.64 per cent to cocoa farmers, and therefore, this Government in percentage terms has paid higher than the previous Government? Is that what the Hon Deputy Minister is telling us?
Madam Speaker 12:05 p.m.
Hon Ahi, is it a question? Hon Ahi, do you want an opinion or -- [Interruption.]
Mr. Ahi 12:05 p.m.
Madam Speaker, I want clarification from the Hon Deputy Minister -- [Interruption.]
Madam Speaker 12:05 p.m.
The question is?
Mr. Ahi 12:05 p.m.
Madam Speaker, the question is, is he telling this House that given the world market price last year, the Government then paid 70.65 per cent to farmers, but this time round, given the world market price of cocoa, the Government is paying 71.65 per cent to cocoa farmers? Is that what the Hon Deputy Minister is telling this House?
Dr. M. O. Prempeh 12:05 p.m.
Madam Speaker, point of order.
Madam Speaker 12:05 p.m.
Well, if it is a leading question, once it is a question -- [Interruption] -- Hon Member, it is a question.
Mr. Kwetey 12:05 p.m.
Madam Speaker, yes, I wish to confirm that last year, the percentage that was paid to our farmers stood at 70.46 per cent and for this year, in line with the efforts to push the “Better Ghana Agenda”, the Government has stepped it up to 71.06 per cent -- [Hear! Hear!]
Madam Speaker 12:05 p.m.
Hon Members,
we have other Questions, and one hour has already past, so I will give it to the lady there. Sorry, your name has -- [Interruption] -- Hon Frema Osei- Opare.
Mrs. Akosua Frema Osei-Opare 12:05 p.m.
Madam Speaker, the Hon Deputy Minister just said the farmers were promised a “Better Ghana”; I just want to understand whether US$80 is better than US$100.
rose
Madam Speaker 12:05 p.m.
Yes, Hon Member,
is it a point of order?
Mr. E. T. Mensah 12:05 p.m.
Madam Speaker,
the Hon Member is soliciting an opinion. And in the first place, she also said the Hon Deputy Minister said that the farmers had been promised a “Better Ghana”. The Hon Deputy Minister said, “to push our Better Ghana Agenda”; it was not farmer specific. So Madam Speaker, I humbly request that this question be overruled.
Thank you, Madam Speaker.
Mrs. Osei-Opare 12:05 p.m.
Madam Speaker, in the Hon Deputy Minister's Answer -- [Interruption.]
Madam Speaker 12:05 p.m.
No, no, the question.
Mrs. Osei-Opare 12:05 p.m.
Madam Speaker, the Hon Deputy Minister said in his Answer that the farmers were being given what constitutes the “Better Ghana Agenda”, which is an opinion. I am asking, Madam Speaker, with all humility, that if farmers are paid equivalent of US$80 now as against the equivalent of US$100,

is that what constitutes “a Better Ghana”? [Hear! Hear!]-- Madam Speaker, that is my simple question.
Madam Speaker 12:05 p.m.
Hon Member, unfortunately for you, whereas he can make such comments, your question should not generate this kind of -- You are asking him for his opinion. Whether he has said it or not, that is an answer. A question is different. In a question, you are not supposed to ask him for his opinion. So frame the question again, if you can.
Mrs. Osei-Opare 12:05 p.m.
Madam Speaker, I apologise, I will not do it again.
Madam Speaker, is a farmer getting an equivalent of US$80 per bag -- [Interruption] -- of cocoa better off now than when he was receiving US$100 per bag for the same cocoa bag that he used to sell? [Interruption.] Madam Speaker, I just want to know whether the US$80 per bag is -- [Interruption.]
Madam Speaker 12:05 p.m.
Hon Deputy
Minister, he is just asking a question; what do you say to that?
Mr. Kwetey 12:05 p.m.
Madam Speaker, the explanation I gave earlier still stands. We have a combination of two factors; one, the world market price of cocoa and also the effort to be able to push the agenda of stabilizing the Ghana cedi and actually creating a situation where the cedi can appreciate vis-a-vis the dollar. From 2008, the statistics will bear that it started to happen -- a very sharp depreciation of our currency starting from the second quarter 2008 -- [Interruption.]
Madam Speaker 12:05 p.m.
Order! Order!
Mr. Kwetey 12:05 p.m.
Madam Speaker, I am actually building to the answer, so just indulge me for a couple of minutes and she will get the answer -- [Interruption.]
Madam Speaker 12:05 p.m.
Yes, answer the question; it is a simple question.
Mr. Kwetey 12:05 p.m.
Madam Speaker, in the second quarter of last year, the cedi depreciated by about 4 per cent; the third quarter of last year, 5.3 per cent; the last quarter of last year, 5 per cent. Building the momentum from the slippages that happened last year, the cedi at the first quarter of this year depreciated by 7.2 per cent; then slowed down to 4 per cent, then in the third quarter, there is actually an appreciation in the cedi by 2.7 per cent, the first time in the history of our country. [Hear! Hear!]That is, 2.7 per cent appreciation in the quarter, the first time it has ever happened in the history of our country -- [Hear! Hear!]
So Madam Speaker, the point we are making is this, that not only are we paying 71 plus to our farmers, we are also consolidating the value of the cedi and creating a mechanism that will make the cedi appreciate so that the overall benefit to our farmers will be much better.
Madam Speaker 12:05 p.m.
Yes, Hon Members, we have two more Questions, and I think we want to move on, unless you want us to spend the whole time -- [Inter- ruption.] We have already spent one hour on Question time. Yes, one more question before.
Mr. E. A. Debrah 12:15 p.m.
Madam Speaker,
can the Hon Minister provide this House in a written format the formulae for determining the producer price of cocoa in this country, including the period of the forward sales so that any person can easily
determine what percentage of the world market price is given to the farmer? Can he provide us the detailed written formulae of determining cocoa producer price in this country?
Madam Speaker 12:15 p.m.
When you say
“detailed written formulae”, you have to give him time to write it. “Detailed written formulae”, he has not written it here or you want him to write it here?
Mr. Debrah 12:15 p.m.
Madam Speaker, my question is that, can he provide us with the detailed written formulae for determining the producer price each year of cocoa in this country. I am not saying now, for a week or so.
Madam Speaker 12:15 p.m.
You put the question to him and see.
Mr. Debrah 12:15 p.m.
And can he do that?
Madam Speaker 12:15 p.m.
Yes, you heard the
question. He is asking, can you provide it now?
Mr. Kwetey 12:15 p.m.
Madam Speaker, I
submit that, yes, given the time, we certainly can provide on condition.
Mr. Debrah 12:15 p.m.
What time frame, please?
Dr. A. A. Osei 12:15 p.m.
Madam Speaker, with respect, a question was asked by my Hon Colleague, Hon Frema Osei-Opare as to whether or not US$100 last year was comparable to US$80 this year. My good Friend and junior brother has refused to answer the question. Madam Speaker, we are only looking for simple -
Madam Speaker 12:15 p.m.
You should not use
the word “refused”. He tried to answer it, is that not so?
Dr. Osei 12:15 p.m.
Madam Speaker, he has

not been able to answer the question because he sat down, so I assume that he had finished. We are still waiting for that answer with respect, Madam Speaker.
Madam Speaker 12:15 p.m.
I thought he
finished answering. I thought he answered the question.
Dr. Osei 12:15 p.m.
No at all. Madam Speaker,
the simple question was, was US$100 last year comparable to US$80 this year? That was the essence of the question. He can either say yes or no but he did not say either so we are confused. Talking about record appreciation of the cedi, he does not understand that, that could also bring trouble. We do not want to go there but we beg, Madam Speaker, can he simply answer that question? Is US$100 last year comparable to US$80 this year; which one is better? That is a simple question.
Madam Speaker 12:15 p.m.
You are pushing
him to say yes or no. There may be circumstances and that is what I thought he tried to explain but you are saying he should say yes or no.
Dr. Osei 12:15 p.m.
Madam Speaker, he confused
us, we did not know if he was answering the question at all. So I want to plead with you that since some of us were not able to understand his answer, could he -- further elucidate that answer, he is confusing some of us.
Madam Speaker 12:15 p.m.
Hon Deputy
Minister, I think you did try to answer with figures and he says you are not just to say yes or no and sit down but tell us in plain words what - the question is, is this better than this?
Mr. Kwetey 12:15 p.m.
Madam Speaker, I did
explain, that given the over 21 per cent depreciation that took place concerning
Mr. Kwetey 12:15 p.m.


the cedi last year, and 70 per cent which was paid to our farmers, our exports this year, in the light of the 11 per cent depreciation that has taken place and paying our farmers 71 plus percentage is an appreciable effort to actually make their loss much better.

I think, really, the effort, historically, has always been an issue of what percentage that the world market price is paid to our farmers and in line with our “Better Ghana Agenda”, we are hoping that -- and not only that, we had also made much better effort at bringing not just stability of the currency and appreciation the first time in our history.
Madam Speaker 12:15 p.m.
Last question.
Mr. Kyei-Mensah-Bonsu 12:15 p.m.
Madam
Speaker, the Deputy Minister is giving out certain statistics which I believe, we may hold him accountable for later on in the year.
Madam Speaker, this business about 11 per cent depreciation of the cedi, I do not know where the percentage is coming from. Madam Speaker, we all know that at the beginning of this year, the cedi was ¢11,100; today it is about ¢15,000, a depreciation of over 38 per cent and we are being told that it is 11 per cent but we will come to that.
Madam Speaker, is the Hon Deputy Minister aware because he talks about building on -- and I am quoting him -- “Building on the momentum of slippages in 2008”. Madam Speaker, is he aware that in 1999, the cedi depreciated by over 120 per cent? In 2000, the depreciation was over 50 per cent and yet 2001 when the New Patriotic Party (NPP) assumed governance, depreciation was only 3.7 per cent. Is he aware of that against the background of more than 38 per cent for the National Democratic Congress (NDC) in less than ten months? Is he aware?
Mr. E. T. Mensah 12:15 p.m.
Madam Speaker, the Hon Minority Leader has solicited opinion and engaged in an argument, so the question is not clear and he should therefore be ruled out.
Madam Speaker 12:15 p.m.
If I am expected
to rule, I did not hear him in view of the background noise. So can I be allowed to listen and then, I can rule? Yes, Hon Member, can you speak?
Mr. E. T. Mensah 12:15 p.m.
Madam Speaker, I
am saying that the Hon Minority Leader, in an attempt to ask a question, engaged in arguments and solicited opinion from the Deputy Minister, which offends the Standing Orders. So I respectfully plead that you rule him out
Thank you very much.
Madam Speaker 12:15 p.m.
Hon Minority
Leader, ask the question again? It is a question that you asked.
Mr. Kyei-Mensah-Bonsu 12:15 p.m.
Madam
Speaker, I preceded this question with facts and figures. The Hon Deputy Minister is here and I am asking him whether he is aware of these facts. Madam Speaker, it is for the Deputy Minister to tell us whether he is aware and if he is aware, whether that is not inconsistent with what he is telling us. That is all that I require of the Deputy Minister.
This intervention, Madam Speaker, has no place in our rules at all because the structure of the question, if my Hon Colleague listened to me attentively ,does not solicit an opinion, it does not breach any known rules or procedure in this House.
Madam Speaker, with respect to you, I plead you allow the Deputy Minister to answer the question. I believe he has the
competence to answer this question.
Mr. E. T. Mensah 12:25 p.m.
Madam Speaker, I did listen to him with rapt attention and he knows that initially his intervention offended our rules. Now, he has re- organized himself and asked the question. I just want him to know that initially his intervention offended our rules.
Madam Speaker 12:25 p.m.
Hon Deputy Minister, he is asking whether you are aware, yes or no? Are you aware or you are not aware?
Mr. Kwetey 12:25 p.m.
Madam Speaker, when I answered the Question, I traced the evolution of the depreciation of the currency last year. I mentioned the quarter by quarter depreciation that took place in the currency. I mentioned 3.8 for the second quarter, 5.3 for the third quarter, and 5 per cent for the fourth quarter, and I said that it built from there into -- that same mementum continued to 2009.
Now, if the Hon Minority Leader would remember, between 1999 and the year 2000, there were definite slippages that caused quite some difficulty to the currency, but if he traced carefully, he would realize that in the very final quarter of the year 2000, especially in the last two months of the year 2000, the depreciation of the currency steadied gradually because the difficulties were easing.
So by the time the NPP Government took over in 2001 largely, that depreciation which had started in a serious manner in the middle of 1999 through to the last quarter of 2000 had eased considerably. So the two situations cannot be the same, Madam Speaker.
Madam Speaker 12:25 p.m.
Hon Members,
we have two more Questions and time is well spent. When I said last then it becomes last but one question. So make it the last question then we can do some
work, please.
Mr. Federick Opare-Ansah 12:25 p.m.
Madam
Speaker, the Hon Deputy Minister has told us about two different sources of the price of cocoa which they use in computing how much they are paying to the cocoa farmer. He stated the price as pertains on the future markets; he also mentioned the Freight on Board (FOB) price. As the Hon Deputy Minister may be aware, the cocoa from Ghana has a specific premium placed upon it on the world market and so if he considers Ghana's cocoa, it is usually much highly priced than the average world price.
The question that was originally asked was about the percentage of the world market price of cocoa. The Hon Deputy Minister, in his Answer, referred to the FOB price and related it to the futures market price.
Can the Hon Deputy Minister be specific to tell us which specific pricing is being used because he mentioned 2004 and said that the cocoa farmer is now being paid 71.06 per cent of that amount? Today, as we are aware, the world market price of cocoa is in the region of US$3,200, is the Hon Deputy Minister insisting that the cocoa farmer is indeed, being paid an amount of money that still represents the 71.06 per cent of the world market price of cocoa?
Madam Speaker 12:25 p.m.
Hon Deputy
Minister, can you answer the question?
Mr. Kwetey 12:25 p.m.
Madam Speaker, I did
explain earlier that our cocoa is sold at the world forward sales price, whereas the average prevailing spot world market price is what is used in the computation of the share of the FOB price that is available to our farmers. It is difficult to be able to use the price within a month to make this kind of calculation, that is why the average
world market price for the year is used and again, we are selling forward. So that is why I explained that for this year, the average which was used at the basis at the world market is 2,400 and on that basis, the calculation I provided.
Madam Speaker 12:25 p.m.
We have finished
with this Question. Hon Members, let us move to the next Urgent Question which stands in the name of Hon Christopher Addae, Member of Parliament for Bibiani- Anhwiaso-Bekwai).
New Cocoa Spraying Gang (Payment)
Mr. Christopher Addae asked the
Minister for Finance and Economic Planning why allowances had been paid to the “new” Cocoa Spraying Gang members for the month of June when in actual fact no work was done.
Mr. Kwetey 12:25 p.m.
Madam Speaker,
available information from COCOBOD shows that the new cocoa spraying -- I prefer the word “squad” to “gang”, I am com-fortable with “squad”. So the new cocoa spraying squad actually got engaged in May but started working from the very beginning of June and therefore, the payment actually had been made starting from June. That is the available information to us.
Mr. Addae 12:25 p.m.
Madam Speaker, that
may be the information he has but on the ground -- because I represent the people -- On the ground, particularly in my constituency, no work was done for the month of June.
Madam Speaker 12:25 p.m.
Hon Deputy
Minister, he is saying that no work was done but they were paid and that was his question. Are you aware?
Mr. Kwetey 12:25 p.m.
Madam Speaker, the
organization in charge of our cocoa in our country is COCOBOD. The Cocoa Marketing Board has provided this
information and until authentically proved to the contrary, I think the whole country can take what COCOBOD has said to be the fact and COCOBOD's information shows that the work started from the 1st of June and therefore, payment had been done accordingly.
Mr. Addae 12:25 p.m.
Madam Speaker, is the Hon Deputy Minister aware that instead of what he prefers to call the “squad” -- and I do not see any difference between the “squad” and the “gang” -- What he prefers to call “spraying squad” are actually not doing the work; instead what they are doing is distributing the input directly to the farmers and therefore, relinquishing their work. Is he aware?
Mr. Kwetey 12:25 p.m.
Madam Speaker, I
reiterate that COCOBOD as the legitimate organization in charge of cocoa will not pay people who have not worked. So if COCOBOD said they actually started paying in June because work started in June, we at the Ministry trust that COCOBOD is telling the truth and we stand by it.
Mr. Addae 12:25 p.m.
Madam Speaker, that is not the answer - [Interruption.]
Madam Speaker 12:25 p.m.
You have finished
your three supplementary questions. Hon Member, you have asked your three questions, have you not?
Mr. Addae 12:25 p.m.
Excuse me, Madam
Speaker?
Madam Speaker 12:25 p.m.
You accepted the
answer he gave.
Mr. Addae 12:25 p.m.
Madam Speaker, I was asking if he was aware since he is the Hon Deputy Minister -- If he is aware and so - [Interruption.]
Madam Speaker 12:25 p.m.
And he says that
COCOBOD has said that there was work
done, what else do you want him to say? You have asked three questions already. Let us keep within the time and then we would be getting somewhere.
Mr. Addae 12:25 p.m.
Madam Speaker, if he is
Madam Speaker 12:25 p.m.
He said he is aware that they worked and they were paid, that is what he is saying, is that not it? That his Ministry was informed that they worked and they were paid. So he is aware he was paid or you mean personally?
Mr. Addae 12:25 p.m.
Well, Madam Speaker,
let me ask my last question then because what is happening on the ground amounts to wasting the resources of the nation. And therefore, I am asking this question, should the Hon Deputy Minister find out that really on the ground the squads that have been created are not working --
Mr. Addae 12:25 p.m.
I am asking a question,
Madam Speaker.
Madam Speaker 12:35 p.m.
Then say so.
Mr. Addae 12:35 p.m.
I am asking him a question, Madam Speaker.
Madam Speaker 12:35 p.m.
That what?
Mr. Addae 12:35 p.m.
That should he find out that on the ground the squads are not doing the work, will he consider retrieving the money that has been paid to the people who are not working?
Madam Speaker 12:35 p.m.
Yes, Hon Deputy Minister, you say you are aware that they
Mr. Kwetey 12:35 p.m.
Madam Speaker, I think not just in the cocoa sector but in all sectors of our economy, if it comes to the knowledge of the Government of the day that people are being paid while they are not working, appropriate sanctions would have to be made to apply. So I suspect it should not be a difficulty at all taking the appropriate measures to make sure we redress the situation if anyone is being paid for work not done. But until the contrary, we have trust that COCOBOD is on top and doing what needs to be done.
Madam Speaker 12:35 p.m.
Hon Deputy Minister, I think he did link it with “would you find out whether that is so?”
Mr. Kwetey 12:35 p.m.
Madam Speaker, yes, we certainly will get back to COCOBOD and get the details and then when we are able to get those details, we would provide them to the House.
Mr. Addae 12:35 p.m.
Madam Speaker, I would like to find out from the Hon Deputy Minister if Government owes cocoa spraying gangs as at now.
Madam Speaker 12:35 p.m.
Yes, Hon Deputy Minister - Can you ask the question again?
Mr. Addae 12:35 p.m.
Madam Speaker, I would like to find out from the Hon Deputy Minister if Government currently owes cocoa spraying gangs.
Mr. Kwetey 12:35 p.m.
Madam Speaker, we have to check on the latest payments in order to know exactly how many months are still outstanding.
Mr. Addae 12:35 p.m.
Madam Speaker, the Deputy Minister's Answer suggests that the information he is giving to the House is solely from COCOBOD. Would

the Ministry be prepared to go behind COCOBOD to investigate and confirm whether or not people actually worked before they were paid for the month of June and subsequently?
Madam Speaker 12:35 p.m.
Yes, I think he has answered it but it is a question now. He said, would you find out?
Mr. Kwetey 12:35 p.m.
Madam Speaker, yes, I thought I did indicate that we will make efforts to find what the details are and if we are able to get those details, we will report to the House accordingly.
rose
Madam Speaker 12:35 p.m.
We cannot go on forever; Hon Gentlemen, we have already exhausted more than the hour for Question time and we have another Question. [Pause.] Well, let us have only one, like you say, from here.
Mr. Opare-Ansah 12:35 p.m.
Madam Speaker, in the Hon Deputy Minister's Answer, he indicated that he prefers to use “squads” instead of “gangs”. Can he tell us which Instrument set up these spraying gangs and whether it is the pleasure of the Hon Deputy Minister to determine what he would call these groups or it is that Instrument which specifies the name “gangs”.
Madam Speaker 12:35 p.m.
Yes, that is the last question, answer it please.
Mr. Kwetey 12:35 p.m.
Madam Speaker, I am not aware of any Instrument that determined that the group should be called “gangs.” I just personally feel that the word “gang” has rather very derogatory connotation so I prefer “squad” to “gang”.
Madam Speaker 12:35 p.m.
If there is no other question for the Hon Deputy Minister, and I do not think there is, then, Deputy Minister, we appreciate your coming and we thank you for coming. So come again
when we invite you.
Madam Speaker 12:35 p.m.
The next Urgent Question stands to be asked of the Minister for Health. Hon E. T. Mensah, is the Minister for Health here? Yes, and the Urgent Question stands in the name of Hon Bennam Jabaah (Zabzugu/Tatale).
Mr. E. T. Mensah 12:35 p.m.
Madam Speaker, currently, we do not have a Minister for Health. We have an Acting Minister for Health who is a de jure Deputy Minister. Therefore, I wish to ask permission from the Chair to permit the Deputy Minister to answer the Urgent Question since there is no substantive Minister.
Madam Speaker 12:35 p.m.
I do not think the House has any objection, I do not think so. So let the Question come from Hon Jabaah. Yes, your Urgent Question, please.
MINISTRY OF HEALTH 12:35 p.m.
Mr. B. Jabaah 12:45 p.m.
Madam Speaker, thank you. I am asking this because in my constituency, one injection goes for between ¢600,000.00 and ¢800,000.00, that is GH¢60 to GH¢80 and in most cases you cannot even get the drug. People have to cross to the other side of the border; that is Togo to be able to access it. So if you have this system put in place at the Ministry, I am wondering why on daily basis we cannot afford it; we cannot even get, not to talk of affording it. So maybe, the Hon Deputy Minister has to tell me something so that I can convey the message to the people properly.
Madam Speaker 12:45 p.m.
Hon Member, your
question is, why is it not available?
Mr. Jabaah 12:45 p.m.
Madam Speaker, thank you. I am saying that - [Interruptions.] My place is an endemic area. There are no drugs at my place; why so?
Dr. Kunbuor 12:45 p.m.
Madam Speaker,
I can tell you as a matter of fact that the reason why you do not have drugs physically located in Zabzugu/Tatale is that those drugs have to be stored under some particular conditions and that is why in some of the endemic areas including Yagba, the drugs are kept at the regional level under the type of atmosphere, so that the drugs do not run into difficulties. But I do know as a matter of fact that the Regional Directorate is currently moving stocks into that area.
The second part of the first question that he asked, that is why we indicated the challenges, that rent seeking behaviour was very significant. In fact, Ghana is the only country within the sub-region that specifically gives the drugs out free. So it is impossible for anybody to charge a fee and you could draw the Ministry's attention or the police and the person who is actually administering the drug and collecting moneys, would certainly be arrested and handled.
We now have the evidence from the
Tamale stores; January alone, we have sent 10 ampoules to Zabzugu/Tatale; February, 10; April 10, April again, 10; May, 5; June, 10; June, 10 again; July, 10; August, 5; September, 5 and November, 15 because of the responses. And this is the statistics from the regional stores in Tamale and what have been sent to the Zabzugu/Tatale Constituency.
Mr. Jabaah 12:45 p.m.
Madam Speaker, looking
at the figures he has given, I think it is not adequate because at my place, it is on daily basis. Even yesterday I had a call, a pregnant woman had a snake bite. On my records again on the 16th of last month another pregnant woman had a snake bite and died on the fourth day. We had to rush her to Yendi Hospital. As I am talking to you now, I have sent the baby to Tamale Orphanage.
The Hon Deputy Minister can cross- check on that fact. So ten ampoules a day or in a month is inadequate. I would plead with the Hon Deputy Minister if he can increase the supplies to the place.
Madam Speaker 12:45 p.m.
Hon Deputy Minister, the purpose of the question is also to draw your attention to these things and he is saying that it is inadequate, the figures.
Dr. Kunbuor 12:45 p.m.
Madam Speaker, I guess that we might have to scale up the requirements that are there. The only point that I would indicate is that it is not all snake bites that will require this type of treatment. There are other forms of treatment, the particular one that is lethal and which is the subject of what we are discussing is the viper. There are some snakes that are not lethal even if they bite and perhaps, that explains it.
But in relation to lethal bites, almost adequate arrangements are put in place. If
Dr. Kunbuor 12:45 p.m.


you see the attack rate of 174 per 100,000 as the clinical average, if you reduce that you would see clearly that it must be an exceptional situation in the Zabzugu/ Tatale, which needs exceptional response.

Maj (Dr.) (Alhaji) Mustapha Ahmed (retd): Madam Speaker, I would like to find out from the Hon Deputy Minister whether as a matter of policy the Ministry would consider providing Hon Members of Parliament sufficient information in a way to track the movement of the anti- snake serum since they are in the frontline of paying for most of these treatments.
Dr. Kunbuor 12:45 p.m.
Madam Speaker, indeed, this collaboration with Parliament had already started. The Yagba Constituency particularly had a very very critical case and we personally assisted the Hon Member to accompany these vaccines to the particular constituency to ensure that they were not diverted and I think it is something that we can institutionalise with collaboration with Parliament.
The only difficulty is the storage facilities and if Hon Members can create the facilities in terms of the refrigeration level back in very remote parts of the country, the technical people would put them in and they can supervise the distribution.
Dr. Kofi Asare 12:45 p.m.
Madam Speaker, in the Hon Deputy Minister's Answer, he said that there were certain conditions to be met to store vaccines in Zabzugu/ Tatale. May I ask, what is his Ministry doing to ensure that the conditions were there, since anti-snake serum is an emergency-needed drug and cannot be transported as the case of this woman who died after the bite? What is his Ministry doing to ensure that the conditions are right in that constituency to get the drugs stored there?
Dr. Kunbuor 12:45 p.m.
Madam Speaker, indeed, the health facilities we have go
down with what we call our Community Health (Based) Planning Services (CHPS) Compounds and our CHPS Compounds are the smallest level of units that cover about 500 people within the catchment area.
The original intention had been that facilities would be put into these CHPS Compounds to make sure that we actually store this particular vaccine in that area. We have not been able to satisfy the World Health Organization (WHO) standard in terms of distance between CHPS Compounds and what the Ministry is doing currently is to make sure that we eliminate the physical distance by introducing ambulance services. And these ambulance services would reduce the distance and time to travel from one health facility to another health facility.
We do know as a matter of fact that it requires a multi-sectoral approach; we can physically locate the facility there, but you need an access road to be able to get there, you would need the Ministry of Energy to assist with electricity to ensure that this is done. But on the part of the Ministry, it is part of the programme of work that is being implemented and we are sure by the mid-end of next year, the entire CHPS Compounds would have been adequately equipped to take care of these types of situations.
Mrs. A. F. Osei-Opare 12:45 p.m.
Madam Speaker, I would like to ask the Hon Deputy Minister, what preventive measures or programmes they have to avert people getting bitten. Right now, we have just been hearing answers towards when they are bitten, that is curative aspect. Are there preventive measures that his Ministry has in place to support citizens who are in particularly prone areas
Mrs. A. F. Osei-Opare 12:45 p.m.


such as Zabzugu/Tatale?
Mr. Dominic B. A. Nitiwul 12:55 p.m.
Madam Speaker, I would want to find out from the Hon Deputy Minister what strategy or plans the Ministry has in place to ensure that the drugs do not get to the private hands and private clinics. This is because, like the Hon Member said, in Bimbilla, a single drug costs about GH¢80 though it is supposed to be free, and it is normally found only at the private clinics and with private individuals. The Ministry of Health has ordered for 25,000 bottles of anti-snake venom for this year, depending on funds.
Dr. Kunbuor 12:55 p.m.
Madam Speaker, there are two directions in relation to this problem; the first is that, these could actually be from illegal sources outside the country and find their way within the country illegally and for that, they are sold. They could also originate from legal sources within the country and find their way into illegal hands, and that is why in my Answer, I indicated that the Ministry had developed logistics information management system to track the movement of the anti-venom throughout this country.
Mr. Kwame Osei-Prempeh 12:55 p.m.
Madam Speaker, in the Hon Deputy Minister's Answer, he gave us the figures of the drugs supplied to the Hon Member's const i tuency; can he te l l us the corresponding number of people who received treatment for each of those months that he gave us?
Dr. Kunbuor 12:55 p.m.
Madam Speaker, the details that the Hon Member wants will be one that will need adequate notice to address, but what is significant is that, it is not a vaccination. What happens is, you must get an attack, so if we know the number of attacks, and those that have not been serviced, then we should be able to follow up and get the number. For instance, the evidence shows that we have one to two amps per patient.
Mr. S. K. B. Manu 12:55 p.m.
Madam Speaker, as part of the preventive measures, will the Ministry consider giving out welling-ton boots for instance, to farmers to prevent them from being attacked by these wild snakes?
Dr. Kunbuor 12:55 p.m.
Madam Speaker, what is significant here is that, should Parliament -- [Interruption ] -- should the spirit move this Honourable House to want to give us an additional budgetary allocation, we will be too willing to provide wellington boots to almost every citizen in this country.
Dr. Matthew O. Prempeh 12:55 p.m.
Madam Speaker, I am confused about whether something is a vaccination or immunisa- tion as regards the anti-snake serum. And really whether the attachment of the Veterinary Services Department to the Ministry of Food and Agriculture rather than the Ministry of Health may not be a factor. This is because snake bites are treated under the Ministry of Food and Agriculture, and you will find out that, a lot of these animal diseases are springing to humans.
Would the Ministry consider whether immunisation and vaccination as regards the anti-snake serum -- his position -- because in his statement -- I did not quite get him? Whether the Ministry is not supposed to bring the Veterinary Services under the Ministry of Health so that we have a Ministry of Health, not a Ministry of Human Health?
Dr. Kunbuor 12:55 p.m.
Madam Speaker, that decision, certainly, is above a single Ministry, but I guess that in future when people decide to agree that we need to realign our Ministries for maximum effect, I am sure that it will come for consideration.
Mrs. Gifty Ohene-Konadu 12:55 p.m.
Madam Speaker, in the Hon Deputy Minister's Answer, he indicated that if Parliament

would approve an additional funding, then they could look at this issue of snake bites; I want to find out from him whether he does not consider snake bites as an issue of emergency or an urgency nature that requires that they set other things aside and treat it as a priority.
Dr. Kunbuor 12:55 p.m.
Madam Speaker, the answer was in reference to a specific question on ‘wellington boots', which is relatively quite relevant, but tangential to the medical intervention that we provide at the level of the Ministry. But definitely, we will not wait for an additional funding from Parliament to deal with what is the preventive and clinical interventions to address the issue of snake bites and it is something that the Ministry takes quite seriously. If you rate the killer diseases in relation to snake bites as against malaria, you will see how the limited resources will be prioritised.
Mr. Opare-Ansah 12:55 p.m.
Madam Speaker, in the Hon Deputy Minister's Answer earlier on, he indicated that because most of the snake bites are not reported, the statistics are misleading. By extension, is the Hon Deputy Minister telling us that because a lot of births and deaths are not reported in the country, our national statistics is misleading? This is the statistics based on which our national budget is drawn.
Or will the Hon Deputy Minister reconsider that indeed, statistics as an area of study does not include the entire sample space, the entire population? I mean, but it includes only a small sample space by which after analysts inferences can be drawn on the entire population; and for that matter, we do not need for all snake bites to be reported before the statistics that is drawn from it can be accurately used by his Ministry. Would the Hon Deputy Minister agree with me? [Interruption.] That is a question.
Madam Speaker 1:05 p.m.
Would you agree -- is that a question?
Dr. Kunbuor 1:05 p.m.
Yes, Madam Speaker, I will agree and disagree at the same time because everybody knows that when you are dealing with statistics in the health sector, you need to be very, very careful.
When you are distributing things statistically in other spheres, 0.0 per cent or 0.1 per cent can be discarded as insignificant. If you take the total population of Ghana and you are talking about deaths, 0.7 per cent would mean about 200 people who have died; that is a national disaster and that is why we need to get down to clinical accuracy and not to use the general statistics. And that is the context in which I said statistics can be misleading.
But at the same time, it guides us and points us in the direction as to what we should do. But it is not always necessarily a pinpoint accurate way for interventions when human life is involved. That is the context in which I used it.
Madam Speaker 1:05 p.m.
Question time is over now. [Interruptions.] In which case, I will allow the question.
Mr. S.K.B. Manu 1:05 p.m.
Madam Speaker, from the Hon Member who asked the Question, it has come to light that the snakes are more interested in pregnant women. Will the Hon Deputy Minister tell us why?
Madam Speaker 1:05 p.m.
Yes, if you can, but I think it is because they are one -and -a -half. Anyway it is -
Dr. Kunbuor 1:05 p.m.
Madam Speaker, I certainly do not have that part of clinical competence but what I do know is that, it happened that a pregnant woman was a
Madam Speaker 1:05 p.m.
Laying of Papers, item 6.
Mr. E. T. Mensah 1:05 p.m.
Madam Speaker, the Hon Deputy Minister has not been discharged yet.
Madam Speaker 1:05 p.m.
I am sorry. It is because we have taken such a long time over Questions, I was rushing. We thank you very much, Hon Deputy Minister for coming and we hope you will come when we ask again. On behalf of the House, we thank you.
We are moving to item 6 - Laying of Papers. Leader is to lay Paper Number 6 (i).
Mr. E. T. Mensah 1:05 p.m.
Madam Speaker, the Hon Leader is attending to other business outside this House and has asked me to lay the Papers on his behalf and so I want to seek your leave to do so.
Thank you, Madam Speaker.
Madam Speaker 1:05 p.m.
Yes, he is going to lay the Paper.
PAPERS 1:05 p.m.
Mr. Opare-Ansah 1:05 p.m.
May I find out from the person laying the Paper why the Report of the Auditor-General on the said body is covering the entire period of 1st January, 2001 to 31st December, 2004? If the person laying the Paper can explain to us.
Madam Speaker 1:05 p.m.
Honourable, it has been laid but he is asking you a question.
Mr. E. T. Mensah 1:05 p.m.
Madam Speaker, I think that after the laying, I believe that the Chairman who will move the motion will explain the reasons why we are laying within this period, 2001 to 2004.
Mr. Opare-Ansah 1:05 p.m.
Madam Speaker, coming under Order 75(2) that the person presenting the Paper, a short explanatory statement may be made by him upon its presentation -- So we are only seeking that since he is the person laying the Paper in this instance, my question is, why is he laying one single Paper for the entire four- year period, 2001 to 2004 instead of laying separate Papers for each year?
Mr. E. T. Mensah 1:05 p.m.
Madam Speaker, this is allowed; Papers which are available and instead of wasting time and laying them one after the other, we have put them together. So it is something which is permissible.
Thank you, Madam Speaker.
By the Majority Chief Whip (Mr. E.T. Mensah) (on behalf of the Majority Leader) -
Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the first half year ended 30th June 2008. Report of the Auditor-General
on the Public Accounts of Ghana (Consolidated Fund) for the year ended 31st December 2008.
Report of the Auditor-General on the Public Accounts of Ghana (Ministries, Departments and Other Agencies of the Central Government) for the year ended 31st December 2008.
Referred to the Public Accounts Committee.
Madam Speaker 1:05 p.m.
We are moving on to Item 7 - Motions
MR. FIRST DEPUTY SPEAKER
Mr. First Deputy Speaker 1:15 p.m.
Hon Members, Item 7, Motion standing in the name of the Chairman of the Public Accounts Committee.
MOTIONS 1:15 p.m.
Chairman of the Committee (Mr. Albert Kan-Dapaah) 1:15 p.m.
Mr. Speaker, I beg to move, that this Honourable House adopts the Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana
1.0 Introduction
Madam Speaker, the Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the year 2005 was laid in the House on Monday, 29th June 2009.
This Report was referred to the Public Accounts Committee pursuant to article 184 (3) of the 1992 Constitution and in accordance with Standing Order 165 for
Chairman of the Committee (Mr. Albert Kan-Dapaah) 1:15 p.m.


consideration and report.

To consider this Report, the Committee met with officials from Audit Service and Bank of Ghana.

2.0 References

The Committee referred to the following relevant documents:

1. The 1992 Constitution of the Republic of Ghana

2. The Standing Orders of Parlia- ment of Ghana

3. The Bank of Ghana Act, 2002 (Act 612)

4. The Exchange Control Act 1961, Act 71

5. The Minerals and Mining Law, PNDC Law 152

3.0 Background

3.1 The Bank of Ghana is obliged to submit to the Auditor-General for audit on half-yearly basis a Statement of its Foreign Exchange Receipts and Payments in accordance with article 184 of the 1992 Constitution.

Under article 184 (3) of the 1992 Constitution, the Auditor-General is enjoined to audit the Statements and submit two half yearly reports to Parliament.

For the year ended 31st December 2005, the Auditor-General was unable to submit the half yearly reports on a timely basis as a result of staff and other logistical constraints; he therefore submitted the two bi-annual reports as one report.

3.2 Audit Objective and Approach

The primary objective of the audit

by the Auditor-General was to obtain reasonable assurance that each of the statements of Foreign Exchange Receipts and Payments taken as a whole was free from material misstatements.

The audit also sought to confirm that the Bank of Ghana had instituted a proper system of internal controls and accurate and reliable records to safeguard the country's foreign exchange receipts and payments.

The Auditor-General conducted the audit in accordance with generally accepted auditing standards. His examination included a general review of accounting and internal control procedures, records and other supporting evidence to validate the Foreign Exchange Receipts and Payment figures. The audit also reviewed the Receipts and Payments of external account balances and the Foreign Exchange Reserve position of the country.

3.3 Audit Opinion

It is the opinion of the Auditor-General that as a result of his examination, the Statement of Foreign Exchange Receipts and Payments of Bank of Ghana presents fairly the foreign exchange position of the Bank as at the end of the second half year ended 31st December 2005.

4.0 Foreign Exchange Receipts and Payments

4.1 Receipts

Foreign exchange receipts or inflows to Bank of Ghana are captured under the following classification:

Cocoa exports

Gold exports

Diamond exports

Manganese exports

Capital receipts in the form of loans and grants. that is, HIPC Reliefs (off-shore) among others.

HIPC Reliefs arose from the cancellation of principal and interest payments on debts as a result of Government adopting HIPC. There are two types namely, Off-shore and On-shore receipts.

Off-shore receipts are treated as capital receipts and added to the capital receipts.

On-shore receipts involve the retention of foreign exchange which otherwise would have been transferred to pay bilateral and multilateral creditors. This is treated as a memorandum item as it only involves transfer of cedi funds to the HIPC main account.

Invisible Receipts derived from the sale of travellers cheques, interests, commissions, investments on treasury bills, interest on Bank International Settlement (BIS,) interest on Gold Investment and forex purchase.

Commodity related Japanese grants are grants received from the Japanese Government. This is also treated as a memorandum item.

Payments

Bank of Ghana makes foreign exchange payments under the following broad categories:

Visible import payments consist of oil, non-oil as well as other visible import payments.

Capital payments involve loan repayments to bilateral and

multilateral institutions

Invisible payments consist the following:-

S t u d e n t t r a n s f e r s a r e allowances paid to govern- ment sponsored students abroad.

Contractual payments are made to contractors under- taking various projects in the country.

Embassy t r ans fe r s a re remittances to Ghana Mis- sions abroad.

Management and technical services represent broad classifications in the technical and management activities conducted for Government and its agencies such as

Consultancy fees

Services of technical nature, that is, use of Reuters, swift facilities

Service and research activities conducted by the Missions

Servicing of equipment such as Air Force aircraft

·

Capi ta l subscr ipt ions are payments in respect of fees to International and Regional Organizations and Agencies to which Ghana is affiliated.

Sundry payments are other payments made through BOG, inspection fees, freight and insurance, subscriptions, medicals, correspondent bank charges and payments.

5.0 Objectives and Structure of this Report

The objective of this Report is to

present to the House salient points of the Audit Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the two half years ending 31st December 2005 as well as the comments of your Committee on the findings and recommen-dations of the Auditor-General.

The Report is in two parts:

1. An overview of the Foreign E x c h a n g e R e c e i p t s a n d Payments of the Bank of Ghana for the year ending 31st December 2005

2. Your Committees' comments on management issues arising out of the review of the foreign exchange transactions.

6 . 0 O v e r v i e w o f F o r e i g n Exchange Receipts and Payments

6.1 Foreign Exchange Receipts

The total foreign exchange received by BoG for the year 2005 amounted to US$1,832.24 million. This figure showed an increase of US$54.89 million when compared to the sum of US$1,777.35 million received in 2004. Total foreign exchange inflows for the first half ending 30th June 2005 amounted to US$641.62 million. For the second half ending 31st December 2005, it amounted to US$1,190.62 million.

The main components of the foreign exchange receipts are Cocoa, Gold, Diamond, Manganese, Capital Receipts and Invisible Receipts.

The table 1 below gives the breakdown total foreign exchange receipts for 2005 as compared with 2004 receipts.
Chairman of the Committee (Mr. Albert Kan-Dapaah) 1:15 p.m.


6.1.1 Details of Foreign exchange receipts

6.1.2 Cocoa

The Committee was informed that COCOBOD surrenders 98 per cent of all its foreign exchange receipts from cocoa to Bank of Ghana and retained 2 per cent to meet its import needs.

For 2005, total Foreign Exchange surrendered to BoG from COCOBOD amounted to US$1,010,392,000. This figure, compared with the figure of US$980,944,219 for 2004, showed an increase of US$29,447,784. Detail of the breakdown is attached as Appendix ‘A'.

The breakdown of the earnings is as follows:

TABLE 1

PAGE 5

TABLE 2

PAGE 5

The Committee was also informed that total tonnage of cocoa beans and cocoa products exported for the year amounted to 579,987 tonnes.

Table 2 gives the breakdown of tonnes of cocoa beans and cocoa products exported in 2005 as compared with 2004.

Overall Cocoa exports in tonnes increased by 4 per cent. However export of Cocoa Products declined by 13 per cent. For the period, the world average price of cocoa was

US$1,357.40.
Chairman of the Committee (Mr. Albert Kan-Dapaah) 1:15 p.m.


Gold

Total gold earnings surrendered to BoG for the period amounted to US$211,429,754. This figure was significantly higher by US$23,106,243 over the total amount of US$118,323,511 received for 2004. These inflows were the proportion of proceeds that were remitted to the country through the Bank of Ghana by licensed gold exporters. Detail of the breakdown is attached as Appendix ‘A'.

Percentages of Gold Receipts surrendered to Bank of Ghana are between 20 per cent and 40 per cent of total gold exports.

Below is the list of Gold Companies operating in Ghana and their repatriation percentages as provided by the BoG:

For the year, a total of 1,911,450 ounces of gold was exported. Compared with an amount of 1,864,590 for 2004, there was an increase of 3 per cent

TABLE 3

PAGE 6

TABLE 3

PAGE 7

This increase was occasioned by the establishment of a new mining company called Wexford Limited during the year.

The technical team from the BoG informed the Committee that during the year, Wexford Limited was absorbed by Gold Star (Wassa) during the year.

Diamond

Total Foreign exchange inflows of diamond exports remitted to the country through BoG amounted to US$ 618,852. This amount represented 20 per cent of the total revenue from diamond exports by Ghana Consolidated Diamond Limited (GCD). The corresponding figure for 2004 was US$614,901 repatriated to the country through Bank of Ghana. Detail of the breakdown is attached as Appendix ‘A'.

The Committee was informed that the remaining 80 per cent of the export proceeds are retained by GCD offshore to meet its import needs. Managenment

Total Foreign Exchange receipts surrendered to BoG from the export of manganese amounted to US$7,088,574.

Detail of the breakdown is attached as Appendix ‘A'.

The inflows came from 20 per cent of total export receipts repatriated into the country by the Ghana Manganese Company.

The Company retained the remaining 80 per cent of its receipts offshore to meet its import needs.

Capital Receipt

Total Capital Receipt in the form of loans and grants for the year 2005 amounted to US$351,465,520. US$55,418,816 was received by the first half of the year while US$296,046,704 was received during the second half of the year. Detail of the breakdown is attached as Appendix ‘B'.

Below is the breakdown of the various sources of Capital Receipts for the year as compared with 2004. IPC Reliefs

Members were informed that a total of US$205,088,209 accrued as HIPC reliefs for the year. Out of this amount, US$193,992,943 was received as on-shore

TABLE 4

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Mr. E. T. Mensah (NDC - Ningo/ Prampram) 1:25 p.m.
Mr. Speaker, I rise to second the motion.
Question proposed.
Mr. First Deputy Speaker 1:25 p.m.
I want
Hon Members to address the issue to whether, as rightly pointed out by the Chairman of the Committee, if the Constitution says it should be done in bi-annual basis, it is right to lump them together. So that we can be sure that we are doing the proper thing to guide all of us in the future.
Mr. Albert Kan-Dapaah 1:25 p.m.
Mr. Speaker, I just wanted to say that it is the same problem that the Hon Minority Chief Whip did raise. Statutorily, the Auditor- General is supposed to submit them on yearly or half-yearly basis. Yearly in the case of what the Hon Minority Chief Whip talked about and half-yearly in the case of this one.
The truth of the matter is that, they
were unable to do that before the end of the second half. So what they did was to lump them together. That explains why we are having them now.
Mr. First Deputy Speaker 1:25 p.m.
So should
this House be endorsing some of these things? I agreed with the Hon Minority Chief Whip when he raised the question earlier but I was then preparing to take the Chair, so I did not want to enter the fray. But I think that this is a constitutional provision, let us find out whether as a House, we should encourage that type of approach to our work.
Mr. E. T. Mensah 1:25 p.m.
Mr. Speaker,
even this morning, the Public Accounts Committee met some of the auditors and
some of these issues were raised before the Auditor-General and they told us that they had difficulties. So we have the Constitution, we have the responsibilities but then we do not provide people with the wherewithal to be able to keep within the time frame that we have set up there. So it is something that needs to be looked at, when it comes to amending the Constitution or what can be done to strengthen the hands of the Auditor-General so that he would be on top of his job.
Mr. First Deputy Speaker 1:25 p.m.
Hon
Majority Chief Whip, the Auditor- General's Reports to this House, when he had those difficulties, did he get in touch with the Public Accounts Committee that these are the difficulties I am facing, so that timeously, the House, through the Public Accounts Committee, could do the necessary interventions? I think that we have to be very careful to uphold the Constitution of the Republic of this country. It is very, very important otherwise, the whole exercise of this post- mortem becomes useless.
Mr. Kan-Dapaah 1:25 p.m.
Mr. Speaker, I
could not agree with you more, it is not a question of whether they were able to do it in time or not, but the very important point that you have raised is that, they are obliged, the Audit Service is obliged to submit to us audited accounts covering the half-year and to what extent can they lump them together and submit the accounts for a whole year?
So I think you made a very, very important point and we have to take that into account and see whether it is constitutional in the first place for them to give us something more or less than what the Constitution demands.
Dr. Anthony Akoto Osei (NPP - Old Tafo) 1:25 p.m.
Mr. Speaker, the problem is that, I think we are not distinguishing between
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Mr. First Deputy Speaker 1:25 p.m.
I think I
entirely agree with you. Hon Members, should I put the Question then?
Mrs. Gifty Eugenia Kusi (NPP -
Tarkwa-Nsuaem): Mr. Speaker, I want to agree with the Committee's decision that punitive measures should be instituted against the defaulting institutions.
Mr. Speaker, if you look at the way the banks work here, the way they chase people to collect their moneys and all that, and if they have to do something and they do not do it -- I want to find out from the Chairman of the Committee what did the Bank of Ghana say when they recommended that they should punish those people -- did they agree with him or have they been punishing people or they have been leaving them?
Thank you.
Mr. First Deputy Speaker 1:25 p.m.
Is that the

But he will do it when he is winding up but not immediately. You have raised a question, when he is winding up, he will address the House on that matter.

Minister for Communications (Mr.

Haruna Iddrisu): Thank you, Mr. Speaker, for the opportunity to associate myself with the motion to adopt the Committee's Report on the Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the two-half years ending 31st December, 2005.

Mr. Speaker, in doing so, may I

just refer you to the Conclusion, under paragraph 7.0 of the Committee's Report, I am particularly interested in the third line where Bank of Ghana finds that existing measures are not punitive enough and with your indulgence, I am quoting:

“The Committee urges the Bank to take the necessary steps to amend its laws and regulations to ensure their effectiveness.”

Mr. Speaker, I believe next time, first of all, one would want to commend the Committee for a very thorough work done, but it would be useful if next time we know which of these regulations or laws specifically are considered ineffectual so that we would be able to monitor and know which legislation would have to be reviewed by Government, so that would be useful.

But Mr. Speaker, may I refer you to page 14 of the Committee's Report in particular paragraph 6.1 and again, the Central Bank is often referred to as the bankers' bank largely because of the supervisory function that they play.

Mr. Speaker, clearly, this Report gives

an indication that the Central Bank is not

doing sufficiently well where it comes to exercising its supervisory function over the commercial banks and indeed, by the Committee's Report, six banks failed to submit their returns by the end of the first- half of the year and the banks, Mr. Speaker, are listed.

I think that we should call the Bank of Ghana not to hesitate in sanctioning those banks per the Committee's Report who are defaulting in making these submissions, because the receipts that they give to the Bank of Ghana are useful for the purposes of supervisory and one cannot understand why clearly some six commercial banks would be in infringement of the Foreign Exchange Act, 2006 Act 723, and in the words of the Committee, they considered it an unacceptable.

I think that the Bank of Ghana must

be encouraged to go ahead to sanction the defaulting banks other than that they would continue to show disrespect and it would affect some of the analysis that are being done because they are not complying with the receipts that they should submit.

With these comments, Mr. Speaker, I

associate myself with the Committee's Report.
Papa Owusu-Ankomah (NPP - Sekondi) 1:35 p.m.
Thank you very much, Mr. Speaker, for giving me the opportunity to contribute to the debate on this Report. And in doing so, I will refer to article 184 (1) of the Constitution and with your permission, Mr. Speaker, I will read:
“The Committee of Parliament responsible for financial measures shall monitor the foreign exchange receipts and payments or transfers
Papa Owusu-Ankomah (NPP - Sekondi) 1:35 p.m.


these particular recommendations.

I do not know the practice but it seems as if we accept these Reports, the Reports and the Recommendations are contained in the Hansard, but then we should extract the relevant portions of the Report and then formally communicate the recom- mendations to the agency involved and then request them to report back as to what relevant actions they have taken on them, then we would be making progress.

With these few words, Mr. Speaker, I support the motion.
Dr. A. A. Osei (NPP - Old Tafo) 1:35 p.m.
Mr. Speaker, I rise to support the motion -
Mr. First Deputy Speaker 1:35 p.m.
Is it Old Tafo?
Dr. Osei 1:35 p.m.
Yes Sir, Mr. Speaker, or Asieye.
Mr. First Deputy Speaker 1:35 p.m.
No, you took part of Suame, so I want to be very sure -- [Laughter.]
Dr. Osei 1:35 p.m.
No, I did not take part of Suame.
Mr. First Deputy Speaker 1:35 p.m.
You did not take part of Suame?
Dr. Osei 1:35 p.m.
No Sir, I took the funeral part.
Mr. Speaker, I rise to support the
motion and I think I agree with some of the comments that have been made. I want to add my voice to my senior Colleague's statement about the constitutional provision and the Order which, I think, out of practice has been making the Public Accounts Committee report on this. I think it referred to Order 165(2), but in that Order:
- 1:35 p.m.
Mr. First Deputy Speaker 1:35 p.m.
You are
now speaking like a lawyer.
Dr. Osei 1:35 p.m.
No, I do not want to speak
like a lawyer, Mr. Speaker.
Mr. First Deputy Speaker 1:35 p.m.
The
latter part.
Dr. Osei 1:35 p.m.
So we have not been in
compliance - so my question is, when is this Parliament going to move quickly to be in compliance with the Constitution? [An Hon Member - You are the Ranking Member.] I think it is a small matter, being a Ranking Member I want to suggest -- [Interruption.]
Mr. First Deputy Speaker 1:35 p.m.
But you are the Hon Ranking Member, have you
raised this in your committee?
Dr. Osei 1:35 p.m.
Yes, Mr. Speaker.
Mr. First Deputy Speaker 1:35 p.m.
Or it is now that your attention has been drawn to it?
Dr. Osei 1:35 p.m.
No, Mr. Speaker, on the contrary, I have raised this several times. In prior years, I was not on the committee, I spoke in front of the committee. But now I am a Ranking Member and I find myself not in compliance, I am a bit worried. I do not want any civil rights advocates to come and be taking us on for not being compliant.

No, but matters are referred to us by the entire House. We cannot abrogate this responsibility, we speak for the House in our capacity as Members of Parliament.
Papa Owusu-Ankomah 1:35 p.m.
Mr. Speaker, I believe that the Hon Member unwittingly is misleading the House. The Constitution has assigned responsibility to a Committee of the House. The Committee does not lead Leadership to tell it to do its job. The Committee just has to invite the Bank of Ghana, discuss the Foreign Exchange accounts with them and report on them to the House.
Mr. E. T. Mensah 1:35 p.m.
Mr. Speaker, the comments made by my very good Friend, Dr. Anthony Akoto Osei is something that we should all blame ourselves that for 16 years we have now come to realize that this simple article of the Constitution is being violated. We should not beat ourselves, we are growing, it is a process and we need to look at all these things as well as the monitoring role that we have, oversight responsibility. What we are not
doing in this country is, we give people responsibilities without giving them what it takes to be able to be on top of the job, and it is something that one has been canvassing all along.
Mr. First Deputy Speaker 1:45 p.m.
Hon Member, you are saying that when the Constitution says that we should do something, we should not do it because somebody has not made resources available?
Mr. E. T. Mensah 1:45 p.m.
Mr. Speaker, that is not what I am talking about -- We are all blaming ourselves now. When you read the Report, some of the things that we came across, there are recommendations that certain things have to be done and I am saying that in the lamentations, we need to sit down, come to basics and begin to provide little resources and also monitor and draw people's attention to these things. That is the point that I am making. This is because we hear this all the time on the radio, all over the place -- just lamentations. I think that it is about time that we did something. When my very good Friend was the Minister for Energy - [Interruption.]
Mr. First Deputy Speaker 1:45 p.m.
It is the Hon Member for Old Tafo, Dr. Osei, who
Mr. E. T. Mensah 1:45 p.m.
Mr. Speaker, I am just drawing his attention that he is the Ranking Member and we are all in the boat; we need to spell out what we can do to correct this; he was putting it out there because if we do not state it wel,l the headlines that we would find tomorrow morning would be that Parliament has over the years contravened the Constitution and all that.
Dr. Osei 1:45 p.m.
Mr. Speaker, the Majority Chief Whip was referring to resources being given by the Ministry of Finance and Economic Planning. I think that my point is still there. I think that the Public Accounts Committee is looking at audited accounts; we are supposed to look at statements of foreign exchange receipts and monitor and that does not take any resources; it is a matter of the Committee writing to the Bank of Ghana and making sure that we get a copy anytime it is out.
The Chairman is not here, but what I said, if assuming the Committee is not doing its work, the Leadership would crack the whip. I cannot speak for the Chairman and I cannot speak for the Committee. But I can assure the House that the Members of this side of the House would be meeting on this matter to see how we can move - [Interruptions.] No, I cannot speak for them. Mr. Speaker -
Mr. First Deputy Speaker 1:45 p.m.
Hon Member, kindly conclude.
Dr. Osei 1:45 p.m.
Mr. Speaker, I think that the point is well taken and we would move to make sure that we are going to be in compliance as quickly as possible.
Mr. First Deputy Speaker 1:45 p.m.
Hon Minority Leader? [Interruptions.] Point of order against whom? [Laughter.] Hon
Minority Leader?
Minority Leader (Mr. Osei-Kyei- Mensah-Bonsu) 1:45 p.m.
Mr. Speaker, thank you for the opportunity to just make a few, in fact, brief remarks. I think the point raised by the Hon Member for Old Tafo, Dr. Osei, really - the kennel of the matter relates to the issues raised by the Majority Chief Whip. We must look at the chronology of events. It is for the Finance Committee to do the monitoring.
What the Public Accounts Committee has done really satisfied article 184(2)(b); it is the (2) (a) that we have not done as a House; we have not been in compliance. I would not say that we have - 184(1), I would not say that we are in violation, we are not in compliance.
But Mr. Speaker, the issue relates to transaction of business in Parliament and I think that is where we should draw the distinction. This is because Order 197 says that before a Committee conducts business on any matter referral should be made to the Committee by the plenary.
Of course, this one is constitutional; the Constitution stipulates that the committee responsible for financial matters, which in our case is the Finance Committee, should deal with it, that is doing the monitoring of the foreign exchange receipts and payments or transfers of the Bank of Ghana in and outside Ghana and then thereafter report on them to Parliament once in every six months.
This is what they have not done -- “once in every six months”. Indeed, Mr. Speaker, if they have to make the report ready for the Finance Committee to do the monitoring -- because it cannot be done on daily -- they would have to look at the report prepared by the Bank of Ghana and we are being told that the Bank of Ghana shall not later than three months after the end of the first six months of its financial year submit this report; that is have this
report ready.
Dr. Osei 1:45 p.m.
Mr. Speaker, I just want to give some information to my Leader. The statement on the foreign exchange receipts and accounts is provided by the Bank of Ghana every month. It does not have to be audited. So what the Finance Committee would be doing would be to be receiving copies of those statements and not wait for three months.
The one that the Public Accounts Committee has to wait for is the one that is audited. So there is a big difference between the two. We can still do the monthly statements and monitor them even on a monthly basis, month by month.
Mr. First Deputy Speaker 1:45 p.m.
That is absolutely correct.
Mr. Kyei-Mensah-Bonsu 1:45 p.m.
Mr. Speaker, the point at issue is when do we have the Finance Committee doing the monitoring? The Constitution stipulates that it must be done by the Finance Committee and yet our own rules are saying that referrals should be given to them by the plenary and I think that - [Interruption]
Mr. First Deputy Speaker 1:45 p.m.
Hon Minority Leader, the point has been made that this is a constitutional provision. So
it takes precedence over the Standing Orders of the House. So there might not be need for referral from the Chair for them to do what the Constitution says the Finance Committee should do. That is the submission being made on the floor of the House.
Mr. Kyei-Mensah-Bonsu 1:45 p.m.
Mr. Speaker, I agree absolutely with you. All that I am saying is that committees in this House have often shared responsibility because they want referrals to be made to them from the plenary. That is the point I am making, and I am saying that because they have this muscle, provided to them by Constitution, they should have acted all this while but they have not done so. So we should urge the Committee to act on this, deriving their strength from the Constitution as per article 184 (1). That is the point that I am making.
But Mr. Speaker, in the matter relating to the six months, in reality, they are eight months because they have listed six months - Ghana Commercial Bank, Barclays Bank, International Commercial Bank, Home Finance Bank, Amalgamated Bank, UniBank Limited and Stanchart Trust Bank; the number there is even seven, plus two others. Metropolitan and Allied Bank which also failed to submit their returns in time, throughout the year. So we are talking in reality about nine banks that were not in compliance.
Mr. Speaker, the point that I want to canvass is that Ghana Commercial Bank and Barclays Bank, the two banks in Ghana that fall in the league of the hundred largest banks in Africa, they have the responsibility to lead the way by providing good leadership for the other banks in the country to follow.
Mr. Speaker, so if they fail to comply, they are sending the wrong signals to the others - to put it this way - the other younger banks; if the two larger banks are not complying, the wrong signal is given
Mr. First Deputy Speaker 1:45 p.m.
Hon Members, looking at the nature of the business we may Sit outside the prescribed time.
Mr. Kyei-Mensah-Bonsu 1:45 p.m.
Mr. Speaker, I can only agree with the Committee in their recommendation that the Bank of Ghana must be more up and doing in regulating the affairs of these banks in this connection.
Mr. Speaker, I thank you very much for the opportunity.
Mr. First Deputy Speaker 1:45 p.m.
Chairman of the Committee, kindly do your winding up.
Mr. Kan Dapaah 1:55 p.m.
Mr. Speaker, I want to say that we have taken note of the comments that have been made, and we will take these things into account, in particular whether it is constitutionally permissible for the Audit Report to cover a period more than six months.
The Hon Minister for Communications also wanted to know about the penalty that could be exacted. Mr. Speaker, each monthly report not submitted faces a sanction of 500 penalty units and this is pursuant to the Banking Act 673 and the Act 723 of the Foreign Exchange Act.
The issue on the monitoring by the Finance Committee and the examination of the audited accounts by the Public Accounts Committee, I think has been sufficiently debated and we seem to have an agreement.
In actual fact, Mr. Speaker, my attention has just been drawn to the fact that specifically under the Standing Order 171 (2), the Finance Committee has been charged with the responsibility of monitoring on -- is it a day to day or monthly basis -- transactions relating to foreign exchange with the Central Bank?
Mr. Speaker may also want to rule, I suppose on the suggestion that was made, that it may be useful for us to write specifically to the Bank of Ghana to express our concerns about some of the matters that have been raised.
Mr. Speaker, I thank you.
Mr. First Deputy Speaker 1:55 p.m.
Hon Member, did you say you have written to Bank of Ghana? I did not hear that part?
Mr. Kan-Dapaah 1:55 p.m.
Mr. Speaker, the suggestion was made by Hon Papa Owusu-Ankomah that it may be useful for the House to write to the Bank of Ghana expressing our concerns about some of the lapses that were mentioned in the Audit Report by the Auditor-General; that in the past, it has not been in essence, our practice to write to such institutions. He thinks it may be useful on this occasion to write to them to express our concern.
rose
Mr. First Deputy Speaker 1:55 p.m.
Hon Members, the motion has been moved, seconded, debated; he has finished winding up, and I do not see why I should take any further comments on the matter. Otherwise, it may raise a new matter and the Chairman will be forced again to respond to it and the debate might not end. I will put the Question.
Question put and motion agreed to.
Resolved accordingly.
Mr. First Deputy Speaker 1:55 p.m.
I further direct that the concerns of the House be
communicated to the Bank of Ghana, and they must serve their response to this House before the end of this month.
Furthermore, the Finance Committee should discharge its constitutional mandate in article 184 (1) and report to the House accordingly.
Hon Members, Chairman of the Committee, I have realized that you have fixed some gadgets, and you have a -- should we take the second motion? [Interruption] -- We should take it? Very well I thought that we should take it tomorrow but if you want us to take it today, then we can take it.
Very well, Chairman of the Committee?
PAC Report on the Auditor-General Report on Statement of Foreign
Exchange Receipts and Payments of the Bank of Ghana, 2006
Chairman of the Committee (Mr.
Albert Kan-Dapaah): Mr. Speaker, I beg to move, that this Honourable House adopts the Report of the Public Accounts Committee on the Report of the Auditor- General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the two-half years ended 31st December 2006.
Mr. Speaker, with this permission, I beg to present the Committee's Report to the House. Mr. Speaker, the issues are basically the same for 2006 as they were for 2005. The audit objective was the same; the audit approach was the same. And I also want to confirm that the audit opinion on this one is the same; the Auditor-General is satisfied that as a result of his examination the statement fairly presents foreign exchange position of the Bank of Ghana at the end of the second- half year ended 31st December, 2006.
1.0 Introduction
The Report of the Auditor-General on the Statement of Foreign Exchange
Receipts and Payments of the Bank of Ghana for the year 2006 was laid in the House on Monday, 29th June 2009.
This Report was referred to the Public Accounts Committee pursuant to article 184 (3) of the 1992 Constitution and in accordance with Standing Orders 165 for consideration and report.
To consider this Report, the Committee met with officials from Audit Service and the Bank of Ghana.
2.0 References
The Committee referred to the following relevant documents:
1. The 1992 Constitution of the Republic of Ghana
2. The Standing Orders of Parliament of Ghana
3. The Financial Administration Act, 2003 (Act 654)
4. The Financial Administration Regulations
5. The Bank of Ghana Act, 2002 (Act 612)
6. The Exchange Control Act 1961, Act 71
7. The Minerals and Mining Law, PNDC Law 152.
3.0 Background
3.1 The Bank of Ghana is obliged to submit to the Auditor-General for audit on half-yearly basis a Statement of its Foreign Exchange Receipts and Payments in accordance with article 184 of the 1992 Constitution.
Under article 184 (3) of the 1992 Constitution, the Auditor-General is
Mr. First Deputy Speaker 1:55 p.m.
Table 3 gives the breakdown of tonnes of cocoa beans and cocoa products exported in 2006 as compared with 2005.
Overall cocoa exports in tonnes
TABLE 2 PAGE 6
increased by 4 per cent. However, export of cocoa products declined by 13 per cent. For the period, the world average price of cocoa was US$1,357.40.
TABLE 3 PAGE 6

6.1.1.2 Gold

Total gold earnings surrendered to BoG

for the period amounted to US$284.15 million. This figure was significantly higher by US$72.72 million over the total amount of US$211.43 million received for 2005. These inflows were the proportion of proceeds that were remitted to the country through the Bank of Ghana by licensed gold exporters. Percentages surrendered

are between 20 per cent and 40 per cent of total gold exports.

The Table below shows the list of Gold Companies operating in Ghana and their repatriation percentages for the year under review:-

For the year, a total of 2,050,598 ounces of gold was exported. Compared with an amount of 1,911,450 ounces for 2005, there was an increase of 7 per cent or 139,148 ounces.

the country by the Ghana Manganese Company.

The Company retained the remaining 80 per cent of its receipts offshore to meet its import needs.

Please find attached details of Manganese Receipts as Appendix A.

6.1.1.5 Capital Receipts

Total Capital Receipt in the form of loans and grants for the year 2006 amounted to US$448.80 mill ion.

US$302.64 million was received by the first half of the year while US$146.17 million was received during the second half of the year.

Below in Table 4 is the breakdown of the various sources of Capital Receipts for the year as compared with 2005:
Mr. First Deputy Speaker 1:55 p.m.
TABLE 4 PAGE 8 & 9

HIPC Reliefs

Members were informed that a total of US$90,505,931 accrued as HIPC reliefs for the year. Out of this amount, US$79,410,665 was retained as on-shore HIPC Reliefs, while US$11,095,266 was received as off-shore reliefs.

Please, find attached details of Capital Receipts as Appendix B.

6.1.1.6 Invisible Receipts

Total invisible receipts amounted to US$297.16 million. Out of this amount, a total of US$112.66 million was received during the first half and US$184.50 million was received in the second half.

Table 5 below shows the composition of Invisible Receipts for 2006 as compared with 2005

The table shows an increase of 18 per

for 2005 showed an increase of US$15,620,404 or 481.6 per cent.

The increase was the result of new grants provided for new constructions that were undertaken during the year such as roads and stadia. 5.2 Foreign Exchange Payments

The total foreign exchange payments made by BoG for the year 2006 amounted to US$2,052.78 million. Out of this figure,

US$868.14 million was paid by June and US$1,184.64 million was paid for the second half of the year. Foreign exchange payments are usually made up of visible imports, capital payments, and invisible payments.

Table 6 below shows the summary of payments made in 2006 compared with

2005.

5 . 2 . 1 D e t a i l s o f F o r e i g n Exchange Payments

5.2.1.1 Visible Import Payments

Visible imports consist of oil, non-oil as well as other imports. Visible import
Mr. First Deputy Speaker 1:55 p.m.
payments for the period amounted to US$1,583.60 million.
Table 7 shows the breakdown of Visible Imports.
Total Visible Imports increased by 51 per cent. The Committee was informed
TABLE 6 PAGE 11
that the increase was as a result of the rise in the prices of oil on the world market.
5.2.1.2 Capital Payments
Capital Payments for the year amounted to US$126,367,548. This represented a decrease of US$54,204,648 over the figure
TABLE 7 PAGE 11

of US$180,572,196 for 2005.

The reduction in capital payments was as a result of a reduction in repayment of debts which matured during the period. Please find attached details of the Capital Payments as Appendix D.

5.2.1.3 Invisible Payments

Total Invisible Payments made for the year amounted to US$342,814,945. This is made up of payments made for Students'

transfers, Management fees, Embassy transfers, Contractual payments, Capital subscriptions and Sundry expenses. Table 8 below shows the breakdown of the payments as compared with payments made in 2005.

Total invisible payments increased

by 32 per cent. The Committee was informed that the increase was mainly due to increases in the items of the Invisible Payments as follows:

Under Students' transfer, the increase was mainly a result of an increase in the number of government-sponsored students abroad.

Please find attached details of the Statement of the Foreign Reserve Assets as Appendix F.

5.4 Foreign exchange receipts and Payments (Net Position)

Bank of Ghana recorded a net surplus of US$181.09 million for the year under review. This increase was due to marginal increases in capital receipts.

Foreign exchange receipts and payments (net position) is actually the net of Receipts and Payments made for the period under review.

6.0 Findings and Recommendations

6.1 Errors and Omissions

The Committee observed that BoG continued to commit these errors and omissions as observed in the previous year.

Errors committed this year included the omission of Multilateral Debt Relief Initiative (MDRI) receipts amounting to US$200 million, omission of Japanese grant amounting to US$3,168,000, and overstating Capital Subscriptions to the tune of US$37,974.

The Auditor-General informed the Committee that when these errors were brought to the attention of management, steps were taken to correct them. That notwithstanding, Members expressed dissatisfaction about the occurrence of these errors and omissions.

Recommendation

The Committee recommends to BoG to strengthen its internal and supervisory control systems over the preparation of the statement of foreign exchange receipts and payments in order to eliminate errors and omissions. The BoG must note that a public document of this nature cannot allow for these mistakes.

6.2 External Account Holders

The Committee was informed that BoG gives approval to public and private organizations to operate forex accounts with foreign banks. In order to
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Mr. E. T. Mensah 2:05 p.m.
Mr. Speaker, I rise to second the motion and in doing so take advantage of this opportunity to speak to an issue that I wanted to speak to which is relevant as far as this is concerned.
Hon Papa Owusu-Ankomah sugges-ted that it would be necessary for us to follow up by writing to the Bank of Ghana stating our concerns which was supported by the Chairman and we were going to suggest that when you look at article 184 (4) and with your permission I quote:
“Parliament shall debate the report of the Auditor-General and appoint, where necessary, in the public interest, a committee to deal with any matters arising from the report.”
So we were going to suggest that you task the two Committees, the Finance Committee as well as the Public Accounts Committee to follow through the pattern writing the specific concern to see to it that within a certain time frame, maybe four weeks or whatever, they speak to the issues, aggravate the issues and report to the plenary accordingly. This is what I want to chip in, in seconding the motion.
I thank you.
Question proposed.
Mrs. Gifty Ohene 2:05 p.m.
None

Asante Akim South): Mr. Speaker, mine is a commendation. I want to commend you highly for not permitting Hon Colleagues to speak after the Chairman had given his concluding remarks. I think it is something that we should all acknowledge and encourage you to sustain it.

Thank you very much, Mr. Speaker.
Dr. A. Osei 2:05 p.m.
Mr. Speaker, I just need
to be educated. There is a motion on the floor and we are debating the motion and
my good Friend talks about an earlier submission on your earlier ruling. Is she contributing to the debate, this debate?
Mr. First Deputy Speaker 2:05 p.m.
The Hon Member's comment does not call for a ruling. So if you think that she is out of order then you can also not pursue it. So I think you are also going to contribute to the debate. Hon Member, contribute to the debate.
Mrs. Ohene-Konadu 2:05 p.m.
Mr. Speaker, I think that by convention, that is what happens in this House, so you are right in not permitting Hon Members to contribute.
Dr. A. A. Osei (NPP - Old Tafo) 2:05 p.m.
Mr.
Speaker, I rise to support the motion on the floor and I want to urge all Hon Members that since the recommendations are similar to the previous ones , we should move ahead and take a vote on the motion.
Mr. First Deputy Speaker 2:05 p.m.
Very well,
I agree to put the Question if that is the sense of the House; I think so. I have got senior Members all nodding so I think -
Mrs. Akosua Frema Osei-Opare
(NPP - Ayawaso West Wuogon): Thank you very much, Mr. Speaker, for giving me the opportunity to comment.
Mr. Speaker, there are a lot of concerns about our foreign exchange reserves and I want to raise a particular concern particularly concerning the retention close to about 8 per cent of foreign exchange earned by mining companies outside. It does not come in to support our cedi, so I believe that issues like this ought to be raised on this floor so that something can be done about it.
Mr. Speaker, this is my contribution. Thank you for the opportunity even though you are in a hurry to end this.
Mr. First Deputy Speaker 2:05 p.m.
Hon
Chairman of the Committee, do you intend saying something before I put the Question?
Mr. Kan-Dapaah 2:05 p.m.
Mr. Speaker, I
think I want to thank all Hon Members for the very constructive comments that they have made on the Report and all the suggestions that have been made will be taken into account.
Mr. First Deputy Speaker 2:05 p.m.
Yes, the Hon Member for Ayawaso West Wuogon made a very important point but I thought that some of these intentions were some of the things that were negotiated with the companies and I think that some of them, this House endorsed them. I stand to be corrected and I thought that as a former Minister, you might pass some comment on it before I put the Question because people are listening to it and it can send a certain signal.
Mr. Kan-Dapaah 2:05 p.m.
Mr. Speaker, the
Committee did consider that particular issue but the Committee also concluded that the retentions were in accordance with existing laws, that they had been legally granted to the companies and that there was nothing wrong with it. One may probably not like the idea but the important point is that they had been part of contracts that had been signed between the country and these mining companies.
Question put and motion agreed to.
Resolved accordingly.
Mr. First Deputy Speaker 2:05 p.m.
The motion is duly carried. The order that I made with regard to motion number 7 applies to motion number 8. For now let them bring their response from Bank of Ghana then the House as a House will decide what to do with the response from Bank of Ghana. If at that stage there is need to comply with article 184 (4) by
forming a committee or ask the Public Accounts Committee to follow up at that stage, we will decide.
When the response comes, then I think that the House will be in a position to know how to proceed with the response from the Bank of Ghana. And this response should not come later than the end of November. The information is already available, so it should not be later than the end of November.
Hon Members, it is after 2.00 o'clock.
Mr. Kyei-Mensah-Bonsu 2:05 p.m.
Mr. Speaker, since the Order is in respect of the items listed on page 3 as items 7 and 8, I thought that maybe, we may have to wait and include what conclusions we may arrive at in respect of a similar motion slated for tomorrow, that we adopt the Report of the Finance Committee on the Statement on Foreign Exchange Receipts and Payments of the Bank of Ghana for two-and-a-half years ended 31st December, 2007 -- because it is about the same day that it may crop up. So maybe, we tie that one up.
Mr. First Deputy Speaker 2:05 p.m.
Yes, that
is tomorrow and I think that Leadership will advise Madam Speaker accordingly on that matter and I will brief Madam Speaker that that is the sense of the House. I think that Leadership will also advise Madam Speaker accordingly.
Hon Members, the House --
Mr. Opare-Ansah 2:05 p.m.
Mr. Speaker, there
used to be a wall clock up here which guides all of us. I just heard you say it is after 2.00 o'clock and I have been looking round the room to see how we can agree that it is after 2.00 o'clock.
Mr. First Deputy Speaker 2:05 p.m.
What says your time?
Mr. Opare-Ansah 2:05 p.m.
Mr. Speaker,
my watch stopped this morning and it is
Mr. Opare-Ansah 2:05 p.m.


saying 8.30 a.m
Papa Owusu-Ankomah 2:05 p.m.
Mr. Speaker,
Mr. First Deputy Speaker 2:05 p.m.
Well, the
good news also is that the Minority Chief Whip's watch is not working; he just said that his watch is not working.
Hon Members, we have had a good day today. The House is accordingly adjourned till tomorrow at 10.00 o'clock
in the forenoon.
Thank you very much for your co- operation.
ADJOURNMENT 2:05 p.m.
  • The House was adjourned at 2.14 p.m. till Wednesday, 11th November, 2009 at 10.00 a.m.