Debates of 14 Jul 2010

MR FIRST DEPUTY SPEAKER
PRAYERS 10:05 a.m.
ANNOUNCEMENTS 10:05 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:05 a.m.
Mr First Deputy Speaker 10:05 a.m.
Hon Members, Correction of Votes and Proceedings of Tuesday, 13th July, 2010.
Page 1…4.
Mr Cletus A. Avoka 10:05 a.m.
Mr Speaker, with your kind indulgence, I would want to humbly pray that you suspend Sitting for the next 15 minutes to enable me consult with my Colleague, the Hon Deputy Minority Leader. I know, I can see that all along and even yesterday, before we rose, you indicated that this morning, proceedings will start at exactly 10.00 o'clock and that is the wish of
Mr First Deputy Speaker 10:05 a.m.
Hon Majority Leader, I will grant your request but the practice is that when any side will not be in on time, they inform either the Clerk or the Chair, so that we are aware that one side will delay. But no information has got to me this morning whether any side of the House will have a special meeting or will not come in early.
Yesterday, you heard the Hon Minority Leader saying that we should start on time and that the problem of this House is that we are not starting on time. And I said that we would start at 10.00 o'clock. So after that he had a problem -- it will also be fair to inform myself and -- This morning before I entered the Chamber, I asked whether you heard from them and you said you had not heard anything from them. Very well.
Mr Ambrose P. Dery 10:05 a.m.
Mr Speaker I want to assure you that on the matter of principle of coming on time, we are together on it; just that the special circumstances of today are, we decided that we were going to the STX first, that was the agreement that we had yesterday. In which case -
Mr First Deputy Speaker 10:05 a.m.
I am not aware of that agreement. What I said was that we would start Public Business first, then after that we may decide which Business we may want to take first.
Mr Dery 10:05 a.m.
Mr Speaker, that is so. We were going to start Public Business first. So Mr Speaker will realise that normally, when we start with Questions, there is room for us to organise ourselves for the Public Business. That gap is going to be missing today and that is the organisation that we are trying to put in place to facilitate the Public Business coming first.
So I would like to say that we support the 15 minute suspension and when we come back, we are going to start with gusto and you will have good company coming in on time. We represent our people who are precisely organising themselves for effective Public Business.
Mr First Deputy Speaker 10:05 a.m.
Hon Members, on that note, the House is suspended for 15 minutes.
Thank you very much.
10.15 a.m. -- Sitting suspended.
10.45 a.m. -- Sitting resumed.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:05 a.m.
Mr First Deputy Speaker 10:05 a.m.
The House was suspended. In view of that and taking into account the number of Hon Members in the House, I will start all afresh with the Votes and Proceedings, so that everybody can take part in correcting it.
So Hon Members, we start from page
1 ….7 -
Mr John Gyetuah 10:05 a.m.
Mr Speaker, may I take you back to page 6, “Hon Sampson Ahi” -- he sought permission and travelled. His name is slated among those who are absent - Sampson Ahi, page 6, number 2.
Mr First Deputy Speaker 10:05 a.m.
Very well, the Table Office will cross-check on that.

Page 8, 9 -
Mr Dery 10:05 a.m.
Mr Speaker, page 9, the last paragraph, item 12 - Adjournment - it reads with your permission; “And it being twenty-five minutes four o'clock” -- there is an omission. Is it “after” or “to” four o'clock? Mr Speaker, I guess it is after four o'clock in the afternoon. So that correction should be effected accordingly.
Mr First Deputy Speaker 10:05 a.m.
Very well. Hon Members, the Votes and Proceedings of Tuesday, 13th July, 2010 be adopted subject to the corrections.
Mr Justice J. Appiah 10:05 a.m.
Mr Speaker, page 9 -
Mr First Deputy Speaker 10:05 a.m.
Hon Member, very well, I have already directed but if you have a correction, I will take it.
Mr Appiah 10:05 a.m.
Mr Speaker, page 9 -
“The House counted as follows on the Amendment to the motion in the name of the Hon Member for Hon Member for Central Tongu, Mr Joe Kwashie Gidisu.”
I think they have repeated “Hon Member”, it needs to be corrected.
Mr First Deputy Speaker 10:05 a.m.
Very well. Hon Members, subject to the corrections, the Votes and Proceedings of Tuesday, 13th July, 2010 be adopted as a true record of proceedings. [Pause.]
Hon Members, Correction of the Official Report of Tuesday 6th July, 2010.
Yes, Hon Member for Amenfi East -
Mr Joseph B. Aidoo 10:05 a.m.
Mr Speaker, column 1904, paragraph 3, last but two lines, the words there should be “Members of Parliament”. What is written
Mr First Deputy Speaker 10:05 a.m.
You are correct.
Yes, Hon Deputy Minority Leader?
Mr Dery 10:05 a.m.
Mr Speaker, column 1934, the penultimate paragraph, the last line of that paragraph; it reads “There is no point to recreating the wheel.” Mr Speaker, delete “to” -- “no point recreating the wheel”.
Mr Speaker, also in column 1935, third paragraph from the top, second line of the third paragraph, “. . . is an indication of what…” There is an omission of “the” - “the indefatigable Ghanaian spirit . . .”
Mr Speaker, finally, in column 1938, the penultimate paragraph, second line - “I plead that …” delete “if” in that line.
Thank you, Mr Speaker.
Mr First Deputy Speaker 10:55 a.m.
Very well.

Hon Members, the Official Report of Tuesday, 6th July, 2010 as amended be adopted as the true record of proceedings.

Hon Members, we are correcting the second Official Report, that is, Wednesday, 7th July, 2010.
Mr Dery 10:55 a.m.
Mr Speaker, column 2000, second paragraph, line 2, Mr Speaker, with your permission, I beg to quote: “. . . it is in your bosom to adjourn if it is 2 o'clock”; ‘after' has been omitted.
Mr First Deputy Speaker 10:55 a.m.
Any other correction? [Pause.]

Hon Members, the Official Report of Wednesday, 7th July, 2010 as corrected, be adopted as the true record of proceedings.

Hon Members, as I indicated yesterday before adjournment, Monday and Tuesday, we did not do any Public Business. So I intend to start today's business, coming under Standing Order 53 (2), to change the order of business and start with Public Business.
Mr J. B. Aidoo 10:55 a.m.
Thank you Mr Speaker, for giving me this opportunity.
Before we start with Public Business, I want to draw your attention to the incident which happened here yesterday. We took a Vote on two Motions and the results as have been recorded in today's Votes and Proceedings, page 9, the first Motion, and Mr Speaker, with your indulgence, I will read:
“(a) The House counted as follows on the Amendment to the motion in the name of the Hon Member for Afigya-Sekyere West, Mr Albert Kan-Dapaah.
AYES - 87,
NOES - 94.”
Mr Speaker, the second Motion in the name of the Hon Member for Central Tongu, Mr Joe Kwashie Gidisu, the AYES - 95, the NOES -- 89.
Mr Speaker, your ruling was fiercely challenged by the Hon Minority Leader - [Interruption.] Mr Speaker, I am making a point --
Mr First Deputy Speaker 10:55 a.m.
Hon Member, you are out of order. We have corrected the Votes and Proceedings but I thought that I should listen to you.
We have just corrected and adopted
what you are referring us to and you did not raise any point; you did not talk. Hon Member, I think that you are out of order.
Mr J. B. Aidoo 10:55 a.m.
Mr Speaker, with your indulgence, please. [Uproar.]
Mr First Deputy Speaker 10:55 a.m.
You are
out of order.
Mr J. B. Aidoo 10:55 a.m.
Mr Speaker, it is not an issue about - [Interruption.] Mr Speaker I am not up to do any correction.
Mr First Deputy Speaker 10:55 a.m.
Hon Member --
Mr J.B. Aidoo 10:55 a.m.
I respect you, Mr Speaker -- but it is not about correction. I just want to make a point.
Mr First Deputy Speaker 10:55 a.m.
Hon Member, you are a very senior Member of this House. If you have a very strong point which will advance and uphold the dignity of this House, I would always allow you. I do not know what Order you are coming under now. After adjournment, you may have a discussion with me and if it is in the interest of the House, we would do the necessary consultation so that you can take it at the appropriate time. So Hon Member, let us move on to Public Business.
Hon Majority Leader, which Public Business? You are in charge of Government Business, which Public Business are we taking first?
Mr Avoka 10:55 a.m.
Mr Speaker, we will start from the order in which it has been listed on the Order Paper. In other words, we would do Motion number 5, which deals with the Savannah Accelerated Development Bill, 2010, Second Reading.
Mr First Deputy Sepaker 10:55 a.m.
Hon Members, at the Commencement of Public Business, item 5 on the Order Paper -
Mr Dery 10:55 a.m.
Mr Speaker, I just want to put on record. Yesterday, when we were leaving, the understanding was that we were taking the STX first. In fact, when I came in ahead of the caucus, I did make that point to you. I remember I said this meeting this morning was to facilitate the debate but I do not know why we are
taking this course now.
The committee members on Savannah Accelerated Development Agency (SADA) on our side -- I do not see now but at least, we did not know that we were dealing with SADA now.
I just want to put on record that we thought that we were dealing with STX and we are prepared to have the STX first.
Mr First Deputy Speaker 10:55 a.m.
Hon Member, what I said yesterday was that because on Monday and Tuesday, we did not do any Public Business, today we would start with Public Business. If the Hon Leaders have agreed among themselves that they were going to take STX, that has not been brought to my attention.
In any case, that is why I called the Hon Majority Leader and asked him which business we were going to take today. Normally, I know that you would have discussed these issues among yourselves. It is normally discussed. He told me that you were going to start with the SADA.
Hon Majority Leader?
Mr Avoka 10:55 a.m.
Mr Speaker, unfortunately, we did not meet this morning because the Hon Minority Leader was not available at the time that we would have met to discuss with you. But I do not recall that yesterday before we adjourned, we agreed as a House that we would start with the STX loan. There was no such agreement.
In any case, the business of the day and having regard to the circumstances, demand that we take the principles of the SADA Bill so that it can go back to the Committee or to Hon Members who may want to file amendments before we do the debate on the amendments. It is very important we start that debate today.
Mr Osei Kyei-Mensah-Bonsu 11:05 a.m.
Mr Speaker, rather unfortunately, when I came in, I went to look for the Hon Majority Leader, that is, upon your

prompting, I could not find him. I chased him to his office and I was told he had left. Coming here, he was not here and so I did not know whether he was lost in transition. But here we are.

Mr Speaker, yesterday, the principle that we adopted, really, just to remind the Hon Majority Leader, was to begin with the STX. He may recollect that he himself was even pressing that we should allow the Hon Chairman of the Committee to present the Report and for it to be seconded and thereafter, to have the mouths of the rest of us sealed for the debate to really commence in earnest today.

Unfortunately, we could not get there, given the circumstances of the times. Which is why when we were leaving, I then said, given the circumstances, then perhaps, we would start with STX today. So, I am surprised that there should be this turn around.

However, Mr Speaker, you are in the Chair; I thought we would begin with STX. I noticed that we still have the Savannah Accelerated Development Authority Bill, (SADA) and the Education (Amendment) Bill on hold and STX is also pending and when you said that we would be taking the two today, I thought maybe, the best we could do in the circumstance, was to take one and go into STX but not to take the two. If we take the two, when are we going to begin with the STX, which is a major, major national issue now?

So, I would want to implore my Hon Colleague for us to have some determination about the way forward. I do not think taking the two this morning would do us any good and given the fact that -- I do not know whether Education -- the Committee members are here. If the Committee members are here, then perhaps, we could take the Education (Amendment) Bill.

Certainly, the SADA would take us by surprise, given the general agreement or the trend of the discourse yesterday.
Mr Avoka 11:05 a.m.
Mr Speaker, the Second
Reading is not limited to the Committee members. The debate on the principles of the Bill is by all Members of this august House. So, it is not limited to the Committee members. If the Committee Chairman is available to present the Committee's Report, then the rest of us can debate it.
As I indicated, this is a Bill that has a long period to go through; so it is important for us to take it.
I agree that STX is important, SADA is equally important, any other matter that we have to do in this august House is important.
So, I will crave the indulgence of my Colleague, the Hon Minority Leader, that we start with SADA. We can limit the number of Members who will speak to the Motion. If we think that we can take three or four from each side, depending on how the debate goes, we can do so. Then, we can advise ourselves as time goes on, whether we should take another matter or not. We are not bound by any rules that we must do one, two or three today. We can always advise ourselves as time goes on. So I submit respectfully, that we can take SADA now.
Mr Dery 11:05 a.m.
Mr Speaker, I agree. I
want to assure the Hon Majority Leader that when it comes to personal interest, I think I have a personal interest in SADA. So, it is just a matter of how we broke up yesterday and trying to be sure that we get the maximum. So, if we can take SADA and go to STX, so be it, Mr Speaker.
Mr First Deputy Speaker 11:05 a.m.
Hon
Members, we would start with SADA and then Leadership can consult among themselves to let us determine what we shall take immediately after SADA. Whether we are going to take the two Bills
there or we take only one. They should try and consult among themselves and advise the Chair accordingly.
Mr Avoka 11:05 a.m.
My respectful position
is that, it is prudent to take the two Bills today, so that Hon Members will have the opportunity of filing amendments, which we may have to debate sometime next week, if we cannot take them on Friday or thereabout.
So, Mr Speaker, as I indicated, we can confer as time goes on and find out how many Hon Members would be speaking in respect of the SADA Bill and the Education (Amendment) Bill during the course of debate. So that after that one, SADA is a one stop-gap; we debate, take a decision and go. But the rest are going to be continued for next week and it is important that we take them today so that Hon Members will have the opportunity of filing amendments, if they have any.
Mr Dery 11:05 a.m.
Mr Speaker, we agree we
do SADA today but we would prefer that we take the Education (Amendment) Bill tomorrow because it is not a matter of limiting contributions and stampeding these things through. We need to contribute, they are important issues. So we would plead that we take SADA today and do STX rather and take the Education (Amendment) Bill tomorrow.
Mr First Deputy Speaker 11:05 a.m.
Hon
Members, we should not belabour this point. I think that we should start with SADA and from there, we would decide what to do. If the Hon Majority Leader says that we should take the two Bills and if at the time that we conclude the two Bills, time will not be sufficient for us to debate the STX, that again, is a matter for the House to determine.
Hon Members, I call on the Minister of State, Office of the President (responsible for Public Sector Reform) to move the Motion numbered 5 on the Order Paper.
BILLS - SECOND READING 11:05 a.m.
Minister of State responsible for Public Sector Reform- (Mr Alhassan Azong) 11:05 a.m.
Mr Speaker, I beg to move, that the Savannah Accelerated Development Authority Bill, 2010 be now read a Second time.
In doing so, permit me to explore the
principles of the Bill. The purpose of the Savannah Accelerated Development Authority (SADA) Bill is to plan, co-ordinate and implement a long- term strategy for mobilising additional resources to ensure accelerated economic growth or sustainable development in northern savannah.
Mr Speaker, the Bill seeks to create a
Mr J. B. Aidoo 11:05 a.m.
Mr Speaker, we must be clear in our minds what we are doing. I heard the Hon Member say that “the Savannah Accelerated Bill Authority. Are we dealing with “Savannah Accelerated . . .” [Interruptions.] He said it to the hearing of everybody but that is not the Bill before us.
Mr First Deputy Speaker 11:05 a.m.
Hon
Members, we all make mistakes I think that it was a slip, so he quickly came to correct himself by adding the “Authority”. I also heard it but I think it was a slip.
Hon Minister, kindly continue.
Mr Azong 11:05 a.m.
Mr Speaker, the Bill seeks
to create a northern savannah growth pole for Ghana as part of the national effort towards sustainable development and a middle-income country.
The Bill will create conditions that will

facilitate the adaptation of the Northern Savannah to climatic change by mitigating the prolonged droughts and sporadic floods.

It is also to provide support for the measures to respond to the needs of the most vulnerable in society, especially women and children who have been driven to migrate from the area due to poverty.

As a consequence, Mr Speaker, the Bill seeks to reduce poverty, improve food security and secure lasting peace for over five million inhabitants of the programmne.

Mr Speaker, the effort to establish a master plan and financial resources for the development of the Northern Savannah, is a national endeavour. It dates back to the efforts of the previous Government, which established the Northern Development Fund, which must be commended for initiating this crucial policy measure.

Mr Speaker, given the ecological dimensions of the development challenges of the area, it was decided to expand the scope of the development initiative to cover the three northern regions, namely, Upper East, Upper West and Northern, as well as 10 districts in northern Brong- Ahafo and northern Volta Regions. This area that we now call the Northern Savannah, is where many of the extreme poor live. It is also the part of Ghana where the country's fertile lands and water resources are in abundance to promote rapid growth and prosperity for Ghana.

Mr Speaker, SADA represents an important effort that will bridge the development gap between the North and South, and give Ghana a needed boost for expanded food production and also reduce poverty. Through SADA, Ghana its expected to meet most of the MDGs by reducing poverty levels drastically in the North.

Mr Speaker, with these few words, I beg to move.

Question proposed.
Chairman of the Committee (Mr Prince J. Hayibor) 11:15 p.m.
Mr Speaker, I beg to support the Motion ably moved by the Minister of State responsible for Public Sector Reform and in doing this, I present the Report of the Committee.
1.0 Introduction
In pursuance of article 103 of the 1992 Constitution and Order 184 of the Standing Orders of the House, the Savannah Accelerated Development Authority (SADA) Bill was laid in the House on the 3rd June, 2010 and referred to the Committee on Employment, Social Welfare and State Enterprises for consideration and report. The Committee, having executed its mandate in respect of the Bill, reports as follows:
2.0 Deliberations
The Committee invited the general public and stakeholders to its deliberations. Memoranda and oral submissions were also received from interested individuals and stakeholders.
The Committee is grateful to the Minister of State at the Office of the President in-charge of Public Sector Reform, the interim SADA Secretariat, the draftsperson and the other stakeholders for providing the necessary inputs and clarifications during the examination of the Bill.
3.0 References
The Committee relied on the following

documents in finalising its Report:

i. Background note received from the Ministry of Public Sector Reform and the interim SADA Secretariat;

ii . Sustainable Development Initiative for the Northern Savannah Strategy and Work Plan, 2010-2030;

iii. State Lands Act, 1962 (Act 125);

iv. State Property and Contract Act,

1960 (C.A. 6);

v. Millennium Development Authority Act, 2006;

vi. Northern Development Fund Act, 2008, Act 768;

vii. Oral evidence taken on the Bill;

viii. Presentations and clarifications by stakeholders;

ix. The 1992 Fourth Republican Constitution of Ghana; and

x. The Standing Orders of Parliament.

4.0 Background

The Fourth Republican Constitution under the Directive Principles of State Policy, article 36 (2) (d), enjoins the State to take necessary steps to establish a sound and healthy economy through the undertaking of even and balanced development of all regions. This includes improvement of conditions of life in both rural and urban areas, as well as ensuring balanced and equitable regional development.

The wide disparities between the

North and the rest of the country have created conditions for social exclusion and a growing tendency for rural urban migration that distorts cohesive national development effort. Women and children who are the most vulnerable are particularly affected, as many have migrated to the South to live under extremely squalid and risky conditions. Slow growth in the Northern Savannah sector has also delayed Ghana's achievement of the Millennium Development Goals and the attainment of a middle income status.

To address this developmental challenge, the Government enacted the Northern Development Fund Act, 2008, Act 768, to among other things, provide financial resources to support the accelerated economic growth and sustainable development in northern Ghana. However, the Act establishing the Fund did not provide for an Authority with a mandate to co-ordinate the developmental agenda of northern Ghana. It has therefore, become necessary to establish an Authority known as the Savannah Accelerated Development Authority (SADA) under this Bill to cure the defect in the Act.

It must be noted that the best way to address the chronic poverty and the development gap between the North and the South is through economic growth and social development, utilising the North's most abundant resources. Government is aware that economic growth is also the most efficient and effective means to address poverty and induce long-term adaptation to climate change while maintaining the dignity of people in the Northern Savannah.

The strategy to be adapted will provide support for vigorous private sector initiatives to strengthen existing private operators and attract new investments in manufacturing, processing, transport and tourism services in the northern parts of
Chairman of the Committee (Mr Prince J. Hayibor) 11:15 p.m.
droughts.
The Committee sees this as remarkable as the strategy contains programmes targeted at alleviating poverty and transforming the North. In the opinion of the Committee, addressing the development gap between the Northern Savannah and the rest of the country is necessary to ensure political, social and economic stability and growth in the country.
7.2 Peace and Security
The Committee observed that the most noticeable challenge facing the North and likely to undermine the SADA Strategy is the issue of peace and security. The Committee noted that persistent conflicts and lack of peace in some parts of the North have diverted attention from economic and productive issues. One of the reasons for lack of investments in the North has been attributed to the numerous conflicts in the region.
The North has become unattractive to business people including indigenes who prefer to set up their businesses elsewhere for fear of losing their investment through conflicts. The North has therefore, been associated with insecurity where public resources meant for development have been used for conflict resolutions and maintenance of peace.
The Committee views this development as unfortunate but was happy to note that the Authority, when established, will complement the efforts of all stakeholders in the peace, building process to help bring lasting peace to the region. The strategy to do this, the Committee noted, is to tackle the conflict situation by building capacities and deepening the collective effort by civil society organisations and Government.
However, a more sustained long-term effort to bring about human security through rapid social and economic development will be pursued, thereby reducing poverty and minimising the tensions that are associated with poverty, marginalisation and exclusion of the most vulnerable in major decisions that affect their livelihood.
7.3 Unsustainable Sources of Funding The Committee observed that the Bill
under clause 18 listed various types of funding for the Authority. However, after a careful deliberation, the Committee noted that the only source of funding that may be reliable to the Authority for its use is the seed money that will be allocated as a start up for the Authority. Although annual budgetary allocation will be made to the Authority, it is not a reliable funding source since it will depend on the availability of funds in the Consolidated Fund.
To cure this, the Bill in clause 18(2) empowers the Minister for Finance and Economic Planning to present “a financial sustainability plan” to Parliament within one year after the passage of the Bill. Although a laudable idea, the Committee is of the opinion that a definite revenue source must be incorporated in the Bill before it is passed.
The Committee, therefore, recommends that a levy be put on non-petroleum imports to provide regular source of funding for the Authority. This would in the long-run enhance the financial sustainability of the Authority to enable it carry out its programmes and projects.
7 . 4 R e l a t i o n s h i p b e t w e e n t h e Authority and Metropolitan, Municipal and District Assemblies (MMDAs)
The Committee raised concerns on how the Authority is going to relate with the Metropolitan, Municipal and
District Assemblies and other existing developmental institutions in their areas of operation in the implementation of their programme.
It was, however, observed that the Savannah Accelerated Development Authority is not a district-specific agency but rather has a general outlook. The Committee was assured that SADA, when established, will not replace or substitute the functions of the local government authorities in its operational areas but rather, it would complement their efforts in the national development agenda.
The Committee further noted that the implementation of SADA programmes will be mainstreamed within existing institutions, notably, the Regional Co- ordinating Councils and the District Assemblies to avoid the creation of parallel institutions and duplication of functions and efforts.
The Committee, having noted this unique character of SADA, is, therefore, appealing to all MMDAs to co-operate with the Authority when established to enable it achieve its objectives.
7.5 Independence and Autonomy of the Authority
The Committee holds the view that the aims and objectives of the Bill would not be achieved if the Authority is not given adequate power and insulated from undue pol i t ical interference and unbridled politicisation of its programmes.
The Committee, therefore, recommends that the Chief Executive Officer be appointed for a fixed term of four years and must be eligible for re-appointment.
The Committee further noted that one obstacle that has often hindered the success of any development initiative is politicisation. The Committee was however, assured that various political

parties contributed to the development of the SADA initiative. For instance, the Committee learnt that about 85 per cent of the content of the Northern Development Fund Act, 2008 (Act 768) has been incorporated into this Bill. The Committee, therefore, appeals to all stakeholders to help insulate SADA from becoming a political tool.

It is believed that when this is achieved, the Authority will be confident to rigorously pursue the Northern Savannah Development agenda.

8.0 Proposed Amendments

In the light of the above observations, the Committee proposes the following amendments. The list includes corrections made to typographical errors, omissions, as well as re-draft of some of the clauses to give clarity to the provisions:

i) Clause 2 -- Amendment Proposed -- paragraph (a), line 2, after “formulation” insert “a coma”.

ii) Clause 3 -- Amendment Proposed -- paragraph (c), line 2, delete “north” and insert “North”.

i i i ) Clause 3 -- Amendment Proposed-- paragraph (d), delete “similar facility for the North” and insert “other risk finance instruments”.

iv) Clause 3 -- Amendment Proposed -- paragraph (g), line 1, delete “implement” and insert “facilitate”.

v) Clause 3 -- Amendment Proposed -- paragraph (i), line 1, delete “implement” and insert “facilitate”.

vi) Clause 3 -- Amendment Proposed -- paragraph (l), delete and insert the following:

“implement programmes to support mainstreaming of gender and other issues of vulnerability through co-operation with the
Chairman of the Committee (Mr Prince J. Hayibor) 11:15 p.m.


Ministry responsible for Women and Children's Affairs, relevant ministries, other organisat ions and civil society”.

vii) Clause 3 -- Amendment Proposed -- paragraph (m), at the end of line 2, insert “Ecological Zone”.

viii) Clause 3 -- Amendment Proposed -- paragraph (n), line 2, delete “in a manner that” and insert “to” and also delete “ensures” and insert “ensure” and in line 3, delete “being”.

ix) Clause 6 -- Amendment Proposed -- paragraph (c), line 1, after “authorities” insert “in the programme areas” and in line 2, delete “Regional” and insert “National” and after “Chiefs” delete “in the programmed areas”.

x) Clause 7 -- Amendment Proposed -- add a new subclause (2)

“The Board has the responsibility to ensure the implementation of the functions of the Authority and the achievement of the objectives of the Authority”.

xi) Clause 7 -- Amendment Proposed -- add a new subclause (3)

“Without prejudice to subclause (2) the Board shall,

a) Approve annual operative plans and budget of the Authority;

b ) R e v i e w t h e q u a r t e r l y performance of the Authority including statement of accounts of monies disbursed from the Fund;

c) Ensure adequate accountability to the stakeholders;

d) Approve an audit plan and

monitor its implementation; and seek the full implementation of the external auditors report

within the specified time frame for action; and

e) Approve the remuneration of the staff of the Authority”.

xii) Clause 7 -- Amendment Proposed -- add a new subclause (4):

“The Board shall conduct reviews of the Savannah Development Strategy as determined by the Minister”.

xiii) Clause 12 -- Amendment Proposed -- add a new subclause (1) as follows:

“The Committee shall serve as an advisory body to review plans and also provide stakeholder input into policies, programmes and projects of the Authority”.

xiv) Clause 12 -- Amendment Proposed -- Subclause (2), paragraph (a) delete and insert

“Five Regional Ministers in the participating regions, with each Regional Minister acting as a Chairperson and conveyor on rotation”.

xv) Clause 12 -- Amendment Proposed -- Subclause (2), paragraph (c), line 3, delete “development initiative” and insert “Ecological Zone”.

xvi) Clause 12 -- Amendment Proposed -- Subclause (2), paragraph (g) line 3, delete “ Forum of Northern Ghanaians” and insert “Northern Development Forum”.

xvii) Clause 12 -- Amendment Proposed --Subclause (2), Paragraph (h),line 1, delete “north” and insert “North” and line 3, delete “and”.

xviii) Clause 12 -- Amendment

Proposed -- Subclause (2), paragraph (i), delete and insert new paragraphs (i) and (j) as follows:

“(i) three persons representing the University of Development Studies, research and other tertiary educational institutions in the programmed areas nominated by the Minister; and

(j) seven persons representing Members of Parliament, five of whom shall be from the programmed area and two from other parts of the country”.

xix) Clause 12 -- Amendment Proposed -- Subclause (4) delete and insert the following:

“Representatives from other relevant Ministries, Departments and Agencies may be co-opted as ex-officio members”.

xx) Clause 15 -- Amendment Proposed -- add a new subclause (2) as follows:

“the directives shall be consistent with the Northern Savannah Development Strategy”.

xxi) Clause 16 -- Amendment Proposed -- Subclause (1), line 2 after “Executive” insert “Officer” and also after “Authority” insert “for a term not exceeding four years”.

xxii) Clause 16 -- Amendment Proposed -- Subclause (2), line 1, after “Executive” insert “Officer”.

xxiii)Clause 16 -- Amendment Proposed -- Subclause (3), line 1, after “Executive” insert “Officer”.

xxiv) Clause 16 -- Amendment Proposed -- add a new subclause (4) as

follows:

“The Chief Executive Officer is eligible for re-appointment”.

xxv) Clause 16 -- Amendment Proposed -- Subclause (4), line 1, after “Executive” insert “Officer”.

xxvi) Clause 16 -- Amendment Proposed -- Subclause (5), line 1, after “Executive” insert

“Officer” and in line 3, after “function” insert “in consultation with the Chairperson of the Board” and delete “not otherwise conferred on the Chief Executive”.

xxvii) Clause 18 -- Amendment Proposed -- add a new paragraph (h) as follows:

“Levies on non-petroleum imports dedicated to the funding of the Savannah Accelerated Development Authority as may be approved by Parliament; and”

xxviii) C l a u s e 1 9 - - Amendment Proposed -- Subclause (5), line 1, after “expenditure” insert “funded by internally generated funds”

xxix) Clause 20 -- Amendment Proposed -- Subclause (3), line 1, after “Minister”insert “responsible for Finance”.

xxx) C l a u s e 2 1 - - Amendment Proposed --Subclause 1, after “may” insert “in consultation with the Minister responsible for Finance”.

xxxi) Clause 22 -- Amendment Proposed -- Subclause (1), line 4, delete “recurrent” and in line 5, delete “capital”.

xxxii) Clause 26 -- Amendment Proposed --Subclause (2), paragraph (c) line 1, delete ”loan guarantees for” and insert “facilitate the acquisitions of loans by”.

xxxiii) Amendment Proposed -- add a new Head note as follows: “Division of the Authority”.

xxxiv) Amendment Proposed

--Add a new clause

“(1) The Board may establish divisions or units it considers necessary within the Authority for the effective performance of the functions of the Authority.

(2) There shall be appointed for each unit, a Director who is the head of the unit.

(3) Each Director shall be responsible for the management of the unit under the Director and shall answer to the Chief Execut ive Off icer in the performance of the functions of the Director under this Act.

(4) The qualifications for appointment as a Director shall be determined by the Board.

(5) The staff strength, duties and functions of each unit shall be determined by the Board.

(6) For the purpose of determining

the duties and functions of each unit, the Chief Executive Officer shall draw up for the consideration of the Board a service charter which shall set out the duties and responsibilities of the units.

(7) The service charter is subject to revision by the Board”.

9.0 Conclusion

It is expected that the legal establishment of the Savannah Accelerated Development

Authority and the implementation of the Northern Savannah Development Strategy will improve incomes, reduce poverty and facilitate accelerated economic growth and increase access by the poor to basic economic and social infrastructure to enable them play an active role in the socio- economic transformation of Ghana.

In conclusion, the Commit tee recommends to the House to pass the Savannah Accelerated Development Authority Bill into law subject to the additional clauses and amendments proposed above.

Respectfully submitted.
Mr First Deputy Speaker 11:15 p.m.
Hon Prof.
Gyan-Baffour?
rose
Mr First Deputy Speaker 11:15 p.m.
Hon Prof. Gyan-Baffour, I have called you? If you have something to tell me, tell me.
Mr Kyei-Mensah-Bonsu 11:15 p.m.
Mr Speaker, the Hon Okoh is the Ranking Member, so I thought that you would allow him to second the motion.
Mr First Deputy Speaker 11:15 p.m.
I am sorry, very well. Hon Member, you have the floor.
Mr Paul Okoh (NPP - Asutifi North) 11:15 p.m.
Mr Speaker, I rise to support the motion on the floor. Mr Speaker, I would want to trace the history of this Bill. It is not the first time such a Bill to bridge the development gap between the North and the South has been brought to Parliament. The first time, a conscious and effective effort has been made, was in 2008. Mr Speaker - [Interruption.]
Mr Alban S.K. Bagbin 11:15 p.m.
On a point of order. Mr Speaker, the first time that real conscious effort was made, was in the Dr Kwame Nkrumah regime. That was the first time real conscious effort
Mr Kyei-Mensah-Bonsu 11:15 p.m.
Mr Speaker, the point of intervention by the Hon Minister for Water Resources, Works and Housing, really, is uncalled for. What the Hon Member said was “the first time a conscious and effective” - [Interruptions.] Mr Speaker, he mentioned 2008. My Hon Colleague got up and said the first time “a conscious effort”. He puts two words together - “a conscious and effective” [Interruptions.]
We are not disputing that and the effectiveness of it, Mr Speaker, is in the legislation that was brought in 2008. That is the emphasis on the effectiveness; the legislation Dr Kwame Nkrumah did - so there was a conscious but it was not backed by legislation. That is the difference -- [Interruptions] - if it was backed by legislation, which legislation?
Mr Bagbin 11:15 p.m.
Mr Speaker, it was backed by legislation. You have the Education Trust Fund Act. Yes. It was backed by legislation and that - and if you go through that, there was conscious effort to give free education. Education is the first thing to development; if we talk about development, it is education. I am aware that a Bill came for us to discuss -- an Act was passed as he stated but the statement “the first conscious and effective”, it is not. It was during Dr. Kwame Nkrumah's regime.
Mr First Deputy Speaker 11:15 p.m.
Hon Members, we should not belabour this point. From the angles that you are all coming from, it is a matter of opinion. So, that is his opinion and you also have your opinion. So Hon Member, continue.
11... 25 a.. .m. .
Mr Okoh 11:15 p.m.
Mr Speaker, in September, 2008, the National Development Planning Commission (NPDC) endorsed by the National House of Chiefs in Kumasi, recognised the urgent need to bridge the developmental gap between the North and the South. Then in the same year, a Bill was brought to this Parliament and that was passed into law. Mr Speaker, it was through that that a seed money of GH¢25 million was proposed in the 2008 Budget.
Now Mr Speaker, if you look at the
Savannah Accelerated Development Authority Bill and you compare it with the Bill that was brought to Parliament in 2008, that is the Northern Development Fund Bill, you would see that it is a replica --
T h e S a v a n n a h A c c e l e r a t e d Development Authority Bill is a replica of the Northern Development Bill. In fact, it is a reproduction of the Northern Development Bill and it contains about 85 per cent of the Northern Development Bill. In fact, sometimes -- [Interruptions] - it is a verbatim re-production - the chronological order is the same, the wording is the same, and sometimes the words are verbatim.
Now, the question that comes to mind is, why is it that a new Bill is being brought? If you look at this, there are only two differences - one, that the first Bill talked about the Fund and the second one is talking about an Authority. The second difference is that, the first Bill was brought by the previous Government and this one is being brought by the NDC Government. What is happening now is that it is a political game.
E v e r y t h i n g i n t h e N o r t h e r n Development Fund Bill is here, it is in the Savannah Accelerated Development Authority Bill now. So what are we trying to do? Could we not have brought in some amendments to even amend the
Mr Charles S. Hodogbey 11:15 p.m.
On a point
of order. Mr Speaker, the Hon Ranking Member of the Committee continues to deceive the House. It is very misleading. The money he talked about, the GH¢25 million was supposed to be lodged in the Northern Development Fund but not a penny was put anywhere for that purpose.
Besides, at the Committee level, Mr Speaker, we realised that if we were to make an amendment to the Northern Development Fund Bill, it would take the entire Act to be amended. Therefore, we found it most, excuse me to say, convenient to bring a complete Bill to change the Northern Development Fund.
Mr First Deputy Speaker 11:15 p.m.
Hon
Member, continue.
Mr Okoh 11:15 p.m.
Mr Speaker, my Hon Friend has made some point but if we all agree that the Northern Development Fund Bill has been re-produced and 85 to 90 per cent of that Bill has been included in this Savannah Accelerated Development Authority Bill, then we are saying that if we had brought in an amendment, it would have caused a lot of problems. I do not think so, that is his opinion.

- We see that even the technical people

who were engaged to do the Northern Development Fund Bill were the same technical people - And I have already said that the Savannah Accelerated Development Authority Bill, that is in front of us, contains about 85 to 90 per cent, it is verbatim, they have not changed anything. It is just a political game to let the people of the North and the other places who are going to be affected know that, yes, the present Government has their development at heart. That is the only thing.

I have said that there are only two things - “Authority” and “Fund”. And then the second one is that, the first Bill was brought by the NPP Government and this one is being brought by the NDC Government. That is all [Interruption.] So, the two Bills, the value remains the same.

- I have been in Parliament -- this is my third term - [Uproar] - and this is the first time that I have come across a Bill, and included in this Bill, we are talking peace. The question that comes to mind is, why are we talking about peace here?

Anytime that we are talking about peace or development in other areas, some people get up and say that because there is no development in that area, that is why there is no peace. The question is, which one comes first, peace or development? Should peace come first or development? It is just like the paradox of the egg and the chicken, and that is, which one came first? But in my view, I believe that peace should have to come before development because if we sit here and say that there should be development, before there would be peace, nobody would want to invest at a place where there is insecurity.

Mr Speaker, if you look at the Bill,

it is just like the Savannah Accelerated Development Bill. It is the same - and

the NPP Government had every reason to bring that one to Parliament and that was why it was passed into an Act.

We support this because nobody should

look at the development of the northern section of Ghana as something that is special to only the northern section. It should be something that should concern all of us because it will have some ripple effects - if the North is developed and people are well off over there, I think it will be better for all Ghanaians.

We discussed this issue and we agreed that it is a good thing. The only thing is that people were trying to play politics with it.

With this few words, Mr Speaker, I support the motion.
Mr Charles S. Hodogbey (NDC - North Tongu) 11:15 p.m.
Thank you Mr Speaker, for giving me the opportunity to support the Motion.
Savannah Accelerated Development Authority is actually a supplementary process of bringing the three northern regions; northern Brong Ahafo and the northern Volta Region at par with the South. For a long time Mr Speaker, these areas I have mentioned, were labour reserves for the colonial government and the continuing administration of this country. Many efforts were made to bring the three northern regions at par, several Acts were passed, but if you travel to the Northern Region, you would see it yourself that there is a great disparity in terms of economic development, social, everything.
Therefore, SADA has come to replace the Northern Development Fund, because SADA is an Authority. The Northern Development Fund, which was passed as an Act never actually had or included any sustainable fund for the development of the North. There was no sustainable means of
getting the fund for the development of the North. But SADA has come, apart from all the various sources of bringing funding for the Authority, created a portion or a section of the Bill so that there shall be sustainable funding for the North.
Therefore, the difference between the Northern Development Fund and SADA is already known, that we are bringing in a sustainable means to develop the northern regions, including giving the authority to SADA to use the money preferably from the non-oil tax revenue which will come to this country.
With these few words, I support the motion.
Prof. George Y. Gyan-Baffour (NPP - Wenchi) 11:35 a.m.
Mr Speaker, thank you very much for giving me the opportunity to support the Motion on the Savannah Accelerated Development Authority Bill.
Mr Speaker, the development of the northern half of this country is a non-negotiable necessity for the total development of Ghana.
Mr Speaker, as you know, and as has been said here, Hon Members on this side of the aisle have cherished that for a very long time, and we have tried even to set it up. But Mr Speaker, it is not an issue that should be left to the people in the northern part of the country alone. And neither is it an issue that needs to be politicised. It is, indeed, a national issue of national character and an issue of non- partisan nature. It therefore, Mr Speaker, requires an urgent, a total commitment from the entire country irrespective of one's political affiliation.
Mr Speaker, the northern savannah covers the three northern regions and the contiguous districts that extend to
Prof. George Y. Gyan-Baffour (NPP - Wenchi) 11:35 a.m.


Maj (Dr) (Alhaji) Mustapha Ahmed

(retd.) -- rose -
Mr First Deputy Speaker 11:35 a.m.
Hon
Deputy Minister, do you have a point of order?
Maj (Dr) (Alhaji) Ahmed (retd):
Mr Speaker, my Hon Colleague keeps referring to “three northern regions”. For us, we understand. But somebody who is not resident in Ghana may think that there are three regions called ‘Northern Region' in Ghana. I would rather he says the three regions in the north of Ghana.
Prof. Gyan-Baffour 11:35 a.m.
Mr Speaker,
Mr Kyei-Mensah-Bonsu 11:35 a.m.
Mr Speaker, I really think that this is a distinction without difference because -- look at the third - [Interruption] - Mr Speaker, let us address our minds to the third paragraph of the Memorandum to the Bill, which is the subject matter. The second sentence - “the three northern regions”.
Mr Speaker, it is a prodigal waste of our time.
Prof. Gyan-Baffour 11:35 a.m.
Mr Speaker,
the gross domestic product (GDP) of this country is about US$15 billion and only about ten per cent of that -
Mr First Deputy Speaker 11:35 a.m.
Hon
Minority Leader, except that where you have referred us to, they put the regions in bracket. They went further to put those
three regions in brackets.
Mr Kyei-Mensah-Bonsu 11:35 a.m.
Mr Speaker,
it is the same characterisation; it is the same description.
Mr First Deputy Speaker 11:35 a.m.
Hon
Member for Wenchi, continue.
Prof. Gyan-Baffour 11:35 a.m.
For purposes of emphasis, I am referring to the Upper West Region of Ghana, the Upper East Region of Ghana and the Northern Region of Ghana.
Mr Speaker, and as I have already stated, the area covers about half the entire land mass of this country. And in this country, we have a GDP of about US$15 billion. But Mr Speaker, only slightly about ten per cent of this is consumed in the northern half of this country with a land mass, which is about half the entire landmass of the country. With a population of about 25 per cent of the people in Ghana, they consume only ten per cent of the GDP. So Mr Speaker, this situation is unacceptable.
Mr Speaker, if even you looked at
the GDP per capita, that is, the income that is consumed in this country; as we stand now, it is almost about US$600 per capita. But when you go to the northern part of this country, the GDP that goes to an individual - that is GDP per capita --it is just less than US$300, half the average in the country. Mr Speaker, this too, is not something which we should accept.
Again, if you took the southern sector alone and looked at the GDP that comes here and the population in the southern sector, the GDP per capita for this area is almost about US$800, that is above the US$600 average for the nation, and almost at the beginning, at the lower end of a middle-income society, which is about us$750. So, if you took the northern part of this country, the southern half is almost already there as a middle-income society.
Mr Speaker, but when you add the North, then we go back into thatThird World trap.
Mr Speaker, if we all want, as we
have all been cherishing on both sides of the isle, on both sides of the two parties - one saying that by 2020, we should be a middle-income society and the other one saying that we want to get there earlier, by 2015, irrespective of where you are coming from, the goal is that we want to become a middle-income society within our generation.
Mr Speaker, if we do not develop the North with the speed that it deserves, any attempt to get into the middle-income society will just be a mirage. We, in the South will be middle-income, those in the North, will be a Third World nation - and a lower Third World nation -- and when you combine the two, the whole country will still be a Third World country.
Mr Speaker, this is why this should not be a political issue. This should not be an issue that is left to the people in the North. But it should be a national issue.
Mr Speaker, we should not let political differences delay its implementation further as it had been delayed in the last 18 months. We should not allow that to happen. The people in the North cannot wait. Time is not on our side. I, therefore, urge all Hon Members, both from the left and the right, to bury differences politically, bury differences ethnically and let us actually forge ahead and pass this Bill.
Thank you, Madam Speaker.
Mr Gershon K.B. Gbediame (NDC - Nkwanta South) 11:45 p.m.
Mr Speaker, I want to support this Motion for the fact that four districts in the northern part of Volta Region, including my district are part of
this programme.
Earlier, an Hon Member asserted that there was basically no difference between the Northern Development Fund Bill and this particular one. But I want to point out to him that in the Northern Development Fund Bill, the four districts in northern Volta and those in Brong Ahafo were not part of that Fund. To that effect, it means that there is a significant difference between -
Mr First Deputy Speaker 11:45 p.m.
Hon
Ranking Member, do you have a point of Order? Hon Chief Whip, continue.
Mr Gbediame 11:45 p.m.
To that effect, there is a basic difference. Mr Speaker, besides, he made mention that most of the phrases were quoted verbatim. I think that in moving the Motion, the Hon Minister mentioned in the memorandum that this Bill, which we are considering today, took its roots from the Northern Development Fund Bill. To that effect, I do not see why he thinks that by bringing those aspects of the Northern Development Fund Bill to this Bill is -- I do not know whether --
So, I want to clarify that issue and also say that this Savannah Accelerated Development Authority (SADA) Bill that we are considering today, is going to bring a lot of improvement to northern Volta and the three northern regions -- Upper West, Upper East and Northern, and of course, northern Brong Ahafo. We want to believe that, Mr Speaker, as it has been specified in the Bill -
Mr Joseph K. Adda 11:45 p.m.
On a point of order. Mr Speaker, indeed, my Hon Colleague opposite is misleading this House. He is talking about an improvement in conditions of the three northern regions whereas SADA and the way it is conceptualised now, is going to result in a dilution of resources that should go to the three northern regions.
The original concept of the Northern
Mr Gbediame 11:45 p.m.
Mr Speaker, in passing the Ghana Education Trust Fund (GETFund) Bill in this House, it was said that that Fund was in no way going to allow the Government from taking those funds that traditionally are supposed to go there. It is in this view that I also believe that this Authority, with the source of funding that we are talking about, is going to be solely independent of the traditional budget allocation that would be sent to this region and it is going to be an additional source of funding for development in this ecological zone that we are talking about. It is in this vein that I think it is going to bring an improvement in the living conditions of the people.
Mr Stephen K. B. Manu 11:45 p.m.
On a point of order. Mr Speaker, the Hon Member is misleading this House. He is saying that if you are travelling and you are getting late to a function, the only way to get there on time is to press your accelerator.
Apart from promoting over-speeding, the Hon Member has forgotten that it is not everybody who uses a vehicle. Again, even for those who use vehicles, the other way you can get there is to take a shortcut. [Laughter.] So to say that as a scientist, he knows the only way to get there when
he is getting late is to press the accelerator, tells us that maybe, the scientific principles have changed.
Mr First Deputy Speaker 11:45 p.m.
Hon Member, your analogy has been challenged. [Laughter.]
Mr Gbediame 11:45 p.m.
Mr Speaker, I will forgive him because he does not understand the word “acceleration,” which is the rate of increase of speed with time in a particular direction, and we are not talking of taking shortcuts.
Mr Speaker, coming back to my point, I am saying that there is the need for this programme to take place because the North continues to lag behind the southern sector; no wonder we have a number of people trooping from the North, trying to seek greener pastures in the South while actually, if you look at the conditions in which they are living, are very deplorable.
Therefore, we think that there are lots of resources in the northern sector, especially in terms of production of food. If these resources are well harnessed and utilised, we would be able to produce enough to create wealth, to create all the jobs that we need so that there would be no need for people to come and hang around on the streets as we are seeing them today.
Therefore, I want to appeal to all Hon Colleagues that we should give this Bill the maximum support that we need and also to appeal to the Government that as soon as we pass this Bill, all the necessary funds should be made available so that we can get the accelerated development that this Bill seeks to bring about.
On this note, I thank you Mr Speaker.
Several Hon Members - rose -
Mr First Deputy Speaker 11:45 p.m.
Hon Members, we have a lot of work to do today and in view of the fact that both
sides of the House are not opposed to the Bill in principle, my view is to take two from both sides, and then we conclude - [Interruption] -- the debate on this matter.
The Hon Member for Bawku Central.
Mr Adamu Daramani-Sakande (NPP - Bawku Central) 11:45 p.m.
Mr Speaker, I rise to support the motion. First of all, before I make - [Pause.]
Mr First Deputy Speaker 11:45 p.m.
Hon Ranking Member, switch off your microphone.
Mr Daramani-Sakande 11:45 p.m.
First of all, I acknowledge the contributions of people who have spent so much time and energy on this particular Bill. I speak of Dr Gariba Sulley, Dr Jebuni and the rest, and Hon Members of Parliament (MPs) who have played several roles in bringing this about.
We all know the situation up North. It goes without saying that we appear to be living in two countries - the northern sector and the South. The North, which is very much under-developed and the South, which is relatively better off, and as somebody who comes from that part of the country, I am very proud of the role that I played, my contribution towards this particular Bill. As we have severally discussed, this is not about politics, it is about development and it is Ghana we are all concerned about.
Mr Speaker, we know the North, ever since the days of Guggisberg has been left without much development. There is the dichotomy between the North and the South, is quite clear.
It is in this light that I wish to draw Hon Members on both sides of the House to support this Bill and hopefully, this country of ours will be better of with a
developed North and a developed South.
Thank you, Mr Speaker.
Mr First Deputy Speaker 11:55 a.m.
Thank you
for your brevity.

Minister for Communications (Mr

Haruna Iddrisu)(MP): Mr Speaker, thank you very much for the opportunity to associate myself with the Motion that this Honourable House approves the Report of the Committee on Employment, Social Welfare and State Enterprises on the Savannah Accelerated Development Authority Bill.

In doing so, Mr Speaker, let me acknowledge the very brilliant submission made by the Hon Prof. Gyan-Baffour, in giving indication that this is not a matter which should be looked at with any partisan lenses.

Indeed, Mr Speaker, his position is premised and even further supported. If you do a perusal of the Manifesto of the two major political Parties of Ghana in the 2008 elections and further to earlier initiative by the previous Government to which he belongs, Mr Speaker, all of them commit to improving the development gap and development deficit between the North and the South. Mr Speaker, it is truism and probably, an understatement to say that the North is underdeveloped or deprived.

Mr Speaker, we have evidence and I will make some reference to the implementation of the Growth and Poverty Reduction Strategy, 2006, 2007, 2009 Annual Progress Reports. And I am sure the good Professor was sharing some of the statistics with us.

Mr Speaker, may I refer you to article 36 (1) of the Constitution which imposes a further obligation on this House and that
Mr Speaker, paragraph (2) (d) is very important for this purpose and it says that 11:55 a.m.
“36. (2) The State shall, in particular, take all necessary steps to establish a sound and healthy economy whose underlying principles shall include -
And Mr Speaker, I read the (d). “36. (2) (d) undertaking even and balanced development of all regions and every part of each region of Ghana, and, in particular, improving the conditions of life in the rural areas, and generally, redressing any imbalance in development between the rural and the urban areas.”
Mr Speaker, this provision of the
Constitution is significant in many respects. The northern Ghana, that is Upper East, Upper West and Northern Regions are indeed, deprived. Indeed, when you take just basic road infrastructure in the three northern regions, whether you are travelling from Tumu to Sandema or you were travelling from Wenchiga to Bawku, the roads are not motorable and there is no major linkage in terms of tarred road.
If you took the Northern Region, whether you are travelling from Nkwanta to Yendi through Bunkpurugu through Naleriga, not even district to district will you find acceptable motorable roads
linking up those regions. If you took the Upper East Region, you were travelling from Bongo or through Nayagnia that I can remember, Mr Speaker, you still have major deficits in terms of it.
Mr Speaker, from Lawra through Nandom through Hamile, the same sad story is stated. Mr Speaker, the truth and the fact is that the North has suffered enough deprivation in terms of its statistics.
Mr Speaker, I just like to share with you some of the progress reports as captured in this particular document. Even when the country was achieving some progress in terms of food security, for the Upper East, Upper and Northern Regions the statistics hovered between 34 per cent, 12 and 24 per cent. Mr Speaker, I would need your indulgence to refer to the particular reference in the document that I have.
Mr Speaker, when it comes to education, access to quality education remains a nightmare in the three northern regions and those other sections.
Mr Speaker, let me now address the major concern of the Northern Development Fund versus Savannah Accelerated Development Plan.
Dr Matthew O. Prempeh 11:55 a.m.
Thank you, Mr Speaker. I would like to draw Hon Haruna Iddrisu's attention to a fact that this is a Bill that both sides of the House support. And in trying to say we should not be partisan -- he should not even attempt; he should not dare attempt to speak for or against the Northern Development Fund. We are here to promote a part of the country that is deprived and he should speak to the issue so that we can all support it.
I am just tempted to believe, Mr Speaker, that if we allow him to start comparing a programme that was ceded but never took off to a programme that has taken off but never ceded, will see that the greatest single cost of Northern deprivation may not be answered by SADA because there is no -
Mr First Deputy Speaker 11:55 a.m.
Hon
Member, you remember that the point that he wants to address is on record. The point that the Hon Minister wants to address is on record, having been raised by the Hon Ranking Member. It is on record that somebody has drawn a distinction and so, if other Members want to draw a distinction, it would be difficult to stop them from not drawing that distinction. But I agree that that is not the way to go especially after listening to Hon Prof. Gyan-Baffour. I thought that that was not the way to go, given the fact that after the Ranking Member spoke the Bill had received support from both sides of the House. I think that the way to go forward is what the Hon Prof. Gyan-Baffour has indicated.
Mr H. Iddrisu 12:05 p.m.
Mr Speaker, thank
you very much for your guidance. And the Hon Dr Prempeh knows that I was only giving an indication why a Savannah Accelerated Development Plan -- Mr Speaker, I said, which is in tandem with the values and principles of the NDC, probably, different from the philosophy of the previous Administration, that our strategy of intervention is what will explain the difference between Northern Development Fund and the Savannah Accelerated Development Authority. That was what I said. Our strategies differ.
Mr Speaker, in terms of health indicators, if you take northern Ghana, whether it is infant mortality, under-five
mortality, maternal mortality, the statistics are not anything encouraging. That is why this intervention is very important.
Mr Speaker, let me conclude by referring to paragraph 7 (2) and (3) of the Committee's Report, and in particular the observation of the Committee to the effect that the most noticeable challenge facing the North and likely to undermine the SADA strategy, is the issue of peace and security. One cannot but agree with the Committee's Report and would accordingly make a strong recommendation.
Many of us at every opportunity have called on our people to accept deprivation and under-development as their challenge and desist from engaging in violent conflict which leads to the use of State resources which otherwise can be used for development being diverted for purposes of maintaining peace and addressing some of these conflict challenges.
Mr Speaker, finally, your Committee
recommends and taking advantage of the bipartisan mood, I think that when this honourable House gets to the Consideration Stage of this Bill, we should do something more to get this Fund. Mr Speaker, I just want to share an experience. When the Northern Development Fund (NDF) was established, I recall with some reference to the Parliamentary Hansard some submissions made by the Hon Dr Anthony Akoto Osei and it has to do with funding.
Mr Speaker, the unique thing about SADA which this House must make a commitment, is not for SADA to rely on traditional sources of funding. It should not even just be at the request of parliamentary yearly allocation. That will not be adequate and that will not be sufficient to deal with the imbalances that we are discussing.
Mr Speaker, your Committee reports in
Mr First Deputy Speaker 12:05 p.m.
Hon Member for Amenfi East, and then we will take one more from here and then we move to the Leadership.
Mr Joseph B. Aidoo (NPP - Amenfi East) 12:05 p.m.
Mr Speaker, I thank you for this wonderful opportunity afforded me to contribute to Motion number 5 on the Order Paper.
Mr Speaker, just as had been indicated by the Ranking Member of the Committee, the Savannah Accelerated Development Authority (SADA) Bill is just a carbon copy of the Northern Development Fund,
Act 768. Mr Speaker, in terms of contents, SADA contains about 85 per cent of the Northern Development Fund document. The question is, if the NDF, which came to this Parliament and was passed in 2008 and gazetted in December 2008, is the same as SADA, why the repeal of such an important Act?
Mr Speaker, it takes a long time for a Government Bill to get through the process of legislation and it involves cost. So if the NDF Bill started in 2002 and through to 2008 and the Bill was passed, why should we repeal such an Act when we have not even tested it? Why should we repeal such an Act? Clearly, it is an indication of the Executive's abuse of power. Mr Speaker, as a matter of fact, by repealing -
Mr First Deputy Speaker 12:05 p.m.
Hon Member, are you also going to draw a distinction between the Northern Development Fund and the SADA?
Dr A. A. Osei 12:05 p.m.
Mr Speaker, just a
point of information. As of today, the NDF is law. It has not been repealed yet. Assuming that we passed this, it will be repealed. But as of today, the NDF is law. I just want to advert his mind to it.
Mr J. B. Aidoo 12:05 p.m.
Mr Speaker, the intent of this Bill is to repeal the NDF and it is clearly captured under section 32. [Interruption.] Yes, as of today, it has not. But the point I am making is that if we had gone through a process to enact a law why then do we repeal it now? That is the point I am driving at.
Mr Speaker, the other issue which I want to tackle is that we all know that the North has its own peculiarity. The history and the physical environment with their concomitant and economic and social problems have engaged successive governments. If there is any geographical region with economic depression that needs a marshal plan akin to the Tennessee valley Authority in the United States of America, then it is the North. And here
Mr Speaker, I am using the North as a geographic expression.
When we say the North is a geographic expression - [Interruption.] What I am saying is that the North being used here is a geographic expression referring to the Northern Region, the Upper East Region and then the Upper West Region. That is what we have all along known to be the North or what is called the Northern Region.
Mrs Catherine A. Afeku 12:05 p.m.
Mr Speaker, I come in with a point of interest. Both sides have really talked passionately about the need to approve this Bill. But I have a question and it is on page 7 - Unsustainable Source of Funding. I am seeking your guidance. I do not want us to pass this Bill and it would just turn out to be lip-service. There is a problem.
Although the Committee has stated clearly here that it is a laudable idea, the Committee is stating that a definite revenue source must be incorporated in the Bill before it is passed. I am seeking your guidance, Mr Speaker. Nobody is talking about that and it will just be another paper that will be on the shelf.
Mr First Deputy Speaker 12:05 p.m.
Hon Member, at this stage, we are doing Second Reading where the principles of the Bill are taken. When we come to the Consideration Stage, then on all those issues which have been raised, anybody then would file an amendment to address them - [Interruptions]
Hon Members, order! So let the Hon Member for Amenfi East continue. This is only the stage where we espouse the general principles of the Bill.
Mr J. B. Aidoo 12:15 p.m.
Mr Speaker, looking at the peculiarity of the North, what I am saying is that, it will require a preferential treatment, some special attention should be given to the area. When you take the Bill as it stands now, the Savannah Accelerated Development Authority Bill, the driving force is not clearly defined. The driving force of the project has not been clearly defined in this particular Bill.
The other aspect of it is that by introducing this Bill, it means the development initiative that was recently started had been delayed for one and a half years. Apart from that, when you take the title of the Bill, “Savannah Accelerated Development Authority” is nebulous. What is “Savannah” in Ghana? When you take the Geography of Ghana by Dickson and Benneh, “Savannah” is a grassland area and we have the northern savannah and the coastal savannah. So, if you are talking about “Savannah”, why do you then capture only the northern savannah?
As the title stands, the title here is just “Savannah” but then the southern savannah and the coastal savannah have the same characteristics, the same conditions -- the poverty we are talking about, the deprivation, everything can be found in the southern savannah. Why then do we exclude the southern savannah? This is my point.
If you are not focusing on the North, if you are not focusing, giving special attention to the North, why then do we exclude the southern savanna which is the coastal savannah? This is the question that I want the sponsors of the Bill to explain to us. This is because I was expecting that the concentration will just be on the North
Mr First Deputy Speaker 12:15 p.m.
Hon Member, the memorandum addresses that issue. They say Northern Savannah Belt, it is there. So that has been addressed by the memorandum.
Mr J. B. Aidoo 12:15 p.m.
Mr Speaker, I said the title is deceptive, it is nebulous, clearly. I am a geographer I know what I am talking about. So, we would want that aspect to be addressed.
The last point which had already been drummed home by the Hon Member for Evalue/Gwira (Mrs Afeku), is the source of funding, the issue of the source of funding. We would need a sustainable source of funding and this has not been clearly captured in the Bill. Again, it is worrisome. Of course, we want the North to develop, to change from its present situation.
We support this Bill but the point is that we should not deal with this matter on the altar of political expediency.
With this, I associate myself with the Motion on the floor.
Minister for Local Government and Rural Development (Mr Joseph Yieleh Chireh)(MP) 12:25 p.m.
Thank you Mr Speaker for this opportunity to contribute to the debate and for me to urge all of you, to support it as has been already indicated by both sides of the House.
Mr Speaker, it is important that all of us are talking about a part of our country and geographically, somebody talking about savannah being a nebulous concept. But it is because the adjoining districts to the three regions in the North are in the programme that you cannot simply say the Northern Development Fund or whatever. It has to be a Savannah - and also the idea about the Savannah Accelerated Development, is not limited to Ghana.
Indeed, if we get the northern sector properly developed as an ecological zone,
and a development polity, you expect that we will link up with the northern sector countries and then you widen the economic relationship that we want to develop in West Africa. That is why it is important that we should take a descriptive name the “Savannah Accelerated Development Authority”.
The second issue is that if you look at some of the thematic areas, we are talking about greening the North, otherwise, the desert is fast approaching. If we are to green the North, it is in the savannah area that you need this.
We have all hedged on the issue of dedicated source of funding for this Authority and I believe that if you all agree and we want to deal with the matter as urgently as the gap in development between the North and the South is concerned, we must indicate a source. And I have heard one or two people and I am of the same view, talk about introducing a percentage either on Value Added Tax (VAT), excise duty, the rest of the things that normally, would say is a sure sign of source for national income for the project.
I believe that during the Consideration Stage of this Bill, the ideas being expressed by our Colleague Sister who just left the Chamber, will be considered. In addition, if you look at the Millennium Development Authority Bill that was passed by this Parliament, we emphasized that additional sources will be budgeted and approved by Parliament for those areas benefiting from the Millennium Challenge Account. I believe that if we do the same, when the SADA Bill is passed, the dedicated source of funding must be identified.
The regular budgeting for other activities in the same area should continue, just like it has continued in the areas covered by the Millennium Development Authority activities. We need to be clear about that.
In the Report, there is a whole column
dealing with peace and security in the North and it is important that as much as we all desire peace as a condition for development, all of us as a nation, must talk one language when it is about conflict in this country.
Some people attempted to describe the North as the only place where there is conflict but the statistics do not show that. Some even go to the extent, why do we not ask our brothers and sisters to start fighting? No! Let us look at it as a national issue. Everywhere in this country, either it is a land or chieftaincy dispute, there are conflicts and they always result in loss of property and lives. So when we begin to divide and talk as if some particular sections are the cause of these conflicts, it is not right as a nation.
We have been in self-denial for a long time and it is about now we confront the issue as a nation, and do not see it as something going to benefit only the northern sector, no! Indeed, we need to emphasise that we want to be one country, and to be a country, we need to have level development.
What is important about the SADA is that, it should not be a bureaucracy that is going to be buying computers and vehicles and setting up permanent structures. It should be one that is dealing with expert advice on specific projects and for the funding to be given to existing institutions to carry out the development.
For instance, if we want to improve upon roads, my Hon Brother here would like a dedicated source of money to complete the Bolgatanga to Wa road so that as a regional capital, Wa, at least, can be linked to Bolgatanga from which we came out. Or from Fufulsu to Sawla, we should have a good paved road. Indeed, if you provide electricity to all these areas and provide good schools, you can be sure
that the gap would already be narrowing.
I t i s the deve lopment o f the infrastructure that is important so as to be sure that SADA identifies and also gets the acts together and pay people as they do the job on regular basis. But if you rely on the Budget, and as the Minister for Finance and Economic Planning would normally say, if funds do not come in, then you would stop the project, and the development gap would remain.
Mr Speaker, I want to say that for SADA, we are unanimous. For the source to sustain it, we must look at it. I have heard whispers from all over, and normally, that is how we want to kill an idea and say that oh, there are poorer sections in other parts of the country. That is true; but when you have a historically disadvantaged area, all of us acknowledge we should deal with that matter squarely but also pay attention to those other sectors of our country where development is not going well.
We must identify them as a country and put special emphasis on them. I know that the way the Millennium Development Challenge Account is going, we may be asking for additional resources.
In this second additional resources from our donor community, we would like such pockets of poor areas, no matter where they are located, to also be targeted. But I think for this House, we do not just talk about seed money because seed money has a limited period it can last. Let us talk about a dedicated source of funding for SADA. And in my view, I am very happy about the comments that everybody is making.
We have identified the problem; let us find the solution. And the solution is not about terminology, of the wording in either the Northern Development Fund Act or Savannah Accelerated Development Authority Bill. What we all share as a common objective is to get this country to continue to move along and meet the

development goals as one unit and that is one Ghana.

I know some of you are saying that you would go and start up some rice farms and retire when you leave Parliament. This is why you should vote massively for this Bill, so that when it is forested, when it is greened, when all the food crops, proteins are grown there, we would be expecting mangoes -- shea trees are already in the area and - [Interruptions] - you are adding grapes - then we will get this country moving in one direction, and only one direction - the development direction.

Thank you very much, Mr Speaker, for this opportunity.
Mr Ambrose P. Dery (NPP - Lawra/ Nandom) 12:25 p.m.
Thank you Mr Speaker, for giving me the opportunity to contribute to the debate which is taking place in consonance with Order 127 (1) of our Standing Orders.
Mr Speaker, there appears to be considerable consensus on both sides on the need for affirmative action; and I want to emphasise “affirmative action”, a kind of marshal plan. That is because if you look at the memorandum to the Bill, it rightly refers to article 36 (2) (d), which has already been read in extenso by my Brother on the other side, but to read it again -- It says:
“. . .undertaking even and balanced development of all regions and every part of each region of Ghana, and in particular, improving the conditions of life in the rural areas, and generally, redressing any imbalance in development between the rural and the urban areas.”
Mr Speaker, why we need affirmative action is that where there is a gap in
development, normal budgetary allocation cannot bridge the gap, so, that is why we need affirmative action. In approaching the affirmative action, the two major parties have set up their own programmes to achieve that and while I will not be referring to the differences to win any political points, there must be the need for cross-fertilization of ideas to enrich the concept of SADA.
So first of all, as we have at the last paragraph of page 2 of the Report, the Committee tries to link SADA to the Northern Development Fund Act, 2008, Act 768 (1). That is true in a way but what is it? The Northern Development Fund Act established the Northern Development Fund. In the manifesto of the New Patriotic Party (NPP) for the election in 2008, it was to follow up with the Northern Development Authority with seed capital of one billion dollars.
rose
Mr Dery 12:25 p.m.
First, that they were the regions affected by the slave trade disproportionately. Second, that there was a conscious effort by the colonial government to under-develop the northern territories to make it a cheap source of unskilled labour --
Mr First Deputy Speaker 12:25 p.m.
Yes, Hon Member for Anlo?
Mr Humado 12:25 p.m.
On a point of correction.
Mr Speaker, my Hon Friend mentioned that SADA is meant to develop the three northern regions. I would like to correct that. I think in the earlier renditions, it was made very clear that it includes the three regions of the North as well as the northern Volta Region and parts of Brong Ahafo Region. I think that should be made very clear.
Thank you.
Mr Dery 12:35 p.m.
Mr Speaker, I think my Hon Friend is not listening to my historical context; and I would like to show to him that what I said was that the two parties had affirmative action programmes to bridge the difference in development between the North and the South.
In the case of the NPP, the concept of the Northern Development Fund and Northern Development Authority, is owed to the peculiar history which dates back to 1954 when the political leaders of the North, including the Northern People's Party advocated for those two preconditions as part of the package that would allow the northern territories to join the rest of Ghana for the independence.
That is where I am developing it from. I would come to him and show him the difference and why I think that is one of the difficulties of SADA in solving the northern problem.
So coming from the effects of the
slave trade and also the conscious effort to under-develop the North to make it a source of unskilled labour, the northern leaders at the time wanted to be sure that joining Ghana, they would not continue to be in that position.
The only aspect of their agitation
which was accepted at independence, was the free education which translated into the Act that Hon Bagbin talked about. But when we talk of a holistic affirmative action approach, it is true that they are the two major parties in the Fourth Republic of Ghana, which have gone for a holistic affirmative action approach to bridge the gap.
In the case of the NPP, we focused the
programme on the three northern regions because of the peculiar history and the fact that we thought that one needed to reverse the trend. What trend am I talking about? Because of the economic backwardness; what has happened is that there is a movement of the people from the North to the South and as I speak to you, an example is Upper West Region. Only 49.7 per cent of the Upper West Region population is in the Upper West Region. The majority of Upper Westerners, 50.3 per cent, is outside Upper West Region.
If you want affirmative action to reverse the situation, then you must look at the pull and push forces. You would need to develop those three northern regions to serve as a magnet to reverse the migration. But if in your affirmative action you have a programme that goes beyond those regions and also affecting some parts of the regions where the northerners are resident, then you can have the pull and push forces cancelling out, leaving the status quo.
The only thing that can be worse, is the fact that the approach to development is demand-driven and when you talk of demand-driven approach, those better endowed areas are going to have the capacity to attract the resources and if they do, we may well slip beyond the status quo. So I want us to have this in mind.
Now, admit tedly, you can say
something for putting light areas together
Mr Dery 12:35 p.m.


for development; I agree. That is why under the NPP and President Kufuor, we had the Northern Rural Growth Project which is an agricultural programme, which also covers the northern part of the Brong Ahafo Region. However, it is not the case that such an approach could work effectively in a holistic affirmative action programme. For instance, the four poorest regions in the country are the three northern regions - Upper East, Upper West, Northern and Central Regions. Central Region has an affirmative action programme in CEDECOM, home grown. We are not saying that because they have similarities with the Western Region and other adjoining regions, spread the concept, no, because if you spread the concept, you will miss the point. You will lose focus and you will dilute the concept. That is what we face here.

Mr Speaker, we now have the Savannah

Accelerated Development Authority that we are working with. We have heard arguments by certain Hon Members of this House, key among them, my Hon Friend, Hon E. T. Mensah, who makes a very valid, generic and logical argument that SADA should be extended to cover other savannah areas in the Greater Accra Region. Generically, it is correct; logically, it is sound but the purpose for which we are having the Bill and subsequently the Act, will be missed if that happens. But that is because SADA has diluted the concept and lost the focus.

CEDECOM is allowed to go on - valid,

home grown. So, what do we have? In the manifesto of the NDC at pages 76 and 77 the NDC rightly stated at the last paragraph, that and Mr Speaker, with your permission, I beg to quote:

“The NDC Government shall therefore take immediate and urgent steps to bridge the development gap between the North and the South as follows:

SADA.”

The question is, action on a Bill in July of 2010, is it immediate and urgent? We will have to deal with that.

Mr Speaker, at page 77, the NDC
Mr Joe K. Gidisu 12:35 p.m.
On a point of order.
Mr Speaker, my Hon Deputy Minority Leader who is a senior Member of the House is trying to colour the debate in a very jaundiced way, jaundiced in the sense that if after one and a half years in office -- and the NDC is not a one-term Government, the present Government is not going to be a one-term Government
-- 12:35 p.m.
Mr First Deputy Speaker 12:35 p.m.
Hon
Members, I have said earlier that let all of us take a cue from the very brilliant submission made by the Hon Member for Wenchi because we are all really in support of this Bill and as much as possible, the partisan nature of the debate should be reduced to the barest minimum.
Mr Dery 12:35 p.m.
Mr Speaker, I thank you
very much. I am not sure Hon Members heard me from the beginning. I talked of looking at the two approaches and seeing how cross-fertilisation can enrich our discussion. But I am not playing politics, but if he wants to play politics -- the NDC is not in power for one and a half years. The NDC was in power before the NPP came and the NDC founder who ruled
this country for 19 years - [Interruption.] Do not go there at all. Let us stay within the context.
Mr Speaker, I am making a point that in
Mr Chireh 12:35 p.m.
Mr Speaker, I have a point of order and also a point of correction. [Interruption.] The Order? He is not the Speaker.
All along the concern has been that, by extending the SADA Bill to the areas contiguous to the districts and regions in the North, we were going to dilute the thing. If you look at the Northern Development Act Fund, section 2 (2) (a), Mr Speaker, with your permission, I beg to quote:
“ P r o g r a m m e s t o m a x i m i s e development potentials in the North and in districts contiguous to the three northern regions to promote economic development in the North.”
This was also in the SADA. This was in the Act and it is still there. It is not SADA that is extending it to the other regions, so the idea that we are going to dilute it must be corrected. It is not that we have different approaches. Indeed, it is the same approach.
Mr Dery 12:35 p.m.
Mr Speaker, I would just out of respect for my Hon Elder Brother, tell him that if they were the same things, there would not have been the need for a different Act. But I want to tell the difference. When you talk of places that are contiguous, you do not talk about the extent to which SADA has gone. And in any case, the Hon Chief Whip of the Majority side has agreed that this is the difference; it brings in other regions.
Mr Speaker, let this not be unnecessary advertorial. Let me land and Hon Members will see where I am going from.
Mr Speaker, at page 77 of the manifesto, it is said 12:45 p.m.
“The initial start-up contribution to the Fund shall be GH¢200 million with annual contributions from Government of ¢100 million each year for 20 years. Once established, the Government of Ghana will lead a donor conference on northern Ghana with the aim of raising an additional 200 million from Ghana's development partners and the private sector in order to assure the new Authority a firm and financially solid foundation.”

Mr Speaker, I want to say here that the present National Democratic Congress (NDC) Government has shown that it has the capacity to go outside and contract loans to support necessary developmental programmes. Therefore, it is within the purview of NDC to also raise its seed capital from GH¢200 million to one billion dollars. After all STX is coming with that. We want to see a commitment that is reflected in the finance.

Mr Speaker, at page 7 of the Report, the last paragraph, with your permission, I would want to read:

“The Commit tee therefore recommends that a levy be put on non-petroleum imports to provide regular source of funding for the Authority. This would in the long run enhance the financial sustainability of the Authority to enable it carry out its programmes and projects.”

Mr Speaker, my submission is that, limiting the source of funding to non- petroleum products is an unnecessary obstacle to the realisation of the objectives of SADA. This is because the present
Mr Abdul 12:45 p.m.
None

Wa Central): Thank you, Mr Speaker, for the opportunity to associate myself with the Report of the Committee on Employment, Social Welfare and State Enterprises on the Savannah Accelerated Development Authority Bill, 2010.

Mr Speaker, we are beginning to

re-think where we are coming from. Since independence, there has not been any strategic thought about how we can desegregate the developments -- About how we can define policy to take care of the different geographical disparity in this country. The North, the South and the rest.
Dr Matthew O. Prempeh 12:45 p.m.
On a
point of order. Mr Speaker my Hon Deputy Majority Leader, I want to draw his mind. Just a few minutes ago, the Hon Minister for Water Resources, Works and Housing was on his feet and he said that even in Nkrumah's time, there had been things done specifically for the North. So when he says since independence nothing specific - it is not right.
Mr Pelpuo 12:45 p.m.
Mr Speaker, I am talking
about taking into context, geographical disparity, ecological zones, that is what I am talking about. I am saying that from the period of independence, when education was made a strategy, and defined as the strategy to develop the North -- we had the Northern Development Fund and we
now have a process which will put in place the Savannah Accelerated Development Authority. Mr Speaker, we are not playing politics with development and that is very pleasing to see.
The fact is that there is a complete support for this process and for this Bill and this is something that is heart-warming and it is giving us an impression that for now, and for all times from now, we would begin to own our own development process. We would begin to define policy that will be owned by Ghanaians.
Mr Speaker, this Bill and this policy approach is not just about the North, it is about a country that is beginning to see the need to have its own people move together as a nation. Mr Speaker, we have done this because we know that any time the development of this country is done without everybody inclusive, we are not going to have a holistic development. I do appreciate what Prof. Gyan-Baffour and other Hon Members have come to say about the need for us to have a comprehensive approach to development in this country.
Mr Speaker, this policy, which is going to manifest in an Act, is not just going to be a policy that would let the rest of the country wait for the North to develop up to a point. It is going to be a situation where we can now begin to move together as a people. The rest of the country will go on without development but the North will have an affirmative approach to development.
Mr Speaker, it will indeed, therefore, address all the smaller programmes that used to exist in parts of the North and in part of the savannah areas. We would now have a holistic and comprehensive approach and SADA is then going to be an umbrella organisation that is going to
Mr Joe Ghartey 12:25 p.m.
On a point of order. Mr Speaker, it is not really a point of order, it is just that I am so happy. I am very happy that the Hon Member on the floor is given such time to comment on such an important issue. And indeed, Mr Speaker, I am even applying for more time for him. I am listening carefully and it is a very important matter that we should all listen to. I hope that when it comes to other important issues, Mr Speaker would give everybody as much time.
Mr First Deputy Speaker 12:25 p.m.
Hon Joe

Hon Deputy Majority Leader, continue.
Mr Pelpuo 12:25 p.m.
Mr Speaker, I am just
Dr Prempeh 12:25 p.m.
Mr Speaker, on a point
of order. Mr Speaker, as my Hon Deputy Majority Leader is trying to wind up, I think he should remind the Government - His Excellency the President that as he fulfils this promise, the Western Corridor Authority is waiting and the Central Regional Development Authority is waiting. Likewise those of us in the middle belt have problems and our specific programmes are waiting his attention --
Mr First Deputy Speaker 12:25 p.m.
You are completely out of order. [Laughter.]
Mr Pelpuo 12:25 p.m.
Mr Speaker, I also
admire the passion with which everybody approached this issue. I know the number of times Hon Prof. Gyan-Baffour and Hon Prof. Ameyaw-Akumfi met me at the corridor and asked me: “What is happening to SADA? We want to see what is happening; are you not bringing it?”
And also the Ranking Member for Finance Committee and others including the Hon Minority Leader and the rest of us here -
Mr Speaker, I think that this is the
way to go. I believe that in thinking development without our political colours, we are making a dent in our approach to killing poverty in this country. And I believe that there is one thing that we have to take note of, the North, with this Bill, is not asking for a dole-out, it is not asking for alms. What it is doing is that in the end, Ghana is going to approach a policy that is going to replicate itself in various other areas that would eventually help us to approach development without political colours and with all hands on deck.
Thank you Mr Speaker, for this
opportunity.
Mr First Deputy Speaker 12:25 p.m.
Hon
Members, that brings us to end of the debate.
Hon Minister of State, do you want to do a winding up briefly?
Mr Alhassan Azong 12:25 p.m.
Mr Speaker,
this is just to thank Hon Members for the total support given to this particular Bill. I believe it is something that is going to endear the hearts of all Ghanaians and I urge them to give the same maximum support at the Consideration Stage.
Thank you very much, Mr Speaker.
rose
Mr First Deputy Speaker 12:25 p.m.
Hon
Minority Leader, do you want to say something? I was going to put the Question?
Mr Kyei-Mensah-Bonsu 12:25 p.m.
Mr Speaker, before you put the Question, I raised this matter earlier and I hope that the correct thing has been done. The Bill before us is being piloted by Hon Alhassan Azong, Member of Parliament (MP),
Minister of State for Public Sector Reform in the Office of the President. Mr Speaker, I believe the correct designation of the Hon Minister must be captured in the Bill. What is here captured is not correct; but I believe the proper thing would be done as we go along.
Question put and Motion agreed to.
T h e S a v a n n a h A c c e l e r a t e d Development Authori ty Bil l was accordingly read a Second time.
Mr First Deputy Speaker 12:25 p.m.
Hon
Members, we will take five minutes of suspension. When we come back -- I have been informed by the Leaders that we will take the Motion on STX Engineering and Construction Ghana Limited. It is important to consult the two Leaders in terms of the number of people who are going to contribute to the Motion and the allocation of time so that we can have a very smooth debate. We were not able to meet together this morning before entering the Chamber because the Minority were having a caucus meeting. So, we will take just five minutes and then we come back to start the debate on the Motion.
Hon Majority Leader and Hon Minority
Leader, let me see you in Madam Speaker's Lobby.
1.05 p.m. -- Sitting suspended.
1.25 p.m. -- Sitting resumed.
Mr First Deputy Speaker 12:25 p.m.
Hon Members, item 8 on the Order Paper - Chairman of the Finance Committee?
MOTIONS 12:25 p.m.
Chairman of the Finance Committee (Mr James K. Avedzi) 1:35 p.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Supplier's Credit Financing Agreement between the Government of Ghana and STX Engineering and Construction Ghana Limited for an amount of US$1,525,443, 468.00 for the construction of 30,000 units of houses under the Security Services Housing Project.
Mr Speaker, in doing so, I present the Report of the Committee.
1.0 Introduction
The Supplier's Credit Financing Agreement between the Government of the Republic of Ghana and STX Engineering and Construction Ghana Limited (STX Ghana) for an amount of one billion, five hundred and twenty-five million, four hundred and forty-three thousand, four hundred and sixty-eight United States dollars (US$1,525,443,468.00) for the construction of thirty thousand (30,000) units of houses under the Security Services Housing Project was laid in the House on Wednesday, 23rd June, 2010 and referred to the Finance Committee for consideration and report in accordance with article 181 of the Constitution and Order 171 (1) of the Standing Orders of the House.
The Committee held a number of meetings to consider the Agreement with the Minister for Water Resources, Works and Housing, Hon Alban Sumani Kingsford Bagbin, Deputy Minister for Finance and Economic Planning, Hon Seth Terkper, Deputy Minister for Water Resources, Works and Housing, Hon Maj (Dr) Alhaji Mustapha Ahmed (retd) and technical teams from the Ministry of Finance and Economic Planning and the Ministry of Water Resources, Works and

Housing and presents this Report.

2.0 Background

The Ministry of Water Resources, Works and Housing was given approval by the Office of the President in December, 2009 to enter into a Public/Private Partnership (PPP) to develop two hundred thousand (200,000) units of houses in all the ten regional capitals for the next five years. This executive approval was further enhanced in a letter dated April 28, 2010.

In pursuance of the above, the Government of Ghana entered into an Off- taker Agreement with STX Engineering and Construction Ghana Limited under which the Government of Ghana agreed to off-take ninety thousand (90,00) units representing 45 per cent of the housing project.

The Ministry of Water Resources, Works and Housing, per the Off-taker Agreement, indicated the need to provide thirty thousand (30,000) units out of the total 90,000 units as duty post accommodation for security agencies. These houses are needed urgently by the security agencies.

As stated under paragraph 5 (2) of the Off-taker Agreement --

“The Government of Ghana also acknowledges that in order to materialize the off-taking, it is essential that GoG provides any and all infrastructure necessary for STX to freely access to sites and successfully execute the Housing Project, including, but not limited to, water, electricity, telephone, roads, sewerage, drainage, etc”.

3.0 Purpose of the Credit

The purpose of the Supplier's Credit Agreement is to enable STX Engineering and Construction Ghana Limited to finance the construction of thirty thousand (30,000) units of houses for the security agencies in Ghana.

4.0 Terms and Condition

The terms and conditions of the Agreement are as follows:

Total Contract Amount -- Up to

US$1,525, 443,468

(including insurance premium)

Grace Period -- 5 years

Repayment Period -- 15 years (semi- annual payments)

Maturity Period -- 20 years

Interest Rate -- 2 p e r c e n t fixed per annum

Arrangement Fee -- 0.75 per cent flat

Management Fee -- 0.5 per cent flat

Grant Element -- 36.93 per cent

5.0 Observations

The Committee was informed that “the Government of Ghana (GoG) intends to initiate a housing development project (“Housing Project”) whereby over the next five years, 200,000 housing units will be built in ten cities in Ghana, forty- five per cent (45%) of which the GoG will become an off-taker to meet some of the accommodation needs of security agencies of Ghana (“the GoG Off-take”) and HFC will become an off-taker (as the principal mortgage finance provider) of the remainder (that is, 55 per cent).

The Committee observed that the project will be executed by Messrs STX Engineering and Construction Ghana Limited.

It was further observed that in addition to providing decent accommodation for the security agencies, such as the police, military, immigration, prisons, Ghana Fire Service and others, the project would also help to create jobs, improve incomes, reduce poverty and enhance the socio-economic conditions of construction workers and project beneficiaries.

In exchange of what GoG undertakes to provide, STX commits, under paragraph 6 (3) of the Off-taker Agreement --

“to directly or indirectly use local resources of Ghana for at least thirty per cent (30 per cent) of the resources for the Housing Project and train the locally-hired labour force so that they can be equipped with necessary technical and professional skills.”

The project is also expected to enhance technology transfer between Ghana and the Republic of Korea, especially in the housing subsector.

Out of the total number of 30, 000 units of houses to be constructed under this Agreement, 20,000 would go to the Ghana Police Service while the remaining 10,000 goes to the military and other security agencies.

The Committee was informed that majority of the buildings would be four- storeyed buildings containing flats of one, two and three bedrooms. There will also be three and four bedroom bungalows for senior rank officers.

Article 10 of the Supplier's Credit Financing Agreement provides that --

“the facility shall initially be unsecured and shall rank pari passu with all unsecured financial

obligations of the Government.”

During the Committee's deliberation on the Agreement, some issues became paramount. The Committee, therefore, met on several occasions to resolve them. These issues include:

The Korean Government's Backing for the Project

Members wanted to be sure that the Government of Korea was actually backing the project. To this end, the Ministry of Finance and Economic Planning presented to the Committee a letter from the Korean Ambassador to Ghana indicating that the Korean Government had identified the Global Infra Fund as part of the sources from which the Korean Government is supporting the STX Group, a Korean Company which is providing the finance and is partnering STX Ghana for the project.

The letter also stated in part that:

“Messrs STX Business Group, which is the Korean Partner of the STX Engineering and Construction Ghana Limited, is a good standing Conglomerate Group in Korea. Since its current financial standing is over US$25 billion turnover per annum, it is eligible to obtain any credit facility without Korean Government support in Korea and any part of the world. It is particularly so when the repayment is well guaranteed by the Government of Ghana, which is prerequisite for acquiring credit facility for the project.”

Again, the Committee was furnished with a letter from the STX Group of Korea stating their full corporate support for the STX Engineering and Construction Ghana Limited for the execution of the project.

The Off-taker Agreement's requirement for Government to purchase 45 per cent of 200,000 Housing Units:

Some Members were concerned that this Agreement for the construction of 30,000 housing units is predicated on the Off-Taker Agreement between STX Engineering and Construction Ghana Limited and the Government of Ghana in which the Government undertakes to purchase 45 per cent of 200,000 housing units. They argued that the required 35 per cent would amount to US$4.5 billion and that the nation's finances would not be able to sustain such financial exposure.

The Deputy Minister for Finance and Economic Planning explained that with prudent loan management, this facility will not substantially impact the debt sustainability ratio of the country in the medium-term.

Cost Per Each Unit of House:

Members wanted to know how much each housing unit would cost. They wanted to have at least, some reliable estimate on the cost of each unit considering the number of bedrooms and facilities contained.

To this, the Committee's attention was drawn to paragraph 2 of the Off-Taker Agreement which states that:

“Based on preliminary information, the Housing Project is estimated to cost USD 10 (ten) billion (U.S. dollar ten billion) on a turn-key basis. STX will use its best endeavour to maximize the financial, geological and design criteria to obtain a minimum cost per unit of housing that is commensurate with the design and quality that will meet the requirement of GoG. The actual and final price per unit of the houses to be acquired by the GoG under the housing project shall be agreed between GoG and the project company after the project company and STX have completed a full-scale project cost analysis.”

5.1 Taxes

Under article 12.2 (c) of the Supplier's Credit Financing Agreement --

“Government undertakes that during the facility period, it shall, unless the Lender otherwise agrees in writing, applies for Tax exemptions for:

(i) The Lender and EPC Contractor in relation to corporate tax obligations;

(ii) The importation of the contractor equipment; and

(iii) Expatriate employees of the Lender and the EPC Contractor in respect of income earned in relation to the project.”

5.2 GREDA Petition

During the Committee's consideration

of the Agreement, a petition from the Ghana Real Estates Deverlopers Association (GREDA) in connection with the Agreement, was referred to a joint Committee on Finance and Works and Housing. While the Committee took the petition into consideration in coming up with this Report, the joint Committee's Report on the said petition has been prepared separately for submission to the House.

6.0 .Conclusion

The Committee finds that the project would be of immense socio-economic benefits to the various security agencies as well as provide employment to the teeming youth.

The Committee therefore respectfully recommends to the House to adopt this Report and approve by Resolution, the Suppl ier 's Credi t F inancing Agreement between the Government

of the Republic of Ghana and STX Engineering and Construction Ghana Limited for an amount of one billion, five hundred and twenty-five million, four hundred and forty-three thousand, four hundred and sixty-eight United States dollars (US$1,525,443,468.00) for the construction of thirty thousand (30,000) units of houses under the Security Services Housing Project in accordance with article 181 of the Constitution, sections 3 and 7 of the Loans Act, 1970 (Act 335) and the Standing Orders of the House.

Respectfully submitted.

Mr Speaker, I would continue to submit the Report of the joint Committee of Finance and Works and Housing.

Complaint Received from Ghana Real Estate Developers Associateion

(GREDA)

1.0 Introduction

On Wednesday, 30th June, 2010, Madam Speaker referred a complaint she received from the Ghana Real Estate Developers Association (GREDA) in respect of the Suppier's Credit Financing Agreement between the Government of the Republic of Ghana and STX Engineering and Construction Ghana Limited for an amount of US$1,525,443,468.00 for the construction of 30,000 housing units under the Security Services Housing Project to the joint Committee on Finance and Works and Housing for consideration and report.

The Committee met the Minister for Water Resources, Works and Housing, Hon Alban S. K. Bagbin, his Deputy, Hon Maj. (Dr) (Alhaji) Mustapha Ahmed (retd), the Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh as well as the President and other representatives of GREDA and presents this Report.

2.0 Appreciation

The Commit tee expresses i t s appreciation to the following for attending
Chairman of the Finance Committee (Mr James K. Avedzi) 1:35 p.m.


its meeting to assist with deliberations on the complaint:

i. Hon Alban S. K. Bagbin, Minister for Water Resources, Works and Housing;

ii. Hon Maj (Dr) (Alhaji) Mustapha Ahmed (retd), Deputy Minister for Water Resources, Works and Housing;

iii. Hon Seth Terkpeh, Deputy Minister for Finance and Economic Planning; and

iv. The Pres ident and o ther Executives of GREDA.

3.0 Contents of the Complaint

The Complaint was as follows:

i. GREDA apprec ia tes and commends the Government's desire to help solve the housing problem, and its express policy to commit public funds and Sovereign Guarantees towards it.

ii. As professionals, GREDA has “analyzed the deal in detail and wish to state that there is a lot wrong with the Agreement. Many pertinent details are missing; there are loopholes which give cause for worry.” The financial aspect of the deal also makes it “unacceptably expensive”.

iii. Other professionals, analysts and think-tanks have informed GREDA that the deal will destroy the local real estate sector and be inimical to the economy of Ghana if implemented.

iv. Madam Speaker should do all in her power “to ensure that Parliament does not pass the STX deal.” It further stated that GREDA has offered to give an alternative to Government

“which will deliver the same requirements at half the cost and use over 80 per cent of Ghanaian expertise, labour and materials” for the project.

4.0 Observations

4.1 Representatives of GREDA led by its President delivered a presentation to the Committee. They indicated that Ghana has a huge housing deficit of about one million. With STX proposing to build 30,000 housing units for the security services, there will still be a huge housing gap to bridge. GREDA is, therefore, developing a proposal to Government to build 5,000 housing units per year over a period of five years to help reduce the housing deficit.

The President of GREDA indicated that the above proposal is still being developed and will be submitted to Government when finalized and hoped that it would be considered alongside the STX Agreement.

4.2 Responding to a question whether the proposal being developed is an alternative to the STX deal, the representatives of GREDA explained that Ghana's housing deficit, as stated earlier, is huge thus the proposal is to complement the STX deal to help bridge the housing deficit gap.

4.3 Members enquired from the representatives of GREDA whether prior to the STX deal they had ever presented a proposal to Government to build houses. The representatives of GREDA indicated that they had not.

4.4 In response to the concerns of members whether GREDA still stands by the issues raised in the complaint, the representatives of GREDA explained that at the time the complaint was presented, the issues stated therein represented their position. However, subsequent discussions with the Minister for Water Resources, Works and Housing and further information received from the Ministry of Water Resources, Works and Housing

have resulted in a change in their initial stand on the STX Agreement.

4.5 The Minister for Water Resources, Works and Housing assured the Committee and the representatives of GREDA that Government would be ready to consider any proposal from GREDA aimed at reducing the housing deficit in Ghana.

5.0 Conclusion

The Committee, after carefully considering the complaint and submissions made by the representatives of GREDA, came to the conclusion that GREDA no longer stands by its initial position on the STX deal.

T h e C o m m i t t e e , t h e r e f o r e , recommends that the Finance Committee goes ahead with the process for the consideration of the STX Agreement.

Respectfully submitted.
Mr David T Assumeng (NDC - Shai Osudoku) 1:45 p.m.
Mr Speaker, I beg to second the Motion moved by the Chairman of the Finance Committee, Hon James K. Avedzi, who incidentally is celebrating his birthday today.
Mr Speaker, I want to commend the Finance Committee for doing a very good job and I believe that it is very important for us all to give massive support to this Report.
Mr Speaker, we have done all the necessary due diligence as far as this project is concerned. The due diligence has been done on a non-partisan basis and I believe that this is the time for us all to join hands and approve this Agreement.
I want to submit that there is the need for us to take a second look at Order 171 (1) on the Finance Committee, because I am of the view that if there should be any report or any agreement to be considered by the Finance Committee, the committee responsible for implementation should
Mr David T Assumeng (NDC - Shai Osudoku) 1:45 p.m.


join hands with the Finance Committee to look into theReport.

Mr Speaker, if we had done this from the very beginning, I believe that we would have ended this Report a long time ago. So I submit that the committee that is looking at the Standing Orders takes note of this submission so that we can make progress.

Mr Speaker, I am also happy that there is a point in the Agreement, that is the EPC Water Resources, which the Hon Minister responsible for Water Resources, Works and Housing would be considering. On this note, I wish to appeal to the Hon Minister that when such a time comes, he should do well to involve the Committee on Works and Housing to consider that aspect of the Report.

I believe that the EPC would give us the needed information as far as the cost per unit that Hon Members are looking for and then all the local materials that would be used would be indicated. So I want to appeal to the Hon Minister to take note of this suggestion.

We need to house our police personnel in this country; we need to house our soldiers in this country; we need to house our prison officers in this country; we need to house our immigration officers in this country -- [Hear! Hear!] We need to house our customs officials in this country; Ghana National Fire Service
Mr K. T. Hammond 1:45 p.m.
Mr Speaker --
Mr First Deputy Speaker 1:45 p.m.
Hon K. T. Hammond, what Order are you coming under? Hon Member, I am not going to allow unnecessary heckling and unnecessary points of order; we want this debate to flow so that the people of Ghana would be duly informed as to the issues that have been raised on the floor of the House. So I want to know which Order you are coming under.
Mr Hammond 1:45 p.m.
Mr Speaker, with the greatest deference to you, when the point is made that “unnecessary points of order” are raised in the House”, it gives -
Mr First Deputy Speaker 1:45 p.m.
I am not referring to you as a person; it is a general statement that I am making.
Mr Hammond 1:45 p.m.
Mr Speaker, the question of Order number and Order seems to have been -- Mr Speaker, the Hon Member in raising the point seems to have suggested that these housing units are meant for the universities and those other organisations. But I am looking at the Report, paragraph 3.0 and it specifically says that it is meant for the security agencies. I am wondering if we are looking at -- [Interruptions.]
The Hon Member in the fugu and the shirt who just spoke [Interruption] did you hear him? Were you in the room? If you were here you would have heard the list of security -
Mr First Deputy Speaker 1:45 p.m.
Hon K. T. Hammond, I did not hear him say that but I would ask him whether he said such a thing.
Mr Assumeng 1:45 p.m.
Mr Speaker, I have no knowledge of what he is saying.
Mr First Deputy Speaker 1:45 p.m.
Did you mention the universities in your submission?
Mr Assumeng 1:45 p.m.
Never.
Mr First Deputy Speaker 1:45 p.m.
Continue -- [Interruptions.] Hon Members, Order! Order! Continue your submission.
Mr Assumeng 1:45 p.m.
Mr Speaker, I want to urge the Hon Minister for Water Resources, Works and Housing that as soon as this Agreement is approved, he should do all in his power to make sure that implementation commences as early as possible for us to offset the shortfall in the housing industry.
Mr Speaker, on a lighter note, I believe that there will not be any “Suarez” in this issue, -- [Laughter] -- and that all of us would come on board on this programme so that Ghana would succeed. We want Ghana to move forward; there should be no “Uruguay” on the way of Ghana and this country would see progress.
Mr First Deputy Speaker 1:45 p.m.
Hon Members, we are taking the two Reports together, At the end of the debate, we would take the Vote on the first part of the Motion.
Question proposed.
Dr. Anthony A. Osei (NPP - Old Tafo) 1:45 p.m.
Mr Speaker, thank you for giving me the opportunity to contribute to the debate on the Motion numbered 8 on today's Order Paper. Mr Speaker, I want to start from where my good Friend, the Chairman of the Committee on Works and Housing almost landed, that housing -
Mr First Deputy Speaker 1:45 p.m.
Hon Members, having regard to the state of business, the House would Sit outside the prescribed period. I direct accordingly.
Dr A. A. Osei 1:55 p.m.
Housing is a very important matter for all Ghanaians. Housing for security services is even more important given the conditions in which they live in. In fact, it is so important that in the New Patriotic Party (NPP) Administration we ensured that the Ankaful Prison was almost completed at a rapid pace - almost -- very nice facilities.
On a personal note, in my own constituency, I lobbied and insisted that the Ministry of the Interior put up a housing accommodation for the police and thereby elevating the district police to almost a regional police status. Housing indeed, Mr Speaker, is very important.
So we commend the Nat ional
Democratic Congress (NDC) Government for its good intention to provide housing for the security agencies. Mr Speaker, in spite of the good intentions, there are serious issues that we as a House must consider seriously before we take a decision. This is non-partisan and people ought to carefully look at the issues dispassionately.
These are facts and we must begin to absorb the facts before we decide; I think it is very important. This is the single largest project this nation is undertaking -- US$10 billion -- almost 70 per cent of our Gross Domestic Product (GDP); we
have never done anything like that.
So if for no other reason for that purpose -- [Pause] -- Mr Speaker, this is why I say Hon Members should listen to and absorb the facts. They will have their chance to contribute. The entire joint Venture Agreement of 200,000 units -- Look at the Committee's Report, it said, “estimated US$10 billion”. The entire project is in the Committee's Report --
Mr First Deputy Speaker 1:55 p.m.
Hon
Member, I agree entirely with you that the entire project -- But the current Motion before us is about -- [Interruptions.] Hon Members, the Supplier's Credit which is a subject matter of this Motion is US$1.5 billion. I agree with you; but what is currently before us now is US$1.5 billion. What we would be approving or disapproving at the end of the day, is US$1.5 billion.
Dr A. Osei 1:55 p.m.
Mr Speaker, with due
respect to the Chair, what we will approve and agreeing to initially, is US$1.5 billion; but all the information we got as a Committee should be made available to this House so that people can realize what we are doing --
Mr First Deputy Speaker 1:55 p.m.
Hon
Member, I agree with you that every information that you have got is quite relevant but the truth of the matter is that the Motion, which is the subject matter of this debate, is US$1,525,443,468.00. Yes, but I have seen also that in the Committee's Report, there is also US$10 billion. You can make an allusion to it - Hon Members, you can make an allusion to US$10 billion but you do not speak as if the Motion is for US$10 billion. That is the point.
Dr A. Osei 1:55 p.m.
Mr Speaker, I did not say
what we are approving is US$10 billion. I was referring to a Committee's Report, and with your permission, let me quote:
“Based on preliminary information. . .”
-- and this is from the Committee's Report, it is not my making. “The housing project is estimated to cost US$10 billion on the turn-key basis”.
Mr Speaker, you are a senior Member of this House and you have taught us that as long as one speaks to the matter of the Report, there is nothing wrong with it --
Mr First Deputy Speaker 1:55 p.m.
Hon
Member, get the point that I am making. I am not saying that you cannot make reference to US$10 billion. I am saying that you can make reference to it but the way you made the reference could create the impression that [Interruption] Hon Members, please, please!
Hon Dr Akoto Osei, continue.
Mr Kyei-Mensah-Bonsu 1:55 p.m.
Mr
Speaker, I believe that this directive is in furtherance to what you said earlier that you wanted to have a smooth debate. And that really should commend itself to all of us. But Mr Speaker, a critical point to consider, that is before us now, is the cost of the houses. We are approving a loan facility of US$1,525,443,468.00 as part of a bigger whole. Mr Speaker, a relevant question to ask is, what is going to be the cost of the houses that we are going to approve a loan for? And the Committee tells us that in considering the cost, we should turn our minds to the bigger whole, which is US$10 billion and that will allow us to know the cost.
So if he makes reference to it, he is home and dry. And so, I do not think that with respect, anybody can conscript him to say that -- Mr Speaker, in this regard, with respect to you, he is within his limits to make reference to it insofar as it relates to the cost of the houses.
Mr First Deputy Speaker 1:55 p.m.
Hon
Minority Leader, I did not say that he cannot make reference to the US$10 billion. I did not say that; the records
Mr First Deputy Speaker 1:55 p.m.


are there. He started by saying that this is the biggest project and that it is US$10 billion. And I am saying that what is before us now is not the US$10 billion but the US$1.5 billion; but he could make reference to the US$10 billion in order to make his argument.

Hon Dr Akoto Osei, you have the floor.
Dr A. A. Osei 1:55 p.m.
Mr Speaker, initially,
I said that it is important that all of us advert our minds to the full information so that we will not come back and say we have erred. And that is why I was referring to a statement in the Committee's Report. Mr Speaker, the STX Project has several documents underlying it. In the draft Agreement that we are given, reference is made to:
“The Government has signed a Joint Venture Agreement dated --and there is no date -- with the lender for the development of a total of 200,000 housing units”.
Mr Speaker, this is part of the Supplier's Agreement that we are being asked to approve of. So reference has been made to that information.
Mr Speaker, as I speak as a Committee member, I know that I do not have access to that Joint Venture Agreement -- as a Committee member, I do not know who in this House has seen that Joint Venture Agreement out of which comes the 30,000.
rose
Mr First Deputy Speaker 1:55 p.m.
Hon
Minister for Water Resources, Works and Housing, do you have a point of order?
Mr Bagbin 1:55 p.m.
Mr Speaker, my Hon good
Friend is misleading the House. Rightly,
he has referred to a draft document. It is a draft document, unsigned, which is attached to the documents that were prepared and presented to the House. As a former Minister of State at the Ministry of Finance and Economic Planning, he is very well aware that usually after these financial approvals, documents are prepared and entered into. That is the draft document he is referring to and that is it, it is attached. This is not a document that has been signed.
Dr A. A. Osei 1:55 p.m.
Mr Speaker, I do not
believe that the Hon Minister heard me. I have not referred to any draft document. We have infront of us a Supplier's Financing Agreement. In that agreement, mention is made of -- “The Government has signed a Joint Venture Agreement dated . . .” and there is no date. And what I said, that was I, as a Committee member, do not have a copy of that --
Mr First Deputy Speaker 1:55 p.m.
Hon
Ranking Member, which page of the -
Dr A. A. Osei 1:55 p.m.
Mr Speaker, page 3
of the Supplier's Financing Agreement. That is the one before the House. Page 3 -- whereas “(a) The Government has signed a Joint Venture Agreement.” That is what I am referring to. And then I went on to say (b) talked about an Off-taker Agreement which Committee members have a copy of. I do not know if other Hon Members of this House have even seen copies of the Off-taker Agreement. It is very important that Hon Members who do not have it get the chance to look at it first before we move on.
Mr Speaker, I have read those documents I have. I find some serious issues with the financing, legal matters that the House ought to -- Mr Speaker, the Minister for Water Resources, Works and Housing is not going to distract me. I want to re-state that the Joint Venture Agreement that is indicated there, I have
Dr A. A. Osei 2:05 p.m.
not seen it. That is for the record.

Mr Speaker, for the purposes of argument, assuming that Hon Members even have access to the Joint Venture Agreement and that ‘being an international transaction this House has approved of them -- we know we have not. Assuming for the purposes of argument that Hon Members have approved of the Off-taker Agreement as an international economic transaction -- but we have not.

The question is, what are we being invited to do as a Finance Committee to examine the terms of what is before us? Please, it is important - I know there are some Hon Members who have not even read the document. I am trying to bring the facts so that we can decide. This is because Mr Speaker, you would note the Committee, I am told, might have held about eight meetings.

In the first three meetings, issues were raised that forced the Government to re-lay thePaper. Why was the Paper re-laid? It is because Committee members interrogated the matter of the commodity swap. So the Executive's approval was re-written and re-laid.

Mr Speaker, at one of the committee meetings, because we wanted it to be non-political, we suggested that reading the documents, there were several inconsistent issues and that the Minister for Finance and Economic Planning, the Attorney-General and Minister for Justice and the Minister for Water Resources, Works and Housing needed to meet as a team to resolve those discrepancies.

Mr Speaker, as of now, a simple matter on the draft Agreement that says the arrangement fees and management fees are 0.75 and 0.5 -- has not even been changed. Mr Speaker, I refer you

to - [Interruption.] Mr Speaker, it is not in the Report. I am talking about the draft Agreement. The amount still remains .75 instead of .5 as is in page 15 of the draft Agreement.
Mr Avedzi 2:05 p.m.
Mr Speaker, the issue that the Ranking Member is raising is right in the draft Agreement and that figure is quoted there and we raised that issue at the Committee level. An explanation was given, a letter was issued in that respect where the figure was reduced from 0.75 to 0.5. That is the issue that the House must raise so that when the final Agreement is going to be signed, correction would be done. [Interruptions.] Mr Speaker, that is the essence of even coming to the House. We should not say that whatever is brought should be accepted without making any suggestions.
Mr First Deputy Speaker 2:05 p.m.
Hon Chairman of the Committee, you know that after we have approved this Agreement and it goes, this time if there is any breach, this is the Agreement they are going to look at. If the neater way, in my view, just as you did with the commodity, was to have this thing corrected and duly laid, so that we are all sure -- your Report does not automatically amend what is in the Suppliers Agreement. You know that? The Finance Committee Report does not amend -
H o n M e m b e r , k i n d l y
continue.
Mr Avedzi 2:05 p.m.
Mr Speaker, I just want to respond to that. If you look at the Report, the Term Sheet shows what the management fee is, which is 0.5 per cent. It is not showing the 0.75 as in the Agreement. So this Report amends what we have in the Agreement.
Dr A.A. Osei 2:05 p.m.
Mr Speaker, with respect to my Chairman said, I am stating this to suggest that it is important that all of us have the right document. This is not a criticism. In a positive way, I am saying that the document that is before this House, if it is incorrect, must be amended for the sake of the Committee and for the House. That is a valid reason.
But that notwithstanding, as a Committee, our first object was to ask, since STX is not a financial institution, how is it able to find money to lend to the Government of Ghana? STX is a ship building construction company. So you have to go behind the company to see where the money is coming from.
This is typical. Mr Speaker, you will be surprised, if you look at the Committee's Report, where it talks about the Korean Government's backing for the project, there was something that the Committee did not report on, which I want to remind them. When the question was asked, we were given a letter purporting to be a letter of intent from Woori Bank which among other things, was purporting to make an offer to STX Construction. However, in that same letter -- and Mr Speaker, with your permission I will quote:
“This is Woori Bank that is supposed to be the bank behind STX gives a letter of intent dated April . . .”
And then goes on to say:
“This letter is not intended to amount to an offer or a legally binding commitment.”
Mr Avedzi 2:05 p.m.
Mr Speaker, I want to respond to the issue raised by the Hon Member -
Mr First Deputy Speaker 2:05 p.m.
Hon
Member, you cannot respond. Under the rules, you cannot respond.
Mr Avedzi 2:05 p.m.
Mr Speaker, it is a point
of order.
Dr A. A. Osei 2:05 p.m.
Mr Speaker, with
respect to my Hon Chairman, we are all members of the Committee. What I am saying are facts. I am not criticizing him personally as the Chairman. Please, take your time and listen. This is a fact. This happened. Mr Speaker, in that letter, Woori went further. ‘It says and Mr Speaker, with your permission, I quote:
“Woori Bank shall under no circumstances be liable for any loss caused by this letter.”
rose
Mr First Deputy Speaker 2:05 p.m.
Why? Do you now have a point of order?
Mr Avedzi 2:05 p.m.
Mr Speaker, I have a point of order and the point of order is on the
- 2:05 p.m.
Mr First Deputy Speaker 2:15 a.m.
Hon Chairman, the statement that the Ranking Member is making is that the source of the documents made available to them, the bank is saying they are not legally liable. And I thought that is what you were going to respond to. I thought you are going to say that he was misleading the House.
Mr Avedzi 2:15 a.m.
Mr Speaker, that is exactly
what I am responding to.
Mr Bagbin 2:15 a.m.
Mr Speaker, again,
my Hon Colleague is misleading the House. Hon Dr Anthony Akoto Osei is fully aware that this document was not a document presented by Government. [Interruptions.] I am telling you on my honour. At the Committee meeting, one of the technical officers produced the document and the - [Interruptions] the Minister for Finance and Economic Planning himself, together with my good- self said we had never seen any letter like that.
The letter was withdrawn and the Committee insisted on the source of financing and documents were produced, which we will show here, that it is the Korean Government which established a Global Infra Fund. My Hon Colleague is aware of this and it is from that Fund that the financing would be done, not from Woori Bank; he is aware of it.
Dr A. A. Osei 2:15 a.m.
Mr Speaker, I am
Mr First Deputy Speaker 2:15 a.m.
Hon
Members, let us listen.
Dr A. A. Osei 2:15 a.m.
Mr Speaker, I am going
to deal with that ; I am establishing facts. What happened at the Committee --
Mr First Deputy Speaker 2:15 a.m.
Hon
Member, continue.
Dr A. A. Osei 2:15 a.m.
Mr Speaker, he said a technical staff member produced the documents upon our request. My point is that, it is typical when the company is not a financial institution, like STX is not; to ask, which financial institution is providing the funds -- [Interruption]
Dr Kwabena Duffuor 2:15 a.m.
On a point of order. Mr Speaker -- [Interruptions] -- the document he is talking about is what we refer to as a Term Sheet. He is only proposing -- [Interruptions] -- it is, therefore, not binding until you have taken the loan and you have signed for it. This is not a binding document; he is only telling you, if you take money from me, these are the terms. How can it be binding? That is the meaning.
Dr A. A. Osei 2:15 a.m.
Mr Speaker, the Hon Minister for Finance and Economic Planning has confirmed exactly what I said. He has repeated verbatim what I have said, and in the process, he has contradicted the Hon Minister for Water Resources, Works and Housing - [Interruptions]
If you listen to the sequence of events, I am establishing the basis for STX's ability to give us this loan. And I am saying one source which they thought, would have been Woori Bank, and it turns out that the Woori Bank`s source is not available. The obvious question is, so, who is providing the funding?
Upon asking that question, Committee
Mr First Deputy Speaker 2:15 a.m.
Hon Akoto Osei, address the Chair.
Dr A. A. Osei 2:15 a.m.
Mr Speaker, he was asking me where I was. I was telling him my mother had died, so physically during the last meetings, I was not there. Mr Speaker, the letter stated -- Mr Speaker, he is not listening.
Mr Speaker, I needed your permission to read from the letter. With your permission, I want to read --
Mr First Deputy Speaker 2:15 a.m.
No! No!
it is part of the -- you say you are quoting from the Report, so you are within your powers to do so.
Dr A. A. Osei 2:15 a.m.
Mr Speaker, it said:
“Honourable”,
This is to the Minister for Finance and Economic Planning --
Mr First Deputy Speaker 2:15 a.m.
Where are you quoting from?
Dr A.A. Osei 2:15 a.m.
Mr Speaker, from the letter. Or you want it from the Report?
Mr First Deputy Speaker 2:15 a.m.
No, if it is from the Report, all of us have the Report
but if you are quoting from the letter, after quoting, let me have a copy. That is all.
Dr A. A. Osei 2:15 a.m.
Mr Speaker,no problem:
“Honourable, you may recall that during the recent visit of His Excellency the Vice President of the Republic of Ghana to Korea, he met His Excellencies the Prime Minister and the President of Korea, and the Ghana Housing Project was on the agenda of both meetings and received government recognition and support. The Korean Government has expressed willingness to support this project through various media, and typically, has identified to utilize the Global Infra Fund as part of the sources for this support. The Global Infra Fund was created specifically to support Korean companies for international construction contracts, for which the STX housing contract in Ghana is eligible” Honourable, also be informed that Messrs STX Business Group, which is the Korean partner of STX Engineering Construction is a good standing company et cetera --[Interruptions] --”
That is the ultimate point.
Mr Speaker, the question is, the letter says STX is eligible for a Global Infra Fund - “eligible”, so, you have to ask, what does eligibility mean? [Interruptions.] The Ambassador is saying they have Korean Government support, we need to know a bit about the Global Infra Fund to be able to tell and determine the type of support that is available. We asked and we were given a document. That Fund is -
Mr First Deputy Speaker 2:15 a.m.
Who gave you the document?
Dr A. A. Osei 2:15 a.m.
Mr Speaker, the parties, the Government.
Mr First Deputy Speaker 2:15 a.m.
For the
record?
Dr A. A. Osei 2:15 a.m.
Mr Speaker, yes, for the record, for the Committee members.
Mr First Deputy Speaker 2:15 a.m.
Who gave you?
Dr A. A. Osei 2:15 a.m.
Mr Speaker, from the people who came to the meeting. Ministry of Finance and Economic Planning.
Mr First Deputy Speaker 2:15 a.m.
Very well, very well.
Dr A. A. Osei 2:15 a.m.
Mr Speaker, the Ministry of Lands, Transport and Maritime Industry is the Ministry that is responsible for this Fund. A bit of a background, this Fund in this document, says it has an initial capitalization of 1.8 billion, from 2009 to 2012. But if you go and read it, it will be interesting to know the type of support that is being given by the Ministry. And with your permission, I want to quote and this is the translation that was given to us.
Mr Speaker, the operative word here is that -- I want to go over so that you hear what I said:
1. “According to the results from the International Construction Committee for deliberation, we would like to inform the Ghana
Housing Project that STX Construction has applied for and was selected as the concern project which will be supported on the feasibility studies.
2. Further discussion on the project will be preceded to perform the business more smoothly. So please attend to the meeting as below.”
They give a date of between 1500 and 1600 on mandate, 12th April.
rose
Dr A. A. Osei 2:25 p.m.
Mr Speaker, what is most interesting is that Ghana Government which wants to borrow this amount -
Mr First Deputy Speaker 2:25 p.m.
Hon Minister for Water Resources, Works and Housing -
Mr Bagbin 2:25 p.m.
Mr Speaker, I only sympathize with my Colleague when my attention was drawn to the fact that he had to leave because he lost his mother. But we went beyond feasibility studies and in fact, officials of the Global Fund even came to Ghana and met us to discuss the whole thing. So the feasibility studies is the first step - [Interruption] - they came to discuss it.
So what he is saying, is because he was not in the Committee; he had left for a funeral - [Interruption] - that is the beginning; that is true. But after the feasibility studies, they proceeded beyond that to approve the project and to even come to the country to discuss it.
Mr First Deputy Speaker 2:25 p.m.
Hon Dr
Akoto Osei, kindly continue.
Dr A. A. Osei 2:25 p.m.
Mr Speaker, when I started, I said it was important that we Members of this Parliament, who are being asked to approve of such a huge loan, should be given all the important documents so that we could make informed judgments - [Interruption] - Mr Speaker, at least, as a Committee member, at the last meeting, this is what I was given. But it does not violate what I am saying. The document said, “you must do feasibility studies first”.
Mr First Deputy Speaker 2:25 p.m.
I beg you, can you leave me out of this - [Uproar!] I am in the Chair; I am in the Chair, so kindly leave me out.
Dr A. A. Osei 2:25 p.m.
Mr Speaker, ab initio, the fundamental question, where is the source of funding is, has not been answered. Mr Speaker, assuming for the purposes of argument, assuming [Interruption] - I know it has not been answered for me as an MP. But assuming for the purpose that it has been answered somewhere in the Off-taker Agreement, which most Members do not have - [Interruption]
Maj. (Dr) (Alhaji) Mustapha Ahmed (retd): On a point of order. Mr Speaker, my Hon Colleague is misleading this House. The source of the funding is not in doubt. Indeed, when officials of the Korean Infra Fund visited Ghana and paid a visit to the Ministry, they produced documentary evidence of the support for the project - [Interruption] - Indeed, the report is captured in the Daily Graphic - [Uproar!] - “Korean Government

supports STX with US$400”. Mr Speaker, there is evidence that the money is available.
Mr Dery 2:25 p.m.
Mr Speaker, this is serious business. The representatives of the people of this country are asked to approve an Agreement that will bind this country and be enforceable against us. And we have the Hon Deputy Minister referring to a newspaper as an assurance for this House. God must have mercy on us; we are not going to be used that way. If there are no documents to support the effort, we are not going to be used that way -
Mr First Deputy Speaker 2:25 p.m.
Hon Akoto Osei, I am giving you enough time but you have some few minutes more - [Interruption] - I have been watching the time and I have taken into account the interventions that are being made and I am subtracting it from the total number of minutes that you have been allocated. So you have five more minutes to - you have five more minutes in case there is no intervention from anybody to conclude your -
Dr A. A. Osei 2:25 p.m.
Mr Speaker, this matter is very important for all of us and the people of Ghana. You know, in the last month, it has been in the public domain. It is in our collective interest that, at least, we are apprised of all the facts so that we will make a decision because 20 years from now, the decision -
Mr First Deputy Speaker 2:25 p.m.
Hon Akoto Osei, I entirely agree with you and that is why when I met your Leaders in the Speaker's Lobby, we agreed with them to give you sufficient time. But the truth also of the matter is that there are others who would come and complement. You are not the only person who would be speaking. So wherever you end, others from your side would come to complement yours.
Dr A. A. Osei 2:25 p.m.
Thank you.
Mr Speaker, as I said, I will give you a copy of this Off-taker Agreement so that when I quote from it, you can follow. This Off-taker Agreement which was signed by the then Hon Minister for Water Resources, Works and Housing, Hon Albert Abongo, dated the 9th day of December, and Mr Speaker, with your permission, I want to quote clause 3 -
“The GOG hereby undertakes to issue to and in favour of STX a Government guarantee, under section 10 of the Loans Act, 1970 (Act 335) securing its financial obligations in relation to the GOG Off-take, valid and sufficiently viable to enable STX to obtain funding from financiers and investors for the forty five per cent (45%) of the 200,000 housing units to be built under the housing project. In relation to this Off-taker Agreement and the Government guarantee, the GOG shall waive its sovereign immunity.”
Mr First Deputy Speaker 2:25 p.m.
Honourable Members, order!
Dr A. A. Osei 2:25 p.m.
In that venture, we could have raised US$3.2 million on the back of only a sovereign credit rating as a sovereign nation. Mr Speaker, here we are, a whole nation, being asked to, (1) agree to off-take 90 thousand units, (2) give a sovereign guarantee when we still
have a sovereign credit rating in addition, as it is said in the Committee's Report, pay insurance for this same loan.
Mr Speaker, how can you have a sovereign guarantee and agree to pay over US$250 million to insurance to insure the loan? This is too serious. On the -
Mr First Deputy Speaker 2:35 p.m.
Is it only a
copy of that document you have -- No, I mean you , I want to be part of the - No, I do not have a copy of that document. I need to have a copy of that document so that as he quotes, I also know that he is quoting correctly.
Papa Owusu-Ankomah 2:35 p.m.
Mr Speaker,
all the documents being referred to by my Hon Colleague are documents that were given to us by the Ministry at the Finance Committee meeting, so they are part of the records of the Committee. I am sure the Hon Chairman can confirm this.
Mr First Deputy Speaker 2:35 p.m.
Hon
Member for Sekondi, I am not doubting that; I only need to have a copy with me here so that as he quotes, I also have it here so that I can follow his line of argument. If I do not have the document and he is quoting and making the arguments, I would not be able to follow his submission.
Dr A.A. Osei 2:35 p.m.
Mr Speaker, the point
is that as a nation, we do not need to provide a sovereign guarantee and then pay insurance. What is the sovereign guarantee for? It says that should there be a default, Government will pay. Then we are reading from the Committee's Report - This is one of the things. It says and I quote:
“The loan amount is for US$1.5
Papa Owusu-Ankomah 2:35 p.m.
Thank you
very much, Mr Speaker -
Mr First Deputy Speaker 2:35 p.m.
Are you
on the floor?
Papa Owusu-Ankomah 2:35 p.m.
Mr Speaker,
it is just a point of information and my Hon Member -
Mr First Deputy Speaker 2:35 p.m.
Has he
yielded to you?
Papa Owusu-Ankomah 2:35 p.m.
Yes, Mr
Speaker. I was then the Attorney-General and Minister for Justice and when this was brought to my attention, I had a discussion with His Excellency the President, advised him and he instructed me to delete that particular clause from the Agreement and it was brought back to Parliament and Parliament approved it.
Mr Terkpeh 2:35 p.m.
Mr Speaker, I wish to
state that on the issue of insurance to - [Interruption.] It is a point of order just to inform you that -
Mr First Deputy Speaker 2:35 p.m.
Hon
Deputy Minister for Finance and Economic Planning, I indicated that I would be very strict with the enforcement of the rules. If it is an information you want to give, it depends on him yielding to you. But if he has said something which is out of order, let us know, then I will rule accordingly. So what do you want to do? If it is an information, wait for your turn.
Mr Terkpeh 2:35 p.m.
Mr Speaker, I will wait
for my turn but this is a point of order to the point of misleading statements as well as provide information.
Mr First Deputy Speaker 2:35 p.m.
Well, if you say it is misleading, let us listen to you.
Mr Terkpeh 2:35 p.m.
Mr Speaker, the Hon
Member quoted earlier from the Term Sheet, which my Hon Minister mentioned and on that Term Sheet, what is being insured? One of the things we have been struggling with as a nation is the perception that it is risky to invest in
Africa. The insurance - [Interruptions] -- In this regard, as with other agreements that have been provided to this Honourable House, what the insurance is about is political risk and commercial risk. It is not about default and it is in the Term Sheet. It is stated explicitly in the Term Sheet- [Interruption.]
I also wish to state that the fact that you have a sovereign rating does not prevent any one institution from asking for further guarantees for entering into a loan agreement.
Mr First Deputy Speaker 2:35 p.m.
Hon
Deputy Minister, that is not a point of order.
Hon Member, continue.
Dr A. A. Osei 2:35 p.m.
Mr Speaker, were the
Hon Deputy Minister not my Friend, I would really have gone off --
Mr First Deputy Speaker 2:35 p.m.
Hon Member, I have already ruled on the matter. Continue.
Dr A. A Osei 2:35 p.m.
Mr Speaker, first of all,
what my Hon good Friend is saying is that he, as an Hon Deputy Minister will advise this Government which has a B+ sovereign rating to pay US$250 million as political risk. Is that what he is saying as one of the key advisors to the President? The Hon Minister is shaking his head. Mr Speaker, I wish he had not made that statement. I will not go there. But already, we had established the fact that we should ignore that particular bank.
In fact, that is why we are asking, why is it there as an insurance? Is it coming from Global Infra Fund? Is the Global Infra Fund asking Government to pay US$250 million? Because tt is not Woori Bank -- He should be asking himself. If the original Term Sheet came from
Woori Bank and they were asking for an insurance -- now that it is coming from Global Infra Fund, what are they asking for? There is nothing there that Global Infra Fund is asking for insurance. So, who are we paying this to? There is no source. It should be taken out because Woori Bank's offer is non-binding and Infra Fund is only going to do feasibility studies. So we, as Hon Members of Parliament should be asking, if we approve US$1.525 and we are told that the project is US$1.3, what is the 252 million for? And who is that being paid to? It is a fundamental question that we must address.
Mr Speaker, the documents that you have -
Mr First Deputy Speaker 2:35 p.m.
Hon Member, you should start winding up.
Dr A. A. Osei 2:35 p.m.
Mr Speaker, I thought I was only warming up. Even if I stop, my Hon Colleagues are here to support me, so I am not worried. [Interruptions.]
Mr Speaker, in the Report, I would let
my other Hon Colleagues go into details, I just want to make reference to it a question that was asked on page 5 of 7 (3/7) about debt sustainability and the answer that purported to have been given by the Hon Deputy Minister reads as follows:
“. . . with prudent loan management, this facility will not substantially impact the debt sustainability ratio of the country in the medium term.”
As at December 2009, our total debt stock was about US$9.2 billion. If you add the potential in this single transaction, which is US$4.5 billion, you will move it to 13 point something billion. This is a significant addition to our debt stock. We will be moving from 60.2 per cent of GDP to 95 something with one single transaction.
We have to stop to question ourselves, is this a proper use of resources? Why do
Mr Terkpeh 2:45 p.m.
Mr Speaker, again, I rise
on a point of misleading statement. Mr Speaker, my Hon Friend --
Mr First Deputy Speaker 2:45 p.m.
He says that you are misleading the House, so let us listen to him.
Hon Deputy Minister, you have the floor.
Mr Terkpeh 2:45 p.m.
Mr Speaker, my Hon good Friend is well aware that the debt sustainability is computed in terms of what we define as the present value of the loan. Mr Speaker, these calculations depend on the time of disbursing the loan and on the duration over the payment of the loan. [Interruptions.]
Mr Speaker, this is a loan that has a five year moratorium and it is repayable over 15 years and therefore, if you are doing the computations, you have to spread both the disbursement and the repayment over the 20 - year period. And when you do that, in terms of job sustainability, it moves by two percentage point and not what the Hon Member is stating.
Dr A. A. Osei 2:45 p.m.
Mr Speaker, as I said,
I know there is a difficulty on the part of my Hon good Friend to want to support what his Government wants to do. I can
understand that. But please, this is much more serious than just wanting to support his Government. Let him go and ask the International Monitary Fund (IMF) if they support this loan. He knows what I am saying is true.
Mr Speaker, let us face the facts, one single transaction, your current dest stock is US$92.2 billion and you are willing to borrow US$4.5billion from no identified source and you are sitting here trying to talk about debt sustainability? You do not even know where the money is coming from; he should not be going there. Mr Speaker, he should not be going there -
Mr First Deputy Speaker 2:45 p.m.
Hon
Member kindly wind up. I have given you enough time. Hon Member, we agreed that we will give you 20 minutes, you started at 7 minutes to 3 o'clock -- look at the time now. I beg you, kindly wind up.
Dr A. A Osei 2:45 p.m.
Mr Speaker, I tried
to give an information on this rather very important transaction, which, in my opinion, as of now, this august House does not have sufficient information to interrogate. Mr Speaker, let me remind you, number one, as of now, we cannot unequivocally identify the source of this loan, we cannot. We know -
Mr First Deputy Speaker 2:45 p.m.
Hon
Member, you have made that point already, so conclude.
Dr A. A. Osei 2:45 p.m.
Mr Speaker, number two -- [Interruptions] -- there is a Joint Venture Agreement that by definition, is an international economic transaction which this House has not approved of yet.
Number three; there is an Off-taker Agreement which by definition, is an international economic transaction that we have not approved yet. There is supposed to be an Engineering Procurement and Construction Contract (EPC), also an international agreement, which this House has not approved yet. The legal people will deal with it further.

Mr Speaker, it is only prudent, the debt implications are obvious, for one single transaction that does not increase our capacity to pay.

Mr Speaker, I urge Hon Members on

the other side of the House, to please, look at the facts and let us find a way, to send this back. We want housing for the security services but in this form, Mr Speaker, I beg to say that this House should not adopt the Report
Mr First Deputy Speaker 2:45 p.m.
Hon
Cecilia Dapaah --
Mr Kyei-Mensah-Bonsu 2:45 p.m.
Mr Speaker, with respect, the next in the order is Hon Joe Ghartey.
Mr First Deputy Speaker 2:45 p.m.
Hon
Member, I do not have any list from you here. What you told me when we met was that, we take the Chairmen and Ranking Members first. That was what I was told in the Lobby. The Hon Majority Leader is here. [Interruptions.] Hon Members, Order! That does not mean that you cannot change it. It can be changed but when you want to change it, you must inform me. If I am not informed and I am going according to what your Leaders tell me, then meeting together to discuss things among ourselves is becoming superfluous in this House.
Mr Kyei-Mensah-Bonsu 2:45 p.m.
Mr
Speaker, with respect to the Chair, as you rightly observed, initially, that was the agreement; we were to submit a list to you. Unfortunately, as you said, the list has not come but we structured it in such a manner that we will have a smooth and intelligence discourse in this House. So Mr Speaker, with respect, if you may allow Hon Joe Ghartey to come in as a second person.
Mr Avoka 2:45 p.m.
Mr Speaker, I am
very surprised at the turn of events --[Interruption] -- possibly by the Minority Leader. Mr Speaker, we had the opportunity of meeting you in your office, just less or about an hour ago and we agreed on the structure of debate. That structure of debate was supported by the practice in this House that when the Chairman of a committee moves a motion, it is the Ranking Member who will then talk before any other fellow comes to talk and that is what we are following. I am surprised at the turn of events.
Mr Speaker, we are guided, that was the agreement he has applied and it is in your bosom to decide.
Mr First Deputy Speaker 2:45 p.m.
Hon Members, it is not for me or for that matter, anybody to tell who should speak for which side of the House. It is for them. But when we agree and they want to vary, it is important that the Chair is duly informed.
Hon Joe Ghartey.
Mr Joe Ghartey (NPP - Esikadu/ Ketan) 2:55 p.m.
Thank you Mr Speaker, for giving me this opportunity to contribute to the Motion.
Mr Speaker, I want to put on record that housing, as a general principle, is a very important matter. It is something that I will support and I am sure all of us will support with both hands. In fact, the Chairman of the Committee on Works and Housing said that we should treat this in a non-partisan manner and I totally agree with him.
Mr Joe Ghartey (NPP - Esikadu/ Ketan) 2:55 p.m.
Mr Speaker, but the matter sometimes

Mr Speaker, my Brother and Uncle from that famous constituency, says that I should go to Chorkor -- [Laughter.] I want to assure him that I know Chorkor very well; nle Chorkor fe bo. [Laughter.]

Mr Speaker, but the point is that, we

also have a responsibility simply not even as a nation but also as Members of Parliament. And for me, every time an agreement of this nature is brought to the House, there are three principles that I look at to convince myself whether it is an agreement that I should support or not.

The first principle is value for money; and by value for money, I mean that what we are coming to contract for, is it something that we are contracting and we will get maximum economic value for?

For example, if we are going to buy a ball of kenkey and then it is brought to this House that a ball of kenkey costs US$10, I may not support it. If it is the value that kenkey is sold for, I will support it. For example, if it is a two-bedroom house and they said that it will cost US$50,000, I may not support it but if it is US$32,000 that we all know that people are selling houses in Kasoa for, I may support it. So value for money, in my opinion, is important. I agree that I am not an economist, I am

a lawyer and so, for value for money, I look among other things, to the Finance Committee to be able to advise us on the value for money.

The second point that I look at is transparency. Is the agreement and all the circumstances surrounding the agreement transparent? Mr Speaker, we are all members of the Association of Parliamentarians against Corruption and as you know, it tells us as MPs to be careful about matters which may give an impression that there are some shady deals or underhand deals. And indeed, it has been said by proponents of transparency that sunshine is an antiseptic which takes away all bacteria. And what that means is that when you make all the documents available and people see them, people will be satisfied and would go away happy knowing that the proper thing has been done.

The third point that I look at Mr Speaker, is legality. And I will divide that into first of all, general legality, legality simplicita which are Acts of Parliament and constitutional legality. We should not forget that we are creatures of the Constitution and we are here fulfilling a constitutional mandate.

Mr Speaker, unfortunately, I am not in a position to tell that the Hon Member who spoke before me, Hon Akoto Osei -- in fact, all the Hon Members who spoke before me, I am not in the position they are in. Hon Akoto Osei is a member of the Committee, the Chairman of the Finance Committee spoke, the Ranking Member of Committee on Works and Housing spoke - [Interruptions] -- I am sorry, the Chairman.

Somebody says he likes post, he does not like post, that is his correct position. He is the Chairman and I recognise him as such. We have the Chairman of the Committee, the Deputy Minister for Water Resources, Works and Housing and the Hon Minister for Water Resources, Works and Housing.
Mr Joe Ghartey (NPP - Esikadu/ Ketan) 2:55 p.m.


Mr Speaker, those who have spoken are people, who by virtue of the positions they hold, have pieces of information that the rest of us do not have. [Interruptions.] It is clear, in fact, at a certain point, Mr Speaker had to ask for an Off-taker Agreement.

Now, when you look at the Agreement which was laid on the 23rd of June, 2010, the first thing that strikes you is that it was laid after 10 o'clock in the morning or so, soon thereafter that it was accepted at the Table. [Interruption.] My young Friend at the back will not distract me -- Mr Speaker, it says:

“Par t i e s , STX Eng inee r ing Construction Ghana Limited . . .”

And they described it as the “Lender.” Mr Speaker, this Agreement is an agreement, which when you look at the memorandum and the letter from the Ministry of Finance and Economic Planning, it says that they are coming under article 181of the Constitution, that is correction.

This is because they are coming under article 181(1) which deals with loans and article 181(5) which deals with international economic transactions. This is because this Agreement is an agreement in the nature of a loan and also in the nature of an international economic transaction. STX is described as the Lender.

Some Hon Members - Salon, barbering shop.
Mr Ghartey 2:55 p.m.
Whether it is a salon,
whether it is barbering shop, whether it sells tea and kheebab - [Laughter] We have not been told -- On a more serious note, Mr Speaker -- and I was just repeating what my Friends opposite were saying.
Mr Speaker, on a more serious note, it
is of utmost importance that this House is informed by your Committee that this is the nature of business of this company. It is not sufficient if that information is only in the bosom of the members of the Committee. When they were reporting to Parliament, we should have had that information; the objects of their business.
Some Hon Members 2:55 p.m.
Wind up.
Mr Ghartey 2:55 p.m.
Mr Speaker, when they
are playing soccer and they are bringing in a substitute who has the tendency of scoring goals then the other side is afraid. Why are they asking me to wind up?
Mr Speaker, we have been told that today we are approving the Supplier Credit Agreement which is to do with the 30,000 houses and Mr Speaker, I totally agree with you.
But Mr Speaker, unfortunately, it is difficult for us to behave like ostriches and forget about the background. The reason being that in the Committee's Report and in the letter from the Hon Minister for Finance and Economic Planning to the Committee asking the Committee to approve or to commence the approval of this contract, it talks about two things.
Mr Speaker, on page 2 of the Report,
Mr Ghartey 3:05 p.m.
under paragraph 2.0, it talks about what is called a private-public partnership to develop 200,000 houses. Then it goes on to talk about 90,000 units as duty posts.

Mr Speaker, indeed, the Report tells us that it is out of these 90,000 units that the 30,000 units are for the security agencies. So, what we are looking at - the Supplier's Credit Agreement, is not a stand-alone agreement. The Agreement itself says that we have entered into an agreement for 200,000 houses. Out of the 200,000 houses, we are giving 90,000 to the Government of Ghana. Out of that 200,000 the Government of Ghana is going to take 45 per cent, which is 90,000 houses; out of that 90,000 houses, we are giving 30,000 houses to the security agencies.

That is why we are here. We are here to approve the 30,000 which arises out of the 90,000 which arises out of the 200,000. So if the 30,000 is the grandchild, the 90,000 is the mother and the 200,000 is the grandmother -- [Laughter.] Mr Speaker, we do not know the ancestry of this; we have not been shown the ancestry of this 30,000. Mr Speaker, we are told -- when you look at the Agreement, the recitals - it says there that

“Whereas the Government has signed a Joint Venture Agreement dated - with the Lender for the development of a total of 200,000 houses,

(b) whereas the Government has also signed an Off-taker Agreement with the Lender to acquire 90,000 housing units under the Ghana Housing Project; whereas the Government has decided to assign 30,000 housing units out of its agreed Off-taker Agreement to the security agencies, the Government and Lender have entered into this Agreement.”

So, the recitals of the Agreement show quite clearly that the basis for this Agreement that today we are discussing, is the 200,000 and the 90,000. Indeed, Mr Speaker, when you look at the Memorandum to Parliament, dated 23rd June, 2010, paragraph 2 on page (1), it is stated - and that Memorandum was issued by the Ministry of Finance and Economic Planning. It is stated that -

“In accordance with the Off-taker Agreement dated 9th December, 2009 between the Government of Ghana and STX Ghana, Government of Ghana agreed to off-take 90,000 out of which they are giving 30,000 to the security agencies.”

Mr Speaker, the point there is that this Agreement has been signed. The Off- taker Agreement has been signed on 9th December, 2009; the 200,000 Agreement, we are not told the date it was signed. Why are we in Parliament? Why are we standing here today? We are standing here because the Agreement is between the Government of Ghana and a foreign entity.

Even though the company has “Ghana” there, it is clear under our investment laws, that when a company has the majority of its shareholding not being Ghanaian, it is considered a foreign company and that is why today you and me are sitting here to look at this Supplier's Credit Agreement. Why have we not been shown the Off- taker Agreement which is the mother of the Supplier's Credit Agreement? Why have we not been shown the 200,000 Agreement which is the grandmother of this Agreement?

I have said from the beginning that I am

prepared to support an agreement where there is transparency. Indeed, it was Dr Akoto Osei who was reading part of the Off-taker Agreement because in a non- partisan fashion, it is only with members of the Committee. It has not come to Parliament.

We do not know about it and indeed, it cannot be the first step because from 9th January, 2009, if Government had signed an Agreement that must come under article 181(5) of the Constitution, which dealt with international business transactions, Government should have brought that Agreement here before bringing this Agreement. I cannot support this Agreement then. I can only support this Agreement if the grandmother, the 200,000 Housing Agreement is brought here and the 90,000 Housing Agreement is brought here before this one is brought.

Mr Speaker, when you look at this

Agreement, it says on page 5 - it is in the Interpretation -- and it describes project specifications to mean --

“. . .the execution of the project in accordance with the specifications set out in Schedule (2).”

The Agreement tells us that this entire Agreement is a project, a project to build 30,000 houses for the security services. The Agreement tells us that the specification of the project is in Schedule

(2).

Mr Speaker, I have told you already

that I am a man who believes in housing. Indeed, our good Lord Jesus Christ, in John Chapter 14 verse 2, said,

“In my Father's house are many mansions and I will go and prepare a place for you.”

Food, shelter and clothing are the basic necessities of man. So, Mr Speaker, with joy in my heart, I move the pages to Schedule (2). Alas, Schedule (2) is totally blank - [An Hon Member: Eei! Ataa Naa Nyonmo e-e] - totally blank, there is nothing on it.

We are being told that the project specifications are in Schedule (2), Schedule (2) is totally blank. How can I, in all truism, be party to an approval process
rose
Mr First Deputy Speaker 3:05 p.m.
Hon
Minister for Water Resources, Works and Housing?
Mr Bagbin 3:05 p.m.
On a point of order. Mr
Speaker, I am really very surprised - very, very surprised that Government in being very, very transparent, attaches a draft to the Memorandum to Parliament and that draft, which is not signed, not initialled, not done by any person, is referred to as Agreement -- [Interruptions.] The Memorandum is here - a draft, giving Parliament the opportunity to raise issues and discuss it - and I am happy he is raising the issues and discussing -- but not referring to it as an Agreement. There is no party, nobody has signed this, nothing. It is just to be transparent that it is attached. Why?
Mr Kwame Osei-Prempeh 3:05 p.m.
Mr
Speaker, I am surprised at what the former Majority Leader is saying. This comes under article 181. Under article 181, the demand is that the Agreement for the loan is laid before this House. Mr Speaker, we have gone through these things several times. At some point in the NPP's time, a Hycoprojekt Bratislavia was brought; at that time, I was the Chairman for the Works and Housing Committee. When the Agreement was brought to this House, the Committee decided that it was not good.
We had to send it back and re-write it before it was laid before this House. This is because what by article 181(2) is required to be laid in the House is the Agreement.
So, if the Hon Minister believes that this is not the Agreement, then he must withdraw it, go and do the corrections and bring it back to the House -- [Interruptions] - because what he is saying is not in tune with the Constitution. I am sorry. He is misleading himself and the House.
Mr Ghartey 3:05 p.m.
Mr Speaker, indeed
Mr Kyei-Mensah-Bonsu 3:05 p.m.
Mr Speaker, without prejudice to what the Hon Member for Nsuta/Kwamang/Beposo (Mr Osei-Prempeh) has said, are we not as a House required to know the details and have an informed opinion about the Agreement before us? So, if certain things are missing, it cannot be questioned, it should only be considered as a draft? Is that the intention of the Hon Minister for Water Resources, Works and Housing?
Mr Ghartey 3:15 p.m.
Mr Speaker, indeed, if I even take away the contribution by the Hon Minority Leader, not that I do not agree with him, but even if I do not rely on it, even relying on the Hon Minister for Water Resources, Works and Housing, a man I have great respect for, even just relying on what he has said, it is clear to me that this House cannot proceed.
Mr Speaker, when you look at Order 171(1), what the Finance Committee should have done is, when a loan agreement or an international business or economic transaction that requires the authorisation of Parliament through a Resolution is laid before Parliament, it shall be the duty of the Finance Committee to examine the Agreement or transaction, and make recommendations to the House. They have a draft; they do not have a complete document. So, what is the basis of the Report?
They do not have a full document; they have a draft. They have a document in which Schedule 1 says that other conditions precedent to be entered. Schedule 2 says that project specifications is empty. Schedule 3 is a repayment Schedule -- Interest payment and principal repayment. It is also empty. And the Hon Deputy Minister, who I have great respect for, who is giving us information, is giving us information on the basis of a newspaper.
The Hon Minister is telling us that after this, he had a meeting in his office with some Koreans. I agree with him. I know he is doing a lot of work. I see him in the Papers. But that meeting with the Koreans does not affect our business here. He is now part of the Executive. If it is relevant to us, he should have brought it to our Committee. Our Committee should have brought it to us or referred to us so that we can ask for it, then it becomes relevant.
I am strictly relying on the three documents that I have been given as an Hon Member of Parliament, who is not an Hon Member of the Committee. And the Hon Members of the Committee do not have any precedent over other Hon Members of Parliament; they do not. [Hear! Hear!] - We need to have the same information that they have for us to make up our minds.
Mr Speaker, in this House, in the
Committee on Mines and Energy, we have had a situation - a similar thing has arisen and we have insisted and it has become part of our practice, that before we deal with the Agreement, there has to be full disclosure. Who are the shareholders? Are they authorised to do the business they are supposed to do? We do not deal with half agreements or with drafts. In this House, there was a time that we were discussing a matter between the signing of an agreement and the question of alleged conflict of interest involving Mr Asafo- Adjaye, who is now at the Ghana National Petroleum Corporation (GNPC), arose.
The matter was referred back to the Committee. The letter that he sent to show that he had cleared himself, was made available to all of us. We demand that the Off-taker Agreement which has been referred over and over again in this Agreement should be made available to us. We demand that the Off-taker Agreement, which is an international economic transaction under article 181(5) of the Constitution should be brought to Parliament for approval.
We demand that theJoint Venture Agreement, which is for the two hundred thousand (200,000) be brought to the House for approval. We demand that the EPC Agreement, which was brought to the House, I believe in the Bui Dam contract, should be brought to the House. That is the contract which talks about the implementation of the project. There should be full transparency.
I am excited about the two hundred thousand (200,000) houses. But the warning, Mr Speaker, is that two hundred thousand (200,000) houses - the housing sector can collapse the economy. In America, Freddie Mac and Fannie Mae, which were federal- sponsored mortgaged companies, a run on their money led to the beginning of the collapse of the whole American economy.
In Latvia, as we speak, it is because of housing -- And the thing that frightens me the most, is that it is in five years time before we start paying. And we will finish paying in 20 years, where perhaps, Hon Bagbin and I will not be sitting here but maybe, Bagbin Junior will be sitting here rather than Bagbin Senior. [Laughter.] Twenty years` time, how many of us will be here? We cannot just sit down and something that can potentially mortgage - not our future, because I may not be around in 20 years. I am quite an old boy, you know - but the
Mr Ghartey 3:15 p.m.


future of our children and our children's childre -- we are passing it on the basis of a draft, against the laws of Ghana that deal with the financial sector and against the Constitution.

Mr Speaker, to that I say -
Mr First Deputy Speaker 3:15 p.m.
Hon
Member?
Mr Ghartey 3:15 p.m.
Mr Speaker, I conclude
Mr Bagbin 3:15 p.m.
Mr Speaker, I want, once again, to draw the attention of the House to the fact that my Hon Colleague, Hon Joe Ghartey, who is a learned Friend, is grossly misleading this House. And I am going to rely on the Constitution. This House has on a number of occasions debated this. And I am going to quote the Constitution, article 181(1):
“Parliament may, by a resolution supported by the votes of a majority of all the members of Parliament, authorise the Government to enter into an agreement for the granting of a loan out of any public fund or public account.”
We debated it here a number of times and we stated that the Government had to attach the draft agreement. It is when we authorise the Government that the Government can now enter into an agreement. That is the Constitution.
Again, “to enter” -- so, the Government does not sign the agreement before coming back. To get what from you again? What is the Government coming to get from you again? It is when we resolve, according to the terms of our Resolution, the Government goes to finalise the agreement and now signs it. And that is exactly what we have done. Transparency! Transparency! Transparency! [Hear!
Mr Ghartey 3:15 p.m.
Mr Speaker, indeed, I
like the fact that there is a nice smile on the face of my very respected Friend, Hon Alban Bagbin. Mr Speaker, indeed, I remember that when I started practising as a young man, he was a young man himself but my senior and he was one of the persons that we the young ones, at that time at the Bar, admired. I told him several times. Indeed, most of the time, he is right. Most of the time - almost 99 per cent. But on this occasion, Mr Speaker, on this occasion, Hon Alban Bagbin -- Hon Member for where? - [Some Hon Members: Nadowli] - Nadowli -- on this occasion, he is totally wrong. [Hear! Hear!]
Mr Speaker, article 181(1) and let me
read it to him again. It says:
“Parliament may, by a resolution supported by the votes of a majority of all the members of Parliament, authorise the Government to enter into an agreement for the granting of a loan out of any public fund or public account …”
I did not know that Government was granting a loan. I thought it was money coming from South Korea. In fact, the appropriate article is 181(3). It says:
“No loan shall be raised by Government on behalf of itself or any other public institution or authority otherwise than by or under the authority of an Act of Parliament.”
So, you have come to us asking us to give you an authority to go and borrow money. We are saying that since you are
Mr First Deputy Speaker 3:25 p.m.
You have the floor; why?
Mr Ghartey 3:25 p.m.
Mr Speaker, I continue having the floor --
Mr First Deputy Speaker 3:25 p.m.
You were going to conclude; in fact, you were virtually concluding with the Ananse story.
Mr Ghartey 3:25 p.m.
Mr Speaker, I just want to say that all we are asking my very good Friend, Hon Bagbin, is that, if you want to sign an agreement, bring the whole agreement to us. And 181(1), the Government is the guarantor, not a guarantee.
Before I was interrupted by my very good Friend who has a nice smile on his face, I was telling Mr Speaker about the fable of Kwaku Ananse and Ntikumah - [Interruptions] - which I was told by my mother when I was a child.
Mr Jospeh Y. Chireh 3:25 p.m.
Mr Speaker, I rise on a point order. And the point of order I am raising is this, that relevance in our debate is important. You have permitted my Hon Colleague to make his point. But we are using public money, public time and therefore, when committees have been given the task to examine in detail, it does not lie in the mouth of one individual to say that the
Parliament should listen to Ananse story. I do not even know what he wants to say about it. He must let us respect time in this matter; having made his point, he should allow the debate to flow.
Mr Ghartey 3:25 p.m.
Mr Speaker, I am very sad -
Mr Kyei-Mensah-Bonsu 3:25 p.m.
Mr Speaker, committee meetings are supposed to be extensions of plenary Sittings and the rules and regulations apply as in plenary to committees.
If the Hon Minister responsible for Local Government and Rural Development is saying that the allusion to an Ananse story is a waste of time and irrelevant, may he have the courage to tell the former Majority Leader, current Minister for Water Resources, Works and Housing, when he told a story about toads at the Appointments Committee level, that it was a prodigal waste of the time of Parliament? [Interruptions.] We should be consistent and he should be consistent.
Mr First Deputy Speaker 3:25 p.m.
Hon Ghartey, your last sentence.
Mr Ghartey 3:25 p.m.
Mr Speaker, I thank you very much for your kind indulgence. You have allowed me to speak for about thirty minutes. It was only in the last minute that I told the Ananse story and Mr Speaker, my learned and Hon Colleague, perhaps, is not aware that Kwaku Ananse stories are very illustrative and everyone of them gives us a lesson in life. And the lesson that this fable gives us is that, we cannot enter into something that we have not seen. So, I urge all the Hon Members of this Committee, I urge all the Members of this Parliament, who are law abiding, who believe in the Constitution not to act
like Ntikumah.
Mr Speaker, I conclude by saying that I urge those who are wearing blue shirts and shouting at the back, that I have seen them and when they start speaking, we shall also start shouting.
Mr First Deputy Speaker 3:25 p.m.
Order! Order! Hon Deputy Minister for Finance and Economic Planning.
Mr Seth Terkpeh 3:25 p.m.
Mr Speaker, in this debate, a number of issues have come up, some of which I have already responded to. But I wish further to clarify a few of them.
Mr Kyei-Mensah-Bonsu 3:25 p.m.
Mr Speaker, I may want to be informed. Is the Deputy Minister contributing or is he just up to wind up or respond to issues? We may have to know.
Mr First Deputy Speaker 3:25 p.m.
Hon Minority Leader, he is on the list provided by the Majority side.
Mr Terkpeh 3:25 p.m.
Mr Speaker, thank you very much on the point of procedure. I am contributing to the debate. I wish to state that on the question of absorptive capacity of the country, let me state that from 2006 to date, this country - [Interruption.]
Mr Kyei-Mensah-Bonsu 3:25 p.m.
Mr Speaker, I wanted a determination. If an Hon Member gets up to support a motion, he would begin by saying that “I want to support this, but in doing so” - [Interruptions.] But Mr Speaker, a person just gets up and says that “on the question of this” -- what does it mean? That is why I said I want to know his locus in this enterprise because I am not too sure of what he is doing.
Mr First Deputy Speaker 3:25 p.m.
Hon Minority Leader, everybody has his style in contributing to the debate; that is the
Mr First Deputy Speaker 3:25 p.m.


style of the Hon Deputy Minister for Finance and Economic Planning.

Deputy Minister for Finance and Economic Planning(Mr Seth Terkpeh): Mr Speaker, for the avoidance of doubt, I rise in support of Motion number 8 on the Order Paper.

In doing so, I wish to state or reiterate, as I was saying earlier, that this country has an absorptive capacity even though as my Ranking Member Colleague mentioned, I did state to the Committee that we would be prudent in everything we do in order that we do not put excessive pressure on the economy.

Mr Speaker, it is in this regard that I wish to draw attention of the House to the fact that between 2006 to date, a short while after we got the Highly Indebted Poor Countries (HIPC) relief, we have executed equivalent of US$6.7 billion loans, the highest of which was in 2008, which was US$2.7 billion.
Dr A. A. Osei 3:25 p.m.
Mr Speaker, just for the avoidance of doubt. I do not think that that was what he meant to say. He said that the single highest project is two- point-something billion. Mr Speaker, I do not recall this House ever approving any money of that cumulative -
Mr First Deputy Speaker 3:25 p.m.
He says, loan.
Dr A. A Osei 3:25 p.m.
No loan worth that value, it could be cumulative. But to say one single project, it is completely -- So he should clarify it ; that is why I said he
should clarify it.
Mr First Deputy Speaker 3:25 p.m.
Hon Member, clarify that position.
Mr Terkpeh 3:25 p.m.
Mr Speaker, I did say that I was quoting the total amount of loans contracted from 2006 to date and so I was giving annual figures. And therefore, the fact of a single loan being 1.4 may be significant but it must be put in the context. Indeed, Mr Speaker, to date, we have contracted nearly - [Interruption]
rose
Mr First Deputy Speaker 3:25 p.m.
Yes, Dr Akoto Osei, point of order again?
Dr A. A. Osei 3:25 p.m.
Point of information on the point he just -
Mr First Deputy Speaker 3:25 p.m.
Is he yielding?
Dr A. Osei 3:35 p.m.
Mr Speaker, what he did not add was that by 2008, we had contracted over US$2 billion -- in one year, from 2008 to 2009, we went from US$7.9 billion to US$9.2 billion. He should add that so that people will see. He talked about three years, US$2.1 billion; one year -- it is almost US$2 billion; it is relative. He should put that in context.
Mr Terkpeh 3:35 p.m.
Mr Speaker, I gave the
cumulative figure; I was not referring to cumulative amounts. For the avoidance of doubt, Mr Speaker, so far, in 2010, we have contracted US$319 million, for 2009, we have contracted US$1.028 million, for 2008, which I cited, we contracted US$2.714 and for 2007, US$1.719 and for 2006, we contracted US$934. Therefore, the point I seek to make is that, even though you may have a single loan which is about 1.4, which is to be disbursed in any case over five years, the project life cycle of five years, it by no means suggests that we have reached the
Dr Kojo Appiah-Kubi 3:35 p.m.
On a point
of order! The Hon Deputy Minister is misleading the House. He talked about a cumulative loan over a period of about four years. What we are discussing is a single loan for one sector. That cumulative loan that he is talking about is for various sectors. So, if he is talking about the inability for this country or for this sector to execute that project, then it is valid because the loans that he is talking about were contracted by various sectors. What is the impact? Various sectors -
Mr First Deputy Speaker 3:35 p.m.
Hon
Dr Appiah-Kubi 3:35 p.m.
The various sectors are going to execute different projects. Those loans were meant for different projects but here, we are contracting a single loan for a single sector going to the housing sector and when we talk about the ability of the housing sector to execute, to build about 40,000 houses a year, we are not lying, Mr Speaker.
Thank you very much, Mr Speaker.
Mr First Deputy Speaker 3:35 p.m.
Hon
Member, that is a point of argument, it is not a point of order.
Hon Deputy Minister, continue.
Mr Terkpeh 3:35 p.m.
Mr Speaker, even
though we are talking about a single loan, I did point out that this is a five-year loan, which averages out to US$300 million a year, which by no means is the highest for a single sector if you take it annually. Mr Speaker, indeed, one of the Self-Help Electrification Projects (SHEP) loans was
secured for US$344.3 million, which is close to a single sector loan with respect to what we are debating today on an annual basis.
Mr Speaker, moreover, in evaluating
the debt sustainability of a country, you do take several factors into account. For example, it is true that when we got Highly Indebted Poor Countries (HIPC) status, the debt sustainability of the country increased immensely, which is what enabled us to contract more loans because much of our external loans were forgiven by donors.
Dr A. A. Osei 3:35 p.m.
Mr Speaker, I am
sorry but we need not belabour this --
Mr First Deputy Speaker 3:35 p.m.
Is it a point of order?
Dr A. A. Osei 3:35 p.m.
Yes, he is misleading this House. Mr Speaker, he is talking about an STX loan before this House. He has not told us where that loan is coming from but he wants this House to believe. Mr Speaker, in the Memorandum they sent to us, they talked about a joint venture for 200,000 units --
Mr First Deputy Speaker 3:35 p.m.
Hon Dr
Akoto Osei, he is contributing. If you have raised a point and he has not responded to it, that does not mean he is out of order. And he has not concluded his contribution. So, let him continue.
Mr Terkpeh 3:35 p.m.
Mr Speaker, in a short
while, I would be addressing that point.
Mr Terkpeh 3:35 p.m.
Mr Speaker, therefore, the point I was

Mr Speaker, I wish to combine the question of the source of the loan with the other points that were made. Mr Speaker, the source of the loan is explicit in the Supplier's Financing Agreement that is before us. It defines the Lender as STX Ghana. Mr Speaker, the Loans Act in section 22 permits the Minister for Finance and Economic Planning on external loans to, and it reads:

“In this Act. unless the context otherwise requires, ‘ external loan means a loan' raised from all or any of the following:

a) The Government of any country other than Ghana;

b) Any person, body or institution whether resident in Ghana or outside Ghana, being a loan raised in currency other than Ghana currency or a loan the repayment of which is to be made in currency other than Ghana currency.”

This, I believe, Mr Speaker, puts STX Ghana rightly in the context as the source of the loan. Mr Speaker, we are dealing with a Supplier's Credit Agreement and a question was raised whether the nature of STX Ghana and about it, is capable of providing such a loan. Mr Speaker, we provided to the Committee the documents on incorporation of STX Ghana. And the regulations of the company states that the nature of business which the company is authorised to carry on are:

(a) engineering construction;

(b) civil engineering works;

(c)project development and management; and

(d) project finance in infrastructure. Mr Speaker, having said that ,
Mr Kyei-Mensah-Bonsu 3:35 p.m.
Mr
Speaker, the Hon Member had got up very long ago to make a point. Clearly, your attention was not focused here, your attention was focused and indeed, glued to just one side and I got up to let you know that somebody had been on his feet for a very long while. So allow him to raise the relevant point of order.
Mr Avoka 3:35 p.m.
Mr Speaker, unless the Hon Minority Leader wants to introduce new Standing Orders here, the Standing Orders are clear. You have to catch Mr Speaker's eye. It is not enough to get up and put your light on and talk. He and I had got up a number of times and the Speaker had not recognised us. There is no obligation on his part to call him. These are the Standing Orders.
Mr Kyei-Mensah-Bonsu 3:45 p.m.
Mr Speaker, I am most surprised at the Majority Leader. [Interruption.] On calmness occasions, he has given signals to you, even from his seat. True or false? What kind of attitude is this? Mr Speaker, we want a smooth- flow of intelligent debate and if a person raises an issue which is in dispute -
As I said, he has been on his feet for a while and your attention was glued to the other side. So when I got up, I thought
you would be rankled to look at me and then I would direct you, that can you offer him space to raise the relevant issue? Mr Speaker, that is all that I intended to do.
Mr First Deputy Speaker 3:45 p.m.
Hon Members, I will call him but let the Hon -
Mr Kyei-Mensah-Bonsu 3:45 p.m.
Mr Speaker, not to question your directive. But Mr Speaker, you do know that if a person makes a point which is disputable and you allow the person to travel for about four, five minutes, the issue of relevance, if the point is raised, will arise.
Mr First Deputy Speaker 3:45 p.m.
No! I will call him once he is still on his feet.
Prof. Michael A. Oquaye 3:45 p.m.
Mr Speaker, in parliamentary practice, Leaders assist in a whole variety of ways. The Majority Leader - [Interruptions]
Mr First Deputy Speaker 3:45 p.m.
Hon Members, the Second Deputy Speaker has the floor.
Prof . Oquaye 3:45 p.m.
Mr Speaker, respectfully, in parliamentary practice, Leaders assist in the order of business and the running of the House. I would not want a precedent whereby if a Majority Leader wants to draw my attention, maybe, to an Hon Member who has to contribute something that I have not noticed or any such important matter that it should be ignored, and I would wish that the pathway that the Majority Leader now wants to tread would be reversed.
I thank you, Mr Speaker.
Mr First Deputy Speaker 3:45 p.m.
Hon Second Deputy Speaker, I should not give reasons but I just want the Deputy to be on his feet, and I get that man on his feet, then I call him to a point of order. That
is all, so that we are consistent with the rule that he has caught my eye. That was what I wanted to do, to get him on his feet and then after he is on his feet, I will call Hon Kan-Dapaah.
Mr Albert Kan-Dapaah 3:45 p.m.
Mr Speaker, I think the Hon Deputy Minister is misleading the House and we need to set the records straight.
Mr Speaker, in Ghana, the power to grant loans does not depend on the object clauses as filed with the Registrar General's Department. It depends on a licence issued by the Bank of Ghana. Is he implying that STX Ghana has a licence granted by the Bank of Ghana? Mr Speaker, the answer is, no. Therefore, he is misleading the House. STX Ghana Limited is not empowered and you know it. You, you know it.
Mr First Deputy Speaker 3:45 p.m.
Hon Members, who is the lender in the Supplier's Credit Agreement? Hon Members, I am only asking a simple question and I asked the question by referring to the Supplier's Credit Agreement before us.
Mr Dery 3:45 p.m.
Mr Speaker, STX Ghana. Mr Speaker, I know we can rely on your guidance in this matter. You should not allow something that is clearly illegal to go.
Mr Terkpeh 3:45 p.m.
Mr Speaker, while conceding certain points to my senior Hon Colleague in the profession, I also wish to state that being registered to provide project finance, may not necessarily mean that you are the one actually giving out the funds. Mr Speaker, it is in this regard that your question is quite appropriate. We are dealing with a supplier's credit and the supplier's credit is to be funded by STX Ghana in collaboration with its - [Interruption.]
Mr First Deputy Speaker 3:45 p.m.
Do you have a point of order?
Mr Hammond 3:45 p.m.
Mr Speaker, I do. Mr
Speaker, with the greatest deference to the Chair, there is something happening in the House which concerns me greatly and it is this.
As we go along, Hon Members on this side are drawing the Speaker's attention to the very fundamental issues, particularly issues of constitutional validity and illegalities. Mr Speaker, we were wondering whether in the process -- particularly when the Hon Member from Esikadu/Ketan drew your attention to constitutional matter -- indeed, Mr Speaker, when you yourself just asked if in the document that we are talking about, the lender is supposed to be the STX (Ghana) Limited --you were going to take this matter and make a ruling as to how we proceed. It looks like you are allowing this debate to -
Mr First Deputy Speaker 3:45 p.m.
Hon Members, the issue of the lender has been raised. In fact, the last person to raise that matter from your side was Hon Kan-Dapaah. The Hon Deputy Minister for Finance and Economic Planning was on his feet to respond to it and if there is the need to make a ruling, a ruling will be made. But nobody is asking for a ruling even at this stage.
Let us hear what the Deputy Minister for Finance and Economic Planning will say, then we will proceed. I have taken note of his comments but it is only fair also to hear the man who was on the floor before he made the intervention for his response to the issue.
Mr Terkpeh 3:45 p.m.
Mr Speaker, as I was saying, your question is appropriate because we are dealing with a supplier's credit, and this is not going to be the first time in which we have dealt with buyers' and suppliers' credit in which there is a financial institution between the parties, the buyer and the seller.
Mr Speaker, indeed, we have dealt with similar transactions in which US EXIM, in which Indian EXIM; in which Korea EXIM, have been the financier
Mr Dery 3:55 p.m.
Mr Speaker, I do appreciate the effort by the Hon Deputy Minister. But Mr Speaker, these are very serious matters. [Interruption.] Mr Speaker, the arrangement that he is talking about is not the arrangement we have in this case.
On page 3 and I want to point it out to you, we have STX Engineering and Construction Ghana Limited, a private company limited by shares incorporated and registered in the Republic of Ghana, whose registered office is at second floor, Pyramid House, P. O. Box 19951, Ring Road, Accra-North, Ghana. The lender of the other part.
At page 6, project financing, 3.1 -
“The lender hereby agrees to make available to the Bank of Ghana a credit facility of an amount not exceeding 1.55 billion for the --”

Mr Speaker, this is clearly a loan situation by the lender and not the agreement that he is talking about.

Mr Speaker, I would ask that you really give us a ruling on this matter because it is germane to this. We would want to know. This is because it is the lender, and this company, he had clearly said --he read out the objects -- does not have any licence to lend it. -- I think it is a very serious matter that we should not allow it to go. That is what I am calling you to do.
Mr First Deputy Speaker 3:55 p.m.
Hon
Members, the understanding that I have from the Leadership is that we are not concluding the debate today. Let us proceed. Hon Members, let us proceed but definitely, before the conclusion of the debate, if there is need to make a ruling on this matter, I will definitely make it. A lot of points have been raised.
Mr Dery 3:55 p.m.
Mr Speaker, I agree, I agree.
So, you are adjourning the ruling? I agree.
Mr First Deputy Speaker 3:55 p.m.
If there is
need for a ruling, I will make it.
Mr Dery 3:55 p.m.
Mr Speaker, I wanted you to adjourn the ruling because now, there is a need for it.
Mr First Deputy Speaker 3:55 p.m.
I am
saying that let us proceed for now. You know, we are all working together, so do not worry.
Mr Terkpeh 3:55 p.m.
Mr Speaker, on this
Dr Prempeh 3:55 p.m.
Mr Speaker, I want
your ruling on the information the Deputy Minister for Finance and Economic Planning is giving us. 3.1 in the MOU says:
“The Lender hereby agrees to make available to the Government a credit facility of an aggregate amount of 1.525 billion for the execution of a project in accordance with the specifications and the EPC contract.”
The Minister for Water Resources, Works and Housing tells us it is not available yet. How did they come by this amount to bring such a draft to Parliament for approval? If you cannot answer --As the Chair, Mr Speaker, you know that I have been seeking tutorials from your goodself and you know that this is germane to the function of this House. If
the EPC contract that alleges a sum of 1.5 billion is not yet signed and you tell this House to give you a blanket cheque to go and negotiate, it is a serious indictment on our participation activities of this House.
Mr First Deputy Speaker 3:55 p.m.
Hon
Deputy Minister for Finance and Economic Planning, kindly continue.
Mr Terkpeh 3:55 p.m.
Mr Speaker, again, if I may reiterate, the emphasis is on providing a credit facility and it is that which makes it a supplier's credit.
Papa Owusu-Ankomah 3:55 p.m.
Mr Speaker, presently, there is an Act of Parliament that governs the granting or taking up of loans by the Government of Ghana. And in section 22, that is, the Interpretation section of the Loans Act --
“ ‘Loan' is defined to include an overdraft and any money lent or given to the Government on condition of return or repayment and any other form of borrowing and lending in respect of which
(a) monies from the Consolidated Fund or any other public fund or
(b) monies from any fund by w h a t e v e r n a m e c a l l e d established for the purpose of repayment, whether in whole or in part and whether directly or indirectly may be used for repayment.”
So, there is no doubt that even though the transaction is described as a supplier's credit financing agreement, according to the laws of this country, it is a loan.
Mr Terkpeh 3:55 p.m.
Mr Speaker, on the point
Dr A. A. Osei 3:55 p.m.
Mr Speaker, my good
Friend is clearly misquoting me and therefore, misleading this House. What I said was, we went out to borrow without a sovereign guarantee or insurance on the International Capital Market in 2007 and we had paid insurance on some loans in this House but there was no sovereign guarantee. So, if he is quoting me, he should quote me correctly. I am saying I do not know of a case where we have given sovereign guarantee and trade insurance. It has never happened. It is historical, so he should quote me correctly.
Mr First Deputy Speaker 3:55 p.m.
Hon
Deputy Minister, that is the point the Ranking Member is making. Where you give a sovereign guarantee and then you insure the facility at the same time.
Mr Terkpeh 3:55 p.m.
Mr Speaker, in the
first place, the sovereign rating may be appropriate under certain circumstances. For example, under the Sovereign Bond arrangement, where you were going into the market and where a large number of people could subscribe to the bond, it may not be necessary to issue individual guarantees for each of those transactions.
Indeed, we do have several arrangers who normally facilitate these transactions.
It is in this context that a sovereign rating may not be necessary. That, however, does not prevent another lender from requiring us to provide other forms of guarantee. Indeed, issues which we do have now are several promissory notes and sovereign guarantees that were issued. We do have them. So, I do not think again, it is unprecedented for us to in spite of our sovereign rating -
Mr First Deputy Speaker 3:55 p.m.
Hon Joe
Ghartey, when you were on the floor people were not worrying you. Why?
Mr Ghartey 4:05 p.m.
Mr Speaker, people
were worrying me. My Hon Friend in the blue shirt worried me, the Hon Minister worried me about the Kwaku Ananse story. My Uncle from Dansoman worried me - [Interruption] - they are all my relatives. Mr Speaker, I just want to, with respect, buttress what Hon Papa Owusu- Ankomah said by reading to you article 181 (6) of the Constitution. Mr. Speaker, we are here under article 181 -
“For the purposes of this article ‘loan' includes any moneys lent or given to or by the Government on condition of return or repayment, and any other form of borrowing or lending in respect of which -
(a) moneys from the Consolidated Fund or any other public fund may be used for payment or repayment; or . . .”
Mr Speaker, the issue of whether it is a loan or not, has arisen. I just want to draw this House's attention to article 181(6) of the Constitution.
I thank you very much Mr Speaker, for your kind indulgence, and for your ruling --
Mr First Deputy Speaker 4:05 p.m.
Hon Deputy Minister for Finance and Economic Planning, kindly continue.
Mr Terkpeh 4:05 p.m.
Mr Speaker, indeed, the notion that if somebody extends credit to you or if somebody pre-finances a transaction may not constitute a loan is one of the reasons we have had very high levels of debt in this country.
Mr Speaker, as we speak now, we do have such situations. We were just in this House to ask Social Security and National Insurance Trust (SSNIT) to provide us with a loan to pay off contractors who had pre-financed government contracts. I think when we start viewing pre-financing of government transactions in terms of credits or loans being proffered to government, we would be moving on the path of better fiscal prudence.
Mr Speaker, it is dangerous therefore, to exclude the pre-financing of government transactions as a form of credit or loan being extended to the government. Invariably, in most cases, in our local circumstances, most of these contractors have gone to banks to borrow money to pre-finance the contracts --
Mr First Deputy Speaker 4:05 p.m.
Hon Deputy Minister for Finance and Economic Planning, the point being made -- they have referred you to the Loans Act and indeed, the Constitution. The question is, given the definition of what constitutes a loan, is this transaction a loan or not? That is really the matter that I thought you would be addressing.
Mr Terkpeh 4:05 p.m.
Mr Speaker, I had
addressed that issue earlier . And I had said that this House had approved in the past suppliers' and buyers' credits - [Interruption] - which is what this loan refers to. So I thought that I had already addressed that issue.
rose
Mr Terkpeh 4:05 p.m.
Mr Speaker, to wind up, I wish to draw attention to the fact that any transactions which were entered into in the past with STX have been very precautionary in noting the sovereignty of Parliament in approving the facility. Indeed, the Joint Venture Agreement states in 2.12 that --
“Parties shall agree to a financing plan for the housing project including financing plan concerning GOG Off-taker and the GOG shall procure approval of such plans by the Parliament . . . ”
Mr First Deputy Speaker 4:05 p.m.
Hon Member for Sekondi -
P a p a O w u s u - A n k o m a h : M r Speaker, I would not want to interrupt the Deputy Minister for Finance and Economic Planning. However, the Finance Committee never had sight of any Joint Venture Agreement. If probably, he is referring to another document, then he should describe it properly. But I am sure the Chairman would confirm that we never saw a Joint Venture Agreement.
Mr Kyei-Mensah-Bonsu 4:05 p.m.
Mr Speaker, I believe the relevant portion of the Agreement - the Joint Venture Agreement -- that he just read, which the rest of us have not seen, calls for approval by Parliament. That is the note that he himself landed. So why is it that that Agreement is not here? Mr Speaker, the Deputy Minister should respond to that because he says as part of the Agreement that he just read, before he sat down, that that Agreement should be approved by Parliament - the Joint Venture Agreement. So where is it?
Mr First Deputy Speaker 4:05 p.m.
Hon
Mr Terkpeh 4:05 p.m.
Mr. Speaker, what I brought was “Arrangements for the financing plan” - [Interruption] - which made reference to those Agreements, and I said that all these were not in effect until the Agreement before the House had been approved.
Mr Speaker, indeed, I did cite a lot of documentation when I made my submission to the House.
Mr Kyei-Mensah-Bonsu 4:05 p.m.
Mr Speaker, with respect to the Deputy Minister for Finance and Economic Planning, he has made a very useful point. He refers to a Joint Venture Agreement - he did so just now. He should not attempt to offskate the debate.
Mr Speaker, he referred to the Joint Venture Agreement - [Interruption] - He quoted a clause and why is he sprinting away from it just now? He just mentioned it and you said it required the approval of Parliament and I am just asking, so where is it? He himself just said it. [Interruption.] -
Hon Fritz Baffuor, if you were listening to him, he just said so. So why should he run away from it and say that “I referred to several Agreements”? Indeed, he has referred to several agreements; but he landed quoting the Joint Venture Agreement and said it required Parliamentary approval. He quoted a section of it.
Mr First Deputy Speaker 4:05 p.m.
Hon Members, did the Supplier's Credit make reference to Joint Venture Agreement?
Some Hon Members 4:05 p.m.
Yes.
Mr First Deputy Speaker 4:05 p.m.
If it made reference to Joint Venture Agreement and Hon Members want to see that document, it should be made available to them. [Hear! Hear!]
Hon Deputy Minister for Finance and Economic Planning, if the Supplier's Credit makes reference to the Joint Venture Agreement and Hon Members are asking for a document that has been mentioned in the Supplier's Credit Agreement; that document should be made available to Hon Members of the House.
Mr Terkpeh 4:05 p.m.
Mr Speaker, it is not my recollection that there is a reference to it -- [Interruption.] Therefore -
Mr First Deputy Speaker 4:05 p.m.
The Off-taker Agreement that has been made available to the Committee members -- Indeed, it should have gone to all the Hon Members; it should have been given to all Hon Members. I know that it is there, I just got a copy from one of the Hon Members, so that one should also be made available. The Table Office should get a copy and make it available to all Hon Members of the House --
Dr Prempeh 4:05 p.m.
Mr Speaker, the ETC contract -
Mr First Deputy Speaker 4:05 p.m.
Hon Member, you are out of order. I have not called you.
Yes, Hon Member for Sekondi?
Papa Owusu-Ankomah 4:15 p.m.
Mr Speaker, I believe that we are all here to ensure that we take a decision on a very important matter. Mr Speaker, the issue of the Off- taker Agreement has been raised. Now, the Deputy Minister has referred to a Joint Venture Agreement; and these two documents have been referred to in the
Supplier's Credit Financing Agreement. As regards the EPC contract, it is supposed to be done at a later date and the financing agreement itself indicates it.
Mr First Deputy Speaker 4:15 p.m.
Hon
Member for Sekondi, I want you to help the Chair. Which portion of the Supplier's Credit refers to the Joint Venture Agreement? Which clause? You made a categorical statement.
Papa Owusu-Ankomah 4:15 p.m.
Mr Speaker,
page 3, it says,
“Whereas the Government has signed a Joint Venture Agreement dated (blank) with the lender for the development of a total of 200,000 housing units in Ghana, the Government has also signed an Off-taker Agreement with the lender to acquire 90,000 units under the housing project.”
The Off-taker Agreement: We requested for it at the Committee level. The Joint Venture Agreement: I believe we requested for it, it did not come but we did not insist because we said it was related to the entire 200,000 housing project. But then all these documents, specifically referred to in this Agreement ought to be part of the documents brought to Parliament so that even together, we could approve all these
things because they are also international business or economic transactions --
Mr First Deputy Speaker 4:15 p.m.
Hon
Members, I have directed that those documents, that is, the Off-taker Agreement and the Joint Venture Agreement, should be made available to all Hon Members of the House.
Mr Terkpeh 4:15 p.m.
Mr Speaker, to wind
up, I wish to state that whereas there is reference to 200,000 housing units as specified in this House, the current Agreement is with respect to the 30,000 units out of the 90,000 for the public sector.
I thank you very much, Mr Speaker.
rose
Mr First Deputy Speaker 4:15 p.m.
What is your -
Mr Fuseini 4:15 p.m.
Mr Speaker, I need further clarification or your direction. You have directed that the Joint Venture Agreement and the Off-taker Agreement be made available to all Hon Members for the purpose --
Mr First Deputy Speaker 4:15 p.m.
-- Be
made available to all Hon Members because they made reference to them in the Supplier's Credit for them to appreciate the whole Agreement, that is, to appreciate the Supplier's Credit. He should make them available to all Members of the House.
Mr Fuseini 4:15 p.m.
Thank you so very much,
Mr Speaker.
Mr First Deputy Speaker 4:15 p.m.
Hon
Majority Leader, should we continue? [Uproar.] Hon Members, you just heard the Hon Member for Sekondi. They are the ones whom we tasked to go and investigate this matter and report to the House. They said, at their level, they did
not insist on it, thinking that they could do this debate at their level.
The point has now been raised seriously
and I have made the orders. That should not prevent us - We are not concluding the debate today. If we were concluding the debate today, then for that one, we would have said that we needed those documents before we continue. But Hon Members, let us proceed. Tomorrow, they will make those documents available.
Some Hon Members 4:15 p.m.
No! No!
Mr Kyei-Mensah-Bonsu 4:15 p.m.
Mr Speaker
Mr First Deputy Speaker 4:15 p.m.
Hon
Members, order! Hon Minority Leader, you have the floor.
Mr Kyei-Mensah-Bonsu 4:15 p.m.
Mr
Speaker, it is indeed, true that when we met, we agreed to listen to, at least, four Hon Members from either side. At this point, however, a very critical matter has been raised relating to the process of approval, what it is that we ought to take into consideration before we approve?
Mr Speaker, it cannot be said that
tomorrow, in the morning when we come and supposedly for the Question to be put, then at the ninth hour, those documents will be availed to Parliament. It would not have any relevance to the debate. So, now that we know that indeed, we ought to have taken all these into consideration, and you yourself have directed that those documents should be availed to all Hon Members of Parliament, may I plead in the circumstance, that we suspend, avail the documents to Hon Members of Parliament and then when we meet tomorrow, we continue with the debate. This is because not knowing the contents in those Agreements, we may be saying something which may be contradictory to the provisions in those Agreements.
So, with respect, can we at this time,
when you yourself have come to know the relevance of the availability of those
Mr Avoka 4:15 p.m.
Mr Speaker, at the very
onset of this debate today, I was quite surprised at the positions or the arguments raised because the Committee's Report is one of consensus as it was read to us in this House. The Committee Chair adverted the minds of Hon Members of this House that there were some areas that they had serious concerns. In fact, they were at liberty to write a Minority Report to inform us of some of these issues.
But to be silent and bring a consensus Report for debate, for the consideration of this House, and for the Hon Ranking Member to get up and for a whole one hour, he spoke against the Report which he took part in preparing, Mr Speaker, I am surprised at that.
Notwithstanding that, if some Hon
Members who are not members of the Committee had detected certain documents that they ought to have at their disposal to be able to debate and the documents are not available, I have no objection if we could defer the Vote now and then resume tomorrow morning. Nobody has anything to hide. There is nobody who has anything to hide. Nobody is playing hide and seek game about this one.
We want transparency. So, Mr Speaker, I have no objection. We can continue this debate at 10 o'clock tomorrow morning and if possible, have available, the documents that they are referring to for us to debate. But I want it to be placed on record that, in the future we should be advised by our respective committees, that these are some of the stumbling blocks, so
that we would be ready to debate.
Papa Owusu-Ankomah 4:25 p.m.
Mr Speaker, it is with a heavy heart that I get up to respond to some of the matters raised by the Majority Leader.
Yes, the Report was by consensus.

Mr Speaker, you can confirm, and I am referring him to you in person because you are one of the most experienced Members of this House and you are what is described as a Parliamentarian. You know that the Committee's Report is only advisory and even the late Justice D. F. Annan had stated that “look, a member of a Committee can even actively participate in the committee's business, the committee would submit a report but he can speak against the report.

When the Leader of the House makes some of these statements, I just want to let him understand that in many respects, he may not, by his utterances, be promoting the business of the House. I regret to say this.
Mr First Deputy Speaker 4:25 p.m.
Hon
Member, I think you are absolutely right in terms of saying that after a committee's report comes, Members can disagree with the report on the floor of the House even if they participated in the deliberation.
But I think for some time now, we have tried to build consensus among ourselves where we try to tell ourselves that there are certain things which ought to be done for us to have a smooth debate on the floor. I think it is in that spirit, if I get him right, that you should have alerted them that you had some objections to certain positions. I do not know whether that thing happened at the Leadership level.
Hon Member for Sekondi, in terms of the principle, we have seen it on this floor where Members who took part in their own report tend to vote against or change their minds on the floor of the House. I think that for some time now, there has been a lot of consensus in this House where when you feel strongly about a matter, you can always -
I have a very interesting experience with the Second Deputy Speaker, when he was Minister for Energy. I am not here to say it because I am in the Chair. If I were sitting down there I would have told you a very interesting experience that I had with the Hon Second Deputy Speaker, when he was Minister for Energy with regard to some of these matters. But we were able to solve the matter at a certain level before we came to the floor.
So Hon Members, your point but you should not go beyond that.
Papa Owusu-Ankomah 4:25 p.m.
Mr Speaker, for the Majority Leader to say that we can write a Minority Report in this House; that is not part of the rules of this House. A committee is a committee, but if - in fact, Mr Speaker, you yourself will admit that we have certain channels of communication that we have been using in this House throughout and in this STX matter, we have used those channels of communication extensively.
When you say some of these things, you then attempt to impugn the integrity of members of the Committee and I believe that is very wrong to come from the Majority Leader because he is the Leader of the House.
Mr First Deputy Speaker 4:25 p.m.
Hon
Members, this is a very important debate and I do not want the signal to be sent that there is a vital document that is very crucial to this debate, which is being hidden from Hon Members of this House. The Chair must always uphold the dignity, the powers and the privileges of this Honourable House. But we should also not use that as a basis to frustrate the business. Members should not use my ruling to frustrate the business of the House.
We are not concluding the debate today; let us do with what we have and then we can continue the debate. We are masters of our own procedures, subject to the Constitution.
Hon Members, let us take one each from both sides of the House and then we decide what to do next.
Hon Minister for Water Resources, Works and Housing.
Mr Bagbin 4:25 p.m.
Mr Speaker, it is true that the Hon Members of the Committee really scrutinised the documents that were made available to them and raised a lot of issues. As we went along in the discussions, we tried bringing before them various documents to answer the queries that they raised at the Committee level.
In fact, Hon Papa Owusu-Ankomah, Hon Dr A. A. Osei and the other members did very diligent work. In fact, some members of the Works and Housing Committee complained bitterly that they were marginalised and were not included. We tried as much as possible to provide solutions to whatever queries that were raised and I commended them highly for that.
Mr Speaker, I just want to correct
the impression which is being created. The impression being created that all documents have to be laid and shared to all Members is not -
Mr First Deputy Speaker 4:25 p.m.
Hon
Minister, I have ruled on this matter -
Mr Bagbin 4:25 p.m.
Please, let me end. I
definitely agree totally with you that the documents that they are requesting for today will be given to Members and the directive is to all Members. But I want it to be clear, that it is the terms and conditions of the loan that are laid and these are contained in the Memorandum that is presented to the House.
As we go along, documents that are necessary are then supplied because I heard Members saying that it is not now that documents would be given to the House and I want to correct that. Before the decision is taken, all relevant documents, anything requested by the House has to be made available before we take a decision, that is the position.
Mr First Deputy Speaker 4:25 p.m.
Hon
Minister, that is precisely - that is what I advised. I did not say they should lay it; I said they should make it available, that was the directive of the Chair.
Hon A. Akoto Osei --
Dr A. A. Osei 4:25 p.m.
Mr Speaker, I have to
respond because the Majority Leader, in his submission, specifically mentioned my name as a Ranking Member. I am rather surprised that he has not been briefed as to the effort I have gone through to do due diligence.
Mr First Deputy Speaker 4:25 p.m.
I thought
the Hon Minister for Water Resources, Works and Housing had just done that.
Dr A. A. Osei 4:25 p.m.
It is important,
including telling the Executive that the three Ministers, the Minister for Finance and Economic Planning, the Attorney- General and Minister for Justice and the Minister for Water Resources, Works and Housing should sit down and meet and clear all the concerns.
Mr Speaker, in the Committee because I was raising these issues, some members on the other side of the House were saying I was complaining too much. I do not have any choice except to come to the floor
of this House to raise issues that I have. Mr Speaker, I told you, the week
the Committee met, there was no way physically I could be there. The only opportunity for me to re-raise the issues is today. The Chairman will tell you. In fact, at one time, I physically almost left because he said I was complaining too much and Hon Papa Owusu-Ankomah had to tell him that this is the way we work at committees.
So to give the impression that the Ranking Member comes here and gives - no; from day one, I have raised these issues, particularly the issue about who is the lender. So it is not fair to me for the Majority Leader to give the impression that I have just come here to oppose him. Please --
Mr Asaga 4:25 p.m.
On a point of order. I
rose
Mr First Deputy Speaker 4:35 p.m.
Hon Akoto Osei, you do not have the floor -- Yes. But then, you do not have the floor.
Mr Asaga 4:35 p.m.
Mr Speaker, again, the credibility of my statement is the fact that he started asking for this document at a Finance Committee meeting and Hon David Assumeng is not on the Finance Committee, he is on the Committee on Works and Housing. [Interruptions.] So, he must put it in context, which of the Committee meetings he was in. But if it is the Finance Committee, where Hon Papa
Owusu-Ankomah was, he was not in that meeting. So, please -
Mr First Deputy Speaker 4:35 p.m.
Hon Members, we have already taken a decision on these documents. I do not think it will be in the interest of the House to belabour these points. I was suggesting that we take one each from both sides. But I want to get the direction of the Hon Majority Leader.
Mr Avoka 4:35 p.m.
Mr Speaker, given the mood of the House and the time reading 4.35 p.m., I would respectfully request that we do now adjourn proceedings until tomorrow at 10 o'clock in the forenoon.
Mr First Deputy Speaker 4:35 p.m.
Hon Members, given the time, I adjourn the House till tomorrow at 10 o'clock in the forenoon -
Mr Kyei-Mensah-Bonsu 4:35 p.m.
Mr Speaker, I was just going to make a point. Yesterday, before the adjournment, I applied to the Chair, that given the importance of the STX, that we began the Sitting with Public Business. Today, when we met, in the morning, there was some misunderstanding about it. Mr Speaker, given where we are, is the point being made that documents will be availed and then when we come, it will be the first thing to be considered as part of Public Business?
Mr First Deputy Speaker 4:35 p.m.
Hon Minority Leader, you know that tomorrow morning, Leadership will meet and then we will know when the documents would be made available and then together we take a decision as to what item to take first.
Mr Kyei-Mensah-Bonsu 4:35 p.m.
That is all right, Mr Speaker.
Mr First Deputy Speaker 4:35 p.m.
The House is adjourned accordingly.
ADJOURNMENT 4:35 p.m.
  • The House was adjourned at 4.38 p.m. till Thursday, 15th July, 2010 at 10.00 a.m.