Debates of 4 Mar 2015

MR SPEAKER
PRAYERS 10:50 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:50 a.m.
Mr Speaker 10:50 a.m.
Hon Members, Correction of Votes and Proceedings of Tuesday, 3rd March, 2015.
Mr Ibrahim Ahmed 10:50 a.m.
Mr Speaker, on page 9, paragraph (5);
“The Hon First Deputy Speaker having regard to the matter and comments made by Hon Members, directed the Clerk to invite the Chairman...”
Mr Speaker, the Hon First Deputy Speaker directed the Business Committee to programme the Chairman of the Electoral Commission, the Hon Minister for Finance and the Hon Minister for Local Government and Rural Development to appear before the House. The Business Committee was to programme -- but he did not direct that the Clerk should just invite them.
Mr Ebo Barton-Odro 10:50 a.m.
Thank you very much, Mr Speaker. It is correct that the order was directed at the Business Committee to programme those people to appear before the House.
Mr Speaker 10:50 a.m.
Very well.
Page 10 -- yes?
Mr George K. Arthur 10:50 a.m.
Mr Speaker, “by the Hon Attorney-General and Minister for Justice, Mrs Marietha Brew Appiah”, I think the “Hon” must come before the “Mrs” and not “Attorney” because the title is for the personality and not the office.
Mr Speaker 10:50 a.m.
I do not see the difference and the correction you are making. That is the name of the person; she is Mrs Marietta B. Appiah-Opong.
Mr G. K. Arthur 10:50 a.m.
She is the Hon Minister so it is not that office that is the “honourable”. The “honourable” goes to the personality, the Minister, the name. So, I think the “Hon” must come before the “Mrs” instead of coming before the Attorney-General.”
Mr Speaker 10:50 a.m.
What is wrong with saying the Hon Minister; I always say the Hon Minister.
Page 11…13.
Hon Members, the Votes and Proceedings of Tuesday, 3rd March, 2015, as corrected, be adopted as the true record of proceedings.

Hon Members, the Official Report of Friday, 27th February, 2015 is for correction.

Any correction?
Mrs Gifty E. Kusi 10:50 a.m.
Thank you Mr Speaker.
Column 1315, the last paragraph, the order of my name is not correct; it should be “Gifty Eugenia Kusi” and not “Eugenia Gifty Kusi.” They have been doing the right thing but I do not know why they have changed it today.
Then in the next column, 1316, paragraph (5) which starts with:
“Mr Speaker, in addition to what my Hon Colleague said about not taking excessive alcohol or smoking, I would add that we should try as
much as possible to eat proper balanced diet so that we get the correct amount of nutrients in our bodies to fight those diseases that we may know the symptoms”.
There should be “not” after “may”, thank you.
Mr Speaker 10:50 a.m.
Very well.

Hon Members, the Official Report of Friday, 27th February, 2015 as corrected be adopted as the true record of proceedings.

Question time.
Mr Alfred K. Agbesi 10:50 a.m.
Mr Speaker, there was an order yesterday that the Business Committee should programme the Chairman of the Electoral Commission, the Hon Minister for Local Government and Rural Development and the Hon Minister for Finance, to appear before the House to give the House a briefing on the way forward for the district level elections.
Mr Speaker, the Business Committee met this morning and in the course of deliberations, it came out that the scheduling or the programming of those concerned to appear tomorrow would not be possible. In view of the fact that the message did not get to these organs of state early enough, and we did not know their programme before the order was made.
The Business Committee is of the view that, instead of tomorrow, the said officers and the institutions should be scheduled to appear before the House next week Thursday, to be able to brief the House accordingly. That is the view of the
Business Committee, particularly, as the order was that they should appear tomorrow but the Business Committee would not be able to schedule them to do so.
Mr Speaker, we want to bring this to your attention so that, you would give the necessary directions.
Thank you, Mr Speaker.
Mr Dan Botwe 10:50 a.m.
Mr Speaker, the Business Committee discussed this and it is obvious that it would be difficult to assemble all of them tomorrow but we would crave your indulgence that because of the high public interest in the matter, if it can be shifted to Tuesday and not Thursday?
Papa Owusu-Ankomah 11 a.m.
Mr Speaker, I believe that this is an urgent matter and the explanation given by the Business Committee is also reasonable. We ought to create a situation where institutions and officers invited to Parliament would have enough notice and also prepare properly.
Under the circumstances, I agree that we balance it. The Tuesday, as suggested by the Hon Minority Whip, may be a fair compromise. Today is Wednesday, and proceedings here are public. I am sure six days should be more than enough. This is because, it is an urgent matter of public importance, so, I support the Hon Minority Whip. I believe Tuesday would be most convenient.
Thank you.
Mr Speaker 11 a.m.
Hon Deputy Majority Leader, first of all, may I ask you this question? Were you able to get in touch with the affected people?
Mr Speaker 11 a.m.
Hon Members, let us get the points very clear.
I do not have a problem because the order has been given and it is a matter of national importance. My worry is that, the order is not directed at one institution but three institutions. That is why I asked you whether you have been in touch with them.
I have been informed by the Clerks-at- the-Table that when they tried to make contact with the Ministry of Local Government and Rural Development, they were not in Accra but in Ho.
We also have the Electoral Commission (EC) and the Ministry of Finance. That is why it is important -- I do not want a situation where an order is made on the floor of the House yet, the institutions or persons involved do not appear.
I thought that the Business Committee would have got in touch with the institutions and then fix a date which would be announced on the floor of the House. That such a date would be available. I know the case of the Ministry
of Local Government and Rural Development. I was informed of the case with the Ministry of Local Government and Rural Development by the Table Office in my Lobby that they were not in Accra.
I do not know of EC and the Ministry of Finance. Fortunately, the Hon Minister is around and I saw him a few minutes ago in the Chamber. His Hon Deputy is also here.
What I would suggest to the House is that, the Business Committee should get in touch with the institutions and tomorrow, when the Business Statement is presented, they can give us a definite date for next week; whether it should be Tuesday, Wednesday or Thursday. If Tuesday is available, they should be allowed to come.
That is my suggestion.
The Business Committee can make a categorical statement as part of the Business Statement that would be presented tomorrow and by then, contacts should have been made with all the institutions and people involved.
Mr Enoch T. Mensah 11 a.m.
Mr Speaker, I heard the Hon Deputy Majority Leader say that, Tuesday is acceptable, so they should work towards that. The question of whether we would get them or whether the Ministry of Local Government and Rural Development is outside Accra should not be an issue. This is because the matter was given wide publicity. Because of this District level elections, most of us Members of Parliament (MPs) are harassed by people in our constituencies who have spent money -
- 11 a.m.
Mr Speaker 11 a.m.
Hon Member for Ningo Prampram, I started by saying that the order is a proper order and one of utmost national importance. But we also do not
want a situation where we have not been in touch with the institutions involved and we find out that on Tuesday, the people we invited are not in town.
That is why I am saying that they must come next week. Go back and get in touch with the people and capture it in the Business Statement for next week which would be presented to the House tomorrow. And that would be very definite. That is what I am suggesting to the House. But I am a servant of the House, and it is for the House to decide.
If you want to invite people and then finally you find out that the people are not available, that is your problem.
Mr Joseph Y. Chireh 11 a.m.
Mr Speaker, that is why I said yesterday that, it should be the Leadership of the House that must get in touch with these institutions, particularly the EC. The EC is willing to come and give the brief to Leadership which I am aware of. They are looking for an opportunity to bring the information to the House based on which, if there are things we could do without summoning them, we could then look at.
But I agree with you that no matter how urgent we want to be, there is a limitation, and this is because, the people were not in the House when the order was made.
In the case of the Ministry of Local Government and Rural Development, the Hon Minister was recently made a Chief of Staff.
I agree with you that we should be patient to get the Business Committee to programme them for Tuesday since it is urgent.
Papa Owusu-Ankomah 11 a.m.
Mr Speaker, I agree with the sentiments that you expressed. But it is also important that, in the conduct of the Business of this House, institutions that are invited recognise that, this is a priority. It is not every day that Parliament considers it so important to invite institutions, particularly, when we have a matter of urgent national importance.
Mr Second Deputy Speaker, while I agree with you, this House should not open itself to institutions giving excuses. No. I believe Tuesday is all right and fair. I do not have a problem, but for the suggestion to be made or to think that they are not in Accra, and we might not get them should not arise. “Yen anyiwa aber”. Sorry, we are anxious about it.
Mr E.T Mensah 11:10 a.m.
Mr Speaker, I agree with all that you said earlier. The point I am driving at is that, the Hon Deputy Majority Leader has accepted Tuesday, so what he should do is to go and look for them. This issue about even not knowing, if one is working in any of those institutions — you do not listen to news — who are you and what are you doing in that office? They should go and look for — send your Whips to go and hand- deliver the letters.
Mr A. Ibrahim 11:10 a.m.
Mr Speaker, I am totally convinced by the direction being given. Much as it is an issue of urgent national importance, one may need a constitutional guidance, especially, with the EC, when it comes to autonomy, that Parliament can just go and say; “come tomorrow”.
I think we may have to consider that thing and look at certain convenience, to make it either Tuesday, Wednesday or Thursday — one of the three days, when the EC can come and brief us properly. But if we make it; “the EC should just come Tuesday”— even getting in touch with the Chairman of the EC from where he is now, may be a problem.

Mr Speaker, clearly, judging from where you are coming from, I think we should get in touch with them and get an absolute date, so that there would be no excuse, and the proper information would be given in the Chamber.
Mr Speaker 11:10 a.m.
Hon Members, I have got the sense of the House. The Business Committee should try and make it possible, in your business deliberations, to get in touch with them so that they can come and brief the House on Tuesday.
Mr Agbesi 11:10 a.m.
Mr Speaker, we would follow your direction and do what is necessary in the interest of the House and the country.
Mr Speaker 11:10 a.m.
Hon Deputy Majority Leader?
Mr Agbesi 11:10 a.m.
Mr Speaker, the Hon Minister for Lands and Natural Resources is in the House. We want to vary the order of business with your leave —
Mr Speaker 11:10 a.m.
Hon Deputy Majority Leader, I called you because the Hon Minister for Lands and Natural Resources is here. He is ready to answer the Question, but per the arrangement of the Question, we have the Minister for Finance first, so inform the House, then that would form the basis for me to invite the Hon Minister for Lands and Natural Resources.
Hon Deputy Majority Leader, if you want us to vary it and take the Hon Minister for Lands and Natural Resources first, inform the House, and then we would take it in that order.
Mr Agbesi 11:10 a.m.
Mr Speaker, I was making the application when you were doing consultations.
Mr Speaker, I was saying that, the Hon Minister for Lands and Natural Resources is in the House to answer Question number 358, but I would seek your leave to vary the order of business, for him to answer the Question before the other Questions. That was the application I was making to you.
Mr Botwe 11:10 a.m.
Mr Speaker, we certainly do not have any problem, but just that the proper thing should be done. That application is first made before the Hon Minister comes to sit down. But now, the Hon Minister for Lands and Natural Resources is sitting in the chair before making the application. I think the proper thing should be done next time, and in deference to the Hon Minister, we would agree to that.
Mr Speaker 11:10 a.m.
Hon Deputy Majority Leader, for some of these matters, in future, inform your Hon Colleagues on the opposite side of the House before you even come and make the application on the floor of the House, unless it is a matter that has arisen suddenly. But if you are aware, then you must inform them earlier.
Mr Agbesi 11:10 a.m.
Mr Speaker, I know my Hon Colleague would indulge me and we hope that it would not happen like that again.
Mr Speaker 11:10 a.m.
Hon Members, we would start with the Hon Minister for Lands and Natural Resources.
Question number 358.
Ms Sarah A. Safo 11:10 a.m.
On a point of order. Mr Speaker, I see an Hon Deputy Minister of State, right in the presence of this Honourable House. I see he is “naked” before the House. He is not properly dressed. He is in a shirt without a tie, casually dressed as if he is coming to see— [Uproar]—as if he is going to a
disco, but this is a House of business, a serious House, and one ought to come before you properly dressed.
Mr Speaker, I seek your guidance on this matter.
Mr A. Ibrahim 11:10 a.m.
Mr Speaker, we are promoting made in Ghana wear— [Uproar] — I do not know if it is about the colour, and I admire it. I do not know whether she is talking about the colour. I admire what the Hon Minority Chief Whip is wearing, and it is the same style. I am even preparing to go and acquire one. [Pause.]
Mr Ignatius B. Awuah 11:10 a.m.
Mr Speaker, the concern raised by the Hon Member for Dome/Kwabenya (Ms Safo), in my opinion, is very valid in the sense that you expect Hon Members of the House to come to the Chamber in a very decorous way.
Mr Speaker, in the same way, visitors to the House are also expected to be here -- [Interruption] -- in a more decent way. The uniform I see the Hon Deputy Minister in — I cannot describe it as an African wear, neither can I say it is a typical dress shirt. What I do see is that, there is a button on the neck cover, and I see that to go with a tie, but unfortunately, he has no tie on.
Mr Speaker, I seriously think that he is “naked”, his dressing is not appropriate for this House and he must be advised to go and come back in a proper dress.
Mr Speaker, I submit.
Mr Agbesi 11:10 a.m.
Mr Speaker, in the first place, the Hon Deputy Minister is not a stranger to this House, so the Hon Member cannot describe the Deputy Minister as a stranger to the House. In any case, he is in an African wear.
Mr Speaker 11:10 a.m.
He did not say the Deputy Minister is a stranger.
Mr Agbesi 11:10 a.m.
Mr Speaker, just like the Hon Minority Chief Whip, who is also in an African wear. I think that these are not issues for us to debate about. We are trying to give the dress code of the House. It is yet to be formalised for everybody to know what to come with and what not to come with, but for now, this is an African wear. [Hear! Hear!]. It is accepted like what my Hon Colleague on the other side is wearing.
Mr Speaker, I want your direction on this matter so that the House can move on.
Mr Speaker 11:20 a.m.
Hon Members, the practice of this House is very clear. I would want the Leadership of both sides, starting after today, to advise their Hon Members, who are coming to do business either as Hon Members of Parliament or those who are coming to do business in other capacities to take note of how we dress in this Chamber. I will not make any ruling on this matter today but after today, I will make a ruling.
Question number 358; Hon Owusu- Bio?
ORAL ANSWERS TO QUESTIONS 11:20 a.m.
MINISTRY OF LANDS AND 11:20 a.m.
NATURAL RESOURCES 11:20 a.m.
Minister for Lands and Natural Resources (Nii Osah Mills) 11:20 a.m.
Mr Speaker, bushfires continue to be a major threat to plantation development in many parts of this country, even though the incidence has reduced significantly over the years as a result of awareness creation and sensitisation.
Currently, the savanna and the transitional zones have the highest records of fire incident in Ghana. Conscious efforts are, nevertheless, continuously being made to reduce the frequency of fire occurrences in these fragile ecological systems.
Mr Speaker, over the past three years, funding for the National Forest Plantation Development Programme has really been a major challenge to the Ministry and the Forestry Commission. As a result of this, the annual planting target has been reduced significantly to enable the Forestry Commission to carry out effective maintenance of already established plantations.
In spite of the financial difficulties, the Ministry, together with the Forestry Commission are working hard to ensure that we do not lose what we have planted to wildfires, especially in the three Northern Regions where fire occurrences are very high, largely due to agricultural activities.
Mr Speaker, at the national level, there is a National Wildfire Management Policy (2007) and a New Forest and Wildlife Policy (2012), from which many fire management strategies are derived. Indeed, wildfire management is multi- sectoral and not limited to only one institution. It requires a collective effort from both state and non-state actors to address.
As part of measures to address the wildfire menace in our forest plantation areas and in forest reserves, the Ministry of Lands and Natural Resources and the Forestry Commission are collaborating with other stakeholders to undertake the following activities:
Regular weeding and tending of the plantations
Intensive fire patrols during the dry season
Establishment of green fire belts using community labour
Mobilisation of local communities for early fire detection and suppression
Deployment of fire tenders in all the ten regions of Ghana, to among others undertake extensive fire awareness creation and education at the regional, districts and community levels.
Mr Speaker, apart from these measures mentioned above, we are also pursuing a number of project interventions that seek to address the general problem of deforestation and forest degradation. These include the REDD+ project, Voluntary Partnership Agreement (VPA) and the Forest Investment Programme
(FIP).
Mr Speaker, I am very hopeful that with the timely release of adequate funds, the wildfire menace should neither be an issue for the Ministry nor the Forestry Commission. I can assure the Hon Member for Atwima Nwabiagya North, Hon Benito Owusu-Bio, that as a Ministry, we will do our best in the face of the current financial challenges to ensure that wildfires do not destroy our plantations, because that is our major concern and our major challenge.
At this stage, I would like to use this opportunity to express my gratitude to the Leadership and members of the parliamentary select Committee on Lands and Forestry for their continuous cooperation and support in matters relating to the forestry and wildlife sector.
Thank you, Mr Speaker, for this opportunity.
Mr Owusu-Bio 11:20 a.m.
Mr Speaker, in the
Minister's Answer thus paragraph three 11:20 a.m.
“Over the past three years, funding for the National Forest Plantation Development Programme has really been a major challenge to the Ministry and the Forestry Commission. As a result of this, the annual planting target has been reduced significantly to enable the Forestry Commission to carry out effective maintenance of already established plantations”.
Mr Speaker, yes, the Ministry for Lands and Natural Resources has reduced the planting of trees in order for it to maintain the existing young trees.
Mr Speaker, I would want to find out from the Hon Minister what acreage or hectares have been maintained so far for the past three years?
Nii Osah Mills: Mr Speaker, basically, we have the various types of plantations and if I may, with your kind permission, state how many hectares are actually under cultivation as a plantation. I would start with the Modified Tongya System which is 80,727 hectares; Community Forest Management Project, 13,888 hectares; HIPC Plantations, 17,217 hectares and Private Developers have also been involved and have planted 35,490 hectares.
With the Forest Services Division (FSD) Plantations, it is 3,236. The expanded programme is 26,258 and the industry plantation farms are 653, thus a making a total of 177,793 hectares.
The Government between 2002 to 2013 and to the current year has maintained and continues to maintain 142,303 hectares. So, as a Government, we are currently maintaining 142,303 hectares since 2012 to 2013.
Thank you.
Mr Owusu-Bio 11:30 a.m.
Mr Speaker, I said I wanted to find out what has been maintained from 2013 till now, thus the last three years; that is what I was interested in. The Hon Minister's answer was what has been happening from 2002 to 2013.
Mr Speaker, I would want to find out what has been maintained over the past three years?
Mr Speaker 11:30 a.m.
Hon Member, strictly speaking, that is not supplementary. Your emphasis was on bushfires. What steps are they taking to prevent young trees planted years ago from being destroyed by bushfires?
Mr Owusu- Bio 11:30 a.m.
So, what steps have they taken between 2013 till now to prevent these bushfires?
Mr Speaker 11:30 a.m.
Yes, and that is the answer he has provided. You are now asking of specifics in terms of the number and acreage that they are maintaining. Strictly speaking, it is not supplementary, but if he has the information, he can provide it. It is not supplementary.
Mr Owusu- Bio 11:30 a.m.
Mr Speaker, with your permission, if he has. he should just let us know it.
Mr Speaker 11:30 a.m.
Hon Minister, it is not supplementary, but if you have the information to provide, you can provide it. [Interruption.]
Mr Owusu- Bio 11:30 a.m.
All right, Mr Speaker.
The Hon Minister for Lands and Natural Resources cited some measures they are taking; regular weeding and tending of the plantations; intensive fire patrols during the dry seasons; establishment of green fire belts and there is one also about fire tenders.
Mr Speaker, I would want to find out from the Hon Minister how fire tenders can go and tend the young trees in the forest.
Nii Osah Mills: Mr Speaker, the mention of the fire tenders, if you read that section clearly, it says fire tenders have been deployed in all the ten regions of Ghana to among other things undertake extensive fire awareness creation. That is in terms of education at regional, districts and community levels.
So, Mr Speaker, basically, the idea of having the fire tenders deployed is that they have actually been procured for forest fires. Indeed, some of the forest fires all over the world, for those of us who watch television, you would find out that the fires are controlled using fire tenders -- using every type and means of firefighting; using helicopters, and aeroplanes, which stage we have not reached yet. But for our purpose for now, what we have, and what we can use are fire tenders.
So, yes Mr Speaker, fire tenders have been used and may be used and all over the world they are used for fighting forest fires depending on the nature and the extent of the fire. Other actions may also be utilised for that purpose.
Again, if I may add, education is going on, and creation of awareness is going on as well.
Mr Owusu- Bio 11:30 a.m.
Mr Speaker, at the last Budget hearing with the Committee on Lands and Natural Resources, the Hon Minister made us aware that there had not been releases of funds for the maintenance of these plantations which he has captured here. He is hopeful that with the timely release of adequate funds, the wildfire menace should not be an issue.
Mr Speaker, I would want to find out from him if he has received funding to do this regular weeding and tending of the plantations and these fire patrols that he has mentioned. Has he received funding for that?
Nii Osah Mills: Mr Speaker, we are still facing that challenge of the release of funds as at present. Indeed, for that reason, we have more or less adopted a policy of trying to use whatever resources we have to maintain the plantations rather than we have planned initially to expand plantations. This is because, the funding is so woefully inadequate that we just cannot plant anymore. But we are just trying to make do with the little we get for maintenance which recently is not being released. So, we are totally strapped.
rose
Mr Speaker 11:30 a.m.
Hon Deputy Minority Chief Whip?
Mr Ignatius Baffour Awuah 11:30 a.m.
Mr Speaker, I would want to know from the Hon Minister that, most of these fires start from the off-forest reserves and eventually enter the plantations. Do they have a programme that also targets the off-forest reserves and what kind of linkages do they have with the various District Assemblies, where we have most of these forests in helping to fight these fires?
Mr Speaker 11:30 a.m.
The Question is not about forest reserves but it is about trees that have been planted.
Mr Awuah 11:30 a.m.
Mr Speaker, thank you for that correction, but most of these plantations are in the forest reserves so if he could help me in that direction.
Mr Speaker 11:40 a.m.
It is not supplementary, but Hon Minister, if you can help, you may help in that direction.
Nii Osah Mills: Mr Speaker, actually, the plantations are not necessarily part of forest reserves. They are what they are -- plantations. The forest reserves are established by law and they are separate and apart. The off-reserves simply means whatever is really not within the forest reserves.
People who start bushfires start them more or less anywhere and really they often start them because they are chasing after akrantie or they want to do slash and burn agriculture, which is what many of our people use and the fire sometimes runs out of control. So, these are the sources of many of these fires. They could really start anywhere.
In terms of what we are doing with the Distr ict Assemblies and so on, I mentioned that there are greenbelts being established -- You know what I mean by greenbelts; making sure there is a break between the plantation and any other forest or set of trees, so that if there is a fire, it would not be able to cross. For example, there is a wall here, there is a space here and a wall there, that would be the plantation and its space would be left bare so that the fire cannot cross to the other side. So, these are some of the measures being undertaken and I have listed them in the statement I made.

Proposed New Lands Commission Headquarters

(Commencement)

*359. Mr Benito Owusu-Bio asked the Minister for Lands and Natural Resources when the construction of the proposed new Lands Commission Headquarters building would commence?

Nii Osah Mills: Mr Speaker, the Headquarters building of the Lands Commission is of paramount importance to the success of the ongoing land sector reforms through the Land Administration Project Phase II. This process will ultimately lead to the realisation of the One-Stop-Shop concept for effective land service delivery in Ghana. In effect, this effort will ensure land title registration which is necessary to provide security of tenure for enhanced national economic growth.

Mr Speaker, KfW (the Investment Wing of the German Development Corporation), in 2004, as part of the funding sources for the Land Administration Project (LAP I), made available a loan facility of Six Million Euros (6,000,000.00) for Lands Commission to access to build the National Headquarters. The loan was in two tranches, of which three million (€3,000,000.00) was set aside for the construction of National Lands Commission Corporate Headquarters with a counterpart funding from the Government of Ghana.

Mr Speaker, the problem is that, the loan required repayment such that the repayment had to be generated from the Internally Generated Funds (IGF) of the Lands Commission. And the Government of Ghana carried out its part of the agreement but the KfW kept changing the

rules and at a point in time, made a request to the Government of Ghana to provide an additional amount of €5,800,000 to cover the total cost of the building, including furniture and fittings prior to the disbursement of the funds.

This led to the Lands Commission at its 26th meeting held in June19th -- 20th, 2014, to seek approval from the Ministry of Lands and Natural Resources for the Commission to opt out of the KfW contract and to source for alternative funding for the construction of the new building.

The Ministry of Finance endorsed this request, and currently, it has been decided that the building would be constructed using a Public Private Partnership (PPP) approach. And as I speak now, the Valuation Division of the Lands Commission is in the process of determining the market value per acre of the subject land.

Mr Speaker, the idea is that, all firms which have now shown interest to go along the PPP project would be invited to provide their bids. And this would be at a competitive basis; this is restrictive tendering. They would develop and handover to the Commission a functional headquarters complex fully furnished and equipped in exchange for a portion of the land reserved for the building which covers 14.61 acres. All things going well, the construction is expected to start by June this year.

And that, Mr Speaker, is the current situation. So, it is expected that the four firms who have expressed interest would go through a bid process, the winner would be selected and by June this year, it is expected that construction work would begin.

Thank you, Mr Speaker.
Mr Speaker 11:40 a.m.
Supplementary question.
Mr Owusu- Bio 11:40 a.m.
Mr Speaker, I would want to find out from the Hon Minister what informed their decision to choose restrictive tendering rather than open tendering.
Mr Speaker 11:40 a.m.
Hon Minister, did you get the Question?
Nii Osah Mills: Mr Speaker, what informed the decision to opt for restrictive tendering was the need to speed up the process of deciding who will construct the building and when to start building.
The Project, which is the Land Administration Project, is soon due to come to a close. So, one of the reasons why there is a need to rush is that, we want to do all this within the project implementation period, which has already been extended once and is due to end in
2016.
Mr Owusu- Bio 11:40 a.m.
Mr Speaker, I would want to find out who the four firms are? [Pause.]
Nii Mills: Mr Speaker, as I stand here now, I realise that I do not have the sheet which has a list of the four firms on it. Perhaps, I could supply and inform the House.
Mr Speaker 11:40 a.m.
Very well.
Mr Isaac Kwame Asiamah 11:40 a.m.
Mr Speaker, the main Question is about the proposed construction of a new headquarters for the Lands Commission. I would like to find out from the Hon Minister how much it is going to cost the Ministry.
Nii Osah Mills: Mr Speaker, there would be no cost to the Ministry. The Project would be undertaken on a PPP basis and there would be a land swap. Therefore, the land which would be swapped for the value of the building constructed, including furniture, in-
fittings and everything else is being valued currently. So, when we know the value of the land that would be swapped or exchanged for the building and its furniture, et cetera, we would then know the total cost involved.
Mr Speaker, so in a sense, it is difficult to give him an answer now. But just to say that, there would be no financial cost in terms of cash. If he is talking of cost in terms of the value of the land, then there would be cost. But the land is being valued and it would soon be made available. It is not ready yet.
Mr I. K. Asiamah 11:40 a.m.
Mr Speaker, considering the prime location of the area --
Mr Speaker 11:40 a.m.
Hon Member, I would indulge you. You know that normally, if you are not the one who asked the original Question and there are others who would want to ask supplementary questions -- But I would allow you --
Mr I. K. Asiamah 11:40 a.m.
Mr Speaker, considering where the 14.6 acres of land is located, it is a prime area. So, one would expect that there should be a value to it now. I would want to know how much value has been placed on it.
Mr Speaker 11:40 a.m.
Hon Member, the Hon Minister said that the land is being valued and that when the value is ready, then they would determine the cost.
Ms Sarah A. Safo 11:40 a.m.
Thank you Mr Speaker, for being gender sensitive.
Mr Speaker, in his answer to Hon Benito Owusu-Bio's question as to why they decided to go restrictive tendering
rather than open tendering, the Hon Minster said it was because of the time frame within which they were supposed to construct the headquarters for the Lands Commission, and that time was of an essence.
I would want to ask the Hon Minister if he has a procurement plan at the beginning of every year. If yes, then why was it not factored in the procurement plan so that he would not find himself time bound to go restrictive tendering rather than open tendering?
Nii Osah Mills: Mr Speaker, perhaps, I would want to step back a little and inform the House: If you listened carefully, there was a Land Administration Project which is a World Bank sponsored project. And one of the deliverables under that project was the construction of a headquarters building for the Lands Commission.
This was all in order to increase the effectiveness of land administration in the country. It was felt that there was an inadequate headquarters building for the Lands Commission, and there was the need to provide a one-stop-shop where you would have the public invested land aspect of the Lands Commission, the Valuation as well as the Survey Departments all within one building. It was felt that, they could then work hand in hand in a seamless fashion to improve and make more effective the administration of lands in the country. So, this was under a World Bank sponsored project.
Mr Speaker, as I said earlier, there was an amount of money set aside to construct that building. But the conditions for the payback or refund of that money was such that the Lands Commission would have to come up with the funds. It was felt that it was impossible for the Lands Commission to generate such revenue.
[NII OSAH MILLS] [NII OSAH MILLS]

Just recently, the Ministry of Finance agreed that the Lands Commission should opt out of the agreement between the World Bank and the Government of Ghana with regard to that particular issue of the construction of the Lands Commission building, and not take the loan for it. Rather, we should use a PPP arrangement such that the land which was available would be valued and then exchanged for the cost of the building. So, this is the background of it.

So, Mr Speaker, it is not a question of having or not having budgeted in the past.

Thank you.
Mr Speaker 11:50 a.m.
Last question.
Mr Frank Annoh-Dompreh 11:50 a.m.
Thank you Mr Speaker, for your kindness.
From the Hon Minister's own Answers, he said:
“The Government of Ghana entered into some pact with the German Development Corporation where Government of Ghana was supposed to provide some counterpart funding”.
And suddenly, the Germans have asked us to pay more than the agreed amount, from the Answers, as one can infer. I would want to find out from the Hon Minister, whether it was a question of the Ministry not doing proper negotiation or what was the reason for that?
Nii Osah Mills: Mr Speaker, it was not a question of Ghana Government's inability to negotiate properly. There have been cost overruns due to delays which set in after the project started. The project has been going on for years now and the

[NII OSAH MILLS] plan had been to have constructed the building earlier but it did not work out that way, which has led to the situation we find ourselves currently. Therefore, it was felt that the best approach at this current time was to embrace the PPP approach going forward.

This is basically what has happened.
Mr Speaker 11:50 a.m.
Question number 360.
Hon Member for Asene/Akroso/ Manso?
Mr Yaw Owusu-Boateng 11:50 a.m.
Mr Speaker, the Question that I actually wanted to ask was to know from the Hon Minister for Lands and Natural Resources what policy is there to safeguard our mineral resources at places where non-mining projects are taking place.
Unfortunately, what has appeared on the Order Paper is not the one that I intended asking.
Mr Speaker 11:50 a.m.
Hon Member, my attention has been drawn to that, so I asked for your original script, and no amendment was made to your Question at all. That was the Question that you have asked and that was what was admitted. So, if you are withdrawing then withdraw.
If you want to ask then ask the Question which has been admitted.
Mr Owusu-Boateng 11:50 a.m.
Mr Speaker, with all due respect, I have been to the Table Office and what had been written in the notebook and admitted on the same day is not what is here. If they can bring the notebook, you would find out that what was written by them on the same day in the notebook is not what came here.
I would therefore withdraw and ask my Question again.
Mr Speaker 11:50 a.m.
Hon Member, the Question that you have asked is with me here in your own handwriting. I do not know whether there is a difference. The Question you asked which was admitted by my good self is:
“To ask the Minister for Lands and Natural Resources the measures the Ministry is putting in place in non- mining communities along the Birim Basin to safeguard the natural resources like diamonds and protect the environment.”
Mr Owusu-Boateng 11:50 a.m.
Mr Speaker, the first time I asked this Question, I kept a copy. You questioned it and then they brought another one which was on policy. When that Question was admitted, later on when I cross checked, the Question could not be traced. Then on several occasions, when I was about to leave the House, I was asked to look at the one that had been corrected to make an amendment.
Fortunately for me, though this is in my own handwriting, on the same day, what was on this paper is different from the one that has been recovered.
Mr Speaker 11:50 a.m.
Hon Member, that is why you should not have raised this matter on the floor of the House. These are things that you discuss behind the scenes at the Table Office. Once you raise it on the floor and Table Office does not have audience on the floor, then the Speaker has a duty imposed on him to inform the House as to the Question that you have asked which has been provided, which is with me here and which I have just read to the House.
The rules allow for amendment of Questions before admissions, but the practice is that, you should show it to the person and if the person does not agree, then the person does not sign it as his act.
Now, I have the Question here and this is a Question that you have signed in your own handwriting; no subtraction, no addition, no deletion, no insertion.
So, Hon Members, in future, we should not raise these matters on the floor of the House.
Hon Minister for Lands and Natural Resources, we thank you very much for attending upon the House to respond to Questions from Hon Members.
Hon Minister for Finance?
rose
Mr Speaker 11:50 a.m.
Yes?
Mr Agbesi 11:50 a.m.
Mr Speaker, my attention has been drawn to the fact that the Minister for Finance is appearing before the Committee on Finance on an urgent matter at the moment.
Mr Speaker 11:50 a.m.
Hon Deputy Majority Leader, this House and a subset of the House, which is the Finance Committee, which one is more important?

Hon Members, we start with the Urgent Question standing in the name of the Hon Member for Berekum East.
URGENT QUESTION 11:50 a.m.
MINISTRY OF FINANCE 11:50 a.m.
Mr Speaker noon
Hon Minister?
Minister for Finance (Mr Seth Emmanuel Terkper) noon
Mr Speaker, my apologies.
Mr Speaker, the 2013 Budget estimated that an amount of GH917.9 million will be transferred to the National Health Insurance Fund (NHIF) during the 2013 fiscal year as current year transfers. Based on NHIL collections by Ghana, Revenue Authority (GRA) and contributions from Social Security and National Insurance Trust (SSNIT) the total amount due for transfer to the NHIF in 2013 was GH¢830,686,003.01. During the year, the total amount transferred into NHIA Operational Account as current year payment was GH¢4711.5 million.
In addition to this, an amount of GH¢116.9 million was also transferred to the NHIA as arrears from 2012. Hence, in total, an amount of GH¢4828.4 million was transferred to NHIA Operational Account in 2013.
Mr Speaker, the 2014 Budget in comparison with 2013 estimated that an amount of GH¢904.8 million will be transferred to the National Health Insurance Fund (NHIF) during the fiscal year. The amount due for transfer into the National Health Insurance Fund (NHIF) for 2014, based on GRA collections and contributions from

SSNIT (excluding the total SSNIT (2.5%) amount for October, November and December) was GH¢908.8 million. A total amount of GH¢1,063,199,000.00 including arrears of GH¢119.2 million for 2013 was paid into the NHIA Operational Account. Schedules 1, 2A, 2B and 3 gives the breakdown of the transactions and payments made for Hon Members to see full details.

Mr Speaker, as noted in r ecent budgets, the Ghanaian economy has experienced a number of macroeconomic challenges, notable among them were significant revenue shortfalls owing to slow down in economic activity due to disruptions in gas supply and energy chal lenges, lower impor ts and commodity price shocks; and a high wage bil l r esul ting from the implementation of the Single Spine Salary Policy.

As a result of these challenges, Government has had to r est ra in expenditures and prioritise transfers for some major fiscal commitments. In this regard, spending on goods and services, capi ta l expendi ture and transfers to statutory funds have taken the biggest hit.

For the numbers which I have just showed, Hon Members would appreciate that we have nonetheless made substantial transfer into the NHIF in the two years with GH¢1.6 billion.

Mr Speaker, for example, even though an amount of GH¢1.7 billion was estimated to be spent on goods and services for Ministries, Departments and Agencies (MDAs), in 2013, only GH¢1.4 billion was actually spent partly due to the constraints noted above.
SPACE FOR APPENDICES - noon
Dr Twum-Nuamah noon
Mr Speaker, according to the National Health Insurance Act, 2012, (Act 852), section 52 (1), and with your kind permission, I beg to read:
“The Minister responsible for Finance shall within thirty days after the collection of the levy cause the levy to be paid directly into the Fund
and furnish the Minister responsible for Health and the Authority with evidence of the payment.”
Mr Speaker, from the Answer given by the Hon Minister, I can infer that this provision has not been complied with because there are still arrears to be paid. So, could he react to that? How come the funds were not transferred to the National Health Insurance Fund after every month, as the provision of the Law stipulates?
Mr Terkper noon
Mr Speaker, there is implied accumulation of arrears in the section that was read by the Hon Member. That comes about as a result of the NHIL being an element of VAT in particular.
Mr Speaker, when we go to the VAT Act, the Act specifies that the payment of VAT, including NHIL are paid one month in arrears, which means that the payment for that of February, by registered taxpayers are made at the end of March. Therefore, in terms of being current, one would have to look at the 30 days being 30 days after the collection had been made at the end of March for February, which gives one an average of almost 3 months.
What we do is that, we endeavour to minimise these arrears, through, for example, prompt payment of the import VAT, which because it is prompt, the shortfall into this line of funding - and then the reconciliation had to be done for input VAT credit and refunds when the domestic tax element is computed by
GRA.
That explains some of the reasons why we have that timeline and some arrears. As I explained, we also do conceive as I just stated that, due to constraints that the economy face, firstly from output flowing, and also from the fact that we have to pay huge arrears.
Mr Speaker, you would recall that the theme for the 2014 budget was; “realigning the budget”. As a result of this, there was some accumulation, and in the past, some of these were securitised. So, we have moved very far in clearing most of those arrears, and we are almost current, particularly with respect to NHIA.
Dr Twum-Nuamah noon
Mr Speaker, in section 52 of the same Act, subsection 2 too, and with your permission I beg to read:
“The Minister responsible for finance shall present to Parliament, every six months a report on payment of levies into the Fund”
Mr Speaker, I have been in this House since January 7th, 2013, and also a member of the Committee on Health. I am yet to have a report from the Hon Minister for Finance in consonance with this provision. I would want to find out from the Hon Minister, why he has failed? If you like, why he has refused to comply with this provision of the Act, so far?
Mr Speaker noon
Hon Member, this is not a supplementary question. You are moving from payment to reports. The Question is about payment into the NHIF. Now, you are moving to reports, so reframe the question and ask again.
Dr Twum-Nuamah noon
Mr Speaker, I would want to find out from the Hon Minister for Finance whether per the National Health Insurance Act, 2012, section 52, he is supposed to inform Parliament how much he has paid into the NHIF?
Mr Terkper noon
Mr Speaker, as a matter of routine, we present the budget and mid- year reviews that have also become regular in the House, to provide updates of fiscal returns, including all the statutory funds anytime we come to the House. And on occasion such as this, we also appear before the House to provide updates. So, with respect to providing data and information to the House, yes, we have been doing that.
Dr Twum-Nuamah noon
Mr Speaker, as we speak, most health institutions are owed by the NHIA, and it is running into the seventh month. In fact, per the annual performance review of most of the regional health directorates, all of them are complaining that if their indebtedness are not cleared, they may find it difficult to provide health services to the people of Ghana. Would the Minister admit that the failure of the Ministry in transferring the funds into the NHIF has contributed
Mr Terkper 12:10 p.m.
Mr Speaker, as I indicated, the situation has improved significantly. We have actually cleared a substantial amount of those arrears. Only this morning, I heard the National Health Insurance Scheme explaining that the Ministry has made payment and that they are clearing some of the arrears.
Mr Speaker, the accumulation of the arrears is not solely dependent on releases. It also depends on the creation of buffers by our statutory funds. Our statutory funds also anticipate the occasional ups and downs that the economy is likely to go through just as the examples that this Honourable House has worked with the Executive in creating, for example, the Stabilisation Fund under the PRMA. By way of solution, these are some of the things that the Ministry is proposing to the statutory funds in addition to ensuring that we make prompt payments.
Mr Speaker, in answer to one of the Questions, we have also indicated that the fact that we are automating the system would also help the reconciliation and transfers to be done faster.
The reconciliation by GRA with tax payers would be done on a faster basis and flows to the funds would be more prompt than it had been in the past under the manual system.
Mr Speaker 12:10 p.m.
Hon Members, we move to the next Question, which is Question number 213.
Mr Speaker 12:10 p.m.


Hon Members, let me refer you to Standing Order 60 (2):

“Question time to Ministers shall ordinarily not exceed one hour except that the Speaker may in exceptional cases exercise his discretion and permit questions after the expiration of the time stated and also for such questions as are described in Order 64(Urgent Questions).”

Hon Members, I intend taking all the Questions and so as much as possible, I would try to limit them to the persons in whose names the Questions stand. We have already exceeded one hour but I want to exhaust all the Questions on the Order Paper.

Hon Member for Offinso North?
ORAL ANSWERS TO QUESTIONS 12:10 p.m.
MINISTRY OF FINANCE 12:10 p.m.
Mr Terkper 12:10 p.m.
Mr. Speaker, the goal of the Ministry of Finance is to make releases for all fiscal commitments, including payments of the National Health Insurance Levy (NHIL) to the National Health Insurance Fund (NHIF), without undue delay. Indeed, the Import VAT and SSNIT (2.5%) transfers are automatic, in that the funds are transferred directly into
the National Health Insurance Fund (NHIF). However, the transfer of the Domestic VAT component is usually done with a lag to take account of operational processes for VAT collection and payments.
It is important to note that VAT operates on the credit mechanism. The final and effective amounts due for VAT into the Consolidated Fund, GETFund, NHIF, DACF and now GIIF has to take account of input Tax and Credit and refunds including most import VAT. It is for these reasons that the law allows payment into the Fund, with a lag of 30 days.
Therefore, the entire Domestic VAT amount is initially transferred into the Consolidated Fund before the Ghana Revenue Authority (GRA) advises Controller and Accountant-General's Department (CAGD) on the exact amount due the NHIF.
Mr Speaker, it is envisaged that the enhancements in compliance and completion of the automation of the processes of the Ghana Revenue Authority will help reduce the lags in transfers to the National Health Insurance Fund and other statutory funds. At the same time, it is necessary for the statutory funds to take account of the VAT processes in particular in planning their operational activities.
Mr Ntim 12:10 p.m.
Mr Speaker, in the last paragraph of the Hon Minister's Answer, if I may quote with your kind permission:
“…it is envisaged that the enhancements in compliance and completion of the automation of the process of the Ghana Revenue Authority will help reduce the lags in transfers to National Health Insurance Fund and other statutory funds…”
Mr Speaker, I want to find out from the Hon Minister about the processes that cause the delay. What are the processes that are causing the actual lags from the GRA in the collection and the release of the funds to the National Health Insurance Authority?
Mr Terkper 12:10 p.m.
Mr Speaker, I alluded to this briefly in my answer to the Urgent Question. As I explained, because the substantial part of the amount that goes into the Fund apart from SSNIT and others, is from the VAT or is collected as though it were VAT, when the taxpayer pays the VAT, he is also entitled to credit and sometimes refund. Therefore, in effect, the payment that goes into the Consolidated Fund itself as well as the statutory funds that are derived from VAT are net payments.
They are not gross payments. So even when we pay the import VAT promptly and the taxpayer takes it as a credit, the first or second process is that, GRA has to deduct the Input Tax credit and the refunds that are related to all the funds, including the Consolidated Fund in order that in paying the domestic VAT, they would pay the net amount and not the gross that is collected. This is because that is the nature of the
VAT.
So this is the first process and that is why the law states that the GETFund and the NHIF shall be collected as though they were VAT. So they have to be collected in line with VAT principles, which is the net concept.
Mr Speaker, the other element I explained is that, at the end of the month, which I tried to illustrate, if a taxpayer collects the VAT for January from the consumer, the taxpayer does not pay for the VAT at the end of January. They are allowed till the end of the following month to pay what they have collected for January, which is at the end of February. That is the time GRA also does the computation.
So if we were to look at the law, strictly speaking, the collection for January is not at the end of January. It is at the end of February and the 30 days is allowed for all those reconciliations.
In essence, there is about a quarter that is allowed, but often, it is taken that the amount collected is due immediately. And this is the point we have been making to the statutory funds, that in their planning, if NHIF or NHIA or GETFund takes the revenue report from GRA, they would be one month in advance of the actual payment.
That is not what should be used for planning. What should be used is the period the amount hits the Consolidated Fund and the relevant funds. This applies to domestic VAT. What the tradition has been is that, to allow for smoother payments, the law allows for the import VAT to be paid promptly. So these are the processes that are involved. I hope it has not been too technical for some Hon Members.
Thank you very much.
Mr Ntim 12:20 p.m.
Mr Speaker, reference the Budget Statement, 2015, presented to this House in November, the Minister proposed that the third and fourth quarters of the 2014 District Assemblies Common Fund (DACF) allocations are going to be paid in 2016. Now he is saying that the delay of the release in the NHIA and other statutory funds is due to some hindrances in the automation processes undertaken by the Ghana Revenue Authority (GRA).
How does he reconcile these statements, the answer given in the last paragraph and with what is presented in the Budget Statement with regard to the
Mr Terpker 12:20 p.m.
Mr Speaker, I was careful in explaining the normal delays that could occur as a result of the GRA processes. I also admitted that as a result of the constraints that the economy was faced, there were some payments, not just from the statutory funds, that were not paid, including goods and services.
Indeed, for this august House, sometimes there were delays in making some of those payments. Luckily, with the clearance and the adjustments that we have been making, we are becoming current.
So, Mr Speaker, that is the context of the Budget Statement that was made. It was more to do with explaining the accumulation that had occurred as a result of the constraints that we faced in making those payments.
It was not with reference to the first part, which is the GRA processes. It is the automation of the GRA processes, for example, that would provide information promptly to a tax office about the import VAT, input VAT and the credit in order that, that itself does not delay the payments that have to go to the Fund.
Mr Ntim 12:20 p.m.
Mr Speaker, I would like to find out, when was the last time payment was made to the National Health Insurance Authority and what was the quantum?
Mr Terkper 12:20 p.m.
Mr Speaker, we would provide the House with the specific answer, but I believe we made the last release as late as January to clear the 2014 arrears and to remain current with respect to the 2015 arrears. We would provide the House with the specific information.
Mr Speaker 12:20 p.m.
Hon Minister, let me get your answer well. Are you saying that your latest release was in January, so that you remain current, so that there would not be any arrears? Is that what you are saying?
Or you have released money to clear some of the arrears? Or you would come back and provide definite answers later? Let me get the point clearly, because you started by saying that you are not too sure, before providing that answer.
Mr Terkper 12:20 p.m.
Mr Speaker, we would come back to the House with details.
Mr Speaker 12:20 p.m.
Hon Minister, is it possible to make the information available to the Hon Member, so that if the Hon Member would like to do a follow up action on the answer he could follow it up?
Mr Terkper 12:20 p.m.
Rightly so, Mr Speaker.
Mr Speaker 12:20 p.m.
Hon Minority Leader?
Mr Osei Kyei-Mensah-Bonsu 12:20 p.m.
Mr Speaker, I think the Hon Member did not ask for an answer to be delivered to him. He did not want a written answer. This is an Oral Question which demands an oral response.
Mr Speaker 12:20 p.m.
I do not have a problem. Hon Minority Leader, that should not be your problem at all; and it should not be my problem at all.
When he makes the information available, there should be a follow-up action which should be on the Floor. Absolutely! That is what I am saying.
Hon Members, we have far exceeded the one hour. I made a point. If you do that, I would allow you to dwell on this
Question, and I would invoke my discretion of not allowing the rest of the Questions to be answered, because we have done well over one hour.
Hon Dr Appiah-Kubi, your question?
Dr Kojo Appiah-Kubi 12:20 p.m.
Mr Speaker, thank you for granting me that exception.
From the explanation of the Hon Minister, does he want to tell us that there is money available, and that the delay is only caused by the lack of automation or the delay in the process of release of the money?
Mr Speaker 12:20 p.m.
Hon Minister, is it a problem of automation or lack of funds?
Mr Terkper 12:20 p.m.
Mr Speaker, they are a combination of factors -- [Uproar] -- and that was what I sought to explain. Part of the delay is due to the structure of the tax itself; Part of it is due to its efficient administration. The reference to automation has to do more with the efficient administration of the VAT as with all the other taxes.
Mr Speaker 12:20 p.m.
Hon Member for Nhyiaeso?
Dr Richard Anane 12:20 p.m.
Thank you Mr Speaker. In the Hon Minister's answers, it appears to me he is not aware of what is actually on the ground. Mr Speaker, since May last year, providers have not been paid. The National Health Scheme is unable to make the payments and the problem has been heaped on the Minister for Finance.
So, it looks like the answers that he is giving are not addressing that problem, which is now creating a situation where all the health facilities in the country have agreed that, possibly, by the end of March, they may not be accepting Health Insurance card holders.
Mr Terkper 12:30 p.m.
Mr Speaker, I wish to be very firm and repeat what I said in my answer to the Urgent Question.
I said that for the 2013, the amount that was estimated to be transferred into the Fund was GH¢830,700,000. We have transferred GH¢828,800,000 including arrears. I also indicated that the estimates for 2014 was GH¢904, 800,000, and inclusive of SSNIT -- GH¢ 908, 800,000. I indicated that because we are fast tracking the clearance of arrears, we have actually paid GH¢1.06 billion, including arrears of GH¢119 million for 2013 into the operational account.

Yes, there were arrears that were accumulated, but I did explain that even this morning I heard on radio, the National Health Insurance Authority saying that these payments are making it possible for them to begin to clear the arrears that they owe.

The programme itself has been expanded at a very fast pace. Mr Speaker, the reports that NHIA produces suggest that its income in 2005 was only GH¢188 million, that is total income from NHIL, SSNIT contribution, premium, et cetera.

Expenditure at the time was only GH¢18.9 million or GH¢ 19 million. Claims were only GH¢11.6 million.

Mr Speaker, by 2008, the programme had increased to GH¢ 339.3 million by way of income - GH¢ 300 million. Expenditure had increased by GH¢242.3 million. This is progress.

Mr Speaker, by 2012, the programme's income had increased to GHµ 786.2 million. The expansion has resulted in claims of about GH¢ 616 million, which is -- In terms of the claims, we are comparing it with GH¢11.6 million as at 2005. This is how fast the programme has expanded.

The drafts that we have for 2013, suggest that incomes have increased to GH¢1.1billion compared with GH¢339 million only at the end of 2008. Claims had increased to GH¢968.5 million. So, the programme itself has been expanding.

Mr Speaker, the payments are now coming -- so we should not attribute the issues with NHIL with only payments. In fact, the programme has been successful in terms of attracting -- Therefore, this is the context in which I understand the NHIA to be doing a structural review to accommodate the rapid expansion.
Mr Speaker 12:30 p.m.
Hon Member, are you asking the supplementary question?
Dr Anane 12:30 p.m.
Yes, Mr Speaker. This is just because there was a reaction to my question.
Mr Speaker 12:30 p.m.
Hon Members, I informed the House by referring to Standing Order 60 (2), that there are other provisions in the Standing Orders where the rest of the
Questions can be -- I do not have a problem. If you want us to waste all the time on this Question, the consequences are there. It is that we will not exhaust the rest of the Questions. But I thought we want to be fair to all the Hon Members who have Questions on the Order Paper, so that their Questions are answered.
Hon Member for Nhyiaeso, I will allow you to ask your question.
Dr Anane 12:30 p.m.
Mr Speaker, thank you very much for your indulgence. We do appreciate the problems of the NHIS.
Mr Speaker, the Hon Minister's answer quoting 2005 figure and 2014 figures do not stand. This is because, in 2013, GH¢100.00 will not be the same as GH¢100.00, in 2005. Mr Speaker, the Hon Minister is quite aware of that.
Mr Speaker, the question we are asking is of relevance to the present, and even from the Hon Minister's own answers, the expected revenue approvals to the NHIS hovers above the expenditure by way of claims. So, Mr Speaker, if by way of claims we claim less than the expected accruals, why are they not being paid? We are always told that the Ministry of Finance has come with a transfer. So Mr Speaker, we ask the Hon Minister, why is he not transferring the moneys to the NHIS so that providers can be paid for the good citizens of this country to access healthcare through the NHIS?
Mr Terkper 12:30 p.m.
Mr Speaker, I appreciate the point about using nominal figures. But if I may, in percentage terms, the claims were only six per cent, now, they are 87 per cent. So, if they want to look at it in terms of performance, then, this is how exponential the Scheme has grown. I am now using percentages in order that
we can see the relationships to buttress the point that there has been real growth, not just in nominal figures but in percentage terms.
Mr Speaker, in essence, the Scheme has moved to the point where it puts emphasis where it should be; it should be on disbursement to patients. Therefore, much of the expenditure is moving in that direction. This is the context in which I made my point.
Mr Speaker, I have already indicated that we have been making payments and NHIA is clearing what has been outstanding, and they will endeavour to make prompt payments to the Authority.
Mr Speaker 12:30 p.m.
Yes, Hon Member for Wenchi?
Prof. George Y. Gyan-Baffour 12:30 p.m.
Mr Speaker, the Hon Minister just said that they needed over GH¢900 million, and that he has collected GH¢1.1 billion. The question that the Hon Member asked was, what is the difference? Are they saying that they have given that money to them and they are not paying? Or the money goes somewhere else? Where is the money? Is it with them or with the NHIA? That is the simple question. They have over paid what they require, why is it that they are not paying the service providers?
Mr Terkper 12:30 p.m.
Mr Speaker, at the risk of repeating myself, may I indicate that NHIA has indicated that they are making payments. It is also cracking down on malfeasance in some of those claims -- [Uproar].
Indeed, there was a recent publication that showed that most of the claims are fraudulent. Therefore, as an Authority, it is also taking steps to make sure that when they make the payments, they are genuine claims. There have been instances in
Mr Speaker 12:30 p.m.
Last question. Hon Member for Manhyia South?
Dr Prempeh 12:30 p.m.
Mr Speaker, mine is not even a question.
Mr Speaker 12:30 p.m.
No, it is Question Time. If it is not a question, you cannot make a statement. The rules are very clear.
Dr Prempeh 12:30 p.m.
Mr Speaker, I would like to ask the Hon Minister for Finance to table the document from which he read for Hon Members' perusal. This is because the figures he gave are at variance with the NHIS formula they brought. This is because they state, previous years.
So, since he has quoted that on the floor of the House, could you direct him to lay that document?
Mr Speaker 12:30 p.m.
The Answers he has provided will be captured in the Hansard.
Mr Kyei-Mensah-Bonsu 12:30 p.m.
Mr Speaker, the relevance of the question posed by my Hon Colleague is that, the Hon Minister himself was a bit -- I would not say fumbling, but the figures that he quoted, at certain periods, he had to call the figures again after stating certain figures. Then he would say, “well, this is it”.
Can we have it? So that we will be able to measure and find whether or not it is in sync with the formula approved for the Authority. It is as simple as that. That is number one.
Mr Speaker, the Hon Minister spoke about the difference between nominal figures and percentages.
But because most of the medicines are procured externally, they are dollar rated. What was the dollar rate at the time he quoted and the situation now?
Mr Speaker, let him give us that analysis. Otherwise, it is flat.
Can he tell us the figure? The dollar rate at the time and the dollar rate now, given that the dollar has detoriated by more than 270 per cent?
Mr Speaker 12:40 p.m.
I am not sure whether that is supplementary. [Laughter.]
But on the first one, Hon Minister, you have made some information available to the House. Can you cross check it and make it available? Do you understand?
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, with respect to the Hon Minister, can we plead that he tables the document here. Is it not in the Chamber?
Mr Speaker 12:40 p.m.
He gave information.
Hon Member, I have been very careful because an Hon Minister may make reference to his notes. If I am not careful with the kind of order that I make, even when the technical advisers give me a piece of paper, they would say that I should table it there.
That is why I have been very careful in making the order. He has provided some information, and it has been captured in the Hansard -- If he would make it available to the House.
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, would this directive not go with any time frame at all? This is because it is too open- ended.
Mr Speaker 12:40 p.m.
Hon Minister, within a week, make this available.
He would be coming to the House soon, so do not worry.
Question number 235 -- Hon Asiamah?
Allocations made in the 2014 Budget to Subsidise Petroleum Products
Q. 235. Mr Isaac Kwame Asiamah asked the Minister for Finance if allocations had been made in the 2014 Budget to subsidise petroleum products and if so, where they are lodged.
Mr Terkper 12:40 p.m.
Mr Speaker, the policy direction on petroleum subsidies in the 2014 Budget was that, the automatic petroleum price adjustment would be implemented as much as practicable. Therefore, petroleum prices were expected to be adjusted at regular intervals to minimise the adverse impact that subsidies have had on the Budget, business operations and consumer activities.
Mr Speaker, in the original 2014 Budget, an amount of GH¢50 million was estimated to be spent on petroleum subsidies. As a result of the delay in the adjustment of petroleum prices in the early months of 2014, subsidies accumulated and the Supplementary Budget made provision for an additional amount of GH¢277.6 million to cater for the subsidies. Thus, a total allocation of GH¢327.6 million was made in the 2014 Budget for petroleum subsidies.
Mr I. K. Asiamah 12:40 p.m.
Mr Speaker, in the Answer, the total allocation of GH¢327.6 million was made in the 2014 Budget for petroleum subsidies.
Mr Speaker, I want to find out from the Hon Minister, who the beneficiaries were as well as the breakdown.
Mr Terkper 12:40 p.m.
Mr Speaker, the petroleum pricing formula results in the key beneficiaries actually being consumers under the gross subsidy of LPG and [Pause] —[Interruption.]
The fuel elements for fishing -- premiums. So those are the key beneficiaries. However, the subsidy could also benefit others for whom it is not intended if the adjustment is not made promptly.
So, for example, it is possible that if the market price for premium falls --
Mr Speaker 12:40 p.m.
If the adjustment is not made timeously or promptly?
Mr Terkper 12:40 p.m.
Mr Speaker, timeously.
Thank you very much, Mr Speaker. Then that would result in the payments growing, like utilities, to a segment of the population, where it is not intended to benefit.
So Mr Speaker, that is the intention, and also often the practical consequences of the subsidy in the Budget.
Mr I. K. Asiamah 12:40 p.m.
Mr Speaker, thank you for the rescue. [Laughter.]
rose
Mr Speaker 12:40 p.m.
Yes, Hon Member?
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, since you are minded this morning to be quoting the Standing Orders to us, may I, with respect, also indicate that the Speakership, indeed, the presiding person, is supposed to listen to us in silence.
Mr Speaker 12:40 p.m.
Hon Minority Leader, you have to withdraw --[Laughter] -- and apologise to the Chair.
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, is it in respect of the “strategic guidance”?
Mr Speaker 12:40 p.m.
Everything that you have just said. [Laughter.]
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, if I may know, which aspect?
Mr Speaker 12:40 p.m.
Hon Members, you know that when an Hon Minister or an Hon Member -- The rules --
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, hold your breath.
Since you insist on even that element pertaining to the Standing Orders -- Everything, lock, stock and barrel -- Withdrawn.
Mr Speaker 12:40 p.m.
And apologise. [Laughter.]
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, I think that in the context, the apology may be embedded. [Laughter.]
Mr Speaker 12:40 p.m.
Hon Members, let us make progress.
Yes, Hon Asiamah?
Mr I. K. Asiamah 12:40 p.m.
Mr Speaker, I asked of beneficiaries and the breakdown, because the Bulk Distribution Companies (BDCs) claim that Government still owes them.
I would want to find out how much Government owes them -- The BDCs.
Mr Speaker 12:40 p.m.
Well, Hon Minister, if you have the answer, provide it. This is because, strictly speaking, it is not supplementary. You were talking about subsidies and now you are talking about debts that the Government owes the BDCs. It is not supplementary, so you can re-phrase your question.
Mr I. K. Asiamah 12:40 p.m.
Mr Speaker, I think the issue is that some of the subsidies were meant for the BDCs. That was what I was asking.
Mr Speaker 12:40 p.m.
Hon Minister, did you mention that some of the subsidies were meant for the BDCs?
I did not hear you say that, but did you say that?
Mr Terkper 12:40 p.m.
Mr Speaker, I did not say that.
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, he is not saying that he has said so. He is only asking whether some of the subsidies --
Mr Speaker 12:40 p.m.
When I asked the Hon Member to re-phrase his question, then he said since some of the subsidies were meant for the --
Mr Kyei-Mensah-Bonsu 12:40 p.m.
Mr Speaker, he is asking whether some of the subsidies had gone to the --
Mr Speaker 12:40 p.m.
Very well.
Hon Minister -- The question is whether some of the subsidies were meant for the BDCs.
Mr Terkper 12:40 p.m.
Mr Speaker, what we do is to receive statements from the National Petroleum Authority and it is to that Authority that we pay the subsidies.
Mr Speaker 12:40 p.m.
The question is whether some were meant for them -- Whether they are beneficiaries of the subsidies -- The BDCs?
Mr Terkper 12:40 p.m.
Mr Speaker, from the pricing structure, when subsidy is not paid -- This is because it is differential, and it results in a difference between the market price and the recommended price, it is possible that suppliers along the chain, not just the BDCs but the Oil Marketing Companies and others could be owed.
Mr Speaker 12:40 p.m.
Hon Asiamah, your last supplementary question.
Mr I. K. Asiamah 12:40 p.m.
Thank you, Mr Speaker.
Mr Speaker, Government's programme with the International Monetary Fund (IMF), which rolls out this year, it is embedded in it that there would not be subsidies.
So, I want to find out from the Hon Minister, what the impact for 2015's Budget would be.
Mr Speaker 12:40 p.m.
Your question is about 2014 and not 2015.
Mr I. K. Asiamah 12:40 p.m.
Mr Speaker, is it true that there would be no subsidies in the IMF Programme? And what would be the impact --
Mr Speaker 12:40 p.m.
What its impact would be on 2014 or 2015.
Mr I. K. Asiamah 12:40 p.m.
Which negotiations started in the 2014 -- The IMF Programme with Government?
Negotiations started from 2014, and part of the negotiations is about non- payment of subsidies and I want to find out what the impact would be on this year's Budget.
Mr Terkper 12:40 p.m.
Mr Speaker, if I may repeat the objective of the Government's Automatic Pricing Adjustment Formula, as I indicated in the Answer;
“Therefore, the petroleum prices were expected to be adjusted at regular intervals to minimise the adverse impact that subsidies have had on the Budget, business operations and consumer activities.”
This is the primary objective.
Mr Speaker, we have also indicated in line with this that we intend to put a mitigation account in place, so that it would be used to manage the over and under recoveries. That is the principal objective of the Government programme.
Mr I. K. Asiamah 12:40 p.m.
Mr Speaker, I think in the Answer, it says, “automatic price adjustment”.
Mr Speaker, I am asking whether indeed, it is automatic as we speak.
Mr Speaker 12:40 p.m.
Yes, Hon Minister?
Mr Terkper 12:50 p.m.
Mr Speaker, again the answer is in the very first sentence. It says:
“The policy direction on petroleum subsidies in the 2014 was that the automatic petroleum price adjustment would be implemented as much as practicable.”
Mr Speaker, it is important in the sense that, the policy we have, is one that has a price ceiling for guidance and floor for guidance. Any time you breach that ceiling, it is possible that you would be harming business operations if you stuck to complete adjustments. At the same time, if you hit the floor and you have for instance; accumulated arrears, as we saw recently, you pay them.
Mr Speaker 12:50 p.m.
Question numbered 236 - - Hon Minority Leader.
Mr Kyei-Mensah-Bonsu 12:50 p.m.
Mr Speaker, I think there are many strands to this Question and so if perhaps you may allow?
Mr Speaker, the Hon Minister has indicated in his Answer that, petroleum prices were expected to be adjusted at regular intervals to minimise the adverse impacts that subsidies have had on the Budget. So right from the very outset, you had decreed that you were not going to subsidise because you would expect the prices to be adjusted at regular intervals so that there would not be any need for subsidies.
But then, the Hon Minister then goes on to tell us that, in spite of this pontifical declaration, in the original Budget, he says, GH¢50 million was to be spent on petroleum subsidies when you yourself in setting out, have told us that there was not going to be any need. Why then did you at the very outset, set aside GH¢50 million for an enterprise that in your opinion, was not going to be necessary.
Why do you set aside the GH¢50 million?
Mr Terkper 12:50 p.m.
Mr Speaker, the Ministry of Finance, with the guidance of Cabinet believes in implementing pragmatic economic policies and when we lay out a policy, we intend to implement it in a very pragmatic manner.
Mr Speaker, even when you have been extremely cautious, you may still find yourself taken unawares, particularly, in an economy that faces volatilities and therefore, we never take anything to its theoretical conclusion. This is the reason despite the fact that we do not wish to have subsidies continuing to pose a big burden on the economy, we insist on managing it through minimal subsidies or implementation of a mitigation account. These are the pragmatic measures.
Mr Speaker, if I may divert a bit with your kind permission. When His Excellency presented his State of the Nation Address, he gave one very practical example; where this august House, in passing the Petroleum Revenue Management Act, decided that we should use seven years. Going back three years, the current year and anticipating another three years in striking an average for what we include in the Annual Budget Funding Amount (ABFA).
Mr Speaker, you would see that, despite this very prudent measure at the time, which was debated in this House, we have seen oil prices fall beyond anybody's expectation and that is the reason why we implement policies. I think we should adopt the pragmatic approach to it and not implement it in a very theoretical -- At the time, in fact, the benchmark revenue was hailed as one of the best that a country could put in place.
Mr Kyei-Mensah-Bonsu 12:50 p.m.
Mr Speaker, the Hon Minister alludes to the grant of subsidies because of the delay in the adjustment of petroleum prices.
Mr Speaker, would the Hon Minister admit to us, that the subsidies were occasioned by the deterioration in the value of the cedi and not necessarily at the instance of the delay in adjustment?
Would he admit that basically, it was due to the deterioration in the rate of the cedi against the major trading currencies, would he admit?
Mr Terkper 12:50 p.m.
Mr Speaker, at the time the adjustments were delayed, my recollection is that, petroleum prices were getting close to US$115 per barrel and because we had used about US$110 per barrel as the uppermost that it could, that was the reason that the delay was incurred.
Mr Speaker, I think we must also point to the success of the automatic price adjustments, in that, apart from that period in June/July, when we had to do that and therefore increase the subsidy, we have never had since the implementation, long queues in the country. We have over reasonably long period been getting regular supplies of crude.
I think this is something which most Ghanaians have observed and I recall during that period, that there was a survey that was done, random, by City FM where people were heard to say they would rather pay a little more than waste the time as they did in the not too distant past [Interruptions] When we used to experience this long queues.
My apologies, Mr Speaker.
Prof. George Y. Gyan-Baffour 1 p.m.
Mr Speaker, the Hon Minister has justified the delayed adjustment by bringing in a new lexicon which is ‘practicable automaticity”. We agree with that. It is practical.
Mr Speaker, more importantly, the Hon Minister said that about GH¢327,000 was used as a subsidy. But then when he was mentioning those items involved, he mentioned premix fuel and Liquified Petroleum Gas (LPG).

Mr Speaker, I would want to find out from the Hon Minister, whether LPG and premix fuel are not cross subsidy in the formula? Why would we raise money to pay for that? In the cross subsidy, we do not really need any extra money to pay for that. Maybe, he would have to clear that so that it does not appear in the record as if these subsidies are used to pay for LPG and premix.
Mr Terkper 1 p.m.
Mr Speaker, the Hon Member is right that if you got it right, you would not have to make any provision at all for those items. But for the very reason that those who are also benefitting are the vulnerable, that is where we could also be hit when you do not get it right.
Therefore, Mr Speaker, we are back to the practical implementation of the measure. I concede that the subsidy does not necessarily, as the Hon Member who spoke last indicated, go to the target group. Sometimes, it goes outside.
If I may compliment the Hon Member also for his understanding, I have read some of his literature on the need for automatic price adjustment.
Mr Speaker 1 p.m.
Hon Members, we now move to Question 236. Hon Member for Akim Swedru?
Mr Kennedy N. Osei 1 p.m.
Mr Speaker, with your permission, I would like to step my Question down because, it has lost its relevance. Before I sit down, I would appeal to your goodself to urge the Table Office to always consider the relevance and timing of programming Questions for answers in this House.
Mr Speaker 1 p.m.
Very well. Question 237.
Divestiture of State-Owned Enterprises Since 2009
Q. 237. Mr Osei Bonsu Amoah asked the Minister for Finance the number of State-Owned Enterprises divested since 2009 and the details of such divestiture.
Mr Speaker, I notice in reframing the Question on the Order Paper Addendum the Question has been restricted to December 2013 but my Question relates up to the present. I hope the Hon Minister will take that into consideration.
Mr Terkper 1 p.m.
Mr Speaker, a total of five (5) State-Owned Enterprises (SOEs) were divested from January, 2009 through December, 2013, namely:
Company Year of Sale
i. Tema Printing Press 2009
ii. Ghana Consolidated Diamond Company ( GCD ) 2011
iii. Subri Industrial Plantation Limited ( SIPL ) 2012
iv. GIHOC Footwear Company Limited 2012
v. GAMA Film Company Ltd 2013
Mr Speaker, Tema Printing Press was divested for a purchase price of US$3 million, out of which US$1.1 million has been paid, leaving a balance of US$1.9 million. A total of US$3.2 million out of a purchase price of US$17 million for the Ghana Consolidated Diamonds Company has been paid.
Mr Speaker, Subri Industrial Plantation Limited was sold for US$10 million with US$5 million has been paid. GIHOC Footwear Company Limited was divested to a joint venture for US$700,000.00, out of which US$70,000.00 has been paid leaving a balance of US$630,000.00. Finally, GAMA Film Company Limited was also divested for a total of GH¢6 million with GH¢1.6 million paid and a balance of GH¢4.4 million.
The Board of Directors of the Divestiture Implementation Committee (DIC) have directed the Secretariat to present a recovery plan for all outstanding amounts.
Mr Speaker, in relation to the point about 2014, it is not my recollection that there were divestitures because I chair the committee now and I do not recollect that -- But we will provide information to the Hon Member after checking with the Secretariat.
Mr O. B. Amoah 1 p.m.
Mr Speaker, the Report of the Auditor-General on the Public Account of Ghana Consolidated Fund for the years ended 31st December, 2011, 2012, 2013 indicate that, there has been non-payment of divestiture proceeds into the Consolidated Fund between the year 2010 and 2013.
Can the Hon Minister tell the House why the amounts paid have not been paid into the Consolidated Fund since 2009 in contravention of Regulation 10 of the Financial Administration Act 2004 and what assurance can he give the House that these amounts will be paid into the Consolidated Fund?
Mr Speaker 1 p.m.
Hon Member, have they reported that the Public Accounts Committee reported on all those years? If they have not reported on them, then eliminate those ones from your question.
Mr O. B. Amoah 1 p.m.
Mr Speaker, I do not have their Report but these are the Auditor- General's Reports for three years.
Mr Speaker 1 p.m.
Yes, but it is not sacrosanct. He has provided a certain Answer here and you are using --
Mr O. B. Amoah 1 p.m.
Mr Speaker, what I am saying is that, since 2011, those who have even paid, those payments have not been paid into the Consolidated Fund and the Auditor-General has been complaining about it every year.
Mr Speaker 1 p.m.
So lay the foundation that --
Mr O. B. Amoah 1 p.m.
That is the foundation I laid, Mr Speaker.
Mr Speaker 1 p.m.
So ask the question now.
Mr O. B. Amoah 1 p.m.
Mr Speaker, I said the Report of the Auditor-General for Public Accounts for the Consolidated Fund for the years 2011, 2012 and 2013 indicate that, payments have been made but those payments have not been paid into the Consolidated Fund. Can the Hon Minister tell this House why these payments have not been made?
Mr Terkper 1 p.m.
Mr Speaker, I do not know the basis for choosing those years but the records of the DIC indicate that, the issue of non-payment spans a lot more years. That is why I stated in the Answer that the Board of the Committee has directed the Secretariat to present a recovery plan for all outstanding amounts including --
Mr Speaker 1 p.m.
The question is not about the outstanding amount; it is about the moneys not being paid into the Consolidated Fund.
Mr Terkper 1 p.m.
Mr Speaker, we are aware that some of those payments are pending in special accounts with the Bank of Ghana. For example, with respect to SIPL, it is because of an appeal that is pending. Therefore, it would not have been prudent to pay the money into the Consolidated Fund. We are aware that about two or three of such payments are being held for that reason.
We have asked for reports on those as well in order that we can give direction on transfers so appropriate.
I am sorry, Mr Speaker, I got the question wrong.
Mr O. B. Amoah 1 p.m.
Mr Speaker, in the last paragraph of the Hon Minister's Answer, it talks about the board of DIC directing the Secretariat to present a recovery plan for all outstanding amounts. If you look at the Report from the Finance Ministry, since divestiture began in the 1980s to date, there are still outstanding payments to be made regarding institutions like La Beach Complex, Star Hotel, Tema Shipyard, GIHOC Pharma- ceuticals.
Today, in his Answer, he is also giving us amounts outstanding to be paid. Can the Hon Minister tell the House the steps the Government and DIC, which he heads, are taking to recover all these amounts?
Mr Speaker 1:10 p.m.
Hon Minister?
Mr Terkper 1:10 p.m.
Mr Speaker, the first step is to ask for a detailed current Report. The second step we are taking would be to ask guidance from the Attorney-General and Minister for Justice with respect to actions. Luckily, the Attorney-General and Minister for Justice is a Member of the Committee so once the, sub- Committee has submitted the Report --
Mr O. B. Amoah 1:10 p.m.
Mr Speaker, the Hon Minister is assuring this House that he would provide additional information regarding the payments into the Consolidated Fund.
Mr Speaker, can the Hon Minister tell us the plans the DIC and the Government have made towards the payment of severance awards to staff of companies listed for divestiture to complete those exercises?
Some companies have been listed for divestiture, the understanding is that, companies like Ghana Railways, State Housing, et cetera, it is a long list, the understanding is that, what is stalling the divestiture is the fact that the Government has not been able to raise funds to pay off severance awards to staff and I am asking of the plans the DIC and indeed, the Government have made towards concluding the exercise?
Mr Terkper 1:10 p.m.
Mr Speaker, these are parts of the requests that the Board, as recently inaugurated has made for an
update and a plan going forward in order that we can take action on those. The status of some of these have changed since they were listed in the old law and that is one of the clarifications that we want before we take any further action.
Dr Prempeh 1:10 p.m.
Mr Speaker, in the Answer to the Question on divestiture, this House was told that there were five main modes of divestiture; sale of assets, sale of shares, joint-ventureships, lease and liquidation --
Mr Speaker 1:10 p.m.
Hon Member, where you are going is it a supplementary question? Very well, conclude.
Dr Prempeh 1:10 p.m.
Thank you, Mr Speaker. Mr Speaker, which mode of divestiture is the Hon Minister planning for Electricity Company of Ghana, ECG?
Mr Speaker 1:10 p.m.
Hon Member that is not a supplementary question.
Dr Prempeh 1:10 p.m.
Mr Speaker, I thought the Hon Minister was ready to give the mode he has chosen for ECG. Mr Speaker, one of the companies listed, is the GAMA Film Company Limited for which I have had the chance to see the mode of disposal of assets of Ghana in GAMA.
But Mr Speaker, it is a very profitable agency making millions of money. If journalists want to go and retrieve archival Ghanaian documents, why are they still owing Ghana and what interest are you going to put on GAMA Film Company Limited so that they pay Ghanaians well for archiving or storage or acquisition of valuable national assets?
Thank you, Mr Speaker.
Mr Terkper 1:10 p.m.
Mr Speaker, I thank the Hon Member for that valuable information on the profitability of one of the entities and we would take it into account. As I indicated, we would take further action on the steps that would be recommended to us.
Mr Speaker 1:10 p.m.
Hon Minister, we thank you very much for --
Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 1:10 p.m.
Mr Speaker, can we, with respect to the Hon Minister, know the payment plan in respect of these divestitures? This is because when you look at Tema Printing Press, just about 30 per cent has been paid since 2009. This is about the sixth year and only 30 per cent had been paid.
Mr Speaker, the other one in respect of the Ghana Consolidated Diamond Company, 2011 and it is just about 18 per cent or so that has been paid. The one that has attracted the greatest amount is in respect of GIHOC Footwear Company Limited for which about 10 per cent has been paid and Subri has paid 50 per cent. Mr Speaker, what is the payment --
Mr Speaker 1:10 p.m.
Hon Minister?
Mr Terkper 1:10 p.m.
Mr Speaker, I did indicate that the Board had requested for specific payments and operational plans for some of these assets which have been divested. I also indicated that going forward, the Board has provided guidance about protecting the State when assets are disposed.
In some cases also, midstream through the transaction, issues arise such as title, in particular, land title as it is common with assets acquired by the State and this tends to also delay completing the transactions. But anywhere that happens, this is the context in which I said that with the guidance of the Attorney-General and Minister for Justice, we would explore whether it is possible to be paying some money into an escrow account even when some of these issues are being resolved.
These are reflected in the deliberations of the Board with respect to the outstanding amounts.
Mr Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, I agree that going forward, useful lessons must be learnt. But with respect to the divestiture of state-owned companies, this enterprise did not start today, yesterday or the day before yesterday. It started way back, so why should we be treading the same path? In the 80s -- Why should we be treading the same path and say to ourselves that going forward, we would learn useful lessons?
I do not think this is tenable at all, so the Hon Minister should come before us properly with a better answer to this.
Mr Terkper 1:20 p.m.
Mr Speaker, I indicated firmly that the Board takes a serious view of the outstanding payments and has directed some specific actions. But in answer to the second part of the Minority Leader's Question; I have indicated that measures have been taken, a direction has been given to the Secretariat to put protective measures in place, some of which I cited, to prevent the occurrence.
We have been doing this in other areas of national policy, such as the establishment of on-lending and other accounts for state-owned enterprises that do not pay the loans that Government takes on their behalf.
Mr Speaker 1:20 p.m.
Hon Minister, we thank you very much for attending upon the House to respond to Questions from the Members but make sure that next time, you submit your answers on time.
Mr Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, you were thanking him for attending on the House?
Mr Speaker 1:20 p.m.
For attending upon the House to respond to Questions --
Mr Kyei-Mensah-Bonsu 1:20 p.m.
But you are not thanking him for the Answers?
Mr Agbesi 1:20 p.m.
Mr Speaker, item 6 (a) is ready to be laid and with your permission, I would like to plead that the Deputy Minister for Power do lay the Paper on behalf of his Minister.
Mr Speaker 1:20 p.m.
Hon Minority Leader, he is making an application for the Hon Deputy Minister for Power to lay the item 6 (a) on the Order Paper on behalf of his Minister.
Mr Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, I, ordinarily would not have any issue with that, except that because this is very serious Business and we have the Minister for Finance in the Chamber, would it not be more appropriate to have him lay this on behalf of the Minister for Power?
Certainly at Cabinet level, it would not be for the Deputy Minister if the Minister is away or absent, to carry the portfolio, it would certainly be another Cabinet Minister and since we have the Minister for Finance, whose Ministry is pivotal to this; I believe that it would be better for him to do it.
Mr Speaker 1:20 p.m.
It amounts to laying so it does not matter who lays it. Sometimes, Members raise the issue that the Ministry is not represented when the Paper is being laid so that is why maybe, the Deputy Minister is in the House. So, if the Minister for Finance can lay it, I do not see any difference.
Hon Minister for Finance on behalf of the Minister for Power, item 6 (a)?
Mr Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, with all due respect, I believe that as far as this House is concerned, it would matter
who carries the responses of any Paper to the House.
Mr Speaker 1:20 p.m.
Hon Minority Leader, the point that I making is that sometimes, Hon Members insist that they get representation from the particular Ministry involved and when they do not have anybody from the Ministry, Hon Members are not too happy. So, that is why the Hon Deputy Minister for Power has been here all this while to lay the Paper on behalf of his Minster.
I do not have a problem as to who lays the Paper so, yes. But if you want the Minister for Finance to do it, I do not have any objections.
Hon Minister for Finance, item 6 (a) on behalf of the Minister for Power?
PAPERS 1:20 p.m.
Mr Speaker 1:20 p.m.
Hon Deputy Majority Leader, any other Paper to be laid?
Mr Alfred K. Agbesi 1:20 p.m.
Mr Speaker, the rest of the Papers captured in items 6 (b), (c) and (d) are not ready as consultation is still going on. So, that should be the end of the Papers to be laid. Items 7, 8, 9
and 10 are also in the same way. Consultation is going on and we are yet to formalise and take them.
Under the circumstances, Mr Speaker, I beg to move, that this House do adjourn to tomorrow, Thursday at 10.00 o'clock in the forenoon.
Mr Osei Kyei-Mensah-Bonsu 1:20 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
ADJOURNMENT 1:20 p.m.
  • The House was accordingly adjourned at 1:27 p.m. till Thursday, 5th March, 2015 at 10.00 a.m.