Debates of 25 Jul 2018

MR SPEAKER
PRAYERS 12:25 p.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 12:25 p.m.
Mr Speaker 12:25 p.m.
Hon Members, Correc- tion of Votes and Proceedings of Tuesday, 24th July, 2018.
Page 1… 27 --
rose
Mr M. B. Braimah 12:25 p.m.
Mr Speaker, I was in the House yesterday, but I have been captured absent.
Mr Speaker 12:25 p.m.
All right, Hon Member.
Page 28…34 --
Mr Samuel Okudzeto Ablakwa -- rose
-- 12:25 p.m.
Mr Ablakwa 12:25 p.m.
Mr Speaker, the fourth line of item numbered 33(2) on page 34 should be:
‘‘…at the request of the Government of the Republic of Ghana…''.
The word ‘‘of'' should be inserted in between the words ‘‘Republic'' and ‘‘Ghana''.
Mr Speaker 12:25 p.m.
Thank you very much Hon Member.
Page 35…37 --
rose
Mr Asamoa 12:25 p.m.
Mr Speaker, with regard to item numbered 35(2) on page 36, which refers to the amendment of clause 3, the amendment proposed and finally agreed to was worded in the following form:
‘'ensure that in respect of the earned interest of the State, indices are provided in the joint venture agreement for the mandatory annual payments.''
Mr Speaker, it was proposed by myself, approved by the Hon Majority Leader and the Hon Chairman of the Committee accepted it -- and the whole House approved it too.
Mr Speaker 12:25 p.m.
Very well.
Pages 38 and 39 --
rose
Mr Speaker 12:25 p.m.
Yes, Hon Okudzeto Ablakwa?
Mr Ablakwa 12:25 p.m.
Mr Speaker, I tried to catch your attention on page 38.
Mr Speaker, the fourth line of item numbered (d) on page 38 should be 12:25 p.m.
‘‘..know-how to Ghanaians..''
The alphabet ‘‘s'' should be added to the word ‘‘Ghanaian'' to make it plural.
Mr Speaker 12:25 p.m.
Thank you Hon Member.
Page 40…43 --
rose
Mr Speaker 12:25 p.m.
Yes, Hon Member?
Mr Asamoa 12:25 p.m.
Mr Speaker, with regard to item numbered 18 on page 41, the understanding was that a new clause ‘‘Functions of the Board'' would replace subclause (3) of clause 5 of the Bill and take along clause 4 of the Bill with it, so that it would become an entirely new group under a new sub-heading, which is the ‘‘Functions of the Board''.
Mr Speaker, it does not look like it has been reflected effectively in the Votes and Proceedings.
Mr Speaker 12:35 p.m.
Hon Member, I have been advised that what has been said has been catered for separately as a substantive provision.

We are waiting to have confirmation.
rose
Mr Speaker 12:35 p.m.
Hon Member, are you on the same matter or on a different matter?
Mr Ras Mubarak 12:35 p.m.
A different matter, Mr Speaker.
Mr Speaker 12:35 p.m.
Please wait for a moment. [Pause.]
Mr Asamoa 12:35 p.m.
Mr Speaker, by your leave, I have sorted out the processes with the Table Office. There is a provision that has been omitted which would be added to make the amendment a full one.
Mr Speaker 12:35 p.m.
A whole provision has been provided, therefore making this unnecessary.
Mr Ras Mubarak 12:35 p.m.
Mr Speaker, on page 45, under Committee on Communications, “Africa Union” should read “African Union”.
Mr Speaker 12:35 p.m.
Is it “Africa Union” or “African Union”?
Mr Ras Mubarak 12:35 p.m.
Mr Speaker, it is “African Union”. This is in respect of the African Union Convention on Cyber- Security.
Mr Speaker 12:35 p.m.
African Union Conven- tion? But normally, when you are referring to the union, how do you refer to it?
Mr Ras Mubarak 12:35 p.m.
Mr Speaker, the union is referred to as Africa Union, but the various programmes or conventions come with an “n” at the end of “Africa”. So we have African Union Convention on Cyber-Security.
Mr Speaker, however, we are at your pleasure.
Mr Speaker 12:35 p.m.
What does the adjective “African” qualify, and why not Africa Union Convention? It is important and I would like the draftspersons to check on this, so that we know what the appropriate parlance is.
Mr Samuel Okudzeto Ablakwa 12:35 p.m.
Mr Speaker, I want to confirm that what Hon Ras Mubarak said has really been the tradition. The union is “Africa Union” but often, all the conventions that we work with, it is African Union Convention. That has been the tradition, so the union is Africa Union but then --
Mr Speaker 12:35 p.m.
Kindly let us crosscheck.
Mr Ablakwa 12:35 p.m.
This is because the convention that was laid in the House for which we have copies and the Report is ready. It is African Union Convention on Cyber Security.
Mr Speaker 12:35 p.m.
Let us not talk about the Report.
Mr Ablakwa 12:35 p.m.
The agreement itself or convention, that is the proper title --
Mr Speaker 12:35 p.m.
Do you have the convention in your hand?
Mr Ablakwa 12:35 p.m.
Mr Speaker, I do not have my copy here but I recall that that is it. We could check.
Mr Speaker 12:35 p.m.
Let us check, and for the draftsperson --
Mr John Jinapor 12:35 p.m.
Mr Speaker, I believe we should just take a cue from your advice. There is no harm in crosschecking and ensuring that it is the proper thing to do. [Pause.]
Mr Speaker 12:35 p.m.
Page 46, Hon Ablakwa?
Mr Ablakwa 12:35 p.m.
Mr Speaker, on page 44, the Hon Deputy Minister for Education in charge of Technical and Vocational Education and Training (TVET), Hon Barbara Asher Ayisi is here. There are a number of Deputy Ministers, so for precision and records -- this is a House of records -- She is in charge of TVET, if it could be corrected accordingly.
Mr Speaker 12:35 p.m.
Effected accordingly.
Pages 45……48.
Hon Members, the Votes and Proceedings of Tuesday, 24th July, 2018 as corrected is hereby admitted as the true record of proceedings.
Hon Majority Leader, any direction?
Mr Kyei-Mensah-Bonsu 12:35 p.m.
Mr Speaker, we could start with item numbered 7.
Mr Speaker 12:35 p.m.
So we would move to the Commencement of Public Business, item numbered 7, Motion.
Dr Assibey-Yeboah 12:35 p.m.
Mr Speaker, item number 7 relates to the Recievables- backed Trade Finance Facility for COCOBOD. In the same Report we have a request for Waiver of stamp duty. So we would take two Motions together for this.
Mr Speaker 12:35 p.m.
Alright.
MOTIONS 12:45 p.m.
Chairman of the Committee (Dr Mark Assibey-Yeboah) 12:45 p.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the terms of a Receivables-backed Trade Finance Facility between Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial Institutions, with the Government of the Republic of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States dollars (US$1,300,000,000) for the purchase of cocoa in Ghana for the 2018/ 2019 Crop Season.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the request for waiver of stamp duty amounting up to six million, five hundred thousand United States dollars (US$6,500,000) on the Receivables-Backed Trade Finance Facility between Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial Institutions, with the Government of the Republic of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States dollars (US$1,300,000,000) for the
purchase of Cocoa in Ghana for the 2018/ 2019 Crop Season.
Mr Speaker, in doing so, I present your Committee's Report.
Introduction
The Request for approval of the Terms on Receivables-Backed Trade Finance Facility between the Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial institutions with Government of Ghana as gurarantor for an amount of one billion, three hundred million United States dollars (US$1,300,000,000) for the purchase of cocoa beans in Ghana for the 2018/2019 crop season was presented to the House on Wednesday, 18th July, 2018 in accordance with article 181 of the 1992 Constitution.
Further, a request for the Waiver of Stamp Duty amounting to six million, five hundred thousand United States dollars (US$6,500,000) on the Receivables-Backed Trade Finance Facility was made.
Mr Speaker referred the requests to the Finance Committee for consideration and report, in accordance with article 174 of the 1992 Constitution and the Standing Orders of the House.
The Committee met with a Deputy Finance Minister, Hon Charles Adu Boahene, the Chief Executive Officer of the Ghana Cocoa Board, Mr Paul Evans Aidoo and officials from the Ministry of Finance and Ghana Cocoa Board to consider the referrals.
Documents Referred To
The Committee referred to the following documents:
1. The 1992 Constitution of Ghana.
2. The Ghana Cocoa Board Act, 1984
(PNDCL 81).
3. The Standing Orders of Par- liament of Ghana.
Background
The cocoa industry has contributed significantly to the economic development of Ghana over the years. Over the years, cocoa contributes about a quarter of Ghana's Gross Domestic Product (GDP).
The industry has over the years created employment for millions of Ghanaians and serves as a major source of foreign exchange for the country.
One of the main functions of COCOBOD is to purchase, market and export cocoa and cocoa products produced in Ghana.
To this end, the offshore syndicated Trade Finance Arrangement was put in place in 1994 to enable COCOBOD secure a loan facility to finance the purchase of cocoa and for other payments each year.
This year, the Board of Directors of COCOBOD gave approval for United States dollars (US$1,300,000,000) for the purchase of cocoa for the 2018/2019 cocoa season. It is this facility that is currently before Parliament for approval in accordance with article 181 of the 1992 Constitution of the Republic of Ghana.
Rationale of the Request
The trade facility is to enable COCOBOD raise adequate funds to purchase cocoa beans from farmers through licensed buying companies for the 2018/2019 cocoa season.
Rationale for the Waiver of Stamp Duty
Section 32 (6) of the Stamp Duty Act, 2005 (Act 689) makes it imperative to stamp a loan document at 0.5 per cent of
Chairman of the Committee (Dr Mark Assibey-Yeboah) 12:45 p.m.


the facility. In order to ensure that the full value of the loan is used for cocoa purchases in the 2018//2019 crop season, there is the need to waive the Stamp duty on the loan facility. The amount to be

waived has been assessed as US$6,

500,000.

Terms of the facility

The terms of the facility are as follows:

Arrangers -- ABN AMRO, Bank of China, ICBC and Standard Chartered Bank

Interest margin -- LIBOR + 60 basis points

Commitment fees -- 35 per cent on interest margin

Flat fees (Participation and arrangement) -- 0.625 per cent flat

Legal costs and other expenses -- Up to US$66,000

Agency fees -- Nil

Security margin -- Assignment of Cocoa Contracts for 110 per cent of Facility Amount

Interest on cash collateral Deposit -- To be Market-Related LIBID

Underwriting level -- Fully Underwritten

Estimated Total Cost (excluding Legal Fees) -- US$27,877,029.79

Observations

Utilisation of 2017/ 2018 loan facility

The Chief Executive Officer informed the Committee that the syndicated loan for 2017/2018 was drawn down in three tranches. The first 50 per cent drawdown was made on 6th October, 2017.

Additional US$450 million drawdown was made on 13th November, 2017. The last drawdown was made on 13th December, 2017 bringing the cumulative drawdown to the full amount of

US$1,250,000,000 (GH¢5,497,805,000).

The Chief Executive Officer stated that the stated amount was utilised as follows:

Seed fund to LBCs for cocoa purchases -- GH¢ 1,935,325,697.95

CTORs/ cocoa deliveries paid to LBCs -- GH¢2,813,860,155.30

Inputs/CODAPEC and Hi-tech Expenses -- GH¢395,822,471.63

Operational expenses -- GH¢382,796,675.12

Total -- GH¢5,497,805,000.00

Utilisation of 2018/ 2019 loan facility

The Chief Executive Officer informed the Committee that for the 2018/2019 season, the facility amounting to US$1,300,000,000 would be used for cocoa purchases and payment for other liabilities. The breakdown of the Proposed use of the funds for 2018/2019 is attached as Appendix 1.

Need for Domestic Borrowing

The Chief Executive Officer informed the Committee that in 2017/2018 crop season, COCOBOD needed to borrow GH$2.7 billion to support its finances. He said the borrowing became necessary as a result of the decline in the world prices of cocoa as well as existing legacy debts.

Maintaining producer price of Cocoa

The Chief Executive Officer stated that COCOBOD would not reduce the farmer price of cocoa. He indicated that this was important in order to maintain interest in cocoa farming. He said in recent times, many farmers are divesting their lands into the cultivation of cashew and rubber as well as giving them out for mining.

This has adversely affected the total cocoa land size. He said that a reduction in the current farmer prices would further worsen the already existing situation. Even though many countries have reduced their producer prices in the face of declining world market prices, COCOBOD continued to maintain the current prices in order to keep the farmer in business.

Efforts to increase production

The Chief Executive officer informed the Committee that COCOBOD is undertaking a number of measures to help improve yield. So far a number of measures
Chairman of the Committee (Dr Mark Assibey-Yeboah) 12:45 p.m.
He said some of these measures have been implemented in the current crop season. He was optimistic that in the 2018/ 2019 crop season, most of the measures would be fully implemented to enhance yields.
Provision for Stabilisation Fund
The technical team informed the Committee that the Stabilisation Fund is part of the positive margin between international prices and producer prices. Currently, the producer prices are higher than the international prices hence the margin is adverse. If the situation improves, payments would be made into the Stabilisation Fund.
Waiver of Stamp Duty
The Committee inquired of the Board why they should be exempted from the payment of Stamp Duty.
The CEO explained that currently, COCOBOD is distressed financially due to declining world market prices. Therefore paying the Stamp Duty would add further financial challenges to the Board.
This can adversely impact on the purpose for sourcing the facility. In order to ensure that the object for the Trade Finance facility is realised, there is the need to exempt the facility from the payment of Stamp Duty.
Conclusion
Considering the significant contribu- tion of the cocoa industry to the economic development of Ghana, the Committee

recommends to the House to adopt its Report and approve by Resolution, the

Terms of a Receivables-backed Trade Finance Facility between the Ghana Cocoa Board and a Consortium of Banks and Financial Institutions, with the Government of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States dollars (US$1,300,000,000) for the purchase of cocoa for the 2018/ 2019 crop season in accordance with article 181 of the 1992 Constitution section 56 of the Public Financial Management Act, 2016 (Act 921) and Order 171 of the Standing Orders of Parliament, and

Request for the Waiver of Stamp Duty amounting to six million, five hundred thousand United States dollars (US$6,500,000) on the Receivables-Backed Trade Finance Facility between the Ghana Cocoa Board and a Consortium of Banks and Financial Institutions, with the Government of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States dollars (US$1,300,000,000) for the purchase of cocoa for the 2018/ 2019 crop season in accordance with article 174 of the 1992 Constitution and section 36 of the Stamp Duty Act, 2005 (Act 689 ) and Order 169 of the Standing Orders of the House.

Respectfully submitted.

SPACE FOR APPENDIX 1, PAGE 9 12.45 P.M
Mr John Abdulai Jinapor (NDC -- Yapei/Kusawgu) 12:45 p.m.
Mr Speaker, I beg to second the Motion. In doing so, I would want to say that there is not much for me to say, except to note that in subsequent arrangements, we would wish to see local banks taking a greater stake and participating more.
This is because anytime you go borrowing, the foreign banks do so because there is a price element; the interest and the arrangement fees among others. If we can encourage our local banks to take a particular stake with very good terms, I am sure that it would go a long way to assist us.
Mr Speaker, cocoa, scientifically known as theobroma cacao has contributed immensely to our socio-economic development. As we keep raising these facilities, it is my hope that we would take steps to ensure that we process more of the cocoa beans within the country and not export them in their raw state.
The Report also talks about the fact that farmers are beginning to move into cashew, also scientifically known as anacardium occidentale. I am happy that farmers are taking interest in cashew. It is my hope that farmers would not just move from cocoa to cashew, but that we can encourage more people to go into cashew farming.
Mr Speaker, US$1.3 billion is quite a huge amount and we are looking at 900,000 tonnes of cocoa beans. We have been working to ensure that we hit one million tonnes and it is my hope that as we get high-yielding, early maturing plants, we would eventually get to this level and add more value.
Mr Speaker, finally, part of the debt stress is because we are unable to service some of our loans from their primary levels.
If you take a company like Bui Dam, Ghana Gas -- they have an Escrow account and a debt service account where they are supposed to pay moneys into to retire the facilities we took for them. But because they are unable to pay, COCOBOD is called upon, being the secondary guarantor, to come in and pay.
If we can look at this structure and ensure that some of these State Owned Enterprises (SOEs) are well functioning and are able to pay, it would relieve COCOBOD of some of these liabilities so that they can concentrate on their core mandate.
Mr Speaker, with these few words, I wish to associate myself with the Motion.
Question proposed.
Alhaji Inusah A. B. Fuseini (NDC -- Tamale Central) 12:45 p.m.
Mr Speaker, I thank you for the opportunity to contribute to the Motion on the Floor of the House.
Mr Speaker, ordinarily, one would not oppose the granting of a tax waiver to COCOBOD for the purchase of cocoa beans for this season because that has been the practice. But I am always reminded of the late Obeng Manu's saying that ‘repeating mistakes is not experience'. And that is the reason I am getting up to contribute to this Motion.
Mr Speaker, I thought that the Hon Chairman of the Finance Committee, apart from giving the mundane explanation for the tax waiver, would tell us specifically how the tax waiver would benefit the people of Ghana.
The tax waiver is our money - if we do not waive the tax, we take the money and so it is our money. So if we are waiving it, what is the benefit that is coming to us? That is very important.
Mr Speaker, secondly, who pays the stamp duty? Is it the Government of Ghana that pays or the lenders? If it is the lenders, why are we waiving that payment of the stamp duty for them? If it is COCOBOD, why are we waiving stamp duty for them?
It is very important because, for instance, we could just be adding to the interest that we are going to pay for the facility by waiving other taxes that they ought to pay on the loan.
So like I have said, ordinarily, one would not oppose it. But we need a cost benefit effect for the utilisation of the tax that we are waiving.
We need it because the cost benefit analysis of the waiver we are giving -- if the waiver could do five kilometres of road or build schools, for instance, and we decide that we would not take the waiver, how would the profit that COCBOD would make augment their corporation's social responsibility of building schools?
Mr Speaker, to be honest, we have to look at the policy of granting tax waivers to public corporations that have been incorporated in this country to run on market oriented principles. We have to seriously look at it because it appears that we get nothing in return for the tax waivers.
Like we have said, we need to raise the resources to buy the cocoa. For now, I support the Motion for the tax waiver. Going forward, I pray that we take a serious look at the reasons we grant tax waivers, and not the mundane reasons that have been given to us in the Report.
Thank you, Mr Speaker.
Mr Kwame Asafu-Adjei (NPP--Nsuta/ Kwaman/Beposo) 12:55 p.m.
Mr Speaker, the major causes of low yield that faces the cocoa industry has to do with high incidences of pests and diseases; the ageing of our farmers; and low extension services provided by COCOBOD. In view of this, COCOBOD has launched new innovations -- replanting of the old trees.
Also, they have introduced for the first time in the history of the cocoa industry, pruning. They have touched on providing planting materials to farmers.
Mr Speaker, the waiver is important, in that like the Hon Chairman and other Hon Colleagues said, cocoa is the backbone as well as the mover and shaker of the economy of our country. All of us, in one way or the other, have benefitted from the cocoa sector.
How do we move this industry forward? The way to do it is not to sell the raw beans. Like other Hon Colleagues said, there is the need for all of us, as a country, to impress upon COCOBOD to do more processing and also look for other markets like China.
In fact, the Chinese market could absorb most of our cocoa beans because the population is growing, and they have young men and women interested in eating chocolates and drinking cocoa beverages.
Mr Speaker, domestically, it is about time we encourage our school children, parliamentarians and politicians to start drinking cocoa beverages. I am surprised to attend meetings and seminars and only hear of coffee and Lipton when we do not ask for cocoa.

If we do not eat what we produce, who would consume it for us? We should encourage every Ghanaian to take and drink cocoa beverages instead of looking for coffee or tea.

Mr Speaker, I think that COCOBOD, in spite of its crisis, is doing a lot. As I have already said, they have introduced new innovations.

I am glad that the road network has been moved from COCOBOD to the Ministry of Roads and Highways where it properly belongs to. With this policy initiative, COCOBOD would have time to concentrate on its core activities.

Mr Speaker, with these few words, we should adopt the Motion ably moved by the Hon Chairman to support COCOBOD, and approve the amount of US$1.3 billion for the purchase of cocoa in Ghana for the 2018/2019 crop season.

Thank you very much, Mr Speaker.
Mr Richard Acheampong (NDC-Bia East) 12:55 p.m.
Mr Speaker, I thank you for the opportunity to contribute to the Motion on the Floor.
I have few observations to make. We requested for some details at the Committee level. When we came to the utilisation of the 2017/2018 syndicated facility, which was secured by COCOBOD - US$1.3 billion, they gave us the details; but there were operational expenses of GH¢382 million. The Chief Executive Officer of COCOBOD promised to give us details of what went into the GH¢382 million.
We have the Report, but the details are not attached to it. We are to approve another US$1.3 billion, meanwhile, there
are no details. They have given us the expenditure for the 2018/2019 loan facility, which is the current one under consideration; but they have refused to give us the details of the 2017/2018 loan facility in respect of the GH¢382 million.
rose
Mr Speaker 12:55 p.m.
Hon Chairman, do you rise on a point of correction?
Dr Assibey-Yeboah 12:55 p.m.
Rightly so, Mr Speaker.
The request before us is for the approval of US$1.3 billion for COCOBOD for the 2018/2019 crop season. We need to ask about the usage that the amount would be put to.
Last year, when they came for the request, we asked what they would use the US$1.3 billion for. If we go to the back of this Report, what they seek to do with the US$1.3 billion is provided there. So this idea of --
Mr Speaker 12:55 p.m.
Hon Chairman, you are re-arguing your own position.
Dr Assibey-Yeboah 12:55 p.m.
No --
Mr Speaker 12:55 p.m.
What specifically are you correcting?
Dr Assibey-Yeboah 1:05 p.m.
Mr Speaker, this was what the Finance Committee was asked to do.
There is a Committee on Food, Agriculture and Cocoa Affairs, which should be monitoring the usage to which it is put to after we have approved the US$1.3billion.
So to suggest that we should go and ask COCOBOD what they used the US$1.3billion approved for them last year,
that is not our job. There is a Committee that has oversight over them and they should be asking about how the US$1.3bilion is used.
Mr Speaker 1:05 p.m.
Hon Member, please proceed.
Mr R. Acheampong 1:05 p.m.
Mr Speaker, the Hon Chairman of the Committee is missing the point. We approved US$1.3billion for them last year. This time around they have come for another sum of US$1.3 billion.
They should give us the details of the expenditure of the US$1.3 billion and they are saying that it is the Committee on Food, Agriculture and Cocoa Affairs. Were they the ones who approved the loan for them?
Mr Speaker, we gave them the approval as a Committee and they are now seeking to go to the market to borrow another US$1.3billion. So if I am not satisfied about the usage of the first US$1.3 billion, what is the guarantee that this time around, they are going to use the money for the intended purpose? The Hon Chairman is just missing the point.
At the Committee level, we requested for those details and so, what is it that they do not want to share with us? What are they hiding from the Hon Members of the Committee? I am not agitated and this is a fair question that I am posing to him.
Mr Speaker, last year, the Hon Deputy Minister for Finance, Hon Kwaku Kwarteng was here with us and gave the assurance that going forward, the tax waiver will be a thing of the past in respect of the cocoa syndicated facility.
I have the Hansard and I will prove it to you if he would want to challenge it. This is because I read your whole
statement to the Hon Chairman of the Committee.
We are here again for another tax waiver of GH¢6.5 million.
rose
Mr Speaker 1:05 p.m.
Hon Deputy Minister?
Mr Kwaku A. Kwarteng 1:05 p.m.
Mr Speaker, a misrepresentation by my Hon Colleague has to be corrected. The tax waivers and exemptions policy that this administration inherited is a policy we are reviewing.
Mr Speaker, what I did say at the Committee was that Government was doing the review and I have subsequently stated that on the Floor that we would be bringing an Exemptions Act and so, to suggest that somehow, we promised something on which, in respect of tax exemption we have not delivered, is completely misleading and I think he should desist from doing that.
Mr R. Acheampong 1:05 p.m.
Mr Speaker, I will move on, but the Hon Chairman is aware, I read the Hansard to him so I do not get the point he is making.
Mr Speaker, we know that cocoa farmers are rewarded both in cash and in kind and then the roads linking to farms are equally very important.
We all do remember that we used cocoa proceeds to secure funding to construct the Bui Dam and we are still servicing that facility. The previous administration used another policy direction to use part of the cocoa proceeds to build cocoa roads.
Mr Speaker, this current administration has abandoned these cocoa roads and if you want to get the cocoa beans from the farms and the roads leading to those communities are in a deplorable state, how
Mr Speaker 1:05 p.m.
Order! Hon Member, what do you say you have?
Mr R. Acheampong 1:05 p.m.
Mr Speaker, a pictorial evidence.
Mr Speaker 1:05 p.m.
Pictorial?
Mr R. Acheampong 1:05 p.m.
Mr Speaker, yes.
Mr Speaker 1:05 p.m.
From what source?
Mr R. Acheampong 1:05 p.m.
Mr Speaker, this is a road from Benkyema junction to Osei Kojokrom which was awarded to a contractor and that contract has been abandoned. I took the picture --
Mr Speaker 1:05 p.m.
Hon Member, who is the authority for the picture?
Mr R. Acheampong 1:05 p.m.
Mr Speaker, I am the authority of this picture because I went there myself and was called when the truck got stuck. This is a major challenge for the people of the northern part of the Western Region. I used my phone, to take the pictures myself and I could Table the picture for your own perusal. [Hear! Hear!]
Mr Speaker, part of the road is cut off and this is how school children --
Mr Speaker 1:05 p.m.
Hon Member, wait. Why?
rose
Mr Speaker 1:05 p.m.
Hon Members, every lawyer will tell you something about this, but I want to hear from the Hon Deputy Majority Leader?
Ms Safo 1:05 p.m.
Mr Speaker, respectfully, you were trying to advert the Hon Member's attention to the source of the paper that he is holding with some images on it. He went on and said that he took the picture on his phone and for that matter, he is an authority.
Mr Speaker, I find that very challenging, I know Hon Richard Acheampong very well, we both serve on the Finance Committee. I know that he is not an authority when it comes to photography and so, he should come properly on this issue.
Mr Speaker 1:05 p.m.
Let me make it very clear that this kind of purported evidence is what we call in court, a self-serving evidence. [Interruption]-- if you do not know, let me tell you and do not shout. Please, take your time. When I finish, you may also speak by getting up and I will recognise you.
You cannot just go to court with your own picture in such public -- related matters, you rather hire a professional photographer.

Do you not know? Oh! [Interruption] -- Let me tell you. Anyway, you will hire a photographer and that photographer will certify; time and circumstances in which he took the picture. Otherwise, everybody can throw his own taken self- serving picture around. I therefore overrule it. Go on without reference to that picture.
rose
Mr R. Acheampong 1:05 p.m.
Mr Speaker, thank you very much.
Mr Iddrisu 1:05 p.m.
Mr Speaker, your ruling on this matter, I know so properly that I may have to come by a motion. I am not questioning your conduct but being an Hon Member in itself, makes the Hon Member an authority and an authority --
Mr Speaker 1:05 p.m.
Please, be loud and clear.
Mr Iddrisu 1:05 p.m.
Mr Speaker, he is an Hon Member of Parliament and he is only using the picture to strengthen a debate and to draw attention to how deplorable the cocoa roads are.
Mr Speaker 1:05 p.m.
To draw attention to what?
Mr Iddrisu 1:05 p.m.
Mr Speaker, the picture he is using -- [Interruption.]
Mr Speaker 1:05 p.m.
Hon Members, Order!
Mr Iddrisu 1:05 p.m.
Mr Speaker, so the picture he is using is to draw attention to the deplorable roads in a cocoa growing area. He gave the specifics and is ready to Table it, but dismissing it, --
Mr Speaker 1:15 p.m.
Hon Minority Leader, please continue and make your point.
Mr Iddrisu 1:15 p.m.
Mr Speaker, he is a Hon Member of Parliament for a cocoa growing area and he has chosen to use a picture to depict to us, a deplorable road in a cocoa growing area and he mentioned the community.
Mr Speaker, he has gone a step ahead to say that he would tender it, that is what our rules permit. If we doubt him then he should table it but to dismiss it when he has no opportunity to even lay it is not the proper way to go in my view.
Mr Speaker 1:15 p.m.
The admissibility of the document must be determined by the Speaker before it reaches the tendering stage. [Hear! Hear!]
Admissibility comes before tendering and I have negated the tendering by my ruling on the admissibility.
Yes, Hon Member, you may conclude without the self-serving picture. So, please proceed.
Mr Iddrisu 1:15 p.m.
Mr Speaker, I know the rule of admissibility and this is not a court, this is the Parliament of Ghana. [Hear! Hear!] Therefore, the rules of debate and the principles that you are applying --- [Interruption.]
Mr Speaker 1:15 p.m.
Hon Member, debate would become richer and richer. [Laughter.] Since you admit that it would not be admissible in court, then it is enough for me.
Hon Member, please conclude.
Mr R. Acheampong 1:15 p.m.
Mr Speaker, I thank you very much and I have taken a cue from the Chair. Mr Speaker, but without demonstrating the picture -
Mr Speaker 1:15 p.m.
Hon Member, please conclude without reference.
Mr R. Acheampong 1:15 p.m.
Mr Speaker, I am drawing the attention of the CEO of COCOBOD that the road from Benkyeman Junction to Osei-Kojokrom has been
Mr William Agyapong Quaittoo (NPP -- Akim Oda) 1:15 p.m.
Mr Speaker, thank you.
Mr Speaker, before I contribute, I would want to offer some explanations to the questions which have been posed by my Hon Friends on the Minority Side.
Firstly, Hon Fuseini talked about the benefits of the tax waiver and the tax waiver here is about GH¢6.5 million. Mr Speaker, if he had taken time to look at the last page of this Report where COCOBOD proposed to use the Fund, he would have seen that by the end of the year, COCOBOD intends to make a deficit of GH¢1.4 billion.
So if this stamp duty is even taken from COCOBOD then it would worsen the case, because that amount of money is needed to help buy the proposed quantity of cocoa that COCOBOD intends to buy for this crop season.
Mr Speaker, on page 5 -- Need for Domestic Borrowing -- the Hon Chairman rightly corrected the figure there to read GH¢2.7 billion and he said that it was for the 2017/2018 crop season. Mr Speaker, I believe that this is wrong because this figure is rather for the 2016/2017 crop season. For the 2017/2018 crop season, we borrowed an amount of GH¢1.6 billion from the Bank of Ghana.
Mr Speaker, the GH¢2.7 billion we see here is for the 2016/2017 crop season. This was what was said at the meeting and I corrected it because the GH¢2.7 billion is for the 2016/2017 crop season and GH¢1.6 billion for the 2017/2018 season. Mr Speaker, Hon Ato Forson mentioned this at the meeting and I corrected him.
Mr Speaker, so, you would see that from 2016 till 2018, COCOBOD after even borrowing from the international market goes ahead to also borrow from the local market in order to be able to buy the required amount of cocoa and to also pay for the operations envisaged.
Mr Speaker, so COCOBOD borrowed in 2016/2017 and also borrowed in 2017/ 2018. Mr Speaker, why did they borrow from the local market to sustain the purchasing of cocoa?
Mr Speaker, my other Hon Colleague is also talking about cocoa roads. In 2016/ 2017, a total amount, of US$1.8 billion was collected as a loan, but out of this amount US$150 million was earmarked for COCOBOD roads for each year. In that particular year, we spent three times the amount that had been earmarked for cocoa roads.
In 2016/2017, the total budget earmarked for COCOBOD roads was overspent three times; from US$150 million to US$450 million. This was the amount earmarked for cocoa roads and it was spent on cocoa.
So, this local borrowing from the Bank of Ghana came in because when the NPP Government took over in 2017, all the amounts had been drawn down, the amount of money that was earmarked to purchase cocoa in 2017 was all drawn down.
Mr Speaker 1:15 p.m.
Hon Agbodza, do you rise on a point of order?
Mr Agbodza 1:15 p.m.
Mr Speaker, my Hon Colleague was correct by saying that in 2016 COCOBOD projected to spend US$150 million from cocoa proceeds on cocoa roads but rather awarded projects up to US$450 million. Mr Speaker, that is different from saying that COCOBOD was owing contractors up to US$450 million.
Mr Speaker, this is a House of records and COCOBOD at that time never owed contractors US$450 million. Indeed, in road construction, many of the road
projects were spanning between two and three years so it is not true that COCOBOD awarded projects that they could not pay for.

Mr Speaker, the only way we would know the truth is, if the CEO of COCOBOD would present his report on the review of cocoa roads in this country to this House. At the moment, he has refused to present the Report so my Hon Colleagues should be guided.

This is because there is no evidence to say that US$450 million was spent. It was not spent. That is the fact.
Mr Speaker 1:25 p.m.
Yes, Hon Member?
Mr Quaittoo 1:25 p.m.
Mr Speaker, I am saying that, in the 2016/2017 crop season, the total quantum of road contracts that were awarded to contractors were about three times the amount earmarked, and the amount paid before the year 2017 when this new Administration took over was almost two-thirds of what was awarded. [Interruption.]
Mr Speaker, between 6th December, and 15th December US$400 million was paid to cocoa road contractors, within that short period.
When the new Administration took over, with all the amount that was contracted as loan, the Administration did not have any money to buy cocoa. That is how come COCOBOD had to go to the
Mr Speaker 1:25 p.m.
Hon Member?
Mr Forson 1:25 p.m.
Mr Speaker, this is a House of records. My colleague, the Hon Quaittoo made a Statement that between the 6th December and 7th December, an amount of US$450 million was paid.
Mr Speaker, could the Hon Member provide us the source? He cannot make such a Statement and be allowed to stay. If he fails to provide us details of that then I would know that it is not the truth, and we cannot allow him for that statement to stay in the Hansard. He must provide those details.
Mr Speaker 1:25 p.m.
Please, state what you know to be the fact. [Uproar.]
You want to educate the House?
Mr Forson 1:25 p.m.
Mr Speaker, what I know was that no amount was paid within the period.
Mr Speaker 1:25 p.m.
I know the Hon Member is capable of giving information.
Hon Member, do you have a counter figure?
Mr Forson 1:25 p.m.
Mr Speaker, what I can say is that I am aware that no amount of money was paid for cocoa roads within that period. So, what he said is not true. Nothing was paid.
Mr Speaker 1:25 p.m.
Hon Member, if you are talking about the way this is done in proper legal manners, we call it confession and avoidance. In other words, you do not just say I do not owe you this nor that.
Then it becomes very clear. When somebody tells you he owes you £10 but maybe you owe £8, the £10 is wrong. But it is also wrong to say I do not owe him at all.
Now, he has given us a good indication. I am asking the Hon Member on the other Side to now respond that there was nothing owed. This is how you manage these matters. Whether we like it or not borders on law.
Please proceed; kindly respond.
Mr Quaittoo 1:25 p.m.
Mr Speaker, this is the response; in April, COCOBOD came to the Ministry of Agriculture, I was then the Deputy Minister in charge of cocoa, for approval to go for this GH¢2.7 million from the BoG because the last tranche of the loan that was drawn down around 7th December to 8th December was all spent before the 6th January, 2017. So there was no amount of money left for COCOBOD to go and buy cocoa.
Therefore we had to give them the approval to go ahead and borrow this GH¢2.7 billion to buy cocoa. That is how the cocoa roads were all affected.
So,when we took over and contractors were submitting certificates for payment, COCOBOD did not have the money to pay. There was even no money for COCOBOD to buy cocoa. That was why COCOBOD came out to say that they are suspending all road construction and doing auditing. The audit report is yet to come out.
Now, COCOBOD does not have any money. It is one and half years now, yet the Report would come out in the sense
Mr Speaker 1:25 p.m.
Hon Member, you are not allowed to speak to a non-existent report in parliamentary debate. Otherwise, it would be just hearsay. If you would want to rely on something that is not in the public domain, please bring out the relevant report quickly. This is a House of records and so go on without that reference.
Mr Quaittoo 1:25 p.m.
Mr Speaker, since 2017, COCOBOD has been placed in a very distressful position when it comes to finance. So in 2017, we had to go and borrow that GH¢2.7 billion from BoG to be able to continue to purchase cocoa.
Even in the 2017/2018 cocoa season, because the prices have fallen -- [Interruption] -- In 2016, before this crisis came up, the international prices of cocoa was over US$3,000.00 and within a short period it dropped from US$3,000.00 per ton to about US$1,800.00 per ton.
We could not even make the money that was anticipated for within that period. If you look at the last page, the amount that is to be taken and the proceeds that would come from the total cocoa intended to be purchased by COCOBOD is shown here. So if the international price comes down of course, this account would not hold.
That is what happened in 2017, and so we did not get the money to continue to let the contracts for the roads go on, because money to buy cocoa was a challenge.
So if my Friend, the Hon Acheampong says that some roads are suffering in his area in the Western Region, this is the
reason. The reason is that the international cocoa prices had decreased so much that --
Mr Speaker 1:25 p.m.
And in conclusion?
Mr Quaittoo 1:25 p.m.
COCOBOD is not making the required amount of money to be able to -- [Interruption.]
Mr Speaker, with the loans that we are taking, some are arguing why we are not going for more money.
We do not want to behave like the previous Administration where some time ago, COCOBOD was even made to pay penalty, because they said they were going to produce a certain quantity of cocoa when they went to collect the loan in respect of that quantity and they were not able to meet that quantity and we were made to pay a penalty.
COCOBOD is now very clear in its mind on what quantity they are going to produce. Therefore we have to be careful with the amount of loan that we go for. The US$1.3 billion that we are going for is supposed to be spent --
Mr Speaker 1:25 p.m.
Hon Ato Forson?
Mr Cassiel A. B. Forson (NDC -- Ajumako-Enyan-Essiam) 1:35 p.m.
Mr Speaker, I beg to support the Motion. In doing so, let me refer the House to some issues that I believe constitute an economic matter that we might have to take serious.
The Chief Executive of COCOBOD informed the Committee that in recent times, many farmers are diverting their lands into the cultivation of cashew and
Mr James Klutse Avedzi (NDC -- Ketu North) 1:35 p.m.
Thank you Mr Speaker.
Mr Speaker, I beg to support the Motion and ask the House to approve the amount for COCOBOD for the 2018/2019 cocoa season.
Mr Speaker, last year, we approved same amount of money for COCOBOD, and in the Committee's Report, at page 4, a drawdown of US$1.25 million was indicated on how the money was disbursed. Part of the money was used as seed fund for LDCs, and then part was also used for cocoa deliveries and then payment to LDCs. Part was used for inputs, and part for operational expenses.
Mr Speaker, we in Parliament play an oversight role over the Executive, so if we approve money for the Executive, I believe we should also be equally interested in knowing how the money approved for the Executive is used, because we are in for value for money.
So the issue of detailed spending that constitutes the operational expenses of GH¢382 million is something the House must be interested in.
Mr Speaker 1:45 p.m.
Majority Leadership? [Pause.]
rose
Mr Speaker 1:45 p.m.
Hon Majority Leader, does he speak for the Majority?
Mr Kyei-Mensah-Bonsu 1:45 p.m.
Yes, Mr Speaker.
Dr Assibey-Yeboah 1:45 p.m.
Mr Speaker, with regard to paragraph 6.3 on page 5, the Hon Ranking Member and I have met and I would want to effect the corrections. The figure GH¢2.7 billion in paragraph 6.3 relates to the 2016/2017 crop season.
For the 2017/2018 crop season, COCOBOD borrowed GH¢1.2 billion from the Bank of Ghana (BoG).
Mr Speaker, again, the financial cost of GH¢515 million include the US$27 million. Mr Speaker, also included in the GH¢515 million is the interest being paid on the facilities borrowed from BoG.
That is why the amount is GH¢515 million. So, if you take out the about GH¢115 million from this GH¢1.3 billion, then the rest would be the interest charges for the amount borrowed from BoG.
Mr Speaker, as to why their total cost of operations is GH¢9.9 billion and the syndicated loan is GH¢5.9 billion, which is 59 per cent, the syndicated loan operates like a revolving fund.
When COCOBOD starts paying around February, they are able to access it again. So, they do not need to borrow all the GH¢9 billion. When they start paying, they go back to the same lenders and then that facility is again made available to them.
Mr Speaker, these are the three issues that were raised. We can bring the debate to a close here. All the issues raised have been well addressed by the Hon Chairman of the Committee.
Question put and the Motion agreed to.
Mr Speaker 1:45 p.m.
Resolutions, -- Hon Majority Leader?
Mr Kyei-Mensah-Bonsu 1:45 p.m.
Mr Speaker, we would take the Resolutions listed as items 8 and 10.
Mr Speaker 1:45 p.m.
Are we taking the Resolutions listed as items 8 and 10?
Mr Speaker 1:45 p.m.
She is one of our own.
Hon Deputy Minister, you may proceed.
RESOLUTIONS 1:45 p.m.
Minister for Finance) 1:45 p.m.
Mr Speaker, I beg to move that,
WHEREAS by the provisions of aticle 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act, 2016 (Act 921), the terms and conditions of all government borrowings shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution;
PURSUANT to the provisions of the said article 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act, 2016 (Act 921), at the request of the Government of the Republic Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the Terms of a Receivables-backed Trade Finance Facility between Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial Institutions, with the
Government of the Republic of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States Dollars (US$1,300,000,000) for the Purchase of Cocoa in Ghana for the 2018/2019 Crop Season.
THIS HONOURABLE HOUSE 1:45 p.m.
HEREBY RESOLVES AS 1:45 p.m.
Chairman of the Committee (Dr Mark Assibey-Yeboah) 1:45 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Tax Waiver in Respect of the Purchase of Cocoa for the 2018/2019 Crop Season
Deputy Minister for Finance (Mrs Abena Osei-Asare) (on behalf of the
Minister for Finance) 1:45 p.m.
Mr Speaker, I beg to move that,
WHEREAS by the provisions of article 174 (2) of the Constitution,
Parliament is empowered to confer power on any person or authority to waive or vary a tax imposed by an Act of Parliament;
THE EXERCISE of any power conferred on any person or authority to waive or vary a tax in favour of any person or authority is by the said provi- sions made subject to the prior approval of Parliament by resolution;
BY THE COMBINED operation of the provisions of section 150(i) of the Customs Act 2015, (Act 891), the Export and Import Act, 1995 (Act 503), the Export Trade, Agricultural and Industrial Fund Act, 2013 (Act 872), the Value Added Tax Act, 2013 (Act 870), the Value Added Tax (Amend- ment) Act, 2015 (Act 890), the Value Added Tax (Amendment) Act, 2017 (Act 948) and other existing Laws and Regulations applicable to the collection of Customs duties and other taxes on the importation of goods into Ghana, the Minister for Finance may exempt any statutory corporation, institution or individual from the payment of duties and taxes otherwise payable under the said Laws and Regulations or waive or vary the requirement of such statutory corporation, institution or individual to pay such duties and taxes;
IN ACCORDANCE with the provisions of the Constitution and at the request of the Government of Ghana acting
through the Minister responsible for Finance, there has been laid before Parliament a request by the Minister for Finance for the prior approval of Parliament the exercise by him of his power under the Laws and Regulations relating to the waiver of stamp duty amounting up to six million, five hundred thousand United States dollars (US$6,500,000) on the Receivables-Backed Trade Finance Facility between Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial Institutions, with the Government of the Republic of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States dollars (US$1,300,000,000) for the Purchase of Cocoa in Ghana for the 2018/2019 Crop Season.
NOW THEREFORE, this Honour- able House hereby approves the exercise by the Minister respon- sible for Finance of the power granted to him by Parliament by Statute to waive such stamp duty amounting up to six million, five hundred thousand United States dollars (US$6,500,000) on the Receivables-Backed Trade Finance Facility between Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial Institutions, with the Government of the Republic of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States dollars (US$1,300,000,000) for the Purchase of Cocoa in Ghana for the 2018/2019 Crop Season.
Chairman of the Committee (Dr Mark Assibey-Yeboah) 1:45 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Mr Speaker 1:45 p.m.
Hon Majority Leader, any indication?
Mr Kyei-Mensah-Bonsu 1:45 p.m.
Mr Speaker, we would deal with the item numbered 17.
Mr Speaker 1:45 p.m.
Hon Members, in view of the time as of now and the Business ahead of us, I direct that Sitting extends beyond the regular hours.
1. 55 p. m.
Mr Iddrisu 1:45 p.m.
Mr Speaker, I did not get to meet you at the pre-Sitting meeting with the Hon Majority Leader.
But yesterday we did not continue with the debate on the Mid-Year Review and therefore after this Motion, I would indulge my Hon Colleague that we allow one or two Hon Members to contribute to the Mid-Year Review of the Economic Policy of the Government and then, tomorrow, the Leadership could conclude.
Mr Speaker, I am ready to conclude today, but the Hon Majority Leader says we could do that tomorrow. But there must be space today for the Mid-Year Review.
I have seen that Committee on Communications has brought their the Report on Cyber Security. Maybe, we could consider that now or after. But we must have room for the debate on Mid- Year Review to continue so that Leadership could conclude tomorrow.
Mr Speaker 1:45 p.m.
Hon Majority Leader, what is your pleasure?
Mr Kyei-Mensah-Bonsu 1:45 p.m.
Mr Speaker, we agreed to take some additional contributors today. In the meantime, we have this tall order of Business before us.
Mr Speaker, we would not waste much time on these Motions and Resolutions. So, with respect to my Hon Colleague, we would certainly deal with that, but let us deal with item numbered 17.
Mr Speaker 1:45 p.m.
Item number 17, Motion, Hon Chairman of the Committee?
MOTIONS 1:45 p.m.
Dr Assibey-Yeboah 1:45 p.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Request for waiver of Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EDAIF, Withholding Tax, Special Import Levy and other approved imposts amounting to the Ghana Cedi equivalent of one million, two hundred and fifty-one thousand, one hundred and eighty-four United States dollars (US$1,251,184.00) on goods and services and equipment under the Ghana Agricultural Sector Investment Pro- gramme (GASIP).
Mr Speaker, in doing so, I present your Committee's Report 1:45 p.m.
Introduction
The Request for Waiver of Customs Duties, Value Added Tax, ECOWAS and Exim Levies and other Related Imposts on Imports amounting to one million, two hundred and fifty one thousand, one hundred and eighty-four United States dollars (US$1,251,184.00) on goods and
equipment to be procured for the Smooth Implementation of the Ghana Agricultural Sector Investment Programme (GASIP) was presented to the House in accordance with article 174 (2) of the 1992 Constitution.
Mr Speaker referred the Request to the Finance Committee for consideration and report in accordance with Order 169 of the Standing Orders of the House.
The Committee was assisted by technical teams from the Ministries of Finance and that of Agriculture in its deliberations.
References
The Committee referred to the following documents at its deliberations:
The 1992 Constitution of Ghana;
The Public Financial Management Act, 2016 (Act 921); and
The Standing Orders of the Parliament of Ghana.
Background
Agriculture is the major source of employment for a large number of Ghanaians and contributes substantially to GDP and job creation. However, over the years, it has become less attractive due to a number of challenges facing the Sector.
Government is embarking on a number of efforts to address these challenges and make agriculture attractive again in order to boost production and reduce poverty. One of such efforts is the implementation of GASIP.
The Ghana Agricultural Sector Investment Programme (GASIP) is a long- term programme and it is to be implemented in cycles of three (3) years each.
The focus is on small-holder farmers to make them more competitive by increasing their capacity to respond to market demand in terms of quality, price, time and volume, thereby contributing to the Government's Medium Term Agricultural Sector Improvement Pro- gramme.
In order to execute the Programme, Government entered into an Agreement with the International Fund for Agriculture Development (IFAD) in 2015 to co-finance the GASIP. Under this programme, the International Fund for Agriculture Development (IFAD) is to contribute a total amount of US$71.6 million to the entire programme implementation.
The Financing Agreement covers two cycles, each cycle made up of three years, thus giving a total of six years of implementation starting from January, 2015, with an amount of US$36.6 million as loan and a Grant component of US$10Million.
Section 11.01 (a) of the General Conditions governing the loan and Grant requires that the facility should not be used to pay for any taxes or other fiscal levies imposed in Ghana on goods and equipment procured under the programme.
Based on the mentioned condition and in order to implement the Programme successfully, there is the need for the waiver of taxes and duties amounting to US$1,251,184- on the imported goods and equipment.
It is in this vein that the Request has been laid in Parliament for consideration.
Mr Speaker, in doing so, I present your Committee's Report 1:45 p.m.


Required Waiver

Tax assessment was conducted by Ghana Revenue Authority (GRA) on the goods and equipment to be procured

under the programme. Gross taxes per GRA computation amounted to a total of one million, two hundred and fifty-one thousand, one hundred and eighty- four United States dollars (US$ 1,251,184.00) as follows:

(iv) Knowledge management, harmonisation of intervention approaches and policy harmonisation which covers strengthening the borrower to prepare adequately for credit support in the areas of document preparation, sharing and dissemination of information as well as funding the coordination, financial and administrative management and monitoring and evaluation (M&E) of the programme.

Duplication of programmes at the Ministry

The Committee observed that some of the programmes contained in the GASIP are fairly duplicated in the Ministry's Modernisation of Agriculture Programme.

The Technical team from the Ministry of Agriculture agreed with the Committee but stated that the Ministry is currently undertaking an audit of all programmes under the Ministry. Those found to be a duplication would be realigned under the relevant programme to ensure efficiency.

Conclusion

After careful consideration, the Committee is of the view that the Programme will go a long way to assist the targeted population who are mainly small holder farmers and thus resource the poor rural people, particularly women and the young to enhance their profitability.

The Committee therefore recommends to the House to adopt this Report and approve the Request for Waiver of Customs Duties and Other Related Imposts totaling US$1,251,184.00 on Goods and Equipment to be Procured for
Mr Alex Adomako-Mensah (NDC-- Sekyere Afram Plains) 1:45 p.m.
I thank you Mr Speaker and I beg to second the Motion. I am very happy that yesterday was an important day for most of the Hon Members of Parliament especially, the Leadership.
Mr Speaker, it started from Kibi to Kumasi, Bekwai and Tamale. It was an interesting thing that the most important projects were approved for our leaders in Parliament. --[Laughter]- Mr Speaker, the Bekwai Hospital —
Mr Kyei-Mensah-Bonsu 1:45 p.m.
On a point of Order. Mr Speaker, for the records, nothing was approved for Suame.
Mr Adomako-Mensah 1:45 p.m.
Mr Speaker, Kibi was the President's one: Bekwai was for the First Deputy Speaker; Kumasi was for the Hon Majority Leader and Tamale was for the Hon Minority Leader. [Laughter.]

Mr Speaker, Government is embarking on a number of efforts to address these challenges and make agriculture attractive in order to boost production and reduce poverty. Mr Speaker, the Government's Agriculture Sector Investment Programme (GASIP) is a long-term programme and it is being implemented in the cycle of three years per term.
Mr Adomako-Mensah 1:45 p.m.
Mr Speaker, in order to execute the programme, the Government entered into an agreement with the International Fund for Agricultural Development (IFAD) in 2015 and this has helped a lot in the agricultural sector; it is improving agricultural —
Mr Speaker, there was another duplication which we needed to think about. This is because, it looked as if all the agricultural services are different. If we were to concentrate them into one so that they could promote Government programmes, that would be better than different services operating from different angles.
So I suggest that Government should endeavour to bring all the services together so that they could do a proper work for the Government programmes.
Mr Speaker, for the tax waiver, it would be better to amend the law in future so that when they are bringing the Loan, we come with the tax waiver at the same time so that it would not be that we are pushing Parliament into war so that when they come again, there would be no option but to approve it.
So, I believe that in future, we have to look at this and amend the law so that when they come with a Loan, they come with the tax waiver at the same time so that we could approve it.
Mr Speaker, with these few words, I second the Motion.

Question proposed
Mr Speaker 1:45 p.m.
Meanwhile, the First Deputy Speaker to take the Chair.
Question put and Motion agreed to.
Mr Speaker 1:45 p.m.
Resolution; Hon Deputy Minister for Finance, permission granted to move the Resolution.
RESOLUTIONS 1:45 p.m.
Minister for Finance) 1:45 p.m.
Mr Speaker, I beg to move that,
WHEREAS by the provisions of article 174 (2) of the Constitution, Parliament is empowered to confer power on any person or authority to waive or vary a tax imposed by an Act of Parliament;
THE EXERCISE of any power conferred on any person or authority to waive or vary a tax in favour of any person or authority is by the said provisions made subject to the prior approval of Parliament by resolution;
BY THE COMBINED operation of the provisions of section 150(i) of the Customs Act 2015, (Act 891), the Export and Import Act, 1995 (Act 503), the Export Trade, Agricultural and Industrial Fund Act, 2013 (Act 872), the Value Added Tax Act, 2013 (Act 870), the Value Added Tax (Amend- ment) Act, 2015 (Act 890), the Value Added Tax (Amendment) Act, 2017 (Act 948) and other existing Laws and Regulations applicable to the collection of Customs duties and other taxes on the importation of goods into Ghana, the Minister for Finance
may exempt any statutory corporation, institution or individual from the payment of duties and taxes otherwise payable under the said Laws and Regulations or waive or vary the requirement of such statutory corporation, institution or individual to pay such duties and taxes;
IN ACCORDANCE with the provisions of the Constitution and at the request of the Government of Ghana acting through the Minister responsible for Finance, there has been laid before Parliament a request by the Minister for Finance for the prior approval of Parliament the exercise by him of his power under the Laws and Regulations relating to the waiver of Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EDAIF, Withholding Tax, Special Import Levy and other approved imposts amounting to the Ghana Cedi equivalent of one million, two hundred and fifty-one thousand, one hundred and eighty-four United States Dollars (US$1,251,184.00) on goods and services and equipment under the Ghana Agricultural Sector Investment Programme (GASIP).
NOW THEREFORE, this Honour- able House hereby approves the exercise by the Minister respon- sible for Finance of the power granted to him by Parliament by Statute to waive such Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EDAIF, With- holding Tax, Special Import Levy and other approved imposts
amounting to the Ghana Cedi equivalent of one million, two hundred and fifty-one thousand, one hundred and eighty-four United States Dollars (US$1,251,- 184.00) on goods and services and equipment under the Ghana Agricultural Sector Investment Programme (GASIP).
Dr Assibey-Yeboah 1:45 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Mr Speaker 1:45 p.m.
Hon Majority Leader, any indication?
Mr Kyei-Mensah-Bonsu 1:45 p.m.
Mr Speaker, if we could take the Resolution listed as item numbered 18.
Mr Speaker 1:45 p.m.
The Resolution has been taken.
Next item, please.
Mr Kyei-Mensah-Bonsu 1:45 p.m.
Mr Speaker, then let us lay these Papers; item numbered 5(a), (b) and (d).
Mr Speaker 2:05 p.m.
Hon Members, item numbered 5 (a), by the Hon Chairman of the Committee.
PAPERS 2:05 p.m.
Ms Safo 2:05 p.m.
Mr Speaker, respectfully, we could take item numbered 11.
Mr Speaker 2:05 p.m.
The Hon First Deputy Speaker, would take item numbered 11.
  • [MR FIRST DEPUTY SPEAKER IN THE CHAIR.]
    • Mr First Deputy Speaker 2:08 p.m.
    Item numbered 11, by the Chairman of the Finance Committee.
    Dr Assibey-Yeboah 2:08 p.m.
    Mr Speaker, there is another Motion on a tax waiver on item numbered 13 and the two Motions are in the same Report, so if I could move the
    two together because the Report relates to both of them.
    Mr First Deputy Speaker 2:08 p.m.
    Hon Chairman of the Committee, I would want to be sure.
    Hon Leaders, what is the position? Does the Report contain the two Agreements?
    Dr Assibey-Yeboah 2:08 p.m.
    Mr Speaker, I do not know if you have a copy of the Report?
    Mr First Deputy Speaker 2:08 p.m.
    I need to find my copy.
    Very well.
    Hon Chairman of the Committee, you may move them.
    MOTIONS 2:08 p.m.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:08 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Amended Financing Agreement between the Government of the Republic of Ghana and the International Fund for Agricultural Development (IFAD) for an amount of forty million United States dollars (US$40,000,000.00) to finance the Rural Enterprise Programme (REP).
    That this Honourable House adopts the Report of the Finance Committee on the Request for waiver of Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EXIM Levy, Special Import Levy and other approved imposts amounting to the Ghana Cedi equivalent of five million, two hundred and ninety-one thousand, three hundred and fifty-six United States dollars
    (US$5,291,356.00) on goods and services and equipment in respect of the Rural Enterprise Programme (REP).
    Mr Speaker, in so doing, I present your Committee's Report.
    Introduction
    The Amended Financing Agreement between the Government of the Republic of Ghana and the International Fund for Agricultural Development (IFAD) for an amount of forty million United States dollars (US$40,000,000.00) to finance the Rural Enterprise Programme (REP); and
    (ii) Request for waiver of Import Duties, import VAT, Import NHIL, ECOWAS Levy, Special Levy and other approved imposts amounting to the Ghana Cedi equivalent of five million, two hundred and ninety- one thousand, three hundred and fifty- six United States dollars (US$5,291,356.00) on goods and services and equipment in respect of the Rural Enterprise Programme (REP) were presented to the House on Tuesday 17th July, 2018 by the Honourable Deputy Minister for Finance, Mrs Abena Osei-Asare on behalf of the Minister responsible for Finance.
    Pursuant to article 103 of the 1992 Constitution and Orders 169 and 171 of the Standing Orders of the House, the Agreement and the Request were referred to the Committee on Finance for consideration and report.
    The Committee subsequently met and discussed the Agreement and the Request with the Deputy Minister for Trade and Industry, Hon Carlos Ahenkorah, a Deputy Minister for Finance, Hon Kwaku Kwarteng as well as officials from the
    Ministries of Finance and Trade and Industry and the Ghana Revenue Authority (GRA). The Committee hereby submits this Report to the House pursuant to Order 161(1) of the Standing Orders of the House.
    The Committee is grateful to the Hon Deputy Minister for Trade and Industry, the Hon Deputy Minister for Finance and the officials for attending upon the Committee.
    References
    The Committee referred to and was guided by the following documents inter alia during its deliberations on the Agreement:
    The 1992 Constitution of the Republic of Ghana;
    The Standing Orders of the Parliament of Ghana; and
    The Public Financial Management Act, 2016 (Act 921).
    Background
    The Rural Enterprise Programme (REP) is part of the Government of Ghana's efforts to reduce poverty, particularly improving living conditions in rural areas. Phase I of the Rural Enterprise Project was implemented from 1995 to 2002 in 13 districts in the Ashanti and Brong Ahafo Regions. The second phase (2003 to 2012) was implemented in Sixty-Six (66) Districts nationwide.
    The Rural Enterprise Programme I & II have since 1995, contributed to the successful implementation of national blueprints such as the Ghana Poverty Reduction Strategy (GPRS) II which placed emphasis on bridging the skills gaps in the operations of Micro and Small

    Enterprises (MSEs) and improvement in the transfer of technologies to such enterprises.

    The Rural Enterprise Project increased Micro and Small Scale Enterprises (MSE's) contribution to local economic growth reduction in social inequalities and generation of revenue for District Assemblies (DAs).

    The Government of Ghana hence agreed with the International Fund for Agricultural Development (IFAD) and Africa Development Bank (AfDB) to expand the scope of the project into a nationwide Programme and also to extend the implementation time frame from the year 2012 to the year 2020.

    The original Concessional Loan of SDR19.7 million (equivalent to US$31.5 million) from IFAD for the Programme was approved by the IFAD Executive Board in September 2011 (EB 2011/103/R.16) for an eight-year duration and entered into force on 12th January, 2012.

    Government however, considers it prudent to request for an extension of the Programme timeline to 2022 taking

    cognisance of the depth of its industrial transformational agenda.

    In view of this, the Ministry of Trade and Industry through the Ministry of Finance submitted a request for additional financing of US$40 million to IFAD in 2017, to finance the consolidation and scaling up of a successful programme of activities to meet the requirements of the industrial transformation agenda, particularly with regard to Micro and Small Enterprises in the rural areas.

    Programme objective

    The objective of the Programme is to increase the number of rural Micro and Small Enterprises (MSEs) that generate profit, growth and employment opportunities. The scope is to upscale and mainstream a district-based MSEs support system nationwide within a private sector oriented institutional system.

    The goal of the programme is to improve livelihood and income of rural poor Micro and Small Enterprises/ Entrepreneurs.

    Terms and Conditions of the Loan

    Terms of the amended Agreement are as follows:
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:08 p.m.


    Observations

    GoG Contribution

    The Government of Ghana (GoG) is required to bear the cost of any taxes or duties that may be applicable to the Programme. Government will also finance part of the recurrent costs, salaries and allowances of the Business Advisory Center (BAC) staff, through District Assemblies (DAs) and National Board for Small Scale Industries (NBSSI) under the Ministry of Trade and Industry.

    Allocation of Loan Proceeds

    As to how the Loan proceeds would be disbursed, the Committee was informed that the categories of eligible expenditure to be financed by the loan and the allocation of the amount of the loan to each category of expenditure to be financed are clearly determined in accordance with the Agreement.

    Unless otherwise agreed with IFAD, the eligible expenditures under the IFAD Financing are to be first claimed against the relevant category under the IFAD loan until this category is 100 per cent withdrawn. Once a category has been fully drawn down under the IFAD Loan, all further expenditure belonging to this

    SPACE FOR CATEGORY, PAGE 8, 2.05 P.M

    SPACE FOR CATEGORY CONT, PAGE 9, 2.05 P.M

    category is to be claimed against the IFAD Additional Loan. Government's Industrial Transformation Agenda

    The Committee was informed that the REP has been identified as a vehicle that will significantly contribute to the executional of the Government's industrial transformational agenda which amongst other things is aimed at increasing income and improving the livelihood of the citizens, particularly the rural poor.

    The stratecic objective of the REP is therefore to increase the number of MSEs that generate profit, growth and employment opportunities.

    Target Population

    The programme is geared towards benefiting the rural entrepreneurial poor, who are mostly members of poor rural families that are able to convert the capacity-building support from the Programme into productive assets without or with barest additional

    investment support. The programme shall be implemented in all rural districs nationwide.

    Overall, the programme will upgrade the enterpreneural skills of target beneficiaries and provide access to BDSs through District-level Business Resource Centes (BRCs) and Business Advisory Centers (BACs).

    Job Creation

    Officials from the Rural Enterprise Programme informed the Committee that the Additional Financing is expected to create fifty thousand (50,000) new jobs and thirty-six thousand (36,000) Entrepreneurs who are envisaged to have access to MSE BDSs provided by Business Resource Centers (BRCs) and upgraded BACs. Some twenty thousand (20,000) enterprises are also expected to upgrade from survival to normal and rapid- growth businesses.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:08 p.m.


    Overall, the programme seeks to ensure that forty-five thousand (45,000) enterprises are in operation after three (3) years.

    Credit Assistance to Clients

    The Participating Financial Institutions (PFIs) will extend additional credit to REP clients and will contribute to the cost of training their staff. Beneficiaries will provide in by kind or cash contributions towards the programme. Clients are also expected to contribute to their own business investments.

    The Committee expressed concern about the phenomenon whereby concessional loan facilities like the present one are on-lent to poor rural folks by Participating Financial Institutions (PFIs) at exorbitant interest rates, thereby causing many to default in repayment.

    The Committee hence advised the Ministry of Trade and Industry and the Ministry of Finance to ensure that credit facilities granted to rural entrepreneurs under the Programme are given on soft terms so as to aid the profitability of their businesses and their ability to repay the facilities.

    Financing Plan

    Whether the IFAD Facility would cover the entire cost of the Programme, officials of the Ministry of Trade and Industry answered in the negative and explained to the Committee that the IFAD Concessional Loan constitutes only sixty- two per cent (62 per cent) of the required additional funding.

    The additional financing requirement of the Programme will be contributed by financiers and stakeholders as shown in the breakdown below:

    Tax Waiver

    As part of the modalities for the implementation of the Programme, the Government of Ghana is expected to contribute by covering the duties and import taxes resulting from the importation and use of materials' and equipment under the additional financing.

    In accordance with article XI section 11.01 of General Conditions governing IFAD Loans, the loan proceeds shall be exempt from all taxes.

    Thus the loan proceeds cannot be used to pay local taxes, VAT and Custom Duties on importation, procurement/supply of goods, civil works or services financed by the loan. The quantum of tax exemption is already captured as part of Government's contribution to the programme.

    The Ghana Revenue Authority (GRA) has assessed the total amount of duties and taxes on all related goods and equipment to be financed from the IFAD additional financing as totalling five million, two hundred and ninety-one thousand, three hundred and fifty-six United States dollars (US$5,291,356.00).

    Please find attached as APPENDIX , details of the duties to be waived
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:08 p.m.
    Conclusion
    The Committee, in view of the foregoing, respectfully recommends to the House to adopt this report and approve by Resolution, the Amended Financing Agreement between the Government of the Republic of Ghana and the Interna- tional Fund for Agricultural Development (IFAD) for an amount of forty million United States dollars (US$40,000,000.00) to finance the Rural Enterprise Programme (REP) in accordance with article 181 of the 1992 Constitution of the Republic of Ghana.
    The Committee further recommends to the House to approve by Resolution, the Request for waiver of Import Duties, Import VAT Import NHIL ECOWAS Levy Special Import Levy and other approved imposts amounting to the Ghana cedi equivalent of five million, two hundred and ninety-one thousand, three hundred and fifty-six United States dollars (US$5,291,356.00) on goods and services and equipment in respect of the Rural Enterprise Programme (REP) in accor- dance with article 174(2) of the 1992 Constitution of the Republic of Ghana.
    Respectfully submitted.

    SPACE FOR APPENDIX, PAGE 13, 2.05 P.M
    Mr First Deputy Speaker 2:08 p.m.
    Hon Ranking Member, do the vehicles they would purchase include pickup vehicles? Could the Committee direct that they purchase the pickups from Kantanka Automobile? Could the House consider that? I have a Kantanka vehicle and it serves me very well.
    Mr Forson 2:08 p.m.
    Mr Speaker, unfortunately, we thought we did not have those powers to direct the sector Minister to buy Ghanaian-made vehicles. However, you could direct that the Ministry of Trade and Industry buy locally-made cars.
    I have a concern with the obsession of buying cars for all our projects. Almost every single project we consider in this
    Mr Forson 2:08 p.m.


    House includes not less than 10 cars. This is becoming too much. Let us channel the project money for the purposes that it is meant for. We like buying cars too much as Ghanaians.

    Mr Speaker, if we go to an average House, we would see cars and I wonder why we keep buying these cars. This is a running programme, so we all believe that they have cars. Why would we spend the tax payer's money?

    Yes, it is a concessional facility, but it is a loan which we would have to pay for. We are buying 16 vehicles for this. I believe it is too much to go for --
    Mr First Deputy Speaker 2:08 p.m.
    Hon Ranking Member, did you ask them? Why did you not hold them to that at the Committee that this is a running programme, so how many vehicles did they buy the last time; what is their state and maybe, recommend to the House not to approve for them to buy new vehicles?
    Now, you are raising the matter here and we are not in the position to assess whether they need the vehicles or not. The Committee should have done that and reported to us.
    Mr Forson 2:08 p.m.
    Mr Speaker, we raised the issue. The Hon Majority Leader was at the Committee meeting and he agreed with us largely that it was important that we looked at some of these cost components.
    We raised the issues and I assured the Committee that I would raise it on the Floor, obviously for Ghanaians to be aware that going forward, if a project is brought for this Honourable House to approve, we would scrutinise how many cars would be bought. It is becoming too much.
    Mr First Deputy Speaker 2:08 p.m.
    Hon Member, hold on. Hon Chairman of the Committee, I am asking the same question of you.
    Dr Assibey-Yeboah 2:08 p.m.
    Mr Speaker, the Hon Ranking Member just stated that the Hon Majority Leader was at the meeting. That is factually inaccurate. The Hon Majority Leader joined us on Saturday and this was considered on Friday.
    The agriculture consideration was done on Friday, so I do not know how the Hon Majority Leader appeared at this meeting on Friday. He was not there.
    Mr First Deputy Speaker 2:08 p.m.
    Point well noted, but how come the Committee did not consider this issue he has raised, that too many vehicles are purchased with project funds and that it is a running programme, so they have some running vehicles already?
    Dr Assibey-Yeboah 2:08 p.m.
    Mr Speaker, I believe if you could let the Hon Minister for --
    Mr First Deputy Speaker 2:08 p.m.
    You are the Chairman of the Committee. Did you raise those issues that the Hon Member has raised here? What did you find out?
    Dr Assibey-Yeboah 2:08 p.m.
    Mr Speaker, we did but because we did not know the full extent of the programme, we could not have denied them this request. So yes, we raised them and said that some of them were repetitive. You would see value chain in several places.
    So going forward, Government should do something about it. That is the more reason the Luxury Vehicle Tax is coming. [Laughter.] [Hear! Hear!]
    Mr First Deputy Speaker 2:08 p.m.
    Very well.
    Hon Ranking Member, conclude.
    Mr Forson 2:08 p.m.
    Mr Speaker, yes, my attention has been drawn that this was not the one that the Hon Majority Leader attended, but he was there for another facility that related to cars and again, the same issue was raised.
    I have made my point and I support the terms of the agreement. It is very concessional. I said at the Committee that if we are to look at the structure of the facility, it is very beneficial to the ordinary Ghanaian farmer and entrepreneur, which we all support.
    Our concern is the use of some of the proceeds and also the fact that the District Assemblies are also constrained to a large extent. So the Ministry of Finance should be able to assist the district assemblies in a way that their contributions would not hamper the progress of the programme.
    Mr Speaker, I support the Motion.
    Mr Kojo Oppong-Nkrumah (NPP -- Ofoase/Ayirebi) 2:08 p.m.
    Mr Speaker, I also contribute in support of these two Motions. We were informed at Committee that this new facility was for scaling up the programme. This is because right from the onset, the programme was limited to a number of districts; about 33 and then 66.
    Since then, we have added some more districts to the list of Districts in the country. It is important for the programme to be scaled up, so that it could penetrate the other new districts. It is as a result of this scaling up that these amounts and this new facility are required for that purpose.
    Mr Speaker, we did that at the Committee but for our records this afternoon, we would mention to the Ministry to pay particular attention to Districts that have not benefited from this programme in times past.
    This is because part of what they do, as they scale up, also seeks to deepen the work in some of the already existing Districts. It is also possible for them to extend to some Districts that have not benefited from it.
    As was mentioned yesterday, there were a lot of benefits that went around and Leadership was pleased. It is a good time to include followership as well, as the Ministry seeks to extend this to some of the new Districts.
    Mr Speaker, with that said, I support the Motion. Thank you.
    Minority Leader (Mr Haruna Iddrisu) 2:25 a.m.
    Mr Speaker, I thank you for the opportunity to speak in support of the Motion for the approval of the additional US$40 million to finance the Rural Enterprise Programme (REP).
    This is an entity under the Ministry of Trade and Industry which since 1995, has made significant contributions in addressing unemployment, particularly in the informal sector and targeted small- scale industries in that area.
    Mr Speaker, I visited a number of districts and communities in the Ashanti Region between the period of 2012 and 2013 and I appreciated the intervention of the REP. That is why we scaled it up to add other districts.
    I recall recommending at the time, Savelugu and one other district in the Upper East Region to benefit from it, apart from those that we had in the Ashanti and Brong Ahafo Regions.
    Mr Speaker, one of these days, the Ministry of Trade and Industry would have to showcase what they are doing. If
    RESOLUTIONS 2:25 a.m.
    Minister for Finance) 2:25 a.m.
    Mr Speaker, I beg to move, that
    WHEREAS by the provisions of Article 181 of the Constitution and Sections 55 and 56 of the Public Financial Management Act, 2016 (Act 921), the terms and conditions of all government borrowings shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution;
    PURSUANT to the provisions of the said Article 181 of the Constitution and Sections 55 and 56 of the Public Financial Management Act, 2016 (Act 921), at the request of the Government of the Republic Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of an Amended Financing Agreement between the Government of the Republic of Ghana and the International Fund for Agricultural Develop- ment (IFAD) for an amount of forty million United States dollars (US$40,000,000.00) to finance the Rural Enterprise Programme (REP).
    THIS HONOURABLE HOUSE 2:25 a.m.
    HEREBY RESOLVES AS 2:25 a.m.
    Minister for Finance) 2:25 a.m.
    Mr Speaker, I beg to move, that this Honourable House is respectfully requested to adopt the following Resolution:
    WHEREAS by the provisions of Article 174 (2) of the Constitution, Parliament is empowered to confer power on any person or authority to waive or vary a tax imposed by an Act of Parliament;
    THE EXERCISE of any power conferred on any person or authority to waive or vary a tax in favour of any person or authority is by the said provisions made subject to the prior approval of Parliament by resolution;
    BY THE COMBINED operation of the provisions of section 150(i) of the Customs Act 2015, (Act 891), the Export and Import Act, 1995 (Act 503), the Export Trade, Agricultural and Industrial Fund Act, 2013 (Act 872), the Value Added Tax Act, 2013 (Act 870), the Value Added Tax (Amend- ment) Act, 2015 (Act 890), the Value Added Tax (Amendment) Act, 2017 (Act 948) and other existing Laws and Regulations applicable to the collection of Customs duties and other taxes on the importation of goods into
    Minister for Finance) 2:25 a.m.


    Ghana, the Minister for Finance may exempt any statutory corporation, institution or individual from the payment of duties and taxes otherwise payable under the said Laws and Regulations or waive or vary the requirement of such statutory corporation, institution or individual to pay such duties and taxes;

    IN ACCORDANCE with the provisions of the Constitution and at the request of the Government of Ghana acting through the Minister responsible for Finance, there has been laid before Parliament a request by the Minister for Finance for the prior approval of Parliament the exercise by him of his power under the Laws and Regulations relating to the waiver of Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EXIM Levy, Special Import Levy and other approved imposts amounting to the Ghana cedi equivalent of five million, two hundred and ninety- one thousand, three hundred and fifty-six United States dollars (US$5,291,356.00) on goods and services and equipment in respect of the Rural Enterprise Programme (REP).

    NOW THEREFORE, this Honourable House hereby approves the exercise by the Minister responsible for Finance of the power granted to him by Parliament by Statute to waive such Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EXIM Levy, Special Import Levy and other approved imposts

    amounting to the Ghana Cedi equivalent of five million, two hundred and ninety-one thousand, three hundred and fifty-six United States dollars (US$5,291,356.00) on goods and services and equipment in respect of the Rural Enterprise Programme (REP).
    Dr Assibey-Yeboah 2:25 a.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Kyei-Mensah-Bonsu 2:25 a.m.
    Mr Speaker, we shall now take Motion 27.
    Mr First Deputy Speaker 2:25 a.m.
    Hon Members, item numbered 27.
    Hon Chairman of the Committee?
    MOTIONS 2:25 a.m.
    Mr First Deputy Speaker 2:25 a.m.
    Hon Member for Ho Central?
    Mr Benjamin Kpodo (NDC -- Ho Central) 2:35 a.m.
    Mr Speaker, I beg to second the Motion moved by the Hon Vice Chairman of the Committee for the House to approve the Contract Agreement between GoG and Contracta Construction (UK) Limited for a facility of €248,000,000.00 for the Phase II of the Redevelopment and Mode Modernisation of the Kumasi Central Market and its Associated Infrastructure.
    Mr Speaker, yesterday we approved the loan facility for the redevelopment of the central market, which is the second phase of the entire Kumasi Market Development and Modernisation Project.
    Ms Patricia Appiagyei (NPP -- Asokwa) 2:45 p.m.
    Mr Speaker, I beg to support the Motion ably presented by the Hon Vice Chairman of the Committee.
    Mr Speaker, anybody here who has been to Kumasi would bear with me that at the moment, Kumasi has very serious congestion problems. It is therefore very critical that the city moves on to the second phase of the Kumasi Market Redevelopment Project.
    It is also important, and it was observed by the Committee that the development of the second phase would facilitate the movement of displaced traders from the streets to the first developed site of the market.
    We also acknowledge the fact that by moving to the second phase of the project, Kumasi traders would also experience and enjoy adequate utility facilities as well as the movement and commercial activities of the place. It is also to enhance the opportunity for a majority of the traders to own and occupy their own shops.
    The general concern by the Committee was the fact that certain costs were not included in the presentation of the Report. Intelligence report indicates that the Mayor of Kumasi has already had some consultation and collaboration with the
    traders in the city. By September, 2018, all the traders would be relocated to the new site to give way for the second phase to commence.
    There was concern about the need to get rid of all the structures in the way. If we look at the second paragraph of subsection 7.2 of the Report, which I beg to quote; it states --
    “In response, the Committee was assured that with the determination of the legal suit in favour of the KMA by the Court, the works would be completed by September…”.
    It is an assurance that a verdict has already been granted to KMA to go ahead to demolish all those structures.
    One of the major concerns the Committee had was the fact that the consultants for the project had not been paid, which could cause a possible delay in moving on to the second phase of the project.
    This arose out of the fact that there was no consultancy allocation for the first phase of the project for which the Ministry has given us the assurance that soon before the commencement of the second phase, due arrangements would be made for payments to be effected.
    Mr Speaker, I am looking at the commercial viability of this project. In the first phase, what is happening is that almost the entire traders that had been displaced are going to have shops to themselves.
    This gives room for other traders occupying the streets and shops to also come and trade within the commercial centre which we know and have evidence as the first and largest market in Ghana and in West Africa in particular.
    Mr First Deputy Speaker 2:45 p.m.
    Very well. Yes, Hon Member, after this, I will put the Question.
    Mr Dominic Napare (NDC -- Sene East) 2:45 p.m.
    Mr Speaker, thank you for the opportunity to support and contribute to the Motion for the redevelopment and modernisation of the second phase of the Kumasi Central Market and its associated infrastructure.
    Mr Speaker, it is very good news in the sense that the aim of the previous Government to expand infrastructure in the country in the regional markets is being continued.
    The expansion of the markets in the regional capitals as captured in the second phase would no doubt improve upon the businesses in the country and increase revenue generation to the State.
    Mr Speaker, it is also evident that the expansion of this market would create a lot of employment for our teeming youth who are yearning for employment.
    One thing the Committee noted when we visited the market in Kumasi was that the market women are currently eager to move to the first phase which has been constructed. The only handicap is what my other Hon Colleagues have mentioned
    as regards the preparation and the finishing of the first phase and the market women are not happy that we are still keeping them at the old place.
    Mr Speaker, it is my hope that the assurance given by the Hon Minister for Local Government and Rural Development and the Kumasi Metropolitan Assembly (KMA) would be followed through for the market women to be moved from their current place to the new place to give way for the construction of the second phase.
    The previous Government's intention was to have continued the construction of this market in other regional capitals such as Sunyani, Tamale, Wa, Bolgatanga and to other big markets like Techiman.
    It is our hope that after the construction of the second phase in Kumasi, the project would be expanded to other regional capitals and then other big markets in the country just as has been done to Cape Coast, Kotokuraba Market and then the Ho Central Market.
    Mr Speaker, during the Committee meeting, one other thing that we observed was the good benefit of these projects.
    Currently, if you go to our markets, you will realise that most of their wares are being displayed on the floor and sometimes, vegetables and other foodstuff are displayed on the floor for people to buy and consume. This is the result of most of the health-related issues that we are battling with in the country.
    We hope that with the completion of this second phase and the replication of this in other markets, this issue of market women openly displaying their wares, which is not hygienic for human consumption, would be solved.
    Mr Speaker, the other issue which my Hon Colleagues have mentioned and I would want to also emphasise is the concerns that were raised at the first phase of the project. As we speak, the intention is for the evacuation to be done in September.
    We are in July and about to enter the month of August and so we only urge the Government and the Ministry to speed up their consultation and negotiations with the stakeholders to make way for the second phase.
    While the project is signed and not started well, then it is the Government that is going to be affected and so, it is our hope that the consultations with the various stakeholders, as Hon Kpodo has mentioned, would be completed soon to make way for the second phase to be started.
    As we have indicated, what I would also want to mention is that, there are some cost-related issues that are not incorporated into this second phase cost and which I believe are very critical.
    When the issue was raised at the Committee level, the Ministry of Local Government and Rural Development and the Kumasi Metropolitan Assembly (KMA) assured us that this cost component will be catered for in a different package and it relates to the removal of a person from the second phase for the construction to take place.
    Mr Speaker, it also relates to the construction of the new places where those who will be relocated, would be moved to. The serious issue is that once it is not captured in this component, it means that funds would have to be made available, and we are only urging
    Government and the Ministry to make these funds available.
    Mr Speaker, so, with these words, I urge my Hon Colleagues to support and approve the Motion for the redevelop- ment and modernisation of the Phase II of the Kumasi Central Market.
    Thank you very much.
    rose
    Mr First Deputy Speaker 2:45 p.m.
    Hon Members, I think we should put the Question on this one.

    Yes, Hon Member for Subin, the Hon Majority Leader says I should allow you to speak to your people.
    Mr Eugene Boakye Antwi (NPP -- Subin) 2:45 p.m.
    Mr Speaker, I am most grateful. I beg to add my voice to the on-going debate on the modernisation of the Kumasi Central Market and its associated infrastructural project, phase II.
    Mr Speaker, in addition to what my Hon Colleague from Asokwa said, 100km worth of roads will also be constructed to aid accessibility to the Kumasi Central Market and the projects around it.
    In the Mid-Year Review of the 2018 Budget Statement to the House, it was mentioned that about 100km worth of roads as part of the two billion syno-hydro infrastructural project towards the Kumasi Central Market would be constructed.
    Mr Speaker, I am most grateful for the opportunity.
    Question put and Motion agreed to.
    Mr First Deputy Speaker 2:45 p.m.
    Hon Minister, the accompanying Resolution? Yes, Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 2:45 p.m.
    Mr Speaker, yes, the Resolution -- item numbered 28.
    Mr First Deputy Speaker 2:55 p.m.
    Hon Members, item numbered 28 -- Resolu- tion.
    Where is the Hon Minister?
    Mr Kyei-Mensah-Bonsu 2:55 p.m.
    Mr Speaker, the Hon Deputy Minister for Local Government and Rural Development is here, so he could stand in for the Hon Minister to move the Resolution numbered as item 28.
    Mr First Deputy Speaker 2:55 p.m.
    Hon Deputy Minister for Local Government and Rural Development?
    RESOLUTIONS 2:55 p.m.
    THIS HONOURABLE HOUSE 2:55 p.m.
    HEREBY RESOLVE AS 2:55 p.m.
    Mr Kyei-Mensah-Bonsu 2:55 p.m.
    Mr Speaker, respectfully, if we could lay the Papers on the Order Paper Addendum.
    Mr First Deputy Speaker 2:55 p.m.
    Very well.
    Item numbered 1 -- Presentation of Papers. Hon Minister for Finance?
    Mr Kyei-Mensah-Bonsu 2:55 p.m.
    Mr Speaker, we would take item numbered 1 (a) on the Order Paper Addendum.
    Mr First Deputy Speaker 2:55 p.m.
    Item numbered 1(a) -- Hon Minister for Finance?
    PAPERS 2:55 p.m.
    Mr Kwame Governs Agbodza 2:55 p.m.
    Mr Speaker, I think that this is about --
    Mr First Deputy Speaker 2:55 p.m.
    Hon Member, I did not recognise you. I mentioned item numbered 1 (a) (ii).
    By the Deputy Minister for Finance (Mr Kwaku Agyeman Kwarteng on behalf of the Minister for Finance) --
    Commercial Contract Agreement between the Government of the Republic of Ghana acting through the Ministry of Roads and Highways and Munck Civil Engi- neers A/S, Denmark for the Contruction of Bridges in Northern Ghana.
    Referred to the Committee on Roads and Transport.
    By the Deputy Minister for Finance (Mr Kwaku Agyeman Kwartent on behalf of the Minister for Finance) --
    Request for waiver of Import Duties, Import VAT, ECOWAS Levy, EXIM Levy, Special Import Levy amounting to the Ghana cedi equivalent of six million, four hundred and twenty-one thousand, nine hundred and nine euros (€6,421,909.00) [Equivalent to GH¢33,575,665.52] on project materials and equipment in respect of the construction of bridges in Northern Ghana.
    Referred to the Committee on Finance.
    Mr First Speaker 2:55 p.m.
    Hon Members, we would take item numbered 1(b). Hon Minister for Fisheries and Aquaculture Development.
    By the Minister for Fisheries and Aquaculture Development --
    Consultancy Services Agreement between the Government of the Republic of Ghana acting through
    Mr Kyei-Mensah-Bonsu 2:55 p.m.
    Mr Speaker, we could go back to item numbered 41 on page 28 of the original Order Paper.
    Mr First Deputy Speaker 2:55 p.m.
    Hon Members, item numbered 41 -- Motions. Hon Chairman of the Committee.
    MOTIONS 2:55 p.m.
    Mr Daniel Kwesi Ashiamah (NDC -- Buem) 2:55 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 2:55 p.m.
    Item numbered 42 -- Hon Chairman of the Committee.
    Cyber-Security and Personal Data Protection (Malabo Convention)
    Hon Chairman of the Committee (Mr Ken Ohene Agyapong): Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Communications on the African Union Convention on Cyber-Security and Personal Data Protection (Malabo Convention).
    Mr Speaker, I beg to present your Committees Report.
    Introduction
    The African Union Convention on Cyber-Security and Personal Data Protection was laid in Parliament by the Hon Minister for Communications, Mrs Ursula Owusu-Ekuful on Tuesday, 10th July, 2018, and referred to the Committee on Communications for consideration and report, pursuant to Order 182 of the Standing Orders of Parliament.
    Subsequently, the Committee met with the Hon Deputy Minister for Communications, Mr George Nenyi Andah, the National Cyber Security Advisor and other officials from the Ministry of Communications on Tuesday, 24th July 2018 and considered the referral.
    The Committee expresses its appreciation to the Hon Deputy Minister and his team for attending upon the Committee to assist in its deliberations.
    Reference Documents
    The Committee was guided by the following documents during its deliberations:
    i.The 1992 Constitution of the Republic of Ghana.
    ii. The Standing Orders of Parlia- ment.
    iii. The Electronic Transactions Act, 2008 (Act 772).
    iv. The Data Protection Act, 2012 (Act 842).
    Background Information
    African Ministers responsible for Information and Communications Technology per a declaration in 2009, requested the African Union Commission to develop, in conjunction with the United Nations Economic Commission, a framework to regulate electronic transactions, cyber security and personal data protection. Subsequently, the African Union Commission and the United Nations Economic Commission developed the African Union Cyber Security and Personal Data Convention (Malabo Convention), which was adopted in June 2014 by AU Heads of States and Govern- ments in Malabo, Equitorial Guinea.
    Having regard to the potential benefits in protecting Ghana's cyber space, the Convention was signed by H.E. the President, Nana Addo Dankwa Akufo- Addo at the 29th Ordinary Session of the Assembly of Heads of States and Governments of the African Union (AU) in July 2017 in Addis Ababa, Ethiopia.
    So far, twelve (12) member States, including Benin, Senegal, Zambia, Sierra Leone, Guinea Bissau and Mauritius have signed the Convention, with only two States ratifying it. However, article 36 of the Convention requires that at least fifteen AU Member States ratify the convention for it to come into effect.
    Mr Daniel Kwesi Ashiamah (NDC -- Buem) 3:05 p.m.
    Mr Speaker, I beg to second the Motion that, this House approves your Committee's Report on the African Union Convention on Cyber Security and Personal Data Protection (Malabo Convention). By so doing, I would like to just add a few words.
    Mr Speaker, your Committee sat yesterday and did due diligence to the Malabo Convention's memorandum received from the Hon Minister. We realised that cybercrime transcends physical boundaries, so there is a need for us as a country to also ask for the approval of this House for its ratification.
    Moving forward, we also realised that a lot of African countries have been battling with cybercrimes, including encryptions, which do not augur well for businesses in the African continent. Therefore, there is the need for us as a House to approve for its ratification.
    Mr First Deputy Speaker 3:05 p.m.
    Hon Deputy Minister for Communications, he has concluded. Did you want to raise a point of order?
    Mr George Nenyi Kojo Andah 3:05 p.m.
    Yes, Mr Speaker. I believe there was a slight slip of tongue when he was making his submission. He made reference to a position that we signed a contract with Mauritius to build the smart city. I believe he wanted to make reference to the industrial park and not the smart city.
    Because this is a House of record, I just wanted to draw his attention and that of the House to this.
    Mr First Deputy Speaker 3:05 p.m.
    Very well noted.
    Hon Members, I intend to limit the debate to one contribution each from each Side. We have a lot of Business today.
    I would take the Hon Member for Ningo Prampram. I am sorry. The Minority just spoke. Yes, Hon Member for Takoradi?
    Mr Kwabena Okyere Darko-Mensah (NPP -- Takoradi) 3:15 a.m.
    Thank you, Mr Speaker, for the opportunity.
    Mr Speaker, I beg to support the approval of the Motion moved by the Hon
    Mr First Deputy Speaker 3:15 a.m.
    I have already recognised the Hon Member for Ningo/Prampram.
    May I suggest that those in the ICT and communications -- some of the terms you use do not lend themselves to ordinary people to feel a part. We had a conference at the Pan-African Parliament and as I sat there, the terms used there were passing over my head, so I asked them to break it down, and then they said it meant trading on the internet. Why do they not say so, so that my young constituents would feel interested?

    If you went to Ningo-Prampram and you asked young men to come for a cyber- security conference, would they come? They would not be interested. You would have to break it down to a language that they would understand. That is my suggestion to you.
    Mr Samuel Nartey George (NDC -- Ningo/Prampram) 3:15 a.m.
    Thank you very much Mr Speaker. I would take a cue in my submission from your advice, and break it down to the level of everybody.
    In supporting and asking this House to approve the Report of the Committee on Communications on the African Union Convention on Cyber-Security and Personal Data Protection, which is nicknamed the Malabo Convention, I would like to draw the attention of the House, and let it go on the record, that though this may be a very important piece of African legislation, it is extremely important as a country that we hasten slowly when engaging in some of these ratifications, and this is the point I made in the Committee.
    Mr Speaker, Africa has 54 countries. The incidence of fraud or criminality on the internet, which is called cyber-fraud, is on the increase, but if you live in a residential area, and the residential area is prone to armed robbery attacks, do you start by protecting the entrance to the residential area or you start by protecting the entrance to your own residence within the estate? Your first point of call should be to protect your own residence, before the landlords association can think about the general area.
    So if Ghana is part of 54 countries in the African Union, our focus should primarily be on strengthening our own ability to fight cyber-crime. We have 54 countries in Africa. This Convention would only become of value to Ghana after we have ratified it, and by all means we would ratify it, but it would only be of value if 15 African countries ratify it.
    As we speak now, this Convention was put in place in 2014, four solid years ago. Only 12 African countries have signed, and only two have ratified. We should ask ourselves, why are African countries unwilling to even sign?
    We do not even have the minimum number that we need for ratification signing, not to talk of ratifying. It is good that we are trailblazers, but perhaps we must be careful that we are not rushing to go and crash.
    Mr Speaker, in Africa there are super powers when it comes to ICT infra- structure. South Africa is one of them. South Africa has stayed away from signing this Convention, not to talk of even beginning to consider the ratification.
    Rwanda is seen as one of the super powers when it comes to ICT in Africa, the ‘Silicon Valley of Africa'. Rwanda has stayed away from signing this Conven- tion not to talk of ratifying it.
    The flip case, Mauritius. Mauritius is one of the IT powerhouses. They have gone ahead to sign and ratified, but we must ask ourselves, why would Mauritius do that? We need to understand the geo- politics of Mauritius and the fact that they have made themselves a certain kind of haven. Is that the same kind of direction Ghana wants to go in ratifying this?
    Mr Speaker, when you look at --
    Mr First Deputy Speaker 3:25 p.m.
    Hon Members, I will put the Question.
    rose
    Mr First Deputy Speaker 3:25 p.m.
    Hon Majority Leader, you were not here when we reached the agreement. I am sorry but I would have to put the Question.
    Question put and Motion agreed to.
    Mr First Deputy Speaker 3:25 p.m.
    Resolution listed as item number 43 -- Minister for Communications.
    Mr Kyei-Mensah-Bonsu 3:25 p.m.
    Mr Speaker, I would want to seek the indulgence of the House to allow the Hon Deputy Minister to do so on behalf of the Hon Minister.
    Mr First Deputy Speaker 3:25 p.m.
    The leave is granted. The Hon Deputy Minister for Communications may move the Resolution.
    RESOLUTION 3:25 p.m.
    Chairman of the Committee (Mr Ken Ohene Agyapong) 3:25 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 3:25 p.m.
    Hon Deputy Minority Whip, you are hereby asked to make your Statement on the Ada Asafo- tufiami Festival.
    Mrs Comfort Doyoe Cudjoe Ghansah (NDC -- Ada) 3:25 p.m.
    First of all, I would like to greet our paramount chief, Nene Abraham Akuako III.
    Mr Speaker I am grateful for the opportunity to make this Statement on the Ada Okor Asafotufiami Festival.
    Mr Speaker, the Asafotufiami Festival, which translates into English as the Festival of Firing of Musketry, is celebrated by the chiefs and good people of the Ada Traditional Area in the Greater Accra Region.
    The festival is celebrated annually around the first week of August in commemoration of the priceless achieve- ments of the founding fathers and ancestors of the Ada State, who fought fiercely through Okor Huem to their current location.
    So therefore, the festival is a war festival, depicting the heroic nature of the people.
    Mr Speaker, the Festival is a weeklong celebration which takes off from Wednesday. Wednesday and Thursday sees the arrival of natives who live outside the traditional area. On these same days,
    there is cleansing of stools at various shrines and reconciliation among family members.
    Mr Speaker, on Friday, all the 10 clans in Ada move in orderly procession through the principal streets firing musketry, drumming and singing war songs under the leadership their respective Asafoatseme (War Captains) to an old battle field called Aplenayer.
    Young men display skills in the firing of musketry in serious war fashion against imaginary enemies to the admiration of onlookers, mainly tourists who travel across the country and from the world at large.
    At Lenobinya, the Paramount Chief receives the 10 clans and the procession continues to Kponkpopanya - the riverside where ancient warriors once departed to war by boats and landed on their return from war. At the riverside, libation is poured, musketry is fired over the River Volta, ritual of feet and hand washing is done to wash away all the evils of war.
    Saturday is the climax of the Asafotufiami Festival where all roads lead to the durbar ground. The Asafoatseme and the divisional chiefs are carried high in palanquins to the durbar ground. Cultural activities by various groups such as the Ada Youth Organisation, ‘Kpatsa' and ‘Awa' groups precede a very important activity of the day which is the swearing of oath of allegiance by all divisional chiefs and the Asafoatseme to the Paramount Chief, Nene Abram Kabu Akuaku III.
    Mr Speaker, there is thanksgiving on Sunday where the chiefs and people meet at the durbar ground to give thanks to God for His mercies throughout the year and also commit the coming year into His hands.
    On Monday, the people are led in a royal walk by the Paramount Chief through the principal streets of Ada. This is followed by a host of merry making activities such as boat racing and tag of war through the rest of the days.
    Mr Speaker, the Asafotufiami Festival is today a unifying force, keeping the Ada State under one umbrella where development agenda of the Ada State is presented.
    Mr Speaker, Ada is really a beautiful place, regarded by many as the largest tourist destination in the country which can boast of islands, an estuary, golden beaches, and many other places of attraction.
    The beautiful hotels such as Aqua Safari Resort and other resorts create a stress-free atmosphere for visitors. I am therefore extending invitation to all Ghanaians to the 81st Asafotufiami Festival (one of the oldest festivals celebrated in this country).
    I would want to end by saying that Ghana can earn much foreign exchange if our festivals are well packaged to attract the world to our country.
    Mr Speaker, I thank you very much.
    Mr First Deputy Speaker 3:35 a.m.
    Very well. Today, Mr Speaker inaugurated the Young Parliamentarians Forum (YPF). They also have a Statement, so I would invite them to read the Statement. After that I would take one comment each before we suspend Sitting.
    Yes, Hon Member?
    STATEMENTS 3:35 a.m.
    Mr Kojo Asemanyi, (NPP -- Gomoa East) 3:35 a.m.
    Mr Speaker, I am more elated as a young parliamentarian of this august House to be part of a process that finally has set in motion a parliamentary youth forum that will seek to do many things to boost our infant democracy and to also strengthen and upgrade the reputation of our Parliament.
    I am further elated because, as we mark 25 years of parliamentary democracy, there would be more justifiable reasons to involve young people and increase our pace in parliamentary process.
    Develop-ment in our context is not only necessary but urgent. Hence the need to device increased mechanism of engaging the young ones in all spheres of development.
    Young people all over the world constitute the most important human resource that any nation can harness for its accelerated development.
    For that matter, since Parliament is the bedrock of our democracy and a vehicle for policy and law making in development, I would be more than happy to see that our integration with the rest of the world, through the Inter-Parliamentary Union (IPU) is strengthened with the creation of the Young Parliamentarians Forum.
    The evolution of Ghana's Parliament has witnessed the significant role of young MPs. Young MPs have demonstrated their interest in promoting the pillars of democracy in Ghana's Parliament through a number of ways.
    Mr First Deputy Speaker 3:45 p.m.
    Hon Members, I would allow one comment on the Statements on the Festival and one on the Young Parliamentarians Forum
    (YPF).
    rose
    Mr First Deputy Speaker 3:45 p.m.
    Yes, Hon Member, on which one do you want to comment?
    Mr Otuteye 3:45 p.m.
    Mr Speaker, I would want to comment on the Statement on the Festival.
    Mr First Deputy Speaker 3:45 p.m.
    Very well, go ahead.
    Mr Christian Corletey Otuteye (NDC -- Sege) 3:45 p.m.
    Mr Speaker, I thank you for the opportunity to contribute to the Statement made on the Festival.
    Mr Speaker, the Statement has come at the right time when the people of Ada are warming up for the celebration.
    Mr Speaker, you would agree with me that every traditional area has its own festival which distinguishes it from the other traditional areas concerning their traditions and cultural practices. The

    people of Ada also have a rich cultural heritage festival which is celebrated in the first week of August every year and the celebration lasts for a week. There are some days that are very important which I would narrow my contribution to.

    Mr Speaker, from Thursday through to the following week, there are so many activities which are lined up for both the youth and the chiefs.

    I would talk on the grand durbar day which is on Saturday where all the chiefs, the traditional chiefs and the Asafoatsemei who are the warlords come together to celebrate. The celebration is historically just about the ancient wars which were fought to remember how it went and its achievements for the people of Ada.

    Mr Speaker, on that day, all sorts of people come to swear an oath of allegiance to the Nene Ada who is the paramount chief and this oath of allegiance is for renewing their support and loyalty to him.

    It also stands for the citizens to also do same so that the people of Ada would stand as one community which no other community beyond Ada could stand against. So, we all observe this.

    Mr Speaker, when Nene Ada calls a person for a reason, the person has no cause to fail to go. Once the chief can pledge with their lives that at any time that Nene Ada calls them or the paramount chief calls them, they are ready to respond promptly to his call, otherwise they would pay with their lives, then who is the ordinary citizen to be called by the Nene Ada and he would delay to heed to the call?

    Mr Speaker, this is a celebration which has been in existence for 81 years. Some

    of the benefits of the festival are that, it is a home call for daughters and sons of Ada to come home every year to take stock of issues which harbour the development of the community.

    When they come, they discuss developmental projects and resolve issues which bother families and clans. Each clan comes with its head or the traditional chiefs.

    When they are all done at the meetings, they are carried to the principal streets with jubilation and the youth relax and forget about the past and the stressful days.

    Mr Speaker, it has been a unifying celebration which has contributed a lot to the unity of Ada and we would continue to celebrate it. I would want to say that this has kept and connected our root and also kept all the origins.

    We have now come to trace the origin of the Adas. It is believed that they fought with the Ewes and won, they also fought with the Ashantis and also won. The 10 clans -- [Interruption.] -- That is basically what the celebration is about.

    Mr Speaker, the festival helps people to come together and it is also a time to forget about all the difficult life times, relax and take stock of their lives and get new hope for the future.

    Mr Speaker, it is really a colourful event which most of our Presidents have attended. Last year for instance, former Presidents Jerry John Rawlings and Mahama were there.

    Late President Atta Mills has been there before, former President Kufuor was once there and we are yet to witness that of our current President. We are hoping that he would show up this year to grace the occasion for the people of Ada.

    Mr Speaker, with these few words, I thank you for the opportunity to contribute to the Statement.
    Mr First Deputy Speaker 3:45 p.m.
    Hon Members, I would admit one contribution from the young parliamentarians.
    Mr Alex Tetteh Djornobuah (NPP -- Sefwi Akontombra) 3:45 p.m.
    Mr Speaker, I thank you for the opportunity to contribute to the Statement which was made by the Hon Member.
    Mr Speaker, youths are the future leaders of every country, therefore, there is the need to empower us the young parliamentarians to take leadership positions in the next decade.
    Mr Speaker, the leadership of YPF Ghana, had the opportunity to participate in the regional conference at Abuja and a lot of issues were discussed. Among the issues discussed were accountability: respect for human right; no policy discrimination; transparency and mentorship.
    Mr Speaker, I would want to end by appealing to your good self and the leadership of the House to equip the training centre of Parliament to enable the young parliamentarians have oversight responsibility and also learn how to debate on matters related to debate and the drafting of Bills.
    Mr Speaker, I thank you for the opportunity.
    Mr First Deputy Speaker 3:55 a.m.
    Thank you too.
    rose
    Mr First Deputy Speaker 3:55 a.m.
    Hon Member for Tamale Central, what is the matter?
    Alhaji I. A. B. Fuseini 3:55 a.m.
    Mr Speaker, I am very interested in the Young Parliamentarian's contribution and I crave your indulgence to give me the opportunity -- [Interruption] -- It is precisely the presence of the old that gives the young the impetus to congregate. It is always good that they share their wisdom with them.
    Mr First Deputy Speaker 3:55 a.m.
    If the Hon Second Deputy Speaker had asked me for some time to address the Young Parliamentarians, I would have indulged him, but you are midway. You are not that old. Anyway, let me allow you a few minutes.
    Alhaji I. A. B. Fuseini 3:55 a.m.
    Very well. Thank you very much, Mr Speaker.
    Yes, I am not a Young Parliamentarian by age or presence in Parliament. This is my fourth term in Parliament and I have crossed the 50-year threshold, so definitely, I cannot be a Young Parliamentarian.
    However, it is important to note that this age and time appears to be the decade of the young. So, any opportunity that is available must be given to them, especially where they are elected to serve their countries in ways where they could be allowed to channel their productive energies into the development of the country.
    Mr First Deputy Speaker 3:55 a.m.
    Hon Majority Leader, at this stage, I can suspend Sitting and reconvene later.
    Mr Kyei-Mensah-Bonsu 3:55 a.m.
    Mr Speaker, I am also quite exhausted and experiencing serious pangs in some parts of my body. However, the Committee on
    Works and Housing, would want to have their Report debated before we take a suspension -- if it meets your convenience.
    Mr First Deputy Speaker 3:55 a.m.
    Hon Deputy Minority Leader, the request is that we do the Report of the Committee on Works and Housing before we proceed to suspend Sitting.
    What sayest thou? [Pause] I wanted to hear from the Hon Deputy Minority Leader before I took a decision. [Interruption.] We should go ahead?
    Very well.
    Hon Chairman of the Committee on Works and Housing, you may move Motion numbered 38 on page 26 of the Order Paper.
    MOTIONS 3:55 a.m.
    Chairman of the Committee (Nana Amoakoh) 3:55 a.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80(1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the Report of the Committee on Works and Housing on the Works Contract Agreement between the Government of the Republic of Ghana (represented by the Ghana Water Company Limited under the Ministry of Sanitation and Water Resources) and Messrs Denys Engineers and Contractors B.V. of Netherlands for an amount thirty-three million two hundred and fifty thousand euros (€33,250,000.00) for the Upper East Region water supply project may be moved today.
    Mr First Deputy Speaker 3:55 a.m.
    Any seconder?
    Mr Sampson Ahi 3:55 a.m.
    Mr Speaker, I rise to second the Motion.
    Question put and Motion agreed to.
    Mr First Deputy Speaker 3:55 a.m.
    Motion numbered 39, Hon Chairman of the Committee?
    Works Contract Agreement between GoG/GWCL and Messrs Denys
    Engineers and Contractors B.V of Netherlands
    Chairman of the Committee (Nana Amoakoh) 3:55 a.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Works and Housing on the Works Contract Agreement between the Government of the Republic of Ghana (represented by the Ghana Water Company Limited under the Ministry of Sanitation and Water Resources) and Messrs Denys Engineers and Contractors B.V. of Netherlands for an amount thirty-three million two hundred and fifty thousand euros (€33,250,000.00) for the Upper East Regional Water Supply Project.
    In doing so, I would like to present your Committee's Report.
    Introduction
    The request for approval of the Works Contract Agreement between the Government of the Republic of Ghana (represented by the Ghana Water Company Limited under the Ministry of Sanitation and Water Resources) and Messrs Denys Engineers and Contractors B. V. of Netherlands for an amount of thirty- three million, two hundred and fifty thousand euros (€33,250,000.00) for the Upper East Regional Water Supply Project” was presented to the House by the Hon Deputy Minister for Sanitation
    and Water Resources, Mr Patrick Yaw Boamah on behalf of the Hon Minister for Sanitation and Water Resources on Monday, 23rd July, 2018 in accordance with article 181 (5) of the 1992 Constitution.
    The Hon First Deputy Speaker referred the request to the Committee on Works and Housing for consideration and report in accordance with Order 180 of the Standing Orders of the House.
    Deliberations
    The Committee was assisted in its deliberations by the two (2) Hon Deputy Ministers for Sanitation and Water Re- sources, Messrs. Patrick Yaw Boamah and Michael Yaw Gyato, the two Deputy Managing Directors of GWCL, Messrs Jacob Yendor and Remy Puoro, and other officials from the Ministry and the GWCL.
    The Committee is grateful to the Hon. Deputy Ministers, Deputy Managing Directors and the other officials for their cooperation and assistance.
    Reference
    The Committee relied on the following documents during its deliberations:
    The 1992 Constitution of Ghana;
    The Standing Orders of the Par- liament of Ghana; and
    The Works Agreement between Ghana Water Company Limited (representing Government of Ghana) and Messrs. Denys En- gineers and Contractors B.V. of Netherlands for an amount of thirty- three million, two hundred and fifty thousand euros (€33,250,000.00) for the “Upper East Region Water Supply Project
    Chairman of the Committee (Nana Amoakoh) 3:55 a.m.


    whose properties may be affected during the construction of the transmission and distribution lines.

    A total amount of GH¢690,000.00 is earmarked for compensation payments on the project. The Committee believes that with this provision, the project would commence as scheduled and that challenges normally associated with nonpayment of compensation such as vandalism and unnecessary litigations would be minimised.

    Further, variation costs arising out of delays would be avoided to allow the project to be completed on schedule.

    Corporate social responsibility

    The Committee realised that the issue of social responsibility was not explicitly stated in the Contract. The Committee believes that even though the project upon completion would be beneficial to the communities in the project area, they are likely to be inconvenienced in one way or the other during the construction period.

    It is therefore important that the contractors provide some social interventions that would mitigate the negative effects likely to be associated with the implementation of the project.

    The Committee accordingly calls on the Ministry and the Contractor to ensure that a provision is made, possibly, out of the contingency to cater for this responsibility.

    Expected benefits

    The Committee noted that the completion of the project would increase

    the reliability of water supply to the beneficiary communities in the project area.

    In all, 30 communities in the Bolgatanga, Navrongo, Bongo, Paga and their environs will benefit from the project. It is expected that the increase in water supply would lead to a reduction in the prevalence of common water-borne diseases as well as reduce the stress of having to travel long distances in search of water.

    Eventually, this would also help reduce the pressure on the various health facilities in the Region as a result of reduction in water-related diseases.

    Besides, economic activities within the catchment areas of the project are expected to improve, for the time, which would have otherwise been used in search of water would be put into more productive use. Jobs will be created during the construction period and help to reduce the unemployment in the country.

    Cost breakdown

    As stated in the Contract, the cost of works component of the contract is thirty- three million, two hundred and fifty thousand euros (€ 33,250,000.00).

    This amount is to cater for expenses relating to the construction of raw water intake and new water treatment plant near Tono, elevated water reservoir, Transmission pipelines in Navrongo and Bolgatanga, Distribution pipelines, Paga pipeline extension and the rehabilitation of existing Vea Water treatment plant. The cost break down of the various components is as follows;
    Mr First Deputy Speaker 4:05 p.m.
    Hon Ranking Member?
    Mr Sampson Ahi (NDC -- Bodi) 4:05 p.m.
    Mr Speaker, I beg to support the Motion that this Honourable House approves the Works Contract Agreement for the Upper East Region Water Project.
    Mr Speaker, we all know the importance of water and that people living in Bolgatanga, Navrongo, Paga and Bongo are going through a lot of water difficulties. It is difficult for them to access water and so this contract is seeking to undertake new raw water intake at the Tono Reservoir.
    Design and construction of a new water treatment plant located at Navrongo; rehabilitation of the existing Vea Water Treatment Plant; design and construction of 67km of new transmission, pipelines to transport drinking water from the Tono Water Treatment Plant; design and construction of 50km new distribution network; design and construction of three new elevated reservoirs; and provision of 400 stand pipes.
    Mr Speaker, as I have said, water is life. Therefore it is in the right direction for the Government to ensure that after the financial package has been approved by this House somewhere last year, we are just calling for us to approve the works agreement. Already, we have approved the financial package so I do not think that this is any controversial issue.
    Mr Speaker, the only thing I would want to add is that this contract has taken into account payment of compensation to affected people. When the major pipelines are being laid, many a time properties are destroyed.
    But most projects do not take into account the payment of compensation to affected personalities. But this project seeks to make provision of GH¢690,000 to compensate people whose properties would be destroyed along the construction of the pipelines from the intake into the distribution network.
    Mr Speaker, to conclude, I only want to appeal to the Government that before we left office, we actually brought contracts to construct the Damongo Water Project. The Paper was laid but we were not able to take it in the life of the Sixth Parliament.
    So, I would just want to call on the Ministry to repackage this important project so that the people of Damongo could also be considered.
    There were also ongoing projects at North Tongu, the name of the project was Five Districts Water Project and that includes Central Tongu, Adaklu, Hohoe, Agortime Ziope. We did the first and second phases --
    Mr First Deputy Speaker 4:05 p.m.
    Hon Member, could you restrict yourself to the Report, please?
    Mr Ahi 4:05 p.m.
    Mr Speaker, I actually commend the Government for considering the people in Navrongo, Bolagatanga, Paga and Bongo equally. I believe people in these communities also need water.
    Therefore I am only pleading with the Ministry to do their best to ensure that they continue to complete the Third Phase
    of the Five Districts Project so that they could also access water.
    Mr Speaker, I thank you for the opportunity.
    Question put and Motion agreed to.
    Mr First Deputy Speaker 4:05 p.m.
    Resolution numbered 40.
    Mr Kyei-Mensah-Bonsu 4:05 p.m.
    Mr Speaker, the Resolution would be moved by the Hon Deputy Minister for Sanitation and Water Resources.
    Mr First Deputy Speaker 4:05 p.m.
    Hon Deputy Minister for Sanitation and Water Resources -- Hon Patrick Yaw Boamah?
    RESOLUTIONS 4:05 p.m.
    THIS HONOURABLE HOUSE 4:05 p.m.
    HEREBY RESOLVE AS 4:05 p.m.
    Nana Amoakoh 4:05 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Resolution agreed to.
    Resolved accordingly.
    Mr Kyei-Mensah-Bonsu 4:05 p.m.
    Mr Speaker, I guess we could resume at 5.30 p.m. sharp, I guess we could then travel to not earlier than 9.00 p.m.
    Sitting suspended -- 4.13 p.m.
    Sitting resumed -- 6.20 p.m.
    Mr First Deputy Speaker 4:05 p.m.
    Hon Majority Leader, you may guide the House.
    Mr Osei Kyei-Mensah-Bonsu 4:05 p.m.
    Mr Speaker, we would go to the Order Paper Addendum 2 to lay some Papers.
    Mr First Deputy Speaker 4:05 p.m.
    Order Paper Addendum 2 -- Presentation of Papers. Item numbered (a) by the Hon Minister for Energy.
    PAPERS 4:05 p.m.
    Mr First Deputy Speaker 4:05 p.m.
    Very well.
    I direct that the Leadership of the Finance Committee may join the Committee on Mines and Energy for the consideration of this Paper.
    Item numbered (b) by the Hon Minister for Finance.
    Dr Mark Assibey-Yeboah 4:05 p.m.
    Mr Speaker, the Hon Deputy Minister for Finance has advised that this Paper contains significant finance terms, so if you could direct the whole Committee instead of just the leadership of the Finance Committee.
    Mr First Deputy Speaker 4:05 p.m.
    Which one are we referring to? Is it the transfer Agreement between the Government of Ghana and Ameri Energy? What does that contain? You want a joint referral?
    Well, I would refer it to the Hon Leaders.
    Mr Haruna Iddrisu 4:05 p.m.
    Mr Speaker, you rightly referred it to the Committee on Mines and Energy, and added that the leadership of the Finance Committee could join them.
    Mr First Deputy Speaker 4:05 p.m.
    Hon Majority Leader, the Hon Chairman of the Finance Committee says he wants all his team to work with the Committee on Mines and Energy.
    Mr Kyei-Mensah-Bonsu 4:05 p.m.
    Mr Speaker, given the circumstances of these times and considering the fact that the Finance
    Committee themselves are so much burdened with responsibilities -- the Committee on Finance wants to do mining everywhere -- one is for the leadership of the Finance Committee to join them.
    Dr Assibey-Yeboah 4:05 p.m.
    Mr Speaker, that is the more reason you would have to refer it to entire Committee, so that if even the leadership that is overburdened is unable to be present at these meetings, then some members of the Finance Committee --
    Mr Kyei-Mensah-Bonsu 4:05 p.m.
    Mr Speaker, granted; knowing how purposeful they are.
    Dr Assibey-Yeboah 4:05 p.m.
    Mr Speaker, respectfully to the Hon Majority Leader, this Agreement contains significant financing details and --
    Mr First Deputy Speaker 4:05 p.m.
    Hon Chairman, it is alright.
    Dr Assibey-Yeboah 4:05 p.m.
    I am fortified with the advice of the Hon Deputy --
    Mr First Deputy Speaker 4:05 p.m.
    Hon Chairman of the Finance Committee, please, resume your seat.
    I refer the Agreement laid by the Hon Minister for Energy to the Committees on Finance and Mines and Energy for consideration and report.
    Item numbered (b) on the Order Paper Addendum 2 by the Hon Minister for Finance.
    By the Deputy Minister for Finance on behalf of the Minister for Finance --
    Request for waiver of Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EXIM Levy, Special Import
    Levy, Inspection Fees, and AU Levy amounting to three million, two thousand, eight hundred and sixty Ghana cedis and nine pesewas (GH¢3,003,860.09) in respect of equipment and materials to be imported for the “Access to Satellite TV for 300 Villages in Ghana” Project.
    Referred to the Committee on Finance.
    Mr Kyei-Mensah-Bonsu 4:05 p.m.
    Mr Speaker, I suggest that we add the leadership of the Communications Committee. Given their own application, that may have to be a joint referral to the Committees on Finance and Communications to deal with it.
    Mr First Deputy Speaker 4:05 p.m.
    Hon Chairman, I thought this was a tax waiver only, and that was why I referred it to the Committee on Finance alone.
    Dr Assibey-Yeboah 4:05 p.m.
    Mr Speaker, the leadership of the Communications Committee -- this is a tax waiver. In essence, it goes to the Finance Committee, but I do not know anything about access to satellite televisions. At least, the leadership of the Communications Committee could assist when it comes to understanding some of the fine details.
    Mr Ahmed Ibrahim 4:05 p.m.
    Mr Speaker, considering the nature of the application he made, the Hon Ranking Member of the Communications Committee being bereaved (the Hon Chairman is Mr Kennedy Agyapong); and there being so many other things, it would be better that you refer it to the whole Committee on Communications.
    Mr First Deputy Speaker 4:05 p.m.
    As far as I am concerned, this is a tax waiver; but nothing stops us from inviting people they know from within and without Parliament to assist them with information that would enable them perform their duty. So I would maintain that it is referred to the Committee on Finance only.
    Hon Majority Leader, where do we go from here?
    Mr Kyei-Mensah-Bonsu 4:05 p.m.
    Mr Speaker, item numbered 32 on the Order Paper.
    Mr First Deputy Speaker 4:05 p.m.
    Very well; item numbered 32 -- Motion by the Hon Chairman of the Committee.
    Mr First Deputy Speaker 6:30 p.m.
    Item numbered 32 -- Motion by the Hon Chairman of the Committee.
    MOTIONS 6:30 p.m.
    Chairman of the Committee (Mr Emmanuel K. Agyarko) 6:30 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80(1) which require that no Motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the Motion is given and the date on which the Motion is moved, the motion for the adoption of the Report of the
    Committee on Environment, Science and Technology on the Electrical and Electronic Waste Management Agree- ment--Designation of External Service Provider between the Government of the Republic of Ghana (represented by the Ministry of Environment, Science, Technology and Innovation and the Environmental Protection Agency) and Société Général de Surveillance SA (SGS) may be moved today.
    Mr Ebenezar O. Terlabi 6:30 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 6:30 p.m.
    Item numbered 33, Motion by the Hon Chairman of the Committee.
    GoG - SGS Electrical and Electronic Waste Management Agreement
    Chairman of the Committee (Mr Emmanuel K. Agyarko) 6:30 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Environment, Science and Technology on the Electrical and Electronic Waste Management Agreement—Designation of External Service Provider—between the Government of the Republic of Ghana (represented by the Ministry of Environment, Science, Technology and Innovation and the Environmental Protection Agency) and Société Général de Surveillance SA (SGS).
    Mr Speaker, in doing so, I present your Committee's Report.
    Introduction
    The Minister for Environment, Science, Technology and Innovation, Prof Kwabena Frimpong Boateng, on Friday
    20th July, 2017, laid before the House, the E-Waste Management Agreement between the Republic of Ghana, represented by the Ministry of Environment, Science, Technology and Innovation (MESTI), the Environmental Protection Agency (EPA), and Societe General de Surveillance SA (SGS).
    Pursuant to article 75 (2) (b) of the 1992 Constitution and Standing Order 185, Mr Speaker referred the agreement to the Committee on Environment, Science and Technology for consideration and report to the House.
    Acknowledgement
    The Committee met with the Deputy Minister for Environment, Science, Technology and Innovations, Hon Patricia Appiagyei, the Ag Chief Executive Officer of the Environmental Protection Agency (EPA), Mr John Pwamang and Officials from his Ministry and the Agency discussed the contents of the agreement.
    The Committee is grateful to all who participated in the deliberations and the elucidation provided on the agreement.
    Reference Documents
    The Committee referred to the following documents during its delibe- rations;
    a. The 1992 Constitution of Ghana.
    b. The Standing Orders of the Parliament of Ghana.
    c. The e-waste management agree- ment between the Republic of Ghana represented by the Ministry of Environment, Science, Technology and Inno-
    vation, the Environmental Protection Agency and Societe General de Surveillance SA
    (SGS).
    d. The Hazardous and Electronic Waste Control and Management Act, 2017 (Act 917).
    Background Information
    Africa's biggest e-waste dump at Agbogbloshie is estimated to generate a significant proportion of the world's 11.2 billion tonnes of solid waste. This volume of e-waste continues to grow on yearly basis posing varying environmental and economic hazards to the country.
    The increasing volumes and comple- xity of waste associated with the modern economy possess serious risk to ecosystems and human health.
    Wastes from electrical/electronic equipment, end-of-life vehicles, used tires containing new and complex hazardous substances present the fast-growing challenges in both developed and developing countries.
    Exposures to hazardous substances in and around sites, dismantling electronic and electrical waste (e-waste) pose numerous health and safety risks for waste collectors, recyclers and neighbour- ing communities. Marginalised popula- tions disproportionately suffer the negative effects of improper e-waste disposal practices.
    Processing electronic waste presents a serious health threat to workers at Agbogbloshie. The fumes released from the burning of the plastics and metals used in electronics are composed of highly toxic chemicals and carcinogens.

    Workers often inhale lead, cadmium dioxins, furans, phthalates and brominated flame retardants.

    Exposure to these fumes is especially hazardous to children, as these toxins are known to inhibit the development of the reproductive system, nervous system, and the brain in particular. In similar e- waste productive areas with conditions and demographics like those of Agbogbloshie, 80 per cent of the children have dangerous levels of lead in their blood.

    Inhabitants often suffer from chronic nausea, headaches, chest and respiratory problems. High levels of toxins have also been discovered in soil and food samples as these chemicals stay in the food chain.

    It is in view of the above that an Act to provide for the control, management and disposal of hazardous waste, electrical waste and for related purposes that it was passed in 2016.

    Justification for Action

    The implementation of the provisions of the agreement would help Ghana avoid the incidence of becoming a dumping ground for hazardous waste products. It would provide for objective reports on the nature of shipments declared as “used” products rather than “wastes”.

    The Ministry of Environment, Science, Technology and Innovation and its implementing agency, the Environmental Protection Agency (EPA), will embark on a programme for the physical collection of electronic waste products and recycling them responsibly.

    The programme will be the main game- changer in the government's efforts to protect the population and the

    environment from harmful effects of the hazardous materials found in electronic products.

    The implementation of the innovative solution designed has the potential to create over 20,000 full time jobs for the youth including those engaged in the practice of burning e-waste items across the country within the first year of implementation. The ecological environment will also be improved.

    The management of the e-waste programme will enable the country achieve six (6) of the Strategic Development Goals (SDG).

    They include Goal three (Good health and well-being), Goal six (Clean water and sanitation), Goal eleven (Sustainable cities and Communities), Goal 12 (Reasonable consumption and production), Goal 8 (Decent work and economic growth) and Goal 14 (Life below water).

    The programme will help to generate an estimated revenue of approximately US$100 million annually to the government through the Ministry of Environment, Science, Technology and Innovation and the EPA.

    Diseases like heavy metal poisoning and malaria brought about by the burning of e-waste will also be prevented.

    The project will, additionally, spur on new job opportunities directly for those who will collect the e-waste and indirectly for those who will buy recovered materials.

    Selected option

    Under the Basel Convention with regards to the operationalisation of the agreement, the Ministry and EPA had two options to choose from. The first was to

    review the importation of all shipments into the country marked as ‘‘waste'' or ‘‘used'' items.

    The second was for EPA to collaborate with a globally networked private firm that undertakes an innovative modular approach and allows for the physical inspection of shipments, to determine the country of origin and the validity of each consignment, to ascertain if the e-waste is a used or new item.

    It will further involve the application of a scheme that will see to the collection of Advanced Recycle Eco Fees on all regulated electrical and electronic items, under the polluter pay principle. An e- waste recycling plant would be built to address the challenge of e-waste dumping in the country.

    The second option has been chosen since it provides a comprehensive e-waste management solution.

    In choosing the option, the Ministries of Education, Sports, Health, Finance, Forestry and Mines, Local Government and Rural Development, Trade and Industry were consulted.

    Work plan

    The sensitisation work plan towards the commencement of the project is as follows:

    a. develop a national communica- tion campaign exposing the e- waste pollution disaster in Ghana and the proactive solutions being introduced by the govern- ment under the SGS Renovo Solutions in Act 917;

    b. Programme launch, national media placement and public commu- nication campaign;

    c. programme business process modelling; and

    d. Capacity enhancement and knowledge shared through interactions with stakeholders.

    A detailed communication action plan will be drawn to sensitise all stakeholders towards the implementation of the programme. The plan will focus on the dangers of e-waste to the environment and human life. A budget will be created out of the programme implementation scheme to manage all activities nationwide.

    Financial Impact

    There is no financial requirement from Government towards the implementation of the project. The Ministry and EPA would enter into contractual agreement with SGS as the designated external service provider pursuant to section 21 of Act 917, 2016.

    a. SGS shall use its presence in the over 200 countries globally to assess the advance Recycle Eco Fee for the government of Ghana through the Ministry and its agency. SGS shall remit the revenues generated from the collection of the advanced eco levy on the agreed terms.

    b. SGS shall retain 15 per cent of the net Eco levy to be collected and remit 85 per cent collected on a monthly basis to the Government of Ghana.
    Chairman of the Committee (Mr Emmanuel K. Agyarko) 6:30 p.m.


    Observations and recommendations

    The Committee made the following observation and recommendations:

    Collection of Eco-Levy

    The Committee was informed that Societe General de Surveillance SA (SGS) as the designated external service provider would collect advanced recycling eco fees on behalf of the Ministry of Environment, Science and Technology and the Environmental Protection Agency.

    The levy would be collected from authorities in countries from which electronic and electrical waste products are exported. SGS will retain 15per cent of the levy collected and 85 per cent would be remitted to the Ministry of Environment, Science and Technology and the Environmental Protection Agency.

    Upon enquiring about the appropria- teness of fee charged by SGS, the Committee was informed that the standard percentage fee charged by companies that collect recycling eco fees are between 20 per cent and 35 per cent.

    The fees for SGS contract engagement on similar activities in La Cote d'Ivoire, Guinea and Togo were 25 per cent, 35 per cent and 20 per cent respectively. Thus, the Committee considered the percentage charge to be paid to SGS as relatively low and urges that it be approved.

    Pursuant to section 28 of the Hazar- dous and Electronic Waste Control and Management Act, 2017 (Act 917), an electronic platform where all stakeholders could access to monitor the levy collected by SGS to ensure that accurate reporting would be established.

    Single Source Procurement

    On the issue of the sole sourcing of the Contractor which had been approved by the PPA pursuant to section 40(2) of Act 663, the Committee was informed that SGS is currently promoting a patented application to do service globally, and other West African Countries have signed up to it. SGS had been chosen due to their track records and efficiency.

    The Committee recommends that the company chosen should ensure that they operate according to international and local best practices to ensure that e-wastes are properly recycled for the benefit of society.

    Conclusion

    The indiscriminate disposal of e-waste has adverse environmental and health implications. Developing countries face economic challenges and lack infrastruc- ture for sound hazardous waste management. They also lack effective recycling regulatory frameworks for the management of the hazardous waste.

    It is again expensive to treat these complex wastes in an environmentally sound manner. It is in view of this that the Committee requests the House to adopt its report and to approve the agreement to ensure that e-waste in Ghana is properly disposed of and treated to prevent all its accompanying diseases.

    Respectfully submitted.
    Mr Ebenezer Okletey Terlabi (NDC -- Lower Manya Krobo) 6:30 p.m.
    Mr Speaker, I beg to support the Motion before us and I would want to say that, in addition to this arrangement of helping in preventing Ghana from becoming a dumping ground for waste products, it would also help us in ridding our system of some hazardous waste.
    Mr Speaker, since the beginning of this week, we have approved a lot of Agreements, some of which would be used to replace hospital equipment and some computers in schools but we have not asked ourselves where the old ones would be disposed of.
    Most of them find their way to Agbogbloshie and other areas. What they do is that, these equipment are just burnt in their quest to salvage some of the usable components.
    In the process, a lot of poisonous gases are released into the atmosphere. I believe that coming out with a comprehensive programme like this would help in salvaging a situation where poisonous gases and other toxic substances are released into our environment.
    Mr Speaker, the absence of a very comprehensive way of disposing off some of these electronic wastes is the reason. When we go to Airport right now, we have the VC10 sitting there and the best thing we have done with it is to convert it into a chop bar. [Interruption.] -- If we would want to call it a restaurant [Laughter] --
    Mr First Deputy Speaker 6:30 p.m.
    You must recognise that he comes from a far away place.
    Mr Terlabi 6:30 p.m.
    Mr Speaker, if you look at the development that is going on at Terminal 3, I know for a fact that if I have a good way of disposing of that aeroplane, it would give way for some extension at the Terminal 3 area because one could visibly see that the place is congested.
    Mr Speaker, it is for this reason that I support the Motion. We should give opportunity to people with experience and
    expertise to come in and request that we look at the situation where other companies would also be given the opportunity.
    This is because what we would approve now would be done by only one company. It is because of the expertise that they would bring on board.
    But I believe that there are others in the process who will be given the opportunity to understudy and therefore come out with other plans because Ghana is big and we are growing.
    I do not believe that there is any way we would say that we are no longer going to import or embrace technology. Once we decide to go with technology, then we should be ready to take care of the waste that comes with it.
    That is the reason I would implore the entire House to support this Motion so that Societe Generale and the other companies, in the first place, would assist in cleaning and taking care of the waste that we have in the system for now and in the long term, prevent Ghana from becoming a dumping site.
    Mr Speaker, another issue of importance is that, in our quest to eliminate and process, we might end up with another way of eliminating galamsey.
    If it is gold that we need, then I believe that when they start the processing, most of these equipment would have embedded in them gold and other very important minerals and if we have a very good means of disposing of them, we could take some of these -- [Interruption.] --
    Therefore in the end, those who are interested in the gold business can also invest in this process and what will happen is that, we will find a better way of getting gold than to go and cut down trees and muddy the water.
    Mr Terlabi 6:30 p.m.


    Mr Speaker, thank you for the opportunity.
    Mr First Deputy Speaker 6:40 a.m.
    Would the Hon Leaders contribute to this one?
    Minority Leader (Mr Haruna Iddrisu) 6:40 a.m.
    Mr Speaker, I beg to speak on the Motion that has been moved for the adoption of the Report by the Committee on Environment, Science and Technology on the e-waste management contract with SGS as has been captured in the Committee's Report.
    Mr Speaker, before I proceed, may I draw your attention to page 2 of your Committee's Report, particularly paragraph 2 which reads:
    “Pursuant to article 75 (2) (b) of the 1992 Constitution and Standing Order 185, Mr Speaker referred the Agreement to the Committee on Environment, Science and Technology for consideration and report to the House.”
    Mr Speaker, for the purpose of clarity, let me quote article 75 of the Constitution.
    Mr Speaker, I beg to read 6:40 a.m.
    “75 (1) The President may execute or cause to be executed treaties, agreements or conventions in the name of Ghana.
    (2) A treaty, agreement or convention executed by or under the authority of the President shall be subject to ratification by --
    (a) an Act of Parliament; or
    (b) a resolution of Parliament ...”
    Mr Speaker, I read this so that we would understand, and my understanding is that this Agreement is not in the nature of article 75. This Agreement must be article 181 (5) of the Constitution. That is my view.
    Mr Speaker, or we have to combine it because this is a Treaty signed by an Hon Minister but not the President, and we assumed that the Hon Minister signed it on behalf of the President, so maybe he executed --
    Mr Speaker, this is not a Treaty or convention but a Commercial Agreement, therefore, I have a difficulty with it and not the principle.
    Mr Speaker, we support what they want to do for the purposes of electronic waste. I know SGS as a reputable institution in Geneva and they are working in Africa. But what are we to do as a Parliament?
    Mr Speaker, we are not to ratify this Agreement for them; we are to approve it in accordance with article 181 of the Constitution.
    Mr Speaker, if we refer to article 75 which I have read from the first paragraph, it is dealing with international treaties and conventions and an example is what we handled when we dealt with the African Union Convention on Cyber-Security and Personal Data Protection. Mr Speaker, that is a convention and a treaty but this is a Commercial Agreement and they are entering into a transaction.
    Mr Speaker, I have read the Cabinet document and we would not fault the Hon Minister because this was sole-sourced, so it means that it was not opened to other competitors in the industry.
    I have seen the attachment referencing the Cabinet letter as a sole-sourced
    contract, but what the Public Procurment Authority (PPA) did to help was to look at the values and recommend some percentage deductions.
    I have seen 15 per cent deductions, 35 per cent deductions and others, but I would want to establish on the record again that this contract is sole sourced.
    Now, let me deal properly with the Committee's Report where they say Justification in paragraph 5.0. Mr Speaker, I beg to read:
    “The management of the e-waste programme would enable the country achieve six (6) of the Strategic Development Goals (SDGs).”
    Which goals? Mr Speaker, how do they relate this to its attainment? Mr Speaker, they would contribute to its attainment but they cannot be definite as if just clearing electronic waste would see us achieve the SDGs.
    The President is the United Nations anchor man on it and this is a House of records so they should capture it well.
    Mr Speaker, again, I have to go back to the contract document because the official document is the one that I have read and seen -- In this Agreement, you would see SGS coming first but the document that they submitted to Cabinet has the other entity first. I say this for us to polish and improve the document.
    I am not against the principle. Mr Speaker, I have to refer to the Cabinet memorandum that I received relative to this particular Agreement. Mr Speaker, we have to look at it again in terms of what deductions have been achieved in respect of it.
    Again, apart from saying that it has been sole- sourced, I also mentioned SGS, and if we look at the document that they submitted to Cabinet which was further submitted to Parliament, I rather see the Debster Cleaning Recycle Limited.
    If we look at their document and per the record before Cabinet and others, it is the Debster Cleaning Recycle Limited even though SGS joined them as a partner.
    Hon Minister, once we are giving you this approval, we would need clarity on who you are dealing with, so that we would know the parties to the Agreement.
    So I have noted that it is a sole- sourced contract; Mr Speaker, I would want to read verbatim from Cabinet's approval letter, and what it says we should do to support this particular initiative.
    Mr Speaker, so we should know who the Ministry of Environment, Science, Technology and Innovation is --
    Again, the Environmental Protection Agency (EPA) is an institution established by law. I do not have the parent Act here; I have asked the Table Office to help me. I have looked at section 31 of Act 917 and it talks about establishment and not establishment and management.
    Mr Speaker, but if you go to Act 917, it says establishment and management of recycling plan. I have noted that they are given a mandate for establishment and management, but the law only talks about establishment. It did not add the issue of management.
    Mr Speaker, as I have said, but when you are putting the Question, I do not believe that we have to take the Question on article 75. We would be saying that we are ratifying it and I do not think that it is
    Mr Speaker, I beg to read 6:40 a.m.


    one of those Agreements that requires ratification. I believe that it should be --
    Mr First Deputy Speaker 6:40 a.m.
    Hon Leader, if you look at the Resolution that we are invited to adopt in respect of this matter, it is under article 181 (5) of the Constitution.
    It is Resolution numbered 34 on page 24 of the Order Paper and it is under article 181(5) of the Constitution. So I am wondering why article 75 was introduced into the Report?
    I believe that it is the Committee that may have made a mistake by referring to article 75, but the Resolution is on article 181(5) and that is the appropriate constitutional provision relevant to this Commercial Agreement.
    So I believe that the Hon Chairman may wish to amend the Committee's Report and delete the reference to article 75(2) because it does not appear to have any reflection in this matter.
    Hon Chairman of the Committee.
    Mr Agyarko 6:40 a.m.
    Mr Speaker, respectfully, I believe that there was a typographical error here because if we look at paragraph (2) of Resolution 34 it is very clear and it says “Pursuant to the provisions of the said Article 81 (5) …” Mr Speaker, I believe that there was a typo here and --
    Mr First Deputy Speaker 6:40 a.m.
    So the error is in your Report.
    Mr Agyarko 6:40 a.m.
    Mr Speaker, I seek your leave to make the appropriate amendment to the Report.
    Mr Iddrisu 6:40 a.m.
    Mr Speaker, I am just concluding -- [Interruption.] I was quoting verbatim when they came in.
    Mr Speaker, if you see the PPA letter of 8th November, 2017, the third paragraph is what I said that we need to have clarity on who the parties are:
    Consequently, having satisfied all the requirements of single sourcing per section 40 (2) of Act 663 as amended, PPA is by this letter approving your request to use the single source method to engage Messrs Devstaclay Recycling Limited supported by its overseas partners.
    Now, the overseas partners include Societe Generale de Surveillance SA, I do not have a difficulty with it, but let us know which parties we are dealing with because this is a correspondence from --
    Also, when you come to the Cabinet letter of 16 th July, 2018, the second paragraph on the memorandum, the Ministry of Environment, Science, Technology and Innovation is distinct from the Environmental Protection Agency, legally. So we should also note that in carving this relationship.
    However, I support the initiative. We would interrogate the numbers in terms of how much we expect, and how much they are expected to bring as their contribution.
    I just pray that it would make significant contribution in getting Ghana environmentally clean and getting rid of the environmental waste which poses major threats in Agbogbloshie and other areas.
    I thank you, Mr Speaker.
    Mr First Deputy Speaker 6:40 a.m.
    Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 6:40 a.m.
    Mr Speaker, I believe we can move on.
    Mr First Deputy Speaker 6:40 a.m.
    Very well. In that case, Hon Chairman, subject to the corrections you made in your Report, I would put the Question.
    Question put and Motion agreed to.
    Mr First Deputy Speaker 6:40 a.m.
    Hon Minister for Environment, Science, Technology and Innovation, you may move Resolution captured as item numbered 34.
    RESOLUTIONS 6:40 a.m.
    THIS HONOURABLE HOUSE 6:40 a.m.
    HEREBY RESOLVES AS 6:40 a.m.
    Mr Emmanuel Kyeremanteng Agyarko 6:40 a.m.
    Mr Speaker, I beg to second the Motion.
    Mr First Deputy Speaker 6:40 a.m.
    Yes, Hon Minority Leader?
    Mr Haruna Iddrisu 6:40 a.m.
    Mr Speaker, I am following your guidance as you referred to the Resolution. The Resolution should appropriately capture article 181(5).
    Mr Kyei-Mensah-Bonsu 6:40 a.m.
    Mr Speaker, we shall take the Motion captured as item numbered 15. [Pause.]
    MOTIONS 6:40 a.m.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 6:40 a.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Request for waiver of Import Duties, Import VAT, Import NHIL, ECOWAS Levy, EXIM Levy, Special Import Levy and other approved imposts amounting to the Ghana Cedi equivalent of five million, two hundred and ninety-three thousand, four hundred and eighty-six United States dollars (US$5,293,486.00) on goods and services to be procured under the Ministry of Food and Agriculture's modernising agriculture in Ghana (MAG) programme.
    Mr Speaker, in so doing, I present your Committee's report.
    Introduction
    The request for the waiver of taxes and duties on goods and services and other charges amounting to five million, two hundred and ninety three thousand, four hundred and eighty six United States dollars (US$5,293,486.00) relating to the Procurement under the Ministry of Food and Agriculture's Modernising Agri- culture in Ghana (MAG) Programme was
    presented to Parliament on 19th July, 2018 in accordance with article 174 (2) of the 1992 Constitution and referred to the Finance Committee for consideration and report.
    Pursuant to the referral, the Committee met with officials from the Ministry of Finance and the Ministry of Food and Agriculture (MoFA).
    References
    The Committee referred to the follow- ing documents:
    The 1992 Constitution of Ghana;
    The Public Financial Management Act, 2016 (Act 921); and
    The Standing Orders of the Parliament of Ghana.
    Background
    The Modernising Agriculture in Ghana (MAG) Programme is a five- year Canadian Government initiative which seeks to extend an amount of one hundred and thirty-five million Canadian dollars (CAD$135 million) to the Ministry of Food and Agriculture (MOFA) in budgetary support.
    The MAG Programme involves technical and logistical support to the Ghanaian agricultural sector to help boost crop and livestock production. It is also to ensure food security and sufficiency and provide incentives for higher profits for farmers.
    The Programme aims at having an agricultural sector that contributes to poverty reduction, food security, structural transformation, as well as job creation.
    The MAG Programme follows two previous Canadian Government's support for the implementation of the Government of Ghana's Food and Agricultural Sector Development Policy (FASDEP).
    These were the Food and Agriculture Budget Support (FABS) and the Support to Food and Agricultural Sector Develop- ment Policy (SFASDEP) Programme.
    Food and Agricultural Budget Support (FABS) provided budgetary support of twenty million Canadian dollars (CAD$20 million) per year from 2004 to 2008 followed by a one-year twenty million Canadian dollars (CAD$20 million) bridging programme.
    From 2009 to 2013, an additional one hundred and ten million (CAD$110 million) was also provided to finance the Food and Agricultural Sector Develop- ment Policy (FASDEP) Programme.
    The MAG Programme therefore has evolved from the two (2) earlier programmes. It also took into consideration lessons learnt from their implementation.
    Modernising Agriculture in Ghana (MAG) Programme will go to support the Government's increased investment into the agricultural sector in order to propel growth in incomes and job creation. It will also support the “Planting for Food and Jobs” (PFL) Programme in the following areas:
    a. seed research and development;
    b. farmers registration for effective targeting;
    c. extension services through the provision of vehicles, motor- bikes, training and other logistics;
    d. facilitation of linkages within value chains; and
    e. provision of logistics to run the various agricultural offices.
    Section 4.4.6 of the Contribution Agreement provides that taxes, import duties, customs tariffs, inspection fees and all other levies, duties and fees cannot be funded with the Contribution.
    In view of this and in order to successfully implement the programme, a request for waiver of taxes and duties on goods to be procured under this Contribution Agreement has been submitted to the House for approval.
    Programme Objectives
    The MAG Programme is expected to improve the productivity of farmers by supporting the implementation of a comprehensive market-oriented approach to farming and by strengthening and modernising agricultural extension services delivery at the national, regional and district levels.
    Components of the Mag Programme
    The Programme has four (4) compo- nents namely:
    1. Support to increase the effi- ciency of local farmers through the value chain development which is focused on providing direct support to the District Departments of Agriculture in order to support general agricul- tural extension services to farmers at the local level;

    2. Support to specialised agricul- tural services to build national market linkages and promote efficiencies in commodity development along value chains. This support targets the Regional Departments of Agriculture in order to maintain pools of highly trained development officers who would provide expertise that is more specialised than the general extension services provided at the district level;

    3. Support to agricultural research to strengthen agricultural extension services and improve agriculture productivity and competitiveness. This component is to help identify production needs and demands of small- holder farmers and define appropriate agricultural research and innovations that can be efficiently rolled-out; and

    4. Developing the enabling environ-ment to improve agricultural productivity and

    competitive-ness. This component is to support all technical and line directorates at MoFA especially those that are not included in the component 3. Activities under this will include:

    Addressing specific barriers to commercial agriculture and agribusiness;

    Development of food safety;

    Import/export regulations; and

    Standards in the promotion of good agricultural practices for priority crops, et cetera.

    Assessment of Taxes to be Waived

    Tax assessment conducted by Ghana Revenue Authority (GRA) on the goods and services to be procured under the Contribution Agreement amounted to a total of five million, two hundred and ninety-three thousand four hundred and eighty-six United States dollars
    Mr Alex Adomako-Mensah (NDC -- Sekyere Afram Plains) 6:40 a.m.
    Mr Speaker, I beg to second the Motion. In doing so, I would make a few comments.
    Mr Alex Adomako-Mensah (NDC -- Sekyere Afram Plains) 6:40 a.m.
    Mr Speaker, the tax waiver that we are seeking is to ensure a smooth excution of the programme. This is a five-year Canadian Government initiative which is to extend the amount of CAD$135 million. This is to provide budgetary support to the Ministry of Agriculture.
    Mr Speaker, it is also to ensure food security and sufficiency and to provide income and higher profit for the farmers.
    Mr Speaker, when you look at the components, it is stated that it is to develop an enabling environment to improve agricultural productivity and competitiveness. But when we come to the next line, it says this component is to support a technical and line directorate.
    My worry is that, if it is to develop the enabling environment and then it is to support the technical directorate, what environment is it developing? So they have to let us know the environment development this component is directing us to do so that we understand it the more.
    This is because in that light, this component is to support all technical and line directorates, which means that it is supporting the Ministry of Agriculture but not the environment in general to support the farmers in agriculture to improve food security.
    Mr Speaker, when you look at the Report, you would feel that the Report would reflect a little bit of the waiver, but this one is in a different direction. We thought the impact of the waiver would have reflected in this Report.
    Mr Speaker, when you look at the summary of assessment of taxes and duties, the inspection fee is US$135,710 and withholding tax of US$135,710. The
    two are the same. So, I do not know how it came about.
    Then if you look at the breakdown of allocation, it is CAD$125 million and CAD$10 million is mainly for Canadian monitoring and evaluation which I think is in the larger size.
    When you look at the benefit of the project, it is very huge and it would support our Agricultural Department in the country.

    Question put and Motion agreed to.
    Mr First Deputy Speaker 6:40 a.m.
    Yes, Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 6:40 a.m.
    Mr Speaker, we would take the Resolution captured as item numbered 16.
    RESOLUTION 6:40 a.m.
    Minister for Finance) 6:40 a.m.
    Mr Speaker, I beg to move, that
    THIS HONOURABLE HOUSE IS 6:40 a.m.
    RESPECTFULLY REQUESTED TO ADOPT 6:40 a.m.
    Dr Assibey-Yeboah 7 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 7 p.m.
    Hon Majority Leader, what next?
    MOTIONS 7 p.m.
    Chairman of the Committee (Mr Stevens Siaka) 7 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Education on the Contract Agreement between the Government of the Republic of Ghana (Ministry of Education) and the AVIC International Holding Corporation of the People's Republic of China for the Ghana- China Project on the Rehabilitation and Upgrading of Equipment in Polytechnics and Technical Institutes (including Technical Universities/Polytechnics).
    Mr Speaker, I further beg to move, that this Honourable House adopts the Report of the Committee on Education on the Supplementary Contract Agreement No. 1 to Contract No. AVIC/GHZ/11M5003 for the Ghana-China Project on the Rehabilitation and Upgrading of Equip- ment in Polytechnics and Technical Institutes (including Technical Universi- ties/Polytechnics) between the Govern- ment of the Republic of Ghana (Ministry of Education) and the AVIC International Holding Corporation of the People's Republic of China.
    Mr Speaker, I further beg to move, that this Honourable House adopts the Report of the Committee on Education on the Supplementary Contract Agreement No. 2 to Contract No. AVIC/GHZ/11M5003 for the Ghana-China Project on the Rehabili- tation and Upgrading of Equipment in Polytechnics and Technical Institutes
    (including Technical Universities/ Polytechnics) between the Government of the Republic of Ghana (Ministry of Education) and the AVIC International Holding Corporation of the People's Republic of China.
    Introduction
    On Wednesday, 18th July, 2018, the underlisted Agreements were laid in Parliament by a Deputy Minister for Education, Hon Barbara Asher Ayisi, on behalf of the Sector Minister:
    Contract Agreement between the Government of the Republic of Ghana (Ministry of Education) and the AVIC International Holding Corporation of the People's Republic of China for the Ghana- China Project on the Rehabilitation and Upgrading of Equipment in Polytechnics and Technical Institutes (including Technical Universities/ Polytechnics).
    Supplementary Agreement No. 1 to Contract No. AVIC/GHZ/ 11M5003 for the Ghana-China Project on the Rehabilitation and Upgrading of Equipment in Poly- technics and Technical Institutes (including Technical Universities/ Polytechnics) between the Government of the Republic of Ghana (Ministry of Education) and the AVIC International Holding Corporation of the People's Republic of China.
    Supplementary Agreement No. 2 to Contract No. AVIC/GHZ/ 11M5003 for the Ghana-China Project on the Rehabilitation and Upgrading of Equipment in Poly- technics and Technical Institutes (including Technical Universities/ Polytechnics) between the Government of the Republic of Ghana (Ministry of Education) and the AVIC International Holding Corporation of the People's Republic of China.
    The Agreements were subsequently referred to the Committee on Education for consideration and report. This was in accordance with Order 186 of the Standing Orders of the House.
    Deliberations
    The Hon Minister for Education, Dr. Matthew Opoku Prempeh, a Deputy Minister for Education, Hon Barbara Asher Ayisi, the Executive Director of the Council for Technical and Vocational Education and Training (COTVET), Mr Fred Kyei Asamoah, and officials of the Ministry of Education attended upon the Committee to assist in its deliberations.
    The Committee is grateful to the Hon Minister and his technical team for attending upon the Committee.
    The Committee also expresses its appreciation to the Leadership of the Finance Committee of Parliament for attending the Committee's meeting, and assisting it in its deliberations.
    Reference Documents
    The Committee made reference to the following documents during its deliberations:
    i. The 1992 Constitution of the Republic of Ghana;
    ii. The Standing Orders of the Parliament of Ghana;
    iii. The Concessional Loan Agree- ment between the Government of the Republic of Ghana and the Export-Import of China for an amount not exceeding seven hundred and fifty-four million Renminbi (RMB754,000,000.00 [equivalent to US$119,101,946.00] to finance the rehabilitation and Up-grading of Equipment in
    Technical Universities, Polytechnics and Technical and Vocational Training Centres; and
    iv. The Report of the Finance Committee on the Concessional Loan Agreement between the Government of the Republic of Ghana and the Export-Import Bank of China for an Amount not Exceeding seven hundred and fifty four million Renminbi (RMB 754,000,000.00) Equipment to US$119,101,946.00 to finance the Rehabilitation and Upgrading of Equipment in Technical Univer- sities Polytechnics and Tech- nical and Vocational Training Centres.
    Background
    As part of the interventions by the Ministry of Education to expand equitable access and improve the quality of Technical and Vocational Education and Training (TVET) in the Education Sector, the Government of Ghana in 2010, made a request for a concessional loan from the People's Republic of China to finance the rehabilitation and development of ten (10) Technical Universities, five (5) Polytech- nics and the technical examination unit of the Ghana Education Service, among others.
    Pursuant to the above, the Government of the Republic of Ghana, on the 4th of July, 2012, entered into a Contract Agreement with AVIC International Holding Corporation of the People's Republic of China for the rehabilitation and upgrading of equipment in Polytechnics and Technical Institutes.
    Thereafter, Parliament at its thirty-sixth Sitting held on Friday, 23rd March, 2018, approved by resolution, a Concessional Loan of an amount not exceeding seven hundred and fifty-four million Renminbi (RMB754,000,000.00 [equivalent to
    SPACE FOR AMENDMENTS 7 p.m.
    Mr Bernard Ahiafor (NDC-- Akatsi South) 7 p.m.
    Mr Speaker, I beg to second the Motion.
    In doing so, I would urge the House to adopt the Committee's Report. Mr Speaker, I would commend the Committee for doing a very good job by ensuring that they are only adding but not subtracting from the existing Agreement except the Ashaiman Technical Institute.
    Mr Speaker, the Ashaiman Technical Institute used to be Don Bosco Technical Institute, but the school has been changed to Ashaiman Technical Institute.
    Mr Speaker, if you see Ashaiman instead of the Don Bosco, it is one and the same. No change has come into it.
    The only change that we have realised is the Tamale Technical Institute, but prompt attention has been drawn to it and the change of the Tamale Technical Institute to Accra Technical Institute has been reverted to the original institutions as approved by this House.
    Mr Speaker, with these few words, I would urge the House to adopt the Committee's Report.
    Question proposed.
    Mr Alex Kofi Agyekum (NPP-- Mpohor) 7 p.m.
    Mr Speaker, thank you very much for the opportunity to contribute to the Motion.
    Mr Speaker, I would just like to draw your attention to the Committee's Report on paragraph 6.2 (i) and (ii). In the Report, we are told that there has been an addition of five technical universities, polytechnics and three technical institutes. In my view, that is very critical.
    This is what we call financial engineering; ability to look into previous agreements, and where it would be possible for you to find some kind of value -for-money and such additions have been captured in the Report.
    So it is something from which we must take a cue in our future deliberations, that previous agreements must not be taken in totality without going critically into them.
    Mr Speaker, the second thing is the warranty period extending from two years to five years. That is also commendable. I would pat the Ministry on the back for doing this great job. I am saying so because sometimes, if you have a short warranty period, the legally-enforceable claims to be received are lost.
    By the time you even install the equipment, you would be getting closer to the warranty period. So a longer period avails us the opportunity to test the equipment and see whether there are no defective ones or not.
    Mr Speaker, finally, in paragraph 6.2 (iv), it is captured that some of the training
    would be done locally in Ghana. To us, that is also laudable. It is not always that we should send our lecturers out for training.
    Mr First Deputy Speaker 7 p.m.
    Hon Minority Leader, do you wish to comment? If you do, I would give you a chance. Otherwise, I would put the Question.
    Minority Leader (Mr Haruna Iddrisu) 7 p.m.
    Mr Speaker, I beg to contribute to the Motion for the approval and adoption of the Report of the Committee on Education on the Contract Agreement between the Government of Ghana and AVIC International, and the Supplementary Agreement.
    Mr First Deputy Speaker 7:10 p.m.
    Hon Members, order!
    Mr Iddrisu 7:10 p.m.
    Mr Speaker, I would be very brief. My issue is in paragraph 6.6 which reads:
    “The Committee sought to find out whether value for money assessment was carried out on the Contract.
    The Hon Minister for Education informed the Committee that value for money assessment was conducted on the original Contract.”
    Mr Speaker, note that it was not on this contract but on the original one. It continues:
    “However, the signing of the Supplementary Agreements (Numbered 1 and 2) has given rise to another value
    for money assessment which the Minister indicated, is being conducted by Crown Agents.”
    It is important that next time, we have the value-for-money audit in order to appreciate what this money would be used for. That is what we do in the exercise of oversight.
    Mr Speaker, I will use Tamale Technical University, Wa Polytechnic and Ho Technical University. Mr Speaker, when the Committee says equipment in page 9 of the Report, is civil engineering an equipment or they refer to just the diesel generator?
    The Hon Chairman of the Committee should please check pages 9 and 10. What are you conveying with “civil engineering and diesel generator”? The headnote there is “Equipment”.
    So, if it is generator, they should say it; if it is some civil engineering equipment, they should say so. But “civil engineering” standing alone -- [Interruption.] So clarify it.
    Mr Speaker, this is the works contract that Parliament is approving. Mr Speaker, next time, the Hon Deputy Minister should come with some details of how much Kumasi Technical University, Tamale Technical University and Koforidua Technical University should expect in terms of dedicated allocation. We are exercising oversight.
    If we just give them the envelope to walk away, we would not know how much to spend where. So it is important that when we review the contract agreement itself, Hon Chairman and the Committee would demand further and better particulars of the US$119 million.
    Mr Moses Anim (NPP -- Trobu) 7:10 p.m.
    Thank you, Mr Speaker, for the opportunity to speak to the Motion and to urge Hon Members to support the adoption of the Report of the Committee on Education.
    Mr Speaker, as much as we strive to create affection for our people for technical, vocational and science-oriented courses, we must also strive to expand access and also improve quality. It is in this vein that we should approve this loan facility.
    Mr Speaker, the loan facility is also to do construction works, supply and
    installation of equipment and training requirement.
    Mr Speaker, you would realise that the expansion of the scope did not affect the loan amount. It is within the same amount that the expansion of the scope in terms of the amendments for Supplementary Contract Agreements (numbered 1 and 2) was achieved by the Ministry.
    Mr Speaker, if you move to page 7 of the Report, you would realise that because of the ingenuity of the Ministry, instead of 15 sets of diesel generators of 600 kilowatts, we are getting 45 sets for 200 kilowatts and I believe it is a good thing.
    Mr Speaker, when you look at the number of Polytechnics and TVETs that have been added, it is good to approve this loan for Ghana.
    Mr Speaker, hitherto, the original contract had it that the training would be done in China and just a few in Ghana. But out of best practices, when the Ministry visited Kenya and saw the best practice, they realised that Kenya could be used as one point of the training and most would be done in Ghana.
    Based on that, it is going to expand the number of people who are to be trained and also, the manual is strictly going to be in English. We know that based on that, the manual left for Ghana would give the knowledge out when there is a problem.
    Mr Speaker, we should all adopt this Report and also support the Ministry on this loan facility.
    Question put and Motions agreed to.
    Mr First Deputy Speaker 7:10 p.m.
    Item numbered 22 -- Resolution.
    Mr Kyei-Mensah-Bonsu 7:10 p.m.
    Mr Speaker, we would take the Resolutions numbered as items 22, 24 and 26.
    Mr First Deputy Speaker 7:10 p.m.
    Hon Deputy Minister, you may move the Motion for the adoption of Resolutions listed as items 22, 24 and 26.
    RESOLUTIONS 7:10 p.m.
    Minister for Education) 7:10 p.m.
    Mr Speaker, I beg to move,
    WHEREAS by the provisions of article 181(5) of the Constitution the terms and conditions of any international business or economic transaction to which the Government of Ghana is a party shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
    PURSUANT to the provisions of the said article 181(5) of the Constitution, and at the request of the Government of Ghana acting through the Minister responsible for Education, there has been laid before Parliament the terms and conditions of a Contract Agreement between the
    Government of the Republic of Ghana (Ministry of Education) and the AVIC International Holding Corporation of the People's Republic of China for the Ghana-China Project on the Rehabilitation and Upgrading of Equipment in Polytechnics and Technical Institutes (including Technical Universities/Poly- technics).
    THIS HONOURABLE HOUSE 7:10 p.m.
    THIS HONOURABLE HOUSE 7:10 p.m.
    HEREBY RESOLVES AS 7:10 p.m.
    Mr Stevens Siaka 7:10 p.m.
    Mr Speaker, I beg to second the Motions.
    Question put and Motions agreed to.
    Resolved accordingly.
    Mr Kyei-Mensah-Bonsu 7:10 p.m.
    Mr Speaker, if we could go to the first Order Paper Addendum and deal with the item numbered 2 -- Second Reading of the Minerals Income Investment Fund Bill,
    2018.
    Mr First Deputy Speaker 7:10 p.m.
    Minerals Income Investment Bill, 2018 -- by the Minister for Finance.
    7. 20 p. m.
    BILLS --SECOND READING 7:10 p.m.
    Minister for Finance) 7:10 p.m.
    Mr Speaker, I beg to move, that the Minerals Income Investment Fund Bill, 2018 be now read a Second time.
    And in doing so, Mr Speaker, with your leave, I would like to explain that the Bill seeks to establish a Minerals Income Investment Fund to, among others;
    i.hold and manage the State's equity interest in mining companies on behalf of the State;
    ii. receive mineral royalties and other related revenues due the State; and
    iii.provide for the investment and management of the assets of the Fund and for related matters.
    This is to respond to the need to raise long term funding for strategic capital and social investments in education, health, agriculture, infrastructure and other needs.
    The mechanics of the arrangement in this Bill mean that this way of procuring long term funds does not add to our public debt. It is an important consideration.
    In conclusion, Mr Speaker, as a country, we have traditionally not leveraged our mineral resources to create enhanced value for ourselves.
    This is a departure from this historical inaction.
    I so move, Mr Speaker.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 7:10 p.m.
    Mr Speaker, I beg to support the Motion and in so doing, I present your Committee's Report;
    Introduction
    The Minerals Income Investment Fund Bill, 2018, was presented to Parliament and read the First time on Friday 20th July, 2018. The Bill was subsequently referred to the Finance Committee for conside- ration and report in accordance with the 1992 Constitution and Order 169 of the Standing Orders of the House.
    A Deputy Minister for Finance, Hon. Charles Adu-Boahene, and officials from the Ministry of Finance, the Ghana Revenue Authority (GRA) and the Attorney General's Department attended upon and assisted the Committee in its deliberations on the Bill.
    The Committee is grateful to the Hon Deputy Minister and the officials from the
    Ministry of Finance, the GRA and the Attorney- General's Department for attending upon the Committee.
    References
    The Committee referred to the following documents inter alia during its deliberations on the Bill:
    a. The Constitution of the Republic of Ghana, 1992;
    b. The Standing Orders of the Parliament of Ghana;
    c. Interpretation Act, 2009 (Act 792); and
    d. Ghana Revenue Authority Act, 2009 (Act 791).
    Background
    The Government of Ghana has identified the need to raise sustainable funding to finance long-term strategic capital and social investments in education, health, agriculture, infrastruc- ture and other areas in order to transform the economy and enhance the lives of the people of Ghana.
    Government has decided to establish diverse sources of funding which do not rely entirely on debt instrument financing. Pursuant to this decision and to address rising Government expenditure over the short-to-medium term, necessary measures are being adopted by Government to innovatively increase revenue in a manner that does not unduly burden the Ghanaian populace.
    An alternative and sustainable source of funding identified by Government is to monetise income from mineral streams and equity revenues from mining operations.

    In the past, Ghana has not sufficiently leveraged its mineral resources to create significant value for the country.

    Presently, however, Government considers using income that it receives from mining as a basis for raising additional funds for the country. This is an effective method by which mineral resources can create significant additional value for the country.

    Unlike the traditional methods of raising capital, the monetisation of income from minerals does not involve an increase in the debt burden of the Republic. Also, realising the value of a specified percentage of future mineral income mitigates the exposure of the Republic to fluctuations in mineral prices and production levels.

    The Minerals Income Investment Fund Bill, 2018, is introduced to establish a Fund that will establish and implement investment policy to maximise Ghana's mineral wealth for the benefit of the country.

    Urgency of the Bill

    In accordance with article 106(13) of the 1992 Constitution and Order 119 of the Standing Orders of the House, the Committee determined and hereby certifies that the Bill is of an urgent nature and may therefore be taken through all its stages of passage in one day.

    Purpose of the Bill

    The object of the Bill is to establish a Minerals Income Investment Fund to hold and manage the equity interests of the Republic in mining companies, to receive mineral royalties and other related income

    due the Republic from mining operations, to provide for the management and investment of the assets of the Fund and to provide for related matters.

    Contents of the Bill

    The Minerals Income Investment Fund Bill, 2018, is divided into forty-six (46) clauses.

    Clause 1 of the Bill establishes the Minerals Income Investment Fund. The Fund is a body corporate with perpetual succession, and a common seal, it may sue and can be sued in its corporate name and have in all respect the power of a body corporate.

    The objects of the Fund include maximising the value of the income due to the Republic from the mineral wealth of the country for the benefit of the citizens and monetising the mineral income accruing to the Republic in a beneficial, responsible, transparent, accountable and sustainable manner. This is provided for in clause 2.

    Clause 3 empowers the Fund, inter alia, to create and hold equity interests in a Special Purpose Vehicle (SPV) in any jurisdiction in furtherance of its objects, and the Special Purpose Vehicle is required to be free to operate as a regular, commercial company.

    Clause 4 provides for the functions of the Fund. For the purpose of achieving the objects of the Fund, the Fund is to manage, deal in and invest minerals income accruing to the Republic received by the Fund, hold and manage mineral equity interest of the Republic and exercise all rights related to the minerals equity interest, and disburse twenty percent of income accruing to the Republic from minerals to the Minerals Development Fund, among others.

    The management of the Fund is provided for in clauses 5 to 22. Clause 5 provides the governing body of the Fund. The members of the Board are to be appointed by the President in accordance with article 70 of the Constitution. This is captured in clause 6.

    Clause 7 provides for the functions of the Board of the Fund which include the formulation of policy and the supervision of the management and affairs of the Fund.

    Standard provisions on the tenure of office for members of the Board, their duties and liabilities, disclosure of interests and the establishment of committees are provided for in clauses 8, 9, 10, 11 and 12 respectively.

    Clause 13 provides for the establishment of an Investment Advisory Committee to advise the Board on the investment of the Fund under the act. Clause 14 outlines the membership of the Investment Advisory Committee with proven competence in finance and other qualifications.

    Clause 15 provides the functions of the Investment Advisory Committee.

    Standard provisions on tenure of office of members of the Investment Advisory Committee, meetings of members of the Investment Advisory Committee and disclosure of interest are all provided for in clauses 16, 17, and 18 respectively.

    The Secretariat of the Investment Advisory Committee is provided for under clause 19.

    Clause 20 requires the Board to provide the Investment Advisory Committee with the administrative support required by the Committee for the performance of its functions.

    Members of the Board and members of a committee of the Board are to be paid allowances approved by the Minister under clause 21.

    Administrative provisions are provided for in clause 22 to 26. Clause 22 makes provision for the appointment of a Chief Executive Officer. The Chief Executive Officer is to be appointed in accordance with article 195 of the Constitution by the President and is to hold office on the terms and conditions specified in the letter of appointment.

    The Chief Executive Officer is responsible under clause 23 for the day- to-day administration of the affairs of the Fund and is answerable to the Board in the performance of the functions of the Fund.

    Clause 24 is on appointment of other staff and professional advisors.

    Clause 25 makes provision for the Board to select asset managers to manage the assets of the Fund and Special Purpose Vehicle established under the Act.

    The Fund is to have its head office in Ghana pursuant to clause 26. The Fund may, where it considers necessary for the performance of its function, open branches within or outside the country subject to the approval of the Minister.

    Clauses 27 to 35 makes provision for financial matters of the Fund. The sources of funds for the Fund in clause 27 include mineral income as defined under the Act,
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 7:10 p.m.


    income from investment, money raised from the sales of its shares, rights or interest in a Special Purpose Vehicle or other company and dividends, distributions, interest or other payments from Special Purpose Vehicle or other company.

    Clause 28 provides for the payment of mineral royalty by a mining company in each month including any payments due for the late payment of mineral royalties calculated in accordance with the applicable law or any agreement between the relevant mining company and the Republic by the relevant mining company directly into the Fund.

    Clause 29 permits the payment of minerals in place of royalties. Transfer of mineral equity interest is dealt with in clause 30. Disbursement of money from the Fund is provided for in clause 31.

    Subject to the Public Financial Management Act of 2016 (Act 921), the Fund and any Special Purpose Vehicle may open, maintain and operate bank accounts in foreign currency both within and outside the Republic and receive payments in any currency, including its accounts and retain the proceeds and make payments from the account as the Fund considers fit as stipulated in clause

    32.

    Provision is made in clause 33 for foreign currency arrangements. Under this clause, the Fund or Special Purpose Vehicle may transfer foreign currency into the country, purchase local currency at the prevailing inter-bank exchange rate or at any other rate approved by the Bank of Ghana.

    The administrative and other expenses related to the management of the Fund including the payment of salaries, wages and pension to employees and officials of the Fund are to be charged on the Fund under clause 34.

    Tax exemption for the Fund and each Special Purpose Vehicle is provided for in clause 35.

    Clause 36 to 40 provide for transparency, accountability and audit. The management of the Fund is to be exercised taking into account the overall consideration that minerals income constitutes proceeds from the exploitation of non-renewable mineral resources; and the overall object that mineral income and mineral investment income is to be managed for the benefit of the current and future generations of citizens of Ghana.

    Standard provisions on the account and audit, financial year and annual report and other reports are provided for in clauses 37, 38 and 39 respectively.

    Clause 40 provides for the issuance of an Investment Policy Statement. The Fund may also develop, adopt and, amend, revoke or supplement appropriate codes of practice, internal guidelines or procedures consistent with the Act.

    Provisions are made in clauses 41 and 42 for Stability and Allocation agreements. Clause 41 empowers the Minister to enter into tripartite agreement with the Fund and a Special Purpose Vehicle.

    Miscellaneous provisions are dealt with under clause 43 to 46. The minister is empowered in clause 43 to guarantee the performance by the Fund of its obligations under any agreement to which the Fund is a party to.

    Offences and penalties are provided for in clause 44. Clause 45 provides for the Minister to, by legislative instrument, make Regulations for the effective implementation of the Act.

    Finally, clause 46 provides for the interpretation of words and phrases used in the Bill.

    Observations

    Expected Revenue

    As to what the fiscal impact of the passage of the Bill will be, the Committee was informed that the expected upfront revenue from the passage of the Bill is estimated at five hundred million United States dollars (US$ 500 million).

    No lending to Government

    The Committee observed that the Fund would not be permitted to borrow moneys and lend same to Government or other entities but would be restricted to investing its funds and paying dividends to Government.

    It was explained to the Committee that this was to forestall the situation where some public entities have gone out of their way to borrow funds and created contingent liabilities for Government.

    Retention of mineral revenues by the Fund

    Section 25 of the Minerals and Mining Act of 2006 (Act 703) provides that royalties are payable to the Republic of Ghana by holders of mineral rights. Under this Bill however, income from mineral royalties and equity interest held by Government will be monetised, and eighty per cent (80%) paid be retained by the Minerals Income Investment Fund.

    The remaining twenty per cent (20%) is to be paid to the Minerals Development Fund in accordance with the Minerals Development Fund Act of 2016 (Act 912)

    Establishment of Special Purpose Vehicles (SPV)

    The Committee observed that the Fund to be set up under the Bill when passed into law, shall have the right to set up Special Purpose Vehicles (SPVs) into which specified portions of mineral revenue may be assigned through allocation agreements. These SPVs may be listed on the Stock Exchange to attract investors.

    Use of proceeds

    The Committee was informed that proceeds from the monetisation of the mineral royalties and equity interests held by government would be used to finance long-term strategic capital and social investments in education, health, agriculture, infrastructure and other areas in order to transform the Ghanaian economy and to enhance the lives of the people of Ghana.

    Amendments proposed

    The Committee respectfully recommends the following amendments to the Bill:

    i. Clause 1 -- Amendment Proposed-- Subclause (4) line 3, delete “Authority” and insert “Fund”.

    Reason: To correct a typographical error.

    ii. Clause 2 -- Amendment Proposed -- Headnote -- Delete “Object” and insert “Objects”.

    Reason: To correct a typo- graphical error.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 7:10 p.m.


    iii. Clause 2 -- Amendment Proposed -- Subclause (2), paragraph (d) -- Delete.

    Reason: The Fund is not set up to provide funding.

    iv. Clause 3 -- Amendment Proposed -- Paragraph (f), line 2, delete “41” and insert “40”.

    Reason: to correct wrong referencing.

    v. Clause 4 -- Amendment Proposed -- Subclause (2) paragraph (a), line 2, delete “41” and insert “40”.

    Reason: to correct wrong referencing.

    vi. Clause 4 -- Amendment Proposed -- Subclause (3), delete and insert the following;

    (3) “In the performance of its functions, the Fund or a Special Purpose Vehicle shall not provide credit to the Government, public enterprises, private sector entities or any other person or entity”.

    Reason: For clarity

    vii. Clause 5 -- Amendment Proposed -- Subclause (1) paragraph (c), sub-paragraph (i) delete “of' and insert “responsible for”

    Reason: For clarity.

    viii. Clause 5-- Amendment Proposed -- Subclause (1) paragraph (c), sub- paragraph (ii), delete “of Lands and” and insert “responsible for”.

    Reason: For clarity.

    ix. Clause 5 -- Amendment Proposed - - Subclause (4) line 3, delete “Board” and insert “Fund”.

    Reason: For clarity.

    x. Clause 7 -- Amendment Proposed - - Subclause (1) line 2, after “integrity,” insert “gender,” and in line 3, delete “conferred upon the Fund by” and insert “in”.

    Reason: For clarity.

    xi. Clause 9 -- Amendment Proposed -- Subclause (3) line 1, delete “Subsection (2) does” and insert “Subsections (1) and (2) do”.

    Reason: to include subsection 1 in the referencing.

    xii. Clause 9 -- Amendment Proposed -- Subclause (7) paragraph (b), after “subsection” delete “(5)” and insert

    “(6)”.

    Reason: To correct a typo- graphical error.

    xiii. Clause 10 -- Amendment Proposed -- Headnote -- Delete “of members”.

    Reason: For clarity.

    xiv. Clause 10 -- Amendment Proposed -- Subclause (1) line 2, delete “the times and in the places” and insert “a time and place”.

    Reason: For clarity.

    xv. Clause 10 -- Amendment Proposed -- Subclause (2) lines 2 and 3, delete “place and time” and insert “time and place”.

    Reason: For clarity and consis- tency.

    xvi. Clause 11 -- Amendment proposed -- Subclause (1) paragraph (a), line 1, delete “promptly”.

    Reason: For clarity.

    xvii. Clause 12 -- Amendment Proposed -- Subclause (3) line 1, delete “non- member of the Board” and insert “person”.

    Reason: The provision applies to all persons appointed to “ the Committee.

    xviii. Clause 13 -- Amendment Proposed -- Line 1, delete “13” and insert “12”.

    Reason: To correct a wrong reference.

    xix. Clause 14 -- Amendment Proposed -- Subclause (1) line 2, delete “and” and insert “who”.

    Reason: To correct a grammatical error.

    xx. Clause 14 -- Amendment Proposed -- Add a new Subclause as follows:

    “(4) A member of the Board shall not be appointed a member of the Investment Advisory Committee”.

    Reason: For clarity.

    xxi. Clause 15 -- Amendment Proposed -- Subclause (1) paragraph (b), line 1, delete “its functions” and insert “the functions of the Board”.

    Reason: For clarity.

    xxii. Clause 15 -- Amendment Proposed -- Subclause (1) paragraph (d), after “Fund” in line 3, delete all words.

    Reason: Clause 15(1) (a) takes care of the matter.

    xxiii. Clause 15 -- Amendment Pro- posed -- Subclause (2) delete “in a timeous manner”.

    Reason: For clarity.

    xxiv. Clause 16 -- Amendment Proposed -- Subclause (4), after “may” in line 1, insert in consultation with the Minister” and at end of line 2, insert “except that in the case of the chairperson, the revocation shall be at the instance of the Minister”.

    Reason: The Minister should be consulted and the revocation of the appointment of the chairman should be at his instance

    xxv. Clause 16 -- Amendment Proposed -- Subclause (6) line 1, delete “with the consent of ' and insert “in consultation with”.

    Reason: For clarity.

    xxvi. Clause 16 --Amendment Pro- posed -- Subclause (7) last but one line, after “consultation” insert “with the Minister”.

    Reason: The Minister should be consulted.

    xxvii. Clause 17 --Amendment Pro- posed -- Subclause (3) line 2, delete “of the Investment Advisory Committee”.

    Reason: To avoid repetition.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 7:10 p.m.


    xxviii. Clause 25 -- Amendment Proposed -- Delete.

    Reason: The Asset managers can be appointed as part of the professional advisors under clause 24.

    xxix. Clause 27 -- Amendment Proposed -- Paragraph (b), delete “investment of minerals income” and insert “investments”.

    Reason: For clarity.

    xxx. Clause 27 - Amendment Proposed - Paragraph (g), after “moneys” in line 1, delete all words and insert “approved by Parliament”.

    Reason: For clarity.

    xxxi. Clause 28 -- Amendment Proposed -- Subclause (2) line 1, delete “payable by” and insert “assessed as due from” and in line 4, delete “when due”.

    Reason: For clarity.

    xxxii. Clause 28 -- Amendment Proposed -- Subclause (5) paragraph (a) line 1, at the beginning insert “not”.

    Reason: To correct a typo- graphical error.

    xxxiii. Clause 31 -- Amendment Proposed -- Subclause (1) Delete and insert the following;

    “(1) The Fund shall not later than three days after receipt of any mineral income distribute the amount due and payable into the designated account of the Minerals Development Fund in

    accordance with the Minerals Development Fund Act, 2016 (Act 912)”.

    Reason: There is a law that makes reference to the 20 per cent.

    xxxiv. Clause 33 -- Amendment Proposed -- Subclause (1) line 1, after “may” insert “subject to Bank of Ghana regulations”.

    Reason: Reference to Bank of Ghana regulations.

    xxxv. Clause 33 -- Amendment Proposed -- Subclause (2) line 1, delete “To the extent that the following are not included in” and insert “Subject to”.

    Reason: For clarity.

    xxxvi. Clause 34 -- Amendment Proposed -- Line 2, after “shall” insert “be subject to the approval of the Minister and”.

    Reason: The Minister should give approval to the salaries, wages and pensions of employees and officers.

    xxxvii. Clause 35 -- Amendment Proposed -- Delete and insert “The Mineral Income paid to the Fund and the dividend payable by the Fund or a Special Purpose Vehicle are not taxable”.

    Reason: To avoid abuse of the taxable vehicles by the officers.

    xxxviii. Clause 36 -- Amendment Proposed -- Headnote, delete “Transparency” and insert “Good governance”.

    Reason: To cover all the principles of good governance.

    xxxix. Clause 36 -- Amendment Proposed -- Subclause (2) line 3, delete “good governance” and insert “accountability”.

    Reason: To cover all the principles of good governance.

    xl. Clause 36 -- Amendment Proposed -- Subclause (3) line 3, delete “transparency mechanisms” insert “transparency, accountability”.

    Reason: it is to put in place processes and procedures.

    xli. Clause 39 -- Amendment Proposed --Subclause (3) line 2, delete “statements” and insert “a state- ment”.

    Reason: To correct a typo- graphical error.

    xlii. Clause 40 -- Amendment Proposed -- Headnote, delete “regulations”.

    Reason: For clarity.

    xliii. Clause 40 -- Amendment Proposed -- Subclause (2) delete

    Reason: Sub-clause 1 takes care of the matter.

    xliv. Clause 40 -- Amendment Proposed -- Subclause (4) line 1, delete “Fund may” and insert “Board shall”; in line 2, delete “regulations,” and in line 3, delete “object” and insert “objects”.

    Reason: For clarity.

    xlv. Clause 41 -- Amendment Proposed -- Subclause (1) line 3, delete “will be” and insert “shall” and in line 4, after “agreement,” insert “be”.

    Reason: For clarity.

    xlvi. Clause 41 -- Amendment Proposed -- Subclause (1) paragraph (b), sub-paragraph (i) line 2, delete “imports” and insert “imposts”.

    Reason: To correct a typo- graphical error.

    xlviii. Clause 42 -- Amendment Proposed -- Subclause (2) paragraph (a), delete.

    Reason: The paragraph is unnecessary.

    xlix. Clause 44 -- Amendment Proposed -- Subclause (3) lines 3 and 4, delete “two hundred and fifty thousand” and insert “twenty-five thousand” and in line 4, delete “one million” and insert “fifty thousand”; in the last line delete “seven years and not more than eighteen” and insert “two years and not more than five”.

    Reason: The punishment is too harsh and must be reduced.

    l. Clause 44 -- Amendment Proposed -- Subclause (5) line 1, after “under” insert “subsection (4) of'.

    Reason: For clarity.

    li. Clause 46 -- Amendment Proposed -- Definition of “allocation agreement” line 2, delete “any” and insert “a” and in paragraph (a) of that definition, delete “any” and insert “a”.

    Reason: For clarity.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 7:10 p.m.


    lii. Clause 46 - Amendment Proposed - Definition of “dividend” line 1, delete “to”.

    Reason: For clarity.

    liii. Clause 46 -- Amendment Proposed -- Definition of “Fund” line 1, delete “[Income]” and insert “Income”

    Reason: For clarity.

    liv. Clause 46 -- Amendment Proposed -- Definition of “Ghana Revenue Authority” before “means” delete “Ghana Revenue Authority” and insert “revenue collection authority”

    Reason: For clarity.

    lv. Clause 46 -- Amendment Proposed -- Definition of “Investment Policy Statement” line 2, delete “to be adhered to”.

    Reason: For clarity.

    lvi. Clause 46 -- Amendment Proposed -- Definition of “mining company” line 1, delete “which”.

    Reason: For clarity.

    lvii. Clause 46 -- Amendment Proposed -- Definition of “mining company”, paragraph (a), insert “which” at the beginning of line 1, and at the end of line 5, delete “and” and insert “or”.

    Reason: For clarity.

    lviii. Clause 46 -- Amendment Proposed -- Definition of “minerals investment income” line 3, delete “company” and insert “entity”.

    Reason: For clarity.

    lix. Clause 46 -- Amendment Proposed -- Definition of “minerals operations” line 1, delete “means” and insert “includes”.

    Reason: For clarity.

    lx. Clause 46 -- Amendment Proposed -- Definition of “minerals royalties” delete “minerals royalties” means” and insert “mineral royalties” means”.

    Reason: For clarity.

    lxi. Clause 46 -- Amendment Proposed -- Definition of “Ministry” delete “of” and insert “responsible for”.

    Reason: For clarity.

    lxii. Clause 46 -- Amendment Proposed -- Definition of “Special Purpose Vehicle”, delete and insert the following:

    “Special Purpose Vehicle” means an entity created by the Fund to receive minerals income assigned by the Fund and into which investors may invest or for the purpose of a joint venture”.

    Reason: For clarity.

    Long Title -- Amendment Proposed -- In line 2, delete “royalty” and insert “royalties” and on the same line delete “to” after “due”.

    Reason: For clarity.

    Conclusion

    The Committee has thoroughly examined the Bill and finds that its passage would help maximise the value of the nation's mineral wealth to enhance the lives of the people of Ghana.

    The Committee therefore recommends to the House to adopt this report and pass the Minerals Income Investment Fund Bill, 2018 into law, subject to the amendments proposed in accordance with Article 106 of the 1992 Constitution and the Standing Orders of the House.

    Respectfully submitted.
    Mr First Deputy Speaker 7:10 p.m.
    Yes, Hon Ranking Member?
    Ranking Member of the Committee (Mr Cassiel Ato Baah Forson): Thank you, Mr Speaker, for the opportunity to speak to the Motion. In doing so, let me say that the Committee had chances to look at the Mineral Income Investment Fund Bill, 2018.
    Mr Speaker, we were informed by the Hon Deputy Minister for Finance that the intention here is to monetise the mineral royalties using the Special Purpose Vehicle and to rake in revenue worth US$500 million.
    Mr Speaker, we were also informed that that would be debt-neutral. Mr Speaker, I beg to say that I have a different view to that. I have a different view because we are actually taking future flow of Government revenue.
    The mineral royalties are Government revenue; monetised over a period of time and we are saying that it would not be part of Government's debt?
    Mr Speaker, it is a contingent liability, and I was urging the Hon Minister for Finance and his Hon Deputies to take note. At this stage, the Agreement for monetising the minerals revenue is not before us so Mr Speaker, I cannot speak to the details. At this moment, what I could talk about is the Bill itself.
    But the issues that they raised referencing what they intend to do is what I am trying to caution.
    And also to caution the Ministry that they should not make an attempt by trying to hide public debt. Mr Speaker, public debt is public debt; you cannot create a Special Purpose Vehicle and create the impression that that is not going to be a public debt.
    Mr Speaker, this morning, we considered another one, and it is a clear example of what I am talking about. The Hon Minister and his Hon Deputies know exactly what I am talking about.
    Mr Speaker, when the time comes, we would cross that bridge, but I just want to caution that any attempt to sweep contingent liability under the carpet would not be allowed to survive because clearly, contingent liabilities are contingent liabilities and they should be recognised as such.
    Mr Speaker, a bold statement came from the Ministry of Finance that that is not going to be part of the public debt. We would not accept it, it is part of the public debt.
    Mr First Deputy Speaker 7:10 p.m.
    Hon Member, which Report are you speaking to?
    Mr Forson 7:10 p.m.
    Mr Speaker, I am speaking to the Mineral Income Investment Fund Bill, 2018. Mr Speaker, these are issues that are in the Committee's Report.
    Mr Forson 7:10 p.m.
    Mr Speaker, if I may refer you to paragraph 6.2; they are there. Mr Speaker, these are issues that we discussed at length at the Committee level and issues relating to expected revenue; issues relating to on-lending agreement; and retention of mineral revenue from the Fund.
    Mr Speaker, at this stage, I could only speak to the Motion and only advice the Ministry of Finance to be cautious in undertaking this journey.
    Thank you, Mr Speaker.
    Mr First Deputy Speaker 7:10 p.m.
    Yes, Hon Member for Takoradi?
    Deputy Minister for Aviation (Mr Kwabena Okyere Darko-Mensah) (MP): Mr Speaker, I beg to support the Motion for the adoption of the Report on the Minerals Income Investment Fund Bill,
    2018.
    Mr Speaker, I believe that this is very worthwhile and all Hon Members should support this Report. Mr Speaker, why am I saying so? I am saying so because over the long period of time that we have been prospecting and mining minerals in this country, there has been clear indication that when you go to all the towns that mining goes on in this country, you would find that investments in these communities continue to be deplorable.
    Mr Speaker, I believe that if Govern- ment is organising itself to collect all these moneys, especially upfront, invest them and then take the dividend to invest in strategic areas of the economy, this is a very good thing to do.
    Mr Speaker, secondly, it gives the Government an opportunity that within an organised area, they could know how much revenue is coming to them and they could strategically plan the way they would invest these moneys.
    Mr Speaker, however, we were here when we did the Petroleum Management Act and the type of investment we are using the revenues generated for clearly shows that we are not doing so much with the money.
    Therefore my only advice is that, when we are able to take the US$500million upfront, we should be investing in other areas that the returns are higher than just preserving the wealth that we are trying to create with this.
    In fact, we have to be very active on the market, we need to be investing in equities and other areas that could generate us better returns than just doing this normal Bonds and Treasury Bills that are so small to be able to invest those moneys for long term. So I believe that is one area that Government should look at.
    Mr Speaker, secondly, I also do believe that we have to give reasons why communities should give out their lands for mining. And I believe that one area that they should strategically invest in is the re-generation of communities that have over a long period of time given Ghana so much but seen little in their development.
    In areas like Obuasi, Konongo, Prestea, Tarkwa, Tepa and where mining activities take place, so that we can be proud that all these moneys are used in all these communities that we have been taking so much from and for the good of the whole country.
    At least, they can also see some facelift and a re-generation that could create some new opportunities for those living in those communities.
    Mr Speaker, with these few words, I would like to support the Motion.
    Mr Richard Acheampong (NDC -- Bia East) 7:30 a.m.
    Mr Speaker, thank you very much for the opportunity.
    I beg to support the Motion on the Floor. This is a natural resource from which all of us must benefit from. So, if there is any decision or policy which we are trying to put in place to harness the potentials of our natural or mineral resources, I think that it is the way to go.
    Mr Speaker, looking at the Memoran- dum of the Bill that we are about to consider, with your permission, I would like to read. We cannot amend the Memorandum but going forward -- unless the policy makers had some intent for putting those words in there, then we could also do better reconciliation.
    The Memorandum reads:
    “The purpose of this Bill is to establish a Minerals Income Investment Fund to hold and manage the equity interests of the Republic in mining companies, to receive mineral royalty and other related income due the Republic…”
    However, if we look at page 3 of your Committee's Report, paragraph 4.0, under the Purpose of the Bill, it reads:
    “The object of the Bill is to establish a Minerals Income Investment Fund
    to hold and manage the equity interest of the Republic in mining companies, to receive mineral royalties…”.
    So the Memorandum is talking about royalties. Which one are we talking about here? There is no basis that we can alter anything in the Memorandum. I just want to draw the attention of the Chairman of the Committee. I raised it at the Committee level.
    Even the Long Title of the Bill has the same wording, “royalty”; unless there is a proposed amendment. If you look through the Committee's Report, you would not find any amendment to the Long Title.
    So I just want to raise this issue, so that the Hon Chairman of the Committee would take it on board and when we get there, we would address those issues.
    Mr Speaker, at paragraph 6.5 of the Committee's Report, under Use of Proceeds, it reads:
    “The Committee was informed that proceeds from the monetisation of the mineral royalties and equity interests held by government would be used to finance long-term strategic capital and social investment in education, health, agriculture, infrastructure and other areas in order to transform the Ghanaian economy and to enhance the lives of the people of Ghana.”
    Mr Speaker, I am just pleading with the Ministry of Finance, that we should use the US$500 million that they are anticipating to raise for the intended purpose. I have the reconciliation of the receipts from the Petroleum Funds -- The Annual Budget Funding Amount (ABFA)
    Mr Richard Acheampong (NDC -- Bia East) 7:30 a.m.


    is supposed to have about 70 per cent for capital investments, yet we used the entire amount on consumption --
    Mr First Deputy Speaker 7:30 a.m.
    Hon Richard Acheampong, are you not peaking too soon? You are going to discuss expected revenue and the revenue has not even come, yet you are complaining and charging people to use it.
    Let us create the law first and make sure it is used to generate the money. Then your Finance Committee would ensure that the appropriate things are done. By that time, some of us might have retired from the House.
    Mr Richard Acheampong 7:30 a.m.
    Mr Speaker, I am grateful, but it is sometimes good to caution. We have the three Deputy Ministers from the Ministry of Finance here. At the back of their minds, they would remember that somebody raised this issue on the Floor, so that even if they want to use all the money for any other purpose, at least, they would be guided.
    In conclusion, we are going to mine our natural resources, but with the expected expenditure item, I cannot find roads. I see education, health, agriculture and infrastructure. We are giving discretion to Ministries and Agencies to use this to do other things.
    Let us be specific so that the Committee on Government Assurance or any other person who wants to monitor the flows would just pick a document, and in the document see roads mentioned.
    Where are the roads, so that people can give explanations? I am just raising these issues, so that the discretional powers given to Ministries and Agencies,
    they would not do things which would not benefit the good people of this country.
    Mr Speaker, with these few words, I support the Motion. When we get to the individual clauses, I have seen some issues that we could raise and I know we would do proper amendments which would stand the test of time.
    Deputy Minister for Finance (Mr Charles Adu Boahen): Mr Speaker, with regard to the Motion on the Floor, I wanted to talk about the reason why we believe it is important for us to establish such a Fund.
    Historically, we have engaged in mining for over a hundred years in this country and over time, the government is entitled to a 10 per cent carried equity interest in most of these companies. Unfortunately, these companies always manage to never declare a profit and pay dividends.
    So, historically, the Government of Ghana has not benefited from these equity holdings. With this Fund, we aim to set up a structure to maximise the value of these equity interests as well as the royalty flows from these mines to the benefit of the Government.
    Mr Speaker, these value maximisation methodologies would in no way be debt instruments, nor would they increase the debt stock of the country.
    Actually, they are more of equity instruments that are created, that is Vehicles that would be listed where the royalty flows would be recognised as income to these Special Purpose Vehicle (SPVs), on the back of which we would attract investors into these vehicles.
    This is not a new structure and it is used very commonly in Canada. There are several royalty companies listed on Canada's stock exchange and these companies actually trade at the price of multiples of 20 times whatever earnings that come into these vehicles.
    So for example, we now generate about US$100 million worth of royalty flows from the various mines and mining companies working in Ghana at the moment. This amount if, for example, was put into one of these vehicles and listed, it would have a market valuation on listing of 20 times that. So that would be US$2 billion worth valuation from day one.
    That the anticipation is that these mines would continue to produce and generate US$100 million in income over the next 10 or 15 years which would then accrue as dividends to the shareholders of these special purpose vehicles.
    By creating such a vehicle and assigning royalty flows to them, you are instantly able to create an entity or vehicle that is worth 20 times the current cash flows attributed to it.
    Mr Speaker, that in essence is what we want and aim to achieve by setting up this Minerals Income Investment Fund and to preside over these royalties.
    In the same way, we can also monetise the equity interest we have in these mining companies as they are in the same structure.
    So it is very important for us to understand that these structures are a very efficient way of maximising value creation for the Government and people of Ghana.
    Mr First Deputy Speaker 7:30 a.m.
    Leadership now. Hon Minority Leader, you are tired, you have been talking. Let me give it to the Hon Member, so you could rest.
    Mr Iddrisu 7:30 a.m.
    Mr Speaker, because my Hon Colleague was the previous Minister supervising the Ministry of Lands and Natural Resources and it is the Second Reading --
    Mr First Deputy Speaker 7:40 p.m.
    Hon Minority Leader, he left that Ministry long before he retired.
    Mr Iddrisu 7:40 p.m.
    Mr Speaker, you are not amenable to accepting Hon Fuseini --
    Mr First Deputy Speaker 7:40 p.m.
    Hon Minority Leader, I have given you the Floor, please.
    Minority Leader (Mr Haruna Iddrisu) 7:40 p.m.
    Mr Speaker, I beg to state strongly our opposition to the Minerals Income Investment Fund Bill, 2018.
    Mr Speaker, first of all, let me refer you to page 3 of your Committee's Report. It states “Urgency of the Bill”:
    “In accordance with article 106 (13) of the 1992 Constitution and Order 119 of the Standing Orders of the House, the Committee determined and hereby certifies that the Bill is of an urgent nature and may therefore be taken through all its stages of passage in one day.”
    Mr Speaker, first of all, this is not one of those Bills that we would be associated with its passage within one day. This is because we are committing the mineral resources of this country for purposes of
    Mr Speaker, when you go to 267(6) it states 7:40 p.m.
    “Ten per cent of the revenue accruing…”.
    There is a sharing formula -- 25 per cent to stool and 20 per cent to traditional authorities and others.
    So we would be denying all of them their dues in terms of the mineral resources.
    [Interruption.] that is why I used the words ‘I may be overstretching it' when I quoted section 25 of the Minerals Act which has a provision on royalties and how royalties would be paid. I state that this is a desperate measure by Government
    Mr Speaker, let me go to page 2 of your Committee's Report and to lay emphasis 7:40 p.m.
    “Unlike the traditional methods of raising capital, the monetisation of income from minerals does not involve an increase in the debt burden of the Republic.”
    So what are they doing? They are saying that we should take money against mineral royalties. That would come at a cost and a loss to the State in terms of revenue. Otherwise do you not compute royalties? Even in their 2018 Budget Statement how much do you anticipate to earn from mineral royalties?
    Mr Speaker, if they want to use royalties as a collateral, we have done it before. With respect to his memory, when Hon Baah Wiredu brought Bui Authority, I recall I was then a member of the Committee of Mines and Energy, and at the Golden Tulip Hotel, he said he came in for batter and that he would want to use cocoa or some proceeds as collateral.
    We do not have a problem if Government wants to say it wants to do that but it should be done justifiably.
    But to create an institution to deny the people of Ghana of the mineral revenues, royalties, we on this Side say no to it. We do not think that this is one of those Bills which should go through urgency.
    We need to consult thoroughly with stakeholders and Ghanaians on this, that we intend to tie our mineral royalties in order to be able to borrow.
    On this one, simple economics -- you are just using it as a leverage to borrow or to avoid borrowing more -- whichever of it suits the purpose of Government. Then you say no lending to Government.
    Mr Speaker, as I said, section 25 of the Minerals and Mining Act provides that royalties are payable to the Republic of Ghana by holders of mineral rights -- that is what the provision says.
    To create a new institution of a Minerals Income Investment Fund; we essentially disagree with the policy thinking of Government, and we disagree that this would not encumber some additionally denied burden to the people of Ghana.
    Mr Speaker, expected fiscal impact, in the Committee's Report -- paragraph 6 under Observations. But if you go to the main communication from the Office of the President, again, this one is by Executive approval.
    So Cabinet was denied an opportunity to thoroughly debate it. It is attached to the document and I am saying that two heads are better than one. I say so without fear of contradiction.
    Majority Leader (Mr Osei Kyei- Mensah-Bonsu) 7:40 p.m.
    Mr Speaker, it is important to set the records straight. First, the Hon Chairman of the Committee, in presenting the Report offered the corrections that the Hon Minority Leader spoke about. I do not know whether he was not here.
    At the very outset, he offered these corrections, and everybody here got it right that he indeed, talked about US$500 million. I do not know whether he was not here; but the Hon Chairman indeed stated that point.
    Mr Speaker, again, the Committee does not urge us to do this in one day. The Committee does not offer that to us at all. Indeed, the order that they quoted suggested that Parliament could take all the processes within one day, but we are not urged to do that in one day.
    Primarily, the import of article 106(13) is mainly to exempt the fourteen-day gazetting period. So this Bill came without being gazetted.
    After the Committee had declared that it is urgent, that determination then sets the Ministry to go and then gazette it. So, it is to avoid the fourteen-day period; that is it. It does not compel Parliament to treat it under or within 24 hours. There is no such provision in the Constitution.
    Mr Speaker, I know that given the exigencies of the times, it would be exceedingly difficult to even consider this within the next two days. I believe that perhaps, if there should be a recall, we may have to deal with this.
    Already, we have the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018 with us. We need to complete that; we are required to do that between today and tomorrow.
    When would we have additional days to deal with this, which is much more voluminous than the Ghana Integrated Bauxite and Aluminium Authority Bill,
    2018?
    Let nobody mislead this House that we are being urged to treat and deal with all the processes of this Bill within one day. It is not true.
    Mr Speaker, as for the others that have been related to, I do not intend to over flog the issue. Suffice it to say that as the Hon Deputy Minister said, in Ghana, we know our afflictions as far as the exploitation of solid minerals is concerned -- gold, manganese and bauxite. We have mined for all these years, and yet there is very little to show.
    Going forward, as a nation, we should come to some determination on how to properly utilise our resources. Indeed, the Constitution does not proscribe the country from proactively utilising royalties. There is no provision in the Constitution that retracts that.
    As individuals, many of our people here are landlords and they rent out their facilities ahead of time and take rents into two, three or four years. [Interruption.] Hon Fiifi Kwetey said, “Ah”; I know he does that.
    Seriously, if we want to make use of the money that should otherwise accrue to us in a better way, and we have determined that this is the way to go, I do not see any law against it.
    The Constitution, I must emphasise, does not go against that and we would not be in breach of any constitutional provision as far as this is concerned.
    I thank you very much.
    Question put and Motion agreed to.
    The Minerals Income Investment Fund Bill, 2018 was accordingly read a Second time.
    Mr First Deputy Speaker 7:40 p.m.
    Hon Majority Leader, it is five minutes to eight o'clock. What do you intend us to do?
    Mr Kyei-Mensah-Bonsu 7:40 p.m.
    Mr Speaker, with respect, if we could deal with item numbered 46 on the main Order Paper.
    Mr First Deputy Speaker 7:40 p.m.
    Item numbered 46 -- Motion by the Hon Minister for Education. [Pause.]
    Hon Majority Leader, neither the Hon Minster for Education nor his Hon Deputy Ministers are in the House.
    Mr Kyei-Mensah-Bonsu 7:40 p.m.
    Mr Speaker, indeed, even though this is a Bill on education, it was sponsored by the Ministry of Finance because of the financials. So the Hon Deputy Minister for Finance could hold the fort.
    Mr Iddrisu 7:40 p.m.
    Mr Speaker, if the Hon Majority Leader has no objection and with your indulgence, I suggest that we may spend the last few minutes going through the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018, so that the Motions could be taken first thing tomorrow morning.
    We would then work for the next thirty minutes because boys abre. [Laughter.] Hon Members of Parliament appear tired. So if we could do the Bill and make some
    Mr Iddrisu 7:40 p.m.


    progress on the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018, we would appreciate it because Hon Members have shown good faith.
    Mr Kyei-Mensah-Bonsu 7:40 p.m.
    Mr Speaker, I believe that is acceptable. We could go back to the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018. We could, maybe, spend the next one hour to finish it. We have done serious winnowing and I believe we could be on autopilot.
    Mr First Deputy Speaker 7:40 p.m.
    So, do we continue with the Consideration Stage of the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018?
    Very well, item numbered 3 on the Order Paper Addendum -- the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018 at the Consideration Stage.
    BILLS -- CONSIDEATOIN STAGE 8 p.m.
  • [Resumption of Consideration from 24/7/18]
    • Mr First Deputy Speaker 8 p.m.
    Item numbered 3(i) -- a new proposed clause. Hon Chairman of the Committee?
    New clause -- Appointment of Secretary.
    Mr Gyamfi 8 p.m.
    Mr Speaker, we are adding a new clause as appears on the Order Paper.
    Mr First Deputy Speaker 8 p.m.
    There is a proposed new clause under Appointment of Secretary.
    Question put and amendment agreed to.
    New clause ordered to stand part of the Bill.
    Does that come under clause 3?
    Clause 7 -- Meetings of the Board
    Mr Iddrisu 8 p.m.
    Mr Speaker, I beg to move, clause 7 -- subclause (3), line 3, delete “or a greater number determined by the Board”.
    Mr Speaker, once they are meeting we should not say 8 p.m.
    “a greater number determined by the Board”. We are setting the quorum for the meeting, and so we are mindful of the composition of the Board and its numbers. So we say: “The quorum at a meeting of the Board is five members …” we leave it there.
    Mr Gyamfi 8 p.m.
    Mr Speaker, I support the proposed amendment but I want to further amend -- clause 7(3) line (1); delete “five” and insert “seven”.
    Mr First Deputy Speaker 8 p.m.
    Hon Members, the proposed amendment is for the consideration of the House, that in clause 7(3) the new rendition will be:
    “The quorum of a meeting of the Board is seven members”
    Question put and amendment agreed to.
    Clause 7 as amended ordered to stand part of the Bill.
    Mr Iddrisu 8 p.m.
    Mr Speaker, even though there is no advertised amendment, with your leave, clause 8(3), line 2: “Without limiting any further cause of action that may be instituted against a member…”
    Mr Speaker, should the “the” not read “a”?
    Mr First Deputy Speaker 8 p.m.
    I do not think that it is necessary because it takes its root from the beginning of clause 8(1).
    Clause 8 ordered to stand part of the Bill.
    Clause 9 -- Establishment of committees
    Mr Gyamfi 8 p.m.
    Mr Speaker, I beg to move, clause 9 -- subclause (1), line 2, delete “or non-members or both” and insert “and non-members”.
    Question put and amendment agreed to.
    Mr Banda 8 p.m.
    Mr Speaker, I am wondering whether the rendition of clause 9(2) applies to non-members also? This is because it appears to be saying that it: “applies to members of a committee of the Board” and we know that we have members of the Board and non-members.
    The way clause 9(2) has been crafted, I am wondering whether it is applicable to members and non-members.
    Mr First Deputy Speaker 8 p.m.
    Yes. It is intended to be so. A non-member who is a member of the sub-committee of the Board should be subject to the same rules that apply to the Board.
    Alhaji I.A.B. Fuseini 8 p.m.
    Mr Speaker, I do not think so. Clause 8(2) is a revocation of membership. If you fail to comply, your membership of the Board will be revoked. If you are not a member, there is no revocation applicable to you.
    Mr First Deputy Speaker 8 p.m.
    So, membership of the sub-committee can also be revoked.
    Alhaji I.A.B. Fuseini 8 p.m.
    Mr Speaker, yes, your membership of the committee can be revoked but clause 8 is actually talking about a member. Unless of course, we want to include in clause 8, non-members as well.
    Mr First Deputy Speaker 8 p.m.
    Hon Members, I want to hear your views and I think that there is nothing wrong with clause 9(2) but --
    Question put and amendment agreed to.
    Clause 9 as amended ordered to stand part of the Bill.
    Clause 10 ordered to stand part of the Bill.
    Clause 11 ordered to stand part of the Bill.
    Clause 12 -- Appointment of Chief Executive Officer
    Mr First Deputy Speaker 8 p.m.
    There are advertised amendments and some of them are consequential because yesterday, I directed that all those consequential amendments be taken care of by the draftspersons and so we will go to item (v).
    Hon Minority Leader, that is also in your name.
    Mr Iddrisu 8 p.m.
    Mr Speaker, I beg to move, clause 12 -- subclause (1), line 2, delete “Authority” and insert “Corporation in accordance with article 195 of the Constitution”.
    Mr Iddrisu 8 p.m.


    Mr Speaker, I note your directives on the consequential ones but the appointment of the Chief Executive in the headnote of clause 12 reads:

    “The President shall appoint a Chief Executive Officer for the Corporation in accordance with article 195 of the Constitution”.

    Mr Speaker, probably, I am still working on it and maybe, we would even create the position of a deputy chief executive but when we get there, we will see whether policy would want to accept it or not.
    Mr Gyamfi 8:10 p.m.
    Mr Speaker, I agree entirely.
    Mr Banda 8:10 p.m.
    Mr Speaker, I believe during the winnowing in the morning we agreed to add a new paragraph to clause 12, but the Order Paper did not capture that.
    Mr Speaker, with your permission, I beg to read it for the consideration of the House: “The President shall in appointing the Chief Executive Officer have regard to the competence, knowledge, experience and in particular the expertise of the Chief Executive Officer in matters relevant to the functions of the Corporation.”
    Mr Speaker, once this is a purpose- driven Corporation, it was the considered opinion of the winnowing team that the President must have regard to the competence and experience of the person who would be appointed to be in charge of the day-to-day administration of the Corporation and this proposed amend- ment was accepted. I am surprised that this was not captured.
    Mr First Deputy Speaker 8:10 p.m.
    Well, I wonder whether those who were at the winnowing meeting agreed to this. I want to hear you.
    Mr Iddrisu 8:10 p.m.
    Mr Speaker, regrettably, I did not get the opportunity to be at the winnowing meeting, so if I have your leave, Hon Fuseini may move my own amendments on my behalf as he took part. I am to attend to some other activity now.
    Mr Speaker, but regarding the proposal by the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs, I believe that whether or not there was a winnowing, they should abandon it.
    We should assume that the President is a reasonable person, and in exercising his executive authority, he would be guided that he has experts and professionals who are advising him on this matter and he would pull from the resource of persons who understand the subject matter.
    So we should not tie his hands because I am sure that he would be guided that before he goes into it he would appreciate it.
    Mr Speaker, so if the Hon Chairman has no objection then we should make progress. Once we say that the appointment would be done then we should expect that the President would exercise it as it is expected of him.
    To say that he must do this or that, then we would be tying the hands of the President, but we expect that because it is a special purpose vehicle he would get men and women who are up and doing and understand the subject matter to assist the Hon Minister and others in doing it.
    Mr First Deputy Speaker 8:10 p.m.
    Hon Chairman of the Committee on Constitu- tional, Legal and Parliamentary Affairs?
    Mr Banda 8:10 p.m.
    Mr Speaker, much as we know that the President has the constitutional authority to do the appointment under article 195 of the Constitution, in some legislations, that power to a large extent has been circumscribed and points to a certain direction for the President to adopt.
    Mr Speaker, we did it in the Internal Audit Agency Act of 2003 and in the morning I proposed the amendment and the Hon Majority Leader also had to --
    Mr First Deputy Speaker 8:10 p.m.
    All right. We would put it to a vote and see if you have the support of the House. I believe that when the President announces an appointment, nobody would ask whether he considered this or that. It is done.
    I would put the Question --
    Mr Benito Owusu-Bio 8:10 p.m.
    Mr Speaker, I believe that as I sit here I am confused as to what we are voting on. So if you could put the Question again. [Laughter.]
    Mr First Deputy Speaker 8:10 p.m.
    Hon Members let us be clear, the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs is proposing that we should insert a new clause which would require the President, when appointing a Chief Executive to determine that the Chief Executive has some specific qualities before that.
    So it is the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs who is proposing that as against Hon Chairman of the Committee on Mines and Energy and the Hon Minister who is sponsoring the Bill.
    Alhaji I.A.B. Fuseini 8:10 p.m.
    Mr Speaker, I wanted to appeal to my Hon Chairman to withdraw. It is true that we considered it but in so far as it never found its way into the Order Paper means that it was abandoned. So I would pray that the Hon Chairman would abandon it.
    Mr Banda 8:10 p.m.
    Mr Speaker, it appears that we are speaking on different wave lengths. On the basis of this, I humbly withdraw the proposed amendment.
    Mr First Deputy Speaker 8:10 p.m.
    Hon Chairman, please take your members along with you otherwise you may have amendments to your Bill which means that you may go through a Second Consideration Stage.
    Question put and amendment agreed to.
    Clause 12 as amended ordered to stand part of the Bill.
    Clause 13 -- Functions of the Chief Executive Officer
    Mr Gyamfi 8:10 p.m.
    Mr Speaker, I beg to move, that, clause 13, subclause (1), line 2, delete “Authority” and insert “Corporation” and also delete “subject to directives from the Board”.
    Mr First Deputy Speaker 8:10 p.m.
    Very well. That is in respect of subclause (1), line 2 .
    Question put amendment agreed to.
    Mr Gyamfi 8:20 p.m.
    Mr Speaker, I beg to move, clause 13, subclause (2), delete and insert the following:

    “Subject to the direction of the Board, on matters of policy, the Chief Executive shall be responsible for implementing the directives of the Board”.
    Mr First Deputy Speaker 8:20 p.m.
    Yes, Hon available Leader.
    Alhaji I.A.B. Fuseini 8:20 p.m.
    Mr Speaker, I support the idea, but the rendition is so convoluted. “Subject to the directions of the Board”. Subclause (2) should read:
    “The Chief Executive shall be responsible for implementing the directives of the Board on matters of policy.”
    Mr Gyamfi 8:20 p.m.
    Mr Speaker, I support the proposal.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 8:20 p.m.
    Items numbered (viii) and (ix) are all consequential and so I would put the Question on the entire clause 13.
    Clause 13 as amended stands part of the Bill.
    Clause 14 -- Appointment of other staff
    Mr First Deputy Speaker 8:20 p.m.
    There is an advertised amendment which I believe is also consequential. So, I would put the Question on the whole of clause 14.
    Clause 14 as amended stands part of the Bill.
    Clause 15 -- Regional and district offices
    Mr Gyamfi 8:20 p.m.
    Mr Speaker, I beg to move, clause 15, delete.
    Question put and amendment agreed to.
    Clause 16 -- Internal Audit Unit
    Mr First Deputy Speaker 8:20 p.m.
    The two first proposed amendments are consequential. Indeed, all the three proposed amendments to the clause are consequential. So, I would put the Question on the whole of clause 16 to stand part of the Bill.
    Clause 16 as amended stands part of the Bill.
    Clause 17 -- Funds of the Authority
    Mr First Deputy Speaker 8:20 p.m.
    The first two amendments are consequential. The amendment captured in item (xvii) is not consequential and it is in the name of the Hon Chairman of the Committee.
    Mr Gyamfi 8:20 p.m.
    Mr Speaker, I beg to move, clause 17 paragraph (c), before “approved” insert “loans and other monies”.
    Question put and amendment agreed to.
    Alhaji I.A.B. Fuseini (on behalf of Mr Haruna Iddrisu) 8:20 p.m.
    Mr Speaker, I beg to withdraw the amendment.
    [Amendment withdrawn by leave of the House].
    Mr First Deputy Speaker 8:20 p.m.
    In that case, I would put the Question on the entire clause 17.
    Clause 17 as amended stands part of the Bill.
    Clause 18 -- Bank account
    Mr First Deputy Speaker 8:20 p.m.
    The amendment there is consequential. So, I would put the Question.
    Clause 18 as amended stands part of the Bill.
    Clause 19 -- Expenses of the Authority
    Mr First Deputy Speaker 8:20 p.m.
    Hon Chairman and the Minority Leader, Hon Iddrisu, all the proposed amendments are consequential, and so I would put the Question on clause 19 to stand part of the Bill.
    Clause 19 as amended stands part of the Bill.
    Clause 20 -- Borrowing powers
    Mr First Deputy Speaker 8:20 p.m.
    There is a proposed amendment by the Minority Leader Hon Haruna Iddrisu that clause 20 be deleted.
    Alhaji I.A.B. Fuseini (on behalf of Mr Haruna Iddrisu) 8:20 p.m.
    Mr Speaker, I beg to move, clause 20 delete.
    Mr Speaker, the Hon Minority Leader was asked that it be deleted because we are subjecting the borrowing powers of the legal entities so created to article 181, which deals with loans. We have not given them the power to bring loans to this House, but we have given them the power to borrow.
    So the further proposed amendment should be, delete “subject to article 181 of the Constitution and section 76 of the Public Financial Management Act, 2016 (Act 291).
    We should delete it that way and have it read:
    “The Corporation may on the terms and conditions that may be agreed between then after Lender, insert subject to the approval of the Ministry of Finance.”
    Mr First Deputy Speaker 8:20 p.m.
    Why do we want to do that? We have a decision of the court which says that agencies like this can borrow on their own balance sheet. In that case, I would probably agree with the Hon Minority Leader. We do not need to legislate on that.
    Alhaji I.A.B. Fuseini 8:20 p.m.
    Mr Speaker, that is true. They are going to borrow on their balance sheet. That is why I do not think that we should subject it to article 181 and section 76 of the Public Financial Administration Act. But every public institution must have the terms of the loan approved by the Ministry of Finance.
    Mr First Deputy Speaker 8:30 p.m.
    Hon Minister, let me hear you. Did you want to say something?
    Mr Asamoa 8:30 p.m.
    Mr Speaker, I agree with the Hon Member for that amendment. We are of the view that this is a new entity, and of course that would definitely require some huge capital injection. If the grant of the loan is going to go through the Ministry of Finance for the purposes of approval, that also fits into the agenda of the entity.
    So we are in favour of that amendment.
    Mr First Deputy Speaker 8:30 p.m.
    Very well. Hon Member, let me hear your proposed amendment again, so we can discuss it further.
    Alhaji I.A.B. Fuseini 8:30 p.m.
    Mr Speaker, the amendment is that we delete “subject to article 181 of the Constitution and section
    Alhaji I.A.B. Fuseini 8:30 p.m.


    76 of the Public Financial Management Act of 2016 (Act 921)”, and insert after “lender”, “subject to the approval of the Ministry of Finance, borrow money to meet this expenditure”.

    Mr Speaker, like we do in this House, when there is a loan agreement between the Ministry of Lands and Natural Resources and a lender, whether the loan is going to be approved in this House or not, if it is coming to this House, the Ministry of Finance would satisfy and assure this House that the terms and conditions of the loan are agreeable, and they would then tell us what they are going to use the money for.

    We are also saying that because it is a new organisation and it is going to involve a lot of capital outlay, we should not put the entire responsibility of going for the money in the hands of the Chief Executive and the Board.

    When the term sheet for the loan is presented to them, they must take it to the Ministry of Finance for acceptability test before they could take the loan, because it is the same public money.
    Mr Asamoa 8:30 p.m.
    Mr Speaker, I would be obliged for some guidance. Is the acceptability test the law, or an ideal situation that the Hon Member is trying to push forward? It is because if you say you are splitting the responsibility, are you then splitting the servicing requirements as well? Do we adopt it as a public loan?
    If it is off the Government's balance sheet, why do we have to approve it? That is the question I want answered thoroughly and grounded in the law at the moment, not necessarily an ideal situation.
    Alhaji I.A.B. Fuseini 8:30 p.m.
    Mr Speaker, the rationale is simple.
    Every loan that is going to a public institution is technically a public loan, but we do not want the loan to be a charge on the Consolidated Fund and add to the national debt stock, so we are giving them an opportunity to go for a loan on their balance sheet, but the Ministry of Finance has the responsibility to determine; one, the conditionality of the loan and the acceptability, because that is their specialty, and they could advise that by your revenue flows , the loan would not have an adverse impact on your operations.
    Mr Speaker, that is also an insurance for the corporation, because if they do not have that clearance, and they are going to pay the interest on the loan, the Chief Executive Officer could be exposing himself to causing financial loss, because he would not have had the approval to go for the loan.
    Mr Asamoa 8:30 p.m.
    So the notion of approval means responsibility, so in the event that the Ministry of Finance approves a loan, and the loan goes bad --
    Mr First Deputy Speaker 8:30 p.m.
    Hon Member for Adenta, are you proposing an amendment? I do not want this to be a dialogue between the two of you.
    Mr Asamoa 8:30 p.m.
    Mr Speaker, I believe the area he is taking us into is uncharted grounds, and he ought to ground it in the law. He is espousing an ideal situation. He has not stated the law, the basis of which he is espousing that ideal situation --
    Mr First Deputy Speaker 8:30 p.m.
    We are making the law, so you may ask him for the principle, but we are making the law now.
    Mr Asamoa 8:30 p.m.
    Mr Speaker, somebody is going to borrow money. Somebody else approves of the borrowing without responsibility for the approval, and if the loan goes bad, who then takes responsibility for servicing the bad loan? The one who approved, or the one who took the loan on the approval of the other person?
    There must be a straight line responsibility. If it is off Government's balance sheet, then it is off. Government should not have a backdoor process of peeking at that balance sheet. That is the basis upon which I am worried about what we are trying to do.
    Alhaji I.A.B. Fuseini 8:30 p.m.
    Mr Speaker, just as you rightly pointed out, that is the law we are making. Secondly, they are not approving the loan. They are approving the terms and conditions of the loan and saying that the Board could go ahead, because the terms and conditions of the loan are acceptable.
    That is all they are approving, and that is an insurance for the Board and the Chief Executive, because they would have gotten a second opinion on the terms and conditions of the loan from the Ministry of Finance.
    Mr Banda 8:30 p.m.
    Mr Speaker, we are dealing with clause 20, and clause 20 makes a specific reference to article 181 and section 76 of the Public Financial Management Act, 2016 (PFMA).
    Mr Speaker, I have in my possession Act 921, of the PFMA. section 76 makes it explicitly clear that every public corporation or a state owned enterprise could borrow money, but 76 (2) gives a caveat, and the caveat is what I believe clause 20 is intending to capture.
    It says;
    “a Public Corporation or a State- owned Enterprise shall obtain the prior written approval of the Minister in respect of a borrowing of an amount above the limit determined…”
    So the Minister in the interpretation section has been defined to mean the Minister for Finance, so the proposed amendment by the Hon Ranking Member is not out of place.
    Mr First Deputy Speaker 8:30 p.m.
    So what you are suggesting is that, all we need to say is that this corporation has the power to borrow subject to Act 921, because all the requirements are there.
    The only part I have a problem with is article 181, but if you just say subject to Act 921, the Authority may on the terms and conditions agreed between them borrow, I think it would be sufficient, because what we are seeking to insert is already in Act 921.
    Mr Banda 8:40 p.m.
    Mr Speaker, once we have the specific provision expressly stipulated in the clause, why do we not make a specific reference to the provision which is section 76 of the Public Financial Management Act of 2016 (Act 921)? Though it may not be out of place to refer to Act 921, I am of the humble opinion that once we know the specific provision, why do we not make reference to it?
    Mr First Deputy Speaker 8:40 p.m.
    Most of the provisions take their source from the entire Act so it may be unsafe to limit it to just clause 1. It is subject to the Act. Then anything relating to the Act may be applicable but I think we should delete article 181. So just make it:

    “Subject to the Public Financial Management Act, 2016 (Act 921), the Authority may …”.
    Mr Asamoa 8:40 p.m.
    Mr Speaker, short of sounding verbose, Act 921 has expansive provisions on the way public finances, including the Consolidated Funds and other Funds, are managed. So the likelihood of immersing this corporation in those areas could be a bit problematic for the corporation.
    This is because though they are borrowing money and subject to article 921, it is moneys they are going to use in a private sector manner. So probably, the particularity is important.
    Mr First Deputy Speaker 8:40 p.m.
    But they would still be regulated by that Act.
    Mr Asamoa 8:40 p.m.
    Section 76 of it.
    Mr First Deputy Speaker 8:40 p.m.
    Not just that. In the entire structure of their finances, they would have to follow this Act.
    So the rendition would be:
    “Subject to the Public Financial Management Act of 2016 (Act 921), the Authority may, on the terms and conditions that may be agreed between the Authority and the lender, borrow money to meet the expenditure of a capital nature including provisions for working capital for the performance of the functions of the Authority.
    Question put and amendment agreed to.
    Clause 20 as amended stands part of the Bill.
    Clause 21 -- Special power purchase rates
    Mr First Deputy Speaker 8:40 p.m.
    Hon Chairman, the proposed amendments are in your name.
    Mr Gyamfi 8:40 p.m.
    Mr Speaker, I beg to move, clause 21 -- delete and insert the following:
    “(1) The State shall ensure the availability of power for the integrated aluminium industry.
    (2) The power to be supplied to the integrated aluminium industry shall be completive to the global rate applicable to the industry.”
    Alhaji I.A.B. Fuseini 8:40 p.m.
    Mr Speaker, just a small typographical error in the new clause 21 (1). After “for” insert “the”.
    Mr Banda 8:40 p.m.
    Mr Speaker, I wonder but I am not quite sure whether it should be “availability of power to” or “availability of power for”. It should be:
    “The State shall ensure the availability of power to the integrated aluminium industry.”
    I am now firm, having been supported by the Hon Majority Leader.
    Mr Speaker, with subclause (2), is it “competitive with” or “competitive to”?
    “The power to be supplied to the integrated aluminium industry shall be competitive with the global rate applicable to the industry.”
    I believe that sounds more --
    Alhaji I.A.B. Fuseini 8:40 p.m.
    Mr Speaker, the integrated aluminium industry could span a greater area. -- [Interruption.] Mr Speaker, I have been told that it has been defined.
    Mr First Deputy Speaker 8:40 p.m.
    But frankly, what is the meaning of that subclause (2)?
    “The power to be supplied to the integrated aluminium industry shall be competitive with the global rate applicable to the industry.”
    Mr Kyei-Mensah-Bonsu 8:40 p.m.
    Mr Speaker, the correct rendition should rather read:
    “The power to be supplied to the integrated aluminium industry shall be provided at a globally -- compe- titive rate applicable to the indus- try.”
    That is how it should be captured.
    Mr First Deputy Speaker 8:40 p.m.
    Are we talking about the cost or the power?
    Mr Kyei-Mensah-Bonsu 8:40 p.m.
    The cost of the power.
    Mr First Deputy Speaker 8:40 p.m.
    So if we do not let the cost reflect, it would be thought as if there are ratings in the power supply. The cost must be somewhere here.
    Mr Kyei-Mensah-Bonsu 8:40 p.m.
    Mr Speaker, that is what we are saying: the globally — competitive rate/cost applicable to the industry. That is what it means there.
    So, the new rendition is:
    “The power to be supplied to the integrated aluminium industry shall be provided at a globally -- compe- titive rate applicable to the indus- try.”
    Mr First Deputy Speaker 8:40 p.m.
    That is better. Now it makes sense. I understand it.
    Alhaji I.A.B. Fuseini 8:40 p.m.
    Mr Speaker, it is exactly the way it should sound and
    Mr First Deputy Speaker 8:40 p.m.
    So what is the new rendition?
    Mr Kyei-Mensah-Bonsu 8:40 p.m.
    Mr Speaker, the rendition once again is:
    “The power to be supplied to the integrated aluminium industry shall be provided at a globally — competitive rate applicable to the industry.”
    Question put and amendment agreed to.
    Clause 21 as amended stands part of the Bill.
    Clause 22 -- Accounts and audit
    Mr Gyamfi 8:40 p.m.
    Mr Speaker, I beg to move, clause 22 — delete and insert the following:
    “(1) The Board shall keep the books of account and records in the form approved by the Auditor- General.
    (2) The Board shall submit the account of the Corporation to the Auditor-General for audit at the end of the financial year.
    (3) the Auditor-General shall, within six months after the end of the immediately preceding financial year, audit the accounts and forward a copy each of the audit report to the Minister and the Board.
    (4) the financial year of the Corporation is the same as the financial year of the Govern- ment.”
    Mr Banda 8:50 a.m.
    Mr Speaker, I believe that we have agreed on a certain proposed rendition with respect to clause 22(1) and that is the language of article 187 of the Constitution. Once we have a template in the Constitution, I believe that we should as much as possible stick to the template.
    Mr Speaker, we did same with the Office of Special Prosecutor, we did same with the Witness Protection Bill, and I believe somewhere in the Bill, we are just considering that we have also done same to it. Mr Speaker, with your leave, I would like to propose the amendment we agreed on:
    “The Board shall keep books, records, returns and other documents relevant to the accounts in a form approved by the Auditor- General.”
    Mr Kyei-Mensah-Bonsu 8:50 a.m.
    Mr Speaker, indeed, we asked the Director of the Table Office to look at what we did and then, bring it here. Unfortunately, when I looked at it, I said to him that, some of the words are missing and that was what we were discussing.
    With the filling-in that the Hon Chairman has done, it is consistent with what we did in those two Bills that we have just passed. So I believe that should be the language.
    Alhaji I.A.B. Fuseini 8:50 a.m.
    Mr Speaker, just the last one; clause 23(5), subject to matters -- [Interruption.]
    Question put and amendment agreed to.
    Clause 22 as amended, stands part of the Bill.
    Mr First Deputy Speaker 8:50 a.m.
    Clause 23.
    Mr Gyamfi 8:50 a.m.
    Mr Speaker, I beg to move, clause 23, delete and insert the following:
    “(1) The Board shall within thirty days after the receipt of the audit report, submit an annual report to the Minister covering the activities and operations of the Corporation for the year to which the annual report relates.
    (2) The annual report shall include the report of the Auditor- General.
    (3) The Minister shall, within one month after the receipt of the annual report, submit the report to Parliament with a statement that the Minister may require in writing.
    (4) The Board shall submit to the Minister any other report which the Minister may require in writing.
    (5) Subject to matters that the Board may designate as confidential, the Corporation shall publish the reports of the Corporation on the website of the Corporation and in a medium of communication that the Board considers necessary.”
    Alhaji I.A.B. Fuseini 8:50 a.m.
    Mr Speaker, just a slight further amendment to clause 23(5). We do not need to subject the publication of the reports on the website to matters that would be designated confidentially; that is a recipe for litigation.
    So because you are publishing it on the website, you could only publish reports that could be published on the website.
    Mr Speaker, it should just be 8:50 a.m.
    “The Corporation shall publish the report of the Corporation on the website of the Corporation or/and in a medium of communication that the Board considers necessary.”
    Mr First Deputy Speaker 8:50 a.m.
    Probably, what I am suggesting is the anticipation which is not permissible. But we are just working on the Right to Information Bill and we are saying that, unless something is exempt, it is to be published.
    Mr Kyei-Mensah-Bonsu 8:50 a.m.
    Mr Speaker, in the morning, I said they should delete that because of what you have just said. This is because the Right to Information Bill would provide further sunshine, so we do not need that. Let us just begin from:
    “The Corporation shall publish the reports of the Corporation in a medium of communication that the Board considers necessary.”
    I do not even think we should write the ‘website'. Tomorrow, it may cease to have functionality but ‘in a medium of communication that the Board considers necessary'.
    Mr First Deputy Speaker 8:50 a.m.
    Alright, Hon Chairman, you may set your rendition for the consideration of the House.

    Hon Members, this is the rendition I am advised is acceptable:

    “The Board shall publish the reports of the Corporation in a medium of communication that the Board considers necessary”.

    Is that acceptable to the House?

    Question put and amendment agreed to.

    Clause 23 as amended, stands part of the Bill.
    Mr First Deputy Speaker 8:50 a.m.
    Clause 24?
    Clause 24-- Exemption from taxes, duties, fees and other charges.
    Mr Gyamfi 8:50 a.m.
    Mr Speaker, I beg to move, clause 24, head note, delete and insert “Waiver or variation of tax”
    Question put and amendment agreed to.
    Mr Gyamfi 8:50 a.m.
    Mr Speaker, I beg to move, clause 24, subclause (1), delete.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 8:50 a.m.
    Hon Members, in that case, the proposed amendment by Hon Haruna Iddrisu has been rendered not needless.
    Mr Gyamfi 8:50 a.m.
    Mr Speaker, I beg to move, clause 24, subclause (2), line 2, before “approval” insert “prior”.
    Mr Kyei-Mensah-Bonsu 8:50 a.m.
    Mr Speaker, I guess we could combine the amendment proposed by the Hon Chairman and the Hon Minority Leader. We could combine the two.
    Mr First Deputy Speaker 9 a.m.
    The next amendment is also to insert “prior”, so we could do the two together.
    Hon Members, in subclause 2, line 2, before “approval” insert “prior”.
    Mr Kyei-Mensah-Bonsu 9 a.m.
    Mr Speaker, the Hon Minority Leader's amendment is deleting the word “with” and inserting “subject to”. It would read:
    “Subject to article 174 of the Constitution, the Minister res- ponsible for Finance may, subject to the prior approval of Parliament, grant a waiver or variation of tax to the Corporation.”
    However, Mr Speaker, we would have two “subject to” and I think that his own which is the second “subject to” would then have to drop, so that we would maintain “may with the prior approval”, as in the original.
    Alhaji I.A.B. Fuseini 9 a.m.
    Mr Speaker, exactly so. The intendment of the amendment is just to subject whatever would happen to the prior approval of Parliament. So, “with the prior approval of Parliament” should be inserted.
    Since you have relaxed the rules, I crave your indulgence to insert “prior” in clause 24 (1) before “approval”. [Interruption] We have deleted it? All right.
    Mr First Deputy Speaker 9 a.m.
    We have deleted clause 24 (1), so the new rendition would now read:
    “Subject to article 174 of the Constitution, the Minister responsible for Finance may, with the prior approval of Parliament, grant a waiver or variation of tax to the Corporation.”
    Mr Kyei-Mensah-Bonsu 9 a.m.
    Mr Speaker, the waiver or variation of the tax is granted by Parliament and not the Minister. By this construction, it is the Minister who would be granted, but it is Parliament doing it. I believe that we should look at the construction.
    In article 174, it is Parliament that may by a Resolution do that and not the Minister. So we should look at that construction again.
    Mr First Deputy Speaker 9 a.m.
    Hon Majority Leader, article 174 (2) covers what we are dealing with. It says that where any enactment confers on any person or authority the power to waive or vary a tax, it would be with the prior approval of Parliament. So I believe this would cover it. [Pause] -- [Interruption.]
    It is the same thing. If the Minister for Finance is granted the power to waive, he cannot do it without bringing it to Parliament for approval. Parliament may on its own also grant a waiver and I think this rendition covers it.
    Article 174 (3) says that, if, for example, we are not satisfied with the exercise of the power granted to any person, then we might by a Resolution supported by two- thirds of us say they cannot exercise that power, even though the law has granted it.
    So article 174 (3) reserves the power to Parliament to take away the authority we give to any other person to grant the power of exemption.
    Mr Kyei-Mensah-Bonsu 9 a.m.
    Mr Speaker, the reason I asked is this: we need to grant the power to the Minister for Finance in the first place. Have we done that?
    Mr First Deputy Speaker 9 a.m.
    That is what we are doing in this Act.
    Mr Kyei-Mensah-Bonsu 9 a.m.
    What we are doing is not granting the power to the Authority. It is assumed that we have granted the power and then it is required in this case to come to Parliament. Have we granted the power to the Hon Minister to impose taxes anywhere in the Bill?
    Mr First Deputy Speaker 9 a.m.
    This is what we are doing.
    “Subject to article 174 of the Constitution, the Minister res- ponsible for Finance may, with the prior approval of Parliament, grant a waiver or variation of tax to the Authority.”
    It is the exercise of our power that instead of the Agency coming to us, he the Minister for Finance would decide one is entitled to be granted this waiver but would take it to Parliament for approval. It is the same thing as well that we have been doing here.
    All that has been coming here is the Minister for Finance proposing that this agency is entitled to a tax waiver, so we should give them the approval to grant that. That is what we do here.
    Alhaji I.A.B. Fuseini 9 a.m.
    Mr Speaker, I understand him now. Article 174 (2) says:
    “Where an Act, enacted in accordance with clause (1) of this article, confers power on any person…”.
    It is saying that there is no enactment anywhere in which we have conferred the power on the Minister. That is his argument.
    Mr First Deputy Speaker 9 a.m.
    We charged ourselves that we would move fast but we are engaged in brutum fulmen arguments.
    Mr Kyei-Mensah-Bonsu 9 a.m.
    Mr Speaker, the issue is this. The Constitution provides that when we have conferred that power on any authority, body or person and they have to exempt it, that person must come to Parliament.
    I am asking whether we have any enactment that confers that power on the Minister for Finance? I do not know of any such enactment.
    Mr First Deputy Speaker 9 a.m.
    That is what we are doing. By this enactment, we are conferring the power. This enactment confers the power on the Minister. Subject to article 174, the Minister for Finance may with the approval of Parliament, exercise that.
    So, the power is granted to him but it is exercised with the approval of Parliament.
    Hon Members, I would put the Question. If you disagree, and vote against it.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 9 a.m.
    I am done. This argument would not take us anywhere.
    Alhaji I.A.B. Fuseini 9 a.m.
    I am a little taken aback with the deletion of clause 24 (1).
    Mr First Deputy Speaker 9 a.m.
    Let us finish with clause 24 (2) and then --
    Alhaji I.A.B. Fuseini 9:10 p.m.
    Mr Speaker, we have finished with clause 24 (2) because you put the Question. You were going to put the Question on the entire clause, so I want to come back and see the rationale. This is because the waiver or variation of tax is different from duties, fees and other charges.
    Is it the intendment of the sponsors of the Bill that duties, fees and other charges be paid by the integrated bauxite and aluminium industry? I ask this because they are different from taxes.
    Mr First Deputy Speaker 9:10 p.m.
    I believe they should pay everything except tax. If they go to the Driver and Vehicle Licensing Authority (DVLA) to register their vehicles, should they not pay service charges?
    Alhaji I.A.B. Fuseini 9:10 p.m.
    It is not even vehicles; the National Health Insurance Levy
    (NHIL) is a levy and not a tax.
    Mr First Deputy Speaker 9:10 p.m.
    Why should they not pay? [Interruption] -- That is why we are deleting clause 24 (1).
    Question put and amendment agreed to.
    Clause 24 as amended ordered to stand part of the Bill.
    Mr First Deputy Speaker 9:10 p.m.
    Hon Majority Leader, it is eight minutes past
    nine o'clock. We have gone eight minutes past what we charged ourselves to do. That is long enough for the day.
    Mr Kyei-Mensah-Bonsu 9:10 p.m.
    Mr Speaker, I agree that we have done tremendously well and I believe by tomorrow, we would certainly finish with this.
    So I express my profound gratitude to my Hon Colleagues, especially those who joined me very early in the morning before 8.00 a.m. to do the winnowing. Ghana is most grateful to them.
    Mr First Deputy Speaker 9:10 p.m.
    Very well, that brings us to the end of the Considera- tion Stage of the Ghana Integrated Bauxite and Aluminium Development Authority Bill, 2018, for today.
    ADJOURNMENT 9:10 p.m.
  • The House was adjourned at 9.11 p.m. till Thursday, 26 July 2018 at 10.00 a.m.