Mr Speaker, in the Karpower transaction, we disagreed but we stayed in this House; we did not walk out. Mr Speaker, the court has pronounced on this matter and if our Hon Colleagues have any disagreement - I believe the respected Dr Ayine is in this House and so if they disagree, this is not the time for them to suddenly shift their position.
Mr Speaker, I recall that Hon Ato Forson, the then Deputy Minister for Finance and my respected Hon Colleague, John Jinapor, the then Deputy Minister for Power were all in disagreement with our position. What has changed? Nothing has changed.
The fact that they are in opposition should not suddenly get them to change their opinion, no. That is bad faith; mala fides.
If they argue on principle, they do not suddenly shift from their principle; their
principle must remain firm. Dr Assibey- Yeboah lost the case. Today, the same transaction is before us.
In the Hon Finance Minister's case, he has been sincere enough by bringing a disclosure; he has not sat in his office and said that ‘‘this is a commercial transaction, although Government is involved, there are some obligations on Government so, it would not come to Parliament.''
He has, in the spirit of transparency, brought this before this House. It is better than what happened in the Karpower transaction.
What is the difference? In the Karpower transaction, the comfort letter stated inter alia that, if ECG is unable to pay, Government would pay. Today, we are being told that in this transaction, because there is a provision that if the bauxite proceeds are insufficient, other means would be used to pay, it is a loan. What has changed?
Mr Speaker, the Supreme Court has pronounced on this and we are bound by it. The Supreme Court held that the fact that Government has undertaken to pay, if ECG is unable to pay, would not amount to a loan transaction; that was the position of the Court. So, nobody should mislead this House.
Mr Speaker, having addressed that point, let me come to the issue of the transaction itself. Mr Speaker, Ghana Bauxite in Awaso has been operating for over eighty (80) years.
Mr Speaker, fortunately, I have been very active in some transactions at the Ghana Bauxite for over 10 years; not a single year has Ghana Bauxite declared
dividends and the Government of Ghana has gotten nothing.
In fact, in 1995, there was a supposed tax moratorium granted Ghana Bauxite. That Memorandum of Understanding (MOU) never came to this House and my respected Colleague, Hon Ato Forson, is aware of this.
I took this matter up to the court claiming among others that, that tax exemption never came to this House and therefore the Ghana Revenue Authority (GRA) must go and claim those taxes.
The court held that I did not have capacity because GRA was the proper entity to sue. My Hon Brother was aware. I fought for this and it never happened. So, if today, we are ensuring value addition, the NDC Minority must applaud the NPP Majority. [Hear! Hear!] We are ensuring value addition. All these years, Ghana Bauxite --
Mr Speaker, in fact, we do not know how much a ton of bauxite costs. If we go to the Bank of Ghana to ask how much a ton of bauxite costs, they do not know. Ghana Bauxite, owned by Bonsai Minerals Group as majority owners, sells the bauxite to their parent company in China. We do not know.
What steps did they take in the past eight years to address this? However, if today we are saying that we want to ensure value addition in a transaction that we would at least be able to determine the price, sell and trade off, why would somebody want to downplay it? In any event, these are going into projects.
Mr Speaker, my Hon Colleagues must be quiet and listen to me. We are debating. If we said we would do without loans, we are telling them that we could do it in another form. [Interruption.] It is like going to trade in commodities.
You could decide to go and take a loan or establish a Limited Corporation (Lc.), a deferred instrument or guarantee which would only crystallise upon you selling your product.
It would be different if you went ab initio to procure a loan -- That would cost you more and those were the things we cautioned them about. This is a structured facility and they should know it. This is not a direct loan that immediately would cost us money as it happened with the Kasoa Interchange.
They paid so much as it happened in the China Development Bank (CDB) loan. Within three years, they had paid in excess of US$300 million in penalties alone for failing to draw down on the facility. [Interruption.] These are matters of public record.
They went for a US$3 billion loan and within three years, they could not meet all the requirements for drawing down. [Interruption.] The Chinese put in penalty clauses.
Mr Speaker, in the CDB loan, my Hon respected Colleague knows that I was a member of the Committee on Finance at the time and part of the deliberations. In the CDB loan, the Government of Ghana was to procure a US$3 billion facility. There were so many penalty clauses that if we did not draw down, they would charge us.
Since we could not meet a lot of the draw down conditions, within three years, we had paid in excess of US$300 million. I want Hon Forson to challenge me. When Hon Seth Terkper, the then Minister for Finance met the Committee on Finance to cap, he said they were losing so much money. They waited to lose US$300 million before coming to cap it to US$1.5 billion.
Is it that we are losing money here? They should please accept the transaction and not out of bad faith -- Whether they eye me or not, I would make my point. Whether from the front-bench or back- bench, they should not eye me.
They should look at me with smiles. [Hear! Hear!] What kind of intimidation is that? Mr Speaker, some of them are eying me but I do not care. They should smile back. This is a House of debate.
If they intended well, they would have put in measures to ensure that they would not spend over US$300 million on the CDB loan. Dr A. A. Osei cautioned them on this Floor to look at those penalty conditions.
They ignored it and went ahead to procure. So, in good faith, this Government is taking a major step to ensure value for money, value addition to our bauxite, increase in employment and creation of jobs.
Mr Speaker, when I saw the facility, the transport sector alone would have access to over 400 twenty-cubic-sized trucks for haulage. That in itself would create business for Ghanaians. Is that what they are complaining about?
Mainority Leader (Mr Haruna Iddrisu): Mr Speaker, let me thank you for the opportunity to contribute to the Motion.
In doing so, I would like to let you and the people of Ghana appreciate that the Minority recognises that, annually, Ghana faces a US$2 billion infrastructural deficit. Therefore, appropriate investments in infrastructure could accelerate growth and that growth could ameliorate poverty. That infrastructure would manifest in roads, bridges and others.
Mr Speaker, let the people of Ghana also know that this is not the first time Government has engaged in an effort to borrow from China for the purpose of infrastructure. To make work easier for us, I have the Official Report of 30th July, 2007.
I was in this House when the respected late Hon Kwadwo Baah Wiredu came before this august House. I refer to column 2757 of the Official Report of 30th July, 2007. It reads:
“GoG/Export/Import Bank Buyer's Credit and Concessional Loan Agreement
“Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Buyer's Credit and Con- cessional Loan Agreement between the Government of the Republic of Ghana and the Export-Import Bank of China for an amount of five hundred and sixty-two million United States dollars (US$562 million) for financing of the 400 MW Bui Hydro electric Project.”
Hon Nii Adu Mante was the Chairman of the Committee on Finance and he moved it.
Mr Speaker, this is significant. I quote column 2761 of the Official Report of 30th July, 2007.
‘'The Buyer's Credit Agreement on the other hand will be treated as a secured facility. To ensure the security for the payment of the credit, the following securities would be required:
Receivables from the sale of up to 30, 000 tonnes of main crop and 10,000 tonnes of light crop cocoa... ''
Mr Speaker, this was barter -- se wofr; na wose fa gyene bra na gye mako tua ka aa -- [Laughter.] to wit, ‘'if one says bring onions and pay back in pepper''. That is barter.
Mr Speaker, this one, we should distinguish between using a collateral security. It was cocoa in that case, and for today's purpose, it is alumina or bauxite. Nobody should attempt through a deception that this is not a loan and this is not a Buyers Credit Agreement. I have referenced what happened in 2007.
Mr Speaker, we need to be sober. If this Government would want to borrow for purpose of infrastructure, they have our word and honour. We would support it, but they should just say they are borrowing. This is not bring moko and take gyene business, no.