Debates of 10 Apr 2019

MR SPEAKER
PRAYERS 10:15 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:15 a.m.
Mr Speaker 10:15 a.m.
Hon Members, Correction of Votes and Proceedings of Tuesday, 9th April, 2019.
Pages 1…10 --
rose
Mr Anhwere 10:15 a.m.
Mr Speaker, yesterday, I drew your attention to the referral of the Budget Performance of the Ministry of Special Development Initiatives to the Finance Committee. I did that in respect of Employment and Social Welfare but that was not captured in the Votes and Proceed- ings.
Mr Speaker 10:15 a.m.
What specifically do you want to be taken? The Table Office would take note of that and correct it accordingly.
Mr Anhwere 10:15 a.m.
Thank you very much, Mr Speaker.
Mr Speaker 10:15 a.m.
Pages11…14
rose
Mr Speaker 10:15 a.m.
Yes, Hon Member?
Mr Asamoa 10:15 a.m.
Mr Speaker, thank you.
It is very unusual, but my name does not appear in the Votes and Proceedings at all; whether present or absent with permission or otherwise. I wanted to be sure before I caught Mr Speaker's attention. I was absent and I deserved to be marked absent.
Mr Speaker 10:15 a.m.
You are a self- confessed absentee. [Laughter.]
Mr Asamoa 10:15 a.m.
Yes, Mr Speaker, but my consequence would be worse off if I do not appear at all in the Votes and Proceedings.
Mr Speaker 10:15 a.m.
Hon Member, you are very right.
Mr Asamoa 10:15 a.m.
Thank you, Mr Speaker.
Mr Speaker 10:15 a.m.
You are not non- existent; you were very much not present.

Except that, Hon Member, you are on page 7, item 14 marked ‘absent'. So the record is correct.
Mr Asamoa 10:15 a.m.
Mr Speaker, I am most grateful. That was an oversight as well. The diligence was short.
Mr Speaker 10:25 a.m.
Pages15…30.
Hon Members, in the absence of any further corrections, the Votes and Proceedings of Tuesday, 9th April, 2019, as corrected, is hereby admitted as the true record of the proceedings.
We have the Official Report for 13th March, 2019. Hon Members, any corrections?
Mr Samuel O. Ablakwa -- rose
-- 10:25 a.m.
Mr Speaker 10:25 a.m.
Yes, Hon Okudzeto?
Mr Ablakwa 10:25 a.m.
Mr Speaker, I am most grateful.
A few corrections to point to column 2365; the third paragraph under the name of Mr Michael Y. Gyato. ‘Withdrawers' should be deleted and replaced with ‘with- drawal'; and column 2367, the increase from GH¢594 million in 2013 should be GH¢2.2 billion not GH¢223 billion because that is bigger than Ghana's entire GDP.
So it cannot be correct. It should be GH¢2.2 billion, not GH¢223 billion as it is presented here.
Mr Speaker, finally, column 2368, “…31st December, 2017 - it should be “2017”, not “2027”. We are not there yet, so that should be corrected accordingly.
Thank you very much, Mr Speaker.
Mr Speaker 10:25 a.m.
Thank you very much, Hon Okudzeto Ablakwa. We appreciate your diligence as usual.
Any further corrections?
Hon Members, the Official Report of Wednesday, 13th March, 2019, as corrected, is hereby adopted as true record of proceedings.
Mr Speakers 10:25 a.m.
Hon Members, we have a Statement from the Hon Dr Kwabena Donkor.
rose
Mr Speaker 10:25 a.m.
Yes, Hon Minority Chief Whip?
Minority Chief Whip (Alhaji Muntaka) 10:25 a.m.
Mr Speaker, I am coming under Standing Order 72 at the time of Statements.
Mr Speaker, I would want to make a short Statement about the whereabouts of the Hon Majority Leader.
Mr Speaker, you would remember sometime last week in this Chamber, when the issue about when the House was to rise came up. We all pleaded with the Hon Majority Leader for us to rise last week Friday, but he thought that there were a lot of Businesses that needed to be covered this week. Therefore, he insisted that we would have to Sit till 12th April,
2019.
Minority Chief Whip (Alhaji Muntaka) 10:25 a.m.
Mr Speaker, sadly, the Hon Majority Leader who thought there is so much Business in the House that needed to be done has not been here for the whole of this week. If all other Hon Members of Parliament could cancel their programmes to stay in the House, I thought the Hon Majority Leader who had thought it was important that the House Sits this week should be here. From Monday till today, that is, for the past three days -- I am reliably informed that he travelled last night.
Mr Speaker, his trip may be important but for him to ask us to stay for an additional week, while he does not find it necessary to cancel his programmes to stay in the House, I think that is not a fair position. It is important that I bring your attention to it. When we insisted that we should rise because of other important programmes, he insisted that this week was critical to do some Businesses. As critical as it may be, I do not understand why he would not find it necessary to equally cancel his programme, so that all of us will be here.
Mr Speaker, you would admit that, if I cannot speak for anybody, I would speak for myself. I am committed and dedicated to sit early in the morning every time till we close. Most of the time, I try to help the House run. We thought that the least the Hon Majority Leader could have done since he opted for this week to be added was to have stayed the whole of the week to help the House run its Business.
Mr Speaker, unfortunately, he has been absent throughout the week. I hope that the House would take note of this, so that next time, when he insists that we should add a week while we insist that we should go on break, the House would understand why we must go on break.

Thank you very much, Mr Speaker for the opportunity.
Mr Speaker 10:25 a.m.
Yes, Hon Deputy Majority Leader?
Deputy Majority Leader (Ms Sarah A. Safo): Thank you very much, Mr Speaker.
I am rather surprised and disappointed in the issue that has been raised by the Hon Minority Chief Whip. The reason is that his submi- ssion would suggest that, indeed, the entire Leadership cannot function without his Hon Minority Leader.
Mr Speaker, as you can see, the Hon Minority Leader's seat is also empty, but the Hon Minority Chief Whip is here. It is not for any reason that in the wisdom of the drafters or the framers of our Standing Orders and the Constitution, that we have five Hon Members to form Leadership on each Side; Mr Speaker, and for your good self to also have two Hon Deputy Speakers with you. The purpose for that is for us to be able to step in the shoes of each other and perform and let Parliament function well, whether one Leader is absent or present in the House.
Mr Speaker, if the Hon Minority Chief Whip comes here and throws dust in the eyes of all Ghanaians to the effect that the Hon Majority Leader is out of the jurisdiction, then I want to put it on record that the Hon Majority Leader is out of the jurisdiction performing parliamentary function, and he asked us to stay. I read the Business Statement -- [Interruption.] -- Government Busi-ness must continue.
That was why we had the Business Statement for this week last week. There are Papers to be laid, Motions to be moved and we also have Bills to consider and all these are planned.
So, Mr Speaker, I know the Hon Minority Chief Whip was out of the jurisdiction last week to attend the funeral of another Member of Parliament in Nigeria, because he is part of the Pan-African Parliament, and I believe that Member was part of the Pan-African Parliament. Is he suggesting to this House that while he was in Nigeria on official duty on parliamentary work, we did not work? Did his Deputy Whips not work? They worked.
Mr Speaker, we should let Parliament function the way it is. It is not for any reason that we have five Leaders sitting in front of each Side. So I believe that if it happens that the Hon Majority and Hon Minority Leaders must attend to other parliamentary duties out of the jurisdiction, that is why we are here to hold the fort.

So, Mr Speaker, the issue that the Hon Member raised is so disappoin- ting, and I would entreat you to take Statements that have been admitted by your good self, because this is not warranted and it is not fair at all. Other than that, then we would say that when the Hon Muntaka has to travel on parliamentary duty, he would have to stay because he is the Minority Chief Whip and he needs to whip his Members. It cannot work like that. He whips and he represents Ghana also at the Pan-African Parliament. So when he has to represent Ghana, he would ask leave of your good self to leave.

Mr Speaker, the Hon Minority Leader has joined the Hon Majority Leader to perform a parliamentary function outside. I believe that it is all in the best interest of our country, Ghana.
Alhaji Muntaka 10:35 a.m.
Mr Speaker, unfortunately, the Hon Deputy Majority Leader has not answered my question. It is not about whether Parliament is able to function or not when anyone of us is not around. It is about -- if all of us would remember, last two weeks, the issue was about Hon Members should make sacrifices to stay for an additional week. We talked about this programme and the Hon Majority Leader insisted that we needed to make sacrifices to stay.
Mr Speaker, I must humbly say that it is for that reason that even though Speakers across the world are part of the IPU, you chose to stay. You could have equally left, but because of the plea from the Hon Majority Leader, the Speaker decided to sacrifice not to join his Colleagues in IPU in Qatar and stayed.

Mr Speaker, let me also say on authority that my Hon Colleague, the Hon Deputy Majority Leader, has no idea that the Hon Majority Leader returned from the IPU meeting and

was even at the workshop for Hon Ministers and left last night.

Mr Speaker, if she cares to know, the Hon Minority Leader is in town and would soon join us because he has returned from Qatar.

Mr Speaker, my worry is that, the one that called for sacrifices by Hon Members to cancel their other programmes to stay should be the last not to be around. I would therefore want the Hon Deputy Majority Leader to tell us where the Hon Majority Leader is when he has asked all of us to stay.
Mr Speaker 10:35 a.m.
Very well, we have a Statement, unless the Hon Deputy Majority Leader has something more to say.
Ms Safo 10:35 a.m.
Mr Speaker, I am happy that you want to move to a more serious item on the Order Paper. I say so because we have gone back and forth on this matter and I still stick to my position that we are all here to work as Hon Leaders. If he is asking of my Hon Majority Leader, where is the Hon Minority Leader? Does it mean that he does not want to work? He is telling me that he had to attend to another important programme related to Parliament. So why are we changing the goalpost? If it is for us, it is good but if it is for the Majority, it is not.
Mr Speaker, the Hon Majority Leader is not out there on pleasure. I want to state this on record. He is out there holding the fort for the
Parliament of Ghana and so is the Hon First Deputy Speaker, and Mr Speaker is very much aware of that.
So, Mr Speaker, the fact that the Hon Minority Leader is also attending to another important programme -- his seat is equally empty. And where is his Hon Deputy Minority Leader? That seat is also empty. The last time I checked, Hon Akandoh is not the Deputy Minority Leader. Is he? But he is seated there.
Mr Speaker, the Hon Minority Chief Whip thinks that he is there so Business can continue for both Sides.
Mr Speaker, my Hon Majority Leader's seat is empty but I am here as the Hon Deputy Majority Leader, and my Majority Chief Whip and his deputies are here.
Mr Speaker, it would be unfair to come to you in the morning and tell you that because the Hon Majority Leader or Minority Leader is not around, this House cannot Sit. That is a double standard on his part. So Mr Speaker, I entreat you to take the Statement so that we can move on with more important issues on the Order Paper.
Mr Speaker 10:35 a.m.
Hon Member, this is a thesis so I would give you ten minutes to speak to it and then it would be captured in its entirety by the Hansard.
STATEMENTS 10:35 a.m.
Dr Kwabena Donkor (NDC -- Pru East) 10:35 a.m.
Thank you, Mr Speaker, for the opportunity to make this Statement.
Mr Speaker, in recent years, the Ghanaian polity has experienced upheavals in the socio-economic space leading to a questioning of the ability of the State to secure its obligation as the protector of the public good and the elixir for socio- economic development.
This protection of the public good finds expression in an agency arrangement with the citizenry through the intermediation of regulatory bodies and institutions. These institutions thus become the proxy embodiment of the State. Any deviation and or under performance by regulatory bodies constitute State failure and must be of great concern to the sovereign people and their representatives.
The current near meltdown of the financial sector, the seeming inability of the State to flush out illegal mining, the ever pervasive boat accidents on the Volta Lake, the chaotic land administration scene, the near depletion of our forests, the pollution of water bodies, the total disregard for building regulations and spatial planning, the population of the market place with substandard goods, to mention but a few, are symptomatic of regulatory and enforcement failure.
Dr Kwabena Donkor (NDC -- Pru East) 10:35 a.m.


And yet our statute book is replete with regulatory bodies established by law and clothed with adequate powers.

The Lands Commission, the Minerals Commission, the Petroleum Commission, the Forestry Commi- ssion, the Securities and Exchange Commission, the Water Resources Commission, the Town and Country Planning Department, the Ghana Maritime Authority, the Fisheries Commission, the Insurance Commission, the Bank of Ghana, the National Petroleum Authority, the State Enterprises Commission, the Ghana Standards Authority, the Environmental Protection Agency, the Energy Commission, the Public Utilities Regulatory Commission, the Medical and Dental Council, Institute of Chartered Accountants, the Food and Drugs Authority, et cetera, are some of the key regulatory agencies established by law.

Regulatory bodies, unlike other agencies of Government, impose duties. They deliver obligations, rather than services. Society arms regulatory and enforcement agencies with vast powers. They can impose economic sanctions, place liens upon or seize property, limit business practices, suspend professional licenses, et cetera. They are given such awesome power because they protect the public interest.

The protection of public interest ensures that society is safe from abuse. How regulatory agencies use these

powers fundamentally affect the nature and quality of life in a democracy.

Mr Speaker, it is therefore not surprising that in democratic jurisdictions, regulators are scrutinised more often and more closely than other agencies. The possibility of the abuse of power, the dereliction of duty and the jeopardising of the citizenry, whether in the area of public health, the financial market or public safety impacts directly on the welfare and wellbeing of the citizenry and such institutions and agencies must therefore be held accountable for their stewardship of public resources.

Mr Speaker, a cursory look at the stewardship of a few of these regulatory bodies paints a very worrying picture. I would want to cite the Bank of Ghana (in its role as a Regulator), the Securities and Exchange Commission, the Minerals Commission, the Ghana Standards Authority and the Ghana Maritime Authority to argue that there has been a gargantuan regulatory failure in Ghana and that this House must take a far more serious interest in regulatory bodies and regulatory practice than it has done in the past.

Bank of Ghana

Section 4(1) of Act 612 tasks the Bank of Ghana to, among others, formulate and implement monetary policy aimed at achieving the objects of the Bank, promote by monetary measures the stabilisation of the currency, regulate, supervise and

direct the banking and credit system and ensure the smooth operation of the financial sector, promote, regulate and supervise payment and settlement systems and licence, regulate, promote and supervise non-banking financial institutions.

The various subsequent amend- ments such as Banks and Specialised Deposit-taking Institutions Act 2016 (Act 930), Bank of Ghana Amend- ment Act, 2016 (Act 918) have only essentially reiterated the enumerated regulatory functions and given the Bank as regulator, additional powers and functions. The independence of the Bank, as set out in Section 3(2) of Act 612, has been reinforced in the amendments.

The Banking Act 2004 (Act 673) makes it abundantly clear that no person is permitted to perform banking business without a licence issued in accordance with section 4 of Act 673. The said Act also imposes a duty on the Bank of Ghana to verify information from applicants and to authenticate in a manner it deems fit. The law makes the two parties responsible in the acquisition of a banking license.

Mr Speaker, Act 612 mandates the Central Bank to report to this august House, the Representatives of the sovereign people of Ghana, on its activities once every six months. A strict observance of the law and the exercise of vigorous oversight would have ensured that activities that the Bank viewed as putting pressure on
Dr Kwabena Donkor (NDC -- Pru East) 10:45 a.m.
The distressed state of the banking and financial sector necessitating the collapse of banks, the huge loss of jobs and livelihoods, the broken confidence in the banking system, the de-indigenisation of the sector, botched attempts at public bail outs, et cetera have arisen because of regulatory failure. Regulation is not just meant to punish, but also in a developing country context, to build through technical and managerial direction and guidance.
Minerals Commission
The Minerals Commission is established by article 269 of the 1992 Constitution and the Minerals Commission Act 1993 (Act 450).
Act 450 Section 2(1) states ‘‘The Commission is responsible for the regulation and management of the utilisation of mineral resources and the coordination of the policies in relation to them''. Section 2(2)(c) further tasks the Commission to ‘‘monitor the implementation of laid down policies of the Government on minerals and report on this to the Minister''. Section 2(2)(d) further enjoins the Commission to monitor the operations of the bodies or establishments with responsibility for minerals and report to the Minister.
There is no doubt that the law envisages a robust regulatory body

with full responsibility for the minerals sector. The Mining and Minerals Act, 2006 (Act 703) further strengthens the regulatory role of the Commission by restricting the Minister from exercising any power, discretion, or making a determination or agreement without obtaining the advice and recommendation of the Minerals Commission.

Act 450 section 17(2) mandates the Minister to submit to Parliament an Annual report received from the Commission. The law envisages that within a maximum of eight months of the expiry of each financial year, the Annual Report and any Statement the Minister responsible for the sector may deem necessary to be in the custody of Parliament.

Securities and Exchange Commis- sion

The Securities and Exchange Commission, established by the Securities Industry Act, 2016 (Act 929) is charged to regulate and promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected (section 2). It is to do this by among others (3)(b) (3)(c) maintaining surveillance over activities in securities to ensure orderly, fair and equitable dealings in securities and to register, licence, authorise or regulate in accordance with the Act.

Section 17(3) obligates the Minister to submit to Parliament within

one month of the receipt of the Annual Report of the Commission.

Mr Speaker, the Menzgold debacle ought not to have happened if the Securities and Exchange Commission had vigorously pursued its mandate. Thousands of Ghanaians have become worse off because a regulatory body, notwithstanding the very visible advertisement across the length and breadth of the country of an unlicenced derivative, chose to ignore the infraction of the law for a very long time until forced to confront the illegality.

Ghana Standards Authority

The Ghana Standards Authority draws its existence from NRCD 173 of 1973. The decree provides for the Authority whose objects include (2)(a) establishing and promulgating standards with the aim of ensuring high quality goods produced in Ghana. Section 2(b) tasks the Authority to promote standardisation in industry and commerce while section 2(c) and (d) enjoins the Authority to promote industrial efficiency and development as well as public safety, industrial welfare, health and safety in the industrial space.

The Authority is thus clothed with powers to ensure industrial standards in Ghana. Indeed, standards do not only apply to goods but services. In a survey conducted on some electrical goods in Accra by a Task Force led by the Ghana Standards Authority, on 7.4 per cent of the electrical goods passed, standards are noted more by their non-observance than their

observance. Imported electrical goods such as sockets and plugs fall within the very high non-observance category.

Mr Speaker, the least said about the services sector, the better. Not a single MMDA has met the ISO 9000 (Quality Management) ISO 14000 (Environmental Management) or ISO 27000 (Information Security Management) standard. The result of non-observance of standards, particularly in the power retail sector, has led to a number of fire outbreaks with the attendant loss of lives and property. Mr Speaker, may I dare suggest that the enabling law is obsolete and must be replaced. It is unwise for a critical regulator to still draw its powers from a Decree passed in 1973.

Ghana Maritime Authority

The Ghana Maritime Authority, established by the Ghana Maritime Authority Act, 2002 (Act 630) is charged to ‘regulate, monitor and coordinate activities in the maritime industry' Section 2)(1). Section 2(2)(c) expands this further by adding the responsibility to regulate activities on shipping in the inland waterways including the safety of navigation in inland waterways. It is also to oversee matters pertaining to training, recruitment and welfare of Ghanaian seafarers.

Section 24 (2) obliges the Minister to submit to Parliament an Annual Report on the activities of the

Authority. This should happen within a maximum of eight months after the end of the financial year.

The failure of the Ghana Maritime Authority to play its regulatory role especially on the Volta Lake results in the loss of lives and goods every year and a very rudimentary transport system. The irony is that water transport is meant to be the cheapest and most reliable means of transporting bulk cargo.

The savings arising from cheaper freight coupled with the ability to take freight off from the trunk roads would also make our road last considerably longer and reduce accidents on the roads. Unfortunately, the Authority is yet to advert itself to this major developmental function. Mr Speaker, the need to develop inland water transport system and to regulate it cannot wait. This House, through its oversight role, must compel the GMA to be up and doing.

Mr Speaker, in any system, compliance is the way to maintain order and sanity for the growing concern of society. Inasmuch as the Regulator expects compliance from its applicants, the Regulator itself is also equally expected to comply with its own regulations such as: ‘A person shall not engage in downstream industry unless that person has been granted a license for the purpose,' (section 11 of Act 691). If a person so initiates an engagement in downstream industry illegally, it is the duty of the Regulator to act under the guidance of the Act. Similarly, section
Dr Kwabena Donkor (NDC -- Pru East) 10:45 a.m.


9 of the Minerals and Mining Act, (Act 703) prohibits persons from mining for a mineral unless the person has been granted a mineral right in accordance with the Act.

Compliance and enforcement, Mr Speaker, must not only be desired, but must be asked for. In seeking compliance, Regulatory bodies must themselves comply with the dictates of their enabling statutes. The vast number of these bodies do not, for example, submit their Annual Reports to Parliament in conformity with the time table provided in their very Acts.

Mr Speaker, I daresay that Parliament has also not vigorously exercised its oversight over these regulatory bodies. A number of them hardly submit the required Annual Report and when they do, it is done years late to be of real benefit to Parliament and the nation.

Mr Speaker, regulatory practice is a craft with well-defined goals. The choice and application of regulatory tools must be carefully considered to achieve desired goals and minimise, if not eliminate, undesired conse- quences. The Bank of Ghana as a regulator has either by accident or design created a climate that has diminished the presence of indigenous banks and promoted the prominence of foreign-owned banks at a time when the Ghanaian State is committing itself to the promotion of local content and ownership in the economic space.

Regulatory regimes, by their conduct, can take perfectly reason- able laws that produce oppressive regimes. Similarly, by choosing wisely what to enforce, when, and the how, regulatory can take an unmanageable accumulation of laws, many of which might be obsolete, and deliver perfectly reasonable regulatory protection.

Neal Shower et al in their study of strip mining, observed

“Now law is writ, and laws are rules. They are paper threats. They represent the State's intent to regulate certain forms of behavior. But laws on the books mean little in and of themselves. They are meaningful only insofar as they are backcd by the mobilisation of state powers, law in action.”

Mr Speaker, may I conclude by calling on this House to take a second look at how we exercise oversight over regulatory bodies and agencies. May we bring the appropriate Ministers to answer for the non- submission or late submission of annual or bi-annual reports as the case may be. And may I humbly suggest that the House develops a mechanism for examining these reports other than the traditional referral to Committees or where the referral must of necessity be made to a subject matter committee, the committee report must be given prominence of place at the Plenary.

In my opinion, half of the challenges of governance in this country arise out of regulatory and enforcement failure. We as Members

of this House are obliged by our oath of office to address this worrying, clear and present danger to the very foundations of governance.

Thank you, Mr Speaker, for admitting this statement.

Reference

i. Malcolm K Sparrow, The Regulatory Craft (Brookings Institution Press 2000).

ii. Ibid.

iii. GSA Survey 7-10 August

2018

iv. Neal Shower, Donald A Clelland & John Lynxwiler, Enforcement or Negotiation: Constructing a Regulatory Bureacracy (State University of New York Press, 1986 p.1-2.
Mr Speaker 10:45 a.m.
Thank you very much, Hon (Dr) Donkor.
Mr Richard M. Quashigah (NDC --Keta) 10:45 a.m.
Mr Speaker, thank you for the opportunity to contribute to the Statement which is apt and very important.
Mr Speaker, we all know that the Regulatory agencies in this country have a very important duty to perform in protecting, not just the various institutions, but the people of Ghana in general.
I would like to focus on the Securities and Exchange Commission (SEC). Because of its existence, a lot of Ghanaians who have moneys to invest felt very comfortable and confident enough to make investments in some Agencies such as the Gold Coast Securities Company, Uni- Securities Ghana Limited and so on. It is most unfortunate that moneys have been invested by Ghanaians in these establishments that they believe are very viable and for which reason, they placed their moneys there.
However, it is strange to note that since the year 2017 to date, these security agencies under the SEC have been unable to perform their duties by paying people who have invested their moneys there and nothing is being done. To the extent that even if those who are affected come together and petition the SEC, nothing is done at all about it. That is clearly an indication that the Regulatory mechanisms we have in this country are not working.
Mr Speaker, there are people whose lifetime investments are locked up in Gold Coast Securities Company, UniSecurities Ghana Limited and so on and they do not know what to do or whom to turn to, to the extent that some have even petitioned this House and nothing has been done about it. This is a very serious issue that needs very drastic measures to ensure that these agencies that are operating under the SEC are compelled to pay back moneys to those they owe.
Mr Richard M. Quashigah (NDC --Keta) 10:45 a.m.


I know that there are Hon Members in this House who have also been affected and it is a very serious issue that we need to pay attention to.
Mr Speaker 10:45 a.m.
Thank you very much.
Hon (Dr) Okoe Boye?
Dr Bernard O. Boye (NPP- Ledzokuku) 10:45 a.m.
Mr Speaker, I am most grateful for the opportunity. I would like to commend my senior Hon Colleague for bringing attention to the efficiency and efficacy of Regulatory bodies in this country.
Mr Speaker, I am very privileged to have sat in some of the meetings that interviewed the Bank of Ghana on the banking crisis and you would be surprised to know that almost all the warning signs were known to the Banking Supervision Department (BSD). They had all the records and yet, the regulatory bodies watched as some of the banks risked the deposits of Ghanaians and in fact, the Governor virtually said that when you assess all that happened, you could tell that technocrats were unable to act because of political pressure.
Mr Speaker, I say this because we have to be honest with ourselves. If you look at the 1992 Constitution, the heads of most State agencies are appointed by the President or through Boards and that is the arrangement. We have the head of the Minerals Commission being appointed by a sitting President who is the head of the Executive and he is supposed to make sure that he regulates a sector.
We have individuals going there with some connection to the Executive and then we have a situation where all the laws are available but those supposed to implement the laws are sort of handicapped. So it is important that we are not quick to say we have Regulatory bodies that have been empowered but are not acting. We also have instances where political influences make them unable to act.
Also, a classical case is that of the Ghana Standards Authority (GSA). My Hon Colleague mentioned the outbreak of fires and we are connecting it to poor standards. Let me say that the only way you can demand results from an organisation is to make sure that you have really tuned the organisation and given them the right resources.
In capacity management, what is the capacity assessment and gap between what they have been given and the output they are giving us? I believe that the State must resource State agencies and do close and serious monitoring so that we are able to tell the output that should come from them based on the resources that they have been given.
Mr Speaker, you have a situation in this country where in most municipal assemblies -- you go to communities and you have sanitation issues and simple infrastructural needs like the filling of potholes and district assemblies are either not concerned or moving to the task.
All these heads of some of these institutions have political leadership and the Hon Regional Minister and Hon Minister for Local Government are supposed to check over them. Without monitoring and supervision, most of them do not have any standards but with close supervision, we would be able to get results. The point is that supervision and monitoring must be strong in this country, otherwise, most institutions will do as they like.
Mr Speaker, the DKM Financial Services is a classical lesson that if you are a political leader and you do not act, when there is a price to be borne, most of the time, if not all the time, it is the political leader who bears the price. We must not only stop at saying that we have given them laws; we must be interested in supervising them and making them act as demanded by their office.
Mr Speaker, I conclude by encouraging those at the ministries, especially the Hon Ministers; it is not enough to say that technocrats should know better. If there is a price to be borne, hardly do I see a technocrat or a civil servant bearing the price. The judgement day occurs every four years and it is the politicians who are the victims.
So we must make sure that they do their work and we must demand accountability.
Mr Speaker 10:55 a.m.
Hon Okudzeto Ablakwa, then after, Hon Member for Adaklu.
Mr Samuel O. Ablakwa (NDC -- North Tongu) 10:55 a.m.
Mr Speaker, I am most grateful for the opportunity to contribute to this Statement which is very timely and very important.
Mr Speaker, I must commend Hon Dr Kwabena Donkor for making this Statement on the Regulatory and Enforcement Space in our country.
Mr Speaker, this is a matter that should really concern all of us, and many are beginning to say that in Ghana, laws are just about promul- gating and making new laws, but it is never about the enforcement. It is as if we make laws just to breach them but not to ensure that these laws are enforced. Mr Speaker, much has been said about the banking crisis and what is happening to the quality of electrical cables that come into our country. I want to touch on two other areas that are of concern to me.
The first one is how e-waste is being managed in our country. Agbogbloshie continues to be a dumping site and there are documentaries all over the international media. Recently, I watched one on Aljazeera and Agbogbloshie has become the classical case in the world when we are talking about the poor manage- ment of e-waste. We have an Environmental Protection Agency and we know what is happening and the
Mr Samuel O. Ablakwa (NDC -- North Tongu) 10:55 a.m.


hazards associated with this. We know that the young people are exposed to danger and their lungs are being destroyed; all the health implications that come along with this practice, yet right from the ports all the way to Agbogbloshie, we sit aloof and allow these electronic gadgets to be dumped on us with all the consequences. Mr Speaker, this is just one example.

Mr Speaker, the other example that I want to raise has to do with our rent sector. We know that the Rent Act (Act 220) does not allow for landlords to demand more than six months advance, yet in this country, landlords demand rent advance for one year, that is; if a person is lucky, Some even demand for two years, three years and even four years.

Mr Speaker, so many young people in our country are frustrated. They cannot even have a fair shot at beginning life. They graduate from school, get a first job and they would want to leave the shelter of their parents so that they could be independent and become adults with dignity, but they cannot pay rent. The law is there to protect them, but that has become the practice.

Mr Speaker, as Hon Members of Parliament, we are all called upon to assist our constituents who would want us to help them pay two or three years' rent and we always struggle to raise the funds, meanwhile, there is a Rent Control Division that the law

requires of them to monitor and supervise the sector and prevent this practice. Yet we are all looking on and the young people in this country are at the mercy of these landlords.

Mr Speaker, yes, we know that there is a housing deficit in our country and some estimates have put it about 1.7 million housing deficit. But this is no excuse because the fact that there is a housing deficit and the fact that landlords could take advantage of the situation does not mean that the law should be flouted. There are many of these examples and we all just watch. Sometimes, some of us who are land owners and property owners even join in the exploitation of the vulnerable and disadvantaged among us.

Mr Speaker, it is time for all the sleeping regulatory bodies right from the Rent Control Division, the Environmental Protection Agency (EPA), Securities and Exchange Commission (SEC) and the Bank of Ghana (BoG) all these regulators must know that they must be fearful. All those who operate in the sector should live in constant fear. That is so in other jurisdictions; they fear that the regulators would indict them and look into their businesses and conducts, so they always want to stay clear.

Mr Speaker, they know that when they fall foul and are singled out, the sanctions could even affect their businesses and reputations forever, so everybody tries to live on the straight and narrow path but that is not the

situation here. We continue to live as though we are in a jungle where people just do whatever they want and we all suffer in that situation.

Mr Speaker, I must also bring up the role of Parliament because elsewhere, the Parliament always has to be the institution that watches the watchman. Parliament really is the final ambit that we must all encourage to be strengthened to get these regulators in all the various sectors that have come up this morning to be up and doing. Elsewhere, at the slightest whiff that there are some regulatory anomalies, the Parliament would step in.

Mr Speaker, the biggest issue now has to do with how to regulate the technology giants in America and the west; Facebook, Twitter, Instagram and others. The CEOs of these companies have had to appear before several parliamentary committees right from Congress in America (USA) and the House of Commons in the United Kingdom (UK) on how to protect the privacy of their users and how to protect the data of all the people who use their platforms. You would see their legislatures being up and doing and not taking excuses. They call out regulators who derelict and let the people down.

So, as a House, we must also admit that we are not really doing our best to wake up all of these sleeping regulators and to ensure that we carry out oversight duties. Mr Speaker, your

Committees should be working and we have to learn from other jurisdictions so that our regulators would protect the vulnerable and make sure that laws work in our country; that is the only way that we could build a fair and just society where all our people would live with the knowledge that the laws would be on their side and protect them and we could play fair for everybody.

Mr Speaker, I commend the Hon Member who made this Statement because it is very timely and very important. I hope that we would all reflect on how to improve on the regulatory framework of our country. Too many people have been hurt; many lives have been destroyed, and many savings and future have been robbed because of this attitude of regulators who do not do their work. Enough is enough; we cannot continue this way.

Mr Speaker, thank you very much.
Mr Speaker 10:55 a.m.
Hon Ablakwa, thank you very much.
Dr Nana A. Afriye (NPP -- Effiduase/Asokore) 10:55 a.m.
Mr Speaker, thank you very much.
Mr Speaker, before I contribute, I would want to say that I keep hopping to speak into the microphone because my seat --
Mr Speaker 10:55 a.m.
Hon Member, go to your contribution.
Dr Afriye 10:55 a.m.
Mr Speaker, I am drawing your attention because the name appearing is Hon Seth Acheampong because the micro- phone is not working and that is why I am drawing the attention of Mr Speaker, that I am struggling in this Meeting.
Mr Speaker 10:55 a.m.
Please proceed.
Dr Afriye 10:55 a.m.
Mr Speaker, I would want to come from an angle on this very interesting Statement, but before that I would commend the Hon Member who made the Statement. Regulators are definitely supposed to minimise what in economic policies are called negative externalities.
They are supposed to prevent failure of the market because it is believed that in the free market enterprise, governmental interventions lead to failure. Parliament would give them the authority to enforce the laws made for them.
Mr Speaker, may I dwell in the area of health, as I am the Vice Chairman of the Health Committee. The work of the regulator cannot be complete if we continue to cap the regulators in my sector. The Food and Drugs Authority (FDA) is doing very well, preventing that we take unwholesome materials. The Medical and Dental Council ensures that we have competent doctors and dentists to practice in the system and so do the Pharmacy Council and the Nurses and Midwifery Council.
Mr Speaker, a directive from you in this regard, where they can retain all their funds internally generated as they strive to go autonomous is very important because the Environmental Protection Agency (EPA) is working very well, and they are also a very important entity in the regulatory space. But on one hand, some are doing very well, and on the other hand, they are not doing well because they think we treat them as cash cows; however, a regulator is not supposed to be seen as a cash cow.
So, Mr Speaker, I humbly submit that we review the area of capping regulators especially if not for anything, in the area of health because it borders on who we are. It is so clear that you would be able to intervene in this direction. Your direction in this regard would bind in terms of policy. I have the opportunity to have the Hon Minister for Finance who always lead discussion on this issue, but your kind direction is what I seek. I am so grateful to add the aspect of financing and capping on this issue.
I thank you for this opportunity to speak.
Mr Speaker 10:55 a.m.
One more contribution from each Side and then Leadership.
Yes, Hon Member for Adaklu?
Mr Kwame Govers Agbodza (NDC -- Adaklu) 10:55 a.m.
Mr Speaker, I thank you for the opportunity to make a few comments on this very important Statement made by Hon (Dr) Donkor.
Mr Speaker, I have a different view as to whether the regulations are failing because we do not have enough regulations or whether the regulations are not good enough. There are regulations and laws in this country that tell everybody how we should keep our environment clean, but we knowingly litter our environment yet we blame govern-ment alone for why our drains are choked. Is it really about regulations or it is about us?
Mr Speaker, we speed on the road; there are educated people who put their toddlers in vehicles without being strapped in car seats; there are people who drive in this country who are educated but speak on mobile phones, yet when they are involved in an accident around Easter and Christmas, they blame the devil for that accident. Is it really about regulations?
Mr Speaker, we have people who over-eat in the evening, and they do not sleep at night, yet they blame the witches and wizards for not sleeping at night. Is it really about regulations?
Mr Speaker, we fail to come to work on time, yet we are the ones who are supposed to set examples. When we go home and give instructions or try to guide people to do the right thing and they refuse, we do not understand why they do not do it. Mr Speaker, is it about regulation?
Mr Speaker, whose job is it to enforce laws in this country? Students fail to study and use their time at
school to study, but rather spend their time on social media and other things. If they fail examinations, is it the problem of lecturers and teachers? Do we need regulations on this one?
Mr Speaker, we beat up our wives and husbands, and when we do not find love at home, do we want regulations on that as well? Is it really the case that the Ghanaian is finding it difficult to understand that laws do not work by themselves? Good and patriotic citizens are the ones who enforce the laws. A bad judge knowing where the truth is could decide to corrupt the case and do the wrong thing. The laws could tell him or her what to do. The policeman knows what to do in a case, but can do the wrong thing. Is it about regulations?
Mr Speaker, I have an alternative view. I believe if we want the laws in this country to work, we have to be better and more patriotic citizens to be able to deal with this --
Mr Speaker 10:55 a.m.
Hon Member, if you intend to leave the House -- an Hon Member who, having made a speech, leaves the House would be guilty of contempt. That is part of parliamen- tary contempt. When you finish yours, you do not go out. It is not allowed. These are some of the things that we must seriously look at. Others listened to you; you must sit and listen to them too. That is the point behind that issue of parliamentary privileges and contempt.
Yes Hon Member, continue.
Mr Speaker 10:55 a.m.
Hon Minister for Health?
Minister for Health (Mr Kwaku Agyeman-Manu (MP) 10:55 a.m.
Mr Speaker, I am very glad this morning. The
Mr Speaker 10:55 a.m.
Hon Members, order!
Mr Agyeman-Manu 11:15 a.m.
Mr Speaker, when I was on this Side of the House -- [Pointing to the Minority Side.] -- [Interruption.]

Yes, I am also talking like when they were here. That is why I said I am very glad today. That was when we had the resurgence; a multiplicity of companies and individuals using several models to collect depositors' funds. I thought they were doing that on the blind side of regulators, and so I started shouting. Unfortunately, I never got any ears to listen to me, Mr Speaker.

Mr Speaker, I had to resort to press conferences in Sunyani, Techiman and everywhere, and I called on all of us that it was time for us to sit and look at how we could bring pressure to bear on regulators, some of whom coincidentally have independence from the Executive to do what the law expects them to do. Some of my Hon Colleagues at the time made mockery of me, that I had invested GH¢18 million in Diamond

Microfinance Limited (DKM) and that was the reason I was shouting. It was all over the country; propaganda on radio, when I had invested nothing there.

If we have been talking and if we had talked just like my Hon Colleague now wants us to talk and act, I believe we could have saved not only money but some lives that have been lost in the process. It is a very sad thing.

Over the last two years or so, Government has utilised close to about GH¢12 billion tax payers money to meet its obligation to protect depositors who had invested in some of these institutions that regulators did not enforce rules and regulations on properly. This is not only in the banking sector. My Hon Colleague talked about it that it happened in my own sector, which is the health sector, the energy sector, and everywhere else.

Mr Speaker, I however believe that it is time for all of us, both Sides of the political divide, to take away politics from this type of thing happening in our country. As I speak now, if one were to have machinery to go round to do some intelligence gathering, one would not be surprised that one or two of these types of schemes are sitting in some corners of our country, operating even now, and that Parliamentarians have a responsibility.

Mr Speaker, my Hon younger Brother, Okudzeto Ablakwa, talked about how even some of us are involved, and have had challenges with this sort of thing. It may be correct, but we should not be thinking of ourselves even now, but the people whom we represent. My gladness is in the fact that for the first time, maybe in this area, we are coming together --
Mr Speaker 11:15 a.m.
Hon Members, the background noise is too much.
Hon Members, much of the time, we are not listening. Those who are not listening, you should listen!
Mr Agyeman-Manu 11:15 a.m.
We are coming together to resolve this matter.
Mr Speaker, there are several reasons why these things are happening. Quite a large number of us in the country -- I do not mean us the Parliamentarians only -- our appetite to make money in the very shortest possible time of our lives is so huge, and we go everywhere to make the money. There are no principles and no good philosophies behind our actions, but we just move without due care.
Mr Speaker, we would therefore not need only to bring pressure to bear on regulatory authorities and the commissions and all that, but some serious public education needs to be done to let people understand that not all that glitters is always gold, and therefore, when we go there, we are

exposing ourselves to dangers and some risks, so we should be careful.

Mr Speaker, in those days that I called upon Government to do bail- out, it never happened until at the tail end, when we did some liquidation of DKM to see how we could bailout some people. Even with that, some of us, including me, tried to do politics with that.

Mr Speaker, two years ago, GH¢12 billion was signed to save lives, savings and properties, but some of us are still doing politics, when we should go to the crux of the matter to try to uproot it to ensure that those who should monitor the system and the market to stop this type of thing - - we would not do that, and people lose money.

Mr Speaker, during the DKM era, I had time to go to the Bank of Ghana (BoG) on five different occasions. I questioned the integrity of the Financial Intelligence Unit. That was the first point where they do intelligence gathering to report even to the Governor, why this would happen at the blind side of an institution like the Bank of Ghana. We talked a lot until the former President, His Excellency John Mahama, eventually came out and made pronouncements about liquidation and appointed a Registrar-General to see how best they could mobilise the assets of DKM and see if they could impound the assets and sell them to pay people what was due them.

Mr Speaker, some little efforts were made, and success was at a very low rate. Now, His Excellency Nana Akufo-Addo did not go that way, but we are bailing out with moneys that could have been used to construct roads, meanwhile, those who did the collections, whether legally or illegally, are sitting comfortably. I believe it is time that we, all together, put pressure to bear on where it should be, and leave the politics out of it because we always do the type of politics that we do, and the actual culprits go unsanctioned.

Mr Speaker, we could be doing the monitoring, supervision and everything else, but without sanctions, we would get nowhere. Switching does not always work on financial markets. In America, when their system broke down, banks collapsed, and promi- nent people and those who were found culpable of having caused those sorts of problems concerning their stock exchange were jailed. Here, we needed to clean our systems. We could not allow non-performing portfolios to be sitting on banks' balance sheets, virtually, good on paper, but nothing to show physically that we had that money.

Mr Speaker, the regime through which we licensed some of these institutions was against the law, yet those who did that are still sitting down. We cannot give somebody a banking licence over this. It was irregular, but it happened, and it is now that we are all seeing the good light -- that is why I am very glad.

I believe that we would continue to put ourselves together as

Parliamentarians, not from any Side of the political divide, but we together, to support what the current Government is doing, to see how we could put pressure -- and I would insist again, on those who are sitting in the regulatory agencies, to do what the law mandates them to do properly, and in a very efficient manner, as well as support Government's efforts to try to ameliorate the suffering and the challenges that those of us who have put moneys in there are going through.

Mr Speaker, I believe that after this Statement and our contributions, Parliament would get some good paper to send to where it should go, for them to realise that Parliamen- tarians are getting more serious on these matters, to try to stop and eliminate completely these types of things that happen in our country.

Mr Speaker, we have all the institutions and all the structures, so why should these things happen? In a way, Hon Members of Parliament (MPs) themselves have not lived up to expectations, but I believe that is where we should do our own self- evaluation to see how best we could position ourselves, to support either Government or the regulatory agencies to do the best thing that they could do to safeguard the economy of our country.

Mr Speaker, I thank you.
Mr Speaker 11:15 a.m.
Thank you very much, Hon Minister, for your brilliant elucidation.
I would move on to Leadership, one from each Side, as per the Hon Leaders.
Mr Avedzi 11:15 a.m.
Mr Speaker, the Hon Dafeamekpor would speak for the Minority Side.
Mr Speaker 11:15 a.m.
Yes, Hon Dafeame- kpor?
Mr Rockson-Nelson E. K. Dafeamekpor (NDC -- South Dayi) 11:15 a.m.
Mr Speaker, I thank you for the opportunity to make some comments on the Statement excellently made by the Hon Dr Kwabena Donkor.
Mr Speaker, if we look at our health sector, there are one or two regulatory agencies that are supposed to regulate the activities of private clinics, for instance, and hospitals.
Mr Speaker, you would be surprised to hear that private persons these days build hospitals without recourse to the Medical and Dental Council. There are persons who now do things -- for instance, in the education sub-sector, persons build schools now, without recourse to Ghana Education Service (GES).
Mr Speaker, there are a lot of institutions that are coming up as private schools, without accreditation by the National Accreditation Board. We sit here and are petitioned to come in as a Parliament to determine whether the certificate issued to persons who qualified from these institutions are verifiable.
Mr Rockson-Nelson E. K. Dafeamekpor (NDC -- South Dayi) 11:25 a.m.


Mr Speaker, if we look at the transport sector, the Driver and Vehicle Licencing Authority (DVLA) is supposed to be the regulatory authority that regulates the activities of transport owners and road users in this country. Two weeks ago, we were horrified with the sheer numbers of persons who died at Kintampo as a result of road accident. The causes are emerging that the road signs at that particular segment of the road had faded, among other reasons.

We also know that every year, the roadworthy certificates of vehicles, for instance, are supposed to be renewed. Mr Speaker, a vehicle would go through the process and the certificate would be renewed, but the nature of the vehicle that would confront you on the road is not the kind that ought to have gone through the process successfully. I agree with Dr Kwabena Donkor that we have a problem.

Mr Speaker, if you look at the Judiciary or legal education, the General Legal Council is supposed to regulate the activities of lawyers in this country. Every now and then, we hear that fake lawyers have been uncovered in our courts. Mr Speaker, how did they procure certificates to practise even before our courts? These are some of the difficulties that confront us as a people.

I agree that the regulatory agencies should be up and doing. They need to function effectively. The staff of the regulatory agencies should not always take salaries at the end of the month. Their work must show; they must crack the whip.

Mr Speaker, if you look at the security subsector of our country, the Ministry of the Interior, for instance issues licences to auctioneers. You would be surprised to hear that there are some auctioneers who operate in this country whose licences have not been renewed for many years, and some of these matters engaged the attention of the Public Accounts Committee.

Indeed, it is the same Ministry of the Interior that is supposed to license and regulate the operations of private security firms in this country. Mr Speaker, persons just get up and establish private security firms without recourse to the Ministry of the Interior.

Mr Speaker, the Registrar- General's Department, for instance, is a regulatory agency in contest with guarding the operations and activities of registered companies in this country. If company A is set up for purposes of doing business in the agriculture sector and tomorrow that same company is found doing business in the financial sector, the Department has the authority to review and regulate the activities of such a company, but they do not do that. That is why sometimes, some of these matters come up and engage our attention.

Mr Speaker, I would, at this juncture, plead with the House, that this Statement be not simply debated upon by Hon Members and referred to some Committee.

I would want to urge you, that we take it further, that you direct the regulatory agencies to, as a matter of record, submit to this House the extent that they intend to take to make sure that the functions that are assigned to them are properly performed so that we do not have people dying as a result of the availability of wrong vehicles on our roads. For instance, quack doctors operating in hospitals without licences to do so, persons opening private schools and taking fees from students when the schools are not properly accredited to do so.

Mr Speaker, law faculties are established when they are not properly accredited to do so and students leave the faculties and they do not know whether they have the opportunity to get trained and be properly called to the Bar.

With these few words, Mr Speaker, I thank you for the opportunity.
Mr Moses Anim (NPP -- Trobu) 11:25 a.m.
Thank you, Mr Speaker, for the opportunity to comment on the Statement on Regulatory and Enforcement Practice.
Mr Speaker, all our regulatory bodies were established by law and clothed with adequate powers. What
is lacking is doing the right things, regardless. Our bane in this country is the lack of doing the right things regardless. At the end of the day, even if someone wants to do the right thing, he wants to do it with regard and if we continue to do the wrong things and play against the rule, the country would definitely not move forward.
Why do we put regulatory bodies in place? Mr Speaker, we want the society to conform or move together in a certain manner that would lead to economic development, financial improvement and anything that is good for this country. Therefore, such regulatory bodies are set up such that they would, as part of their regulatory functions, ensure that we all move in a certain direction that is very good for us.
For instance, Mr Speaker, we set regulatory bodies to ensure the implementation of the Local Content Law that we put across to make sure that indigenous Ghanaians play a major role in the minerals, petroleum and gas industries.
In doing so, there could be technological transfer to our people so that at the end of the day, in areas where we are not so conversant with industries -- by the actions of the regulatory bodies, our citizenry would gain experience and take charge of those areas. Therefore, in such areas, when regulatory bodies do not function as they are supposed to, it means it is the country that would lose out.
Mr Moses Anim (NPP -- Trobu) 11:35 a.m.


Mr Speaker, we have lost all our open spaces in this country under the guise of rezoning. The Town and Country Planning Department allows owners of lands in this country to do rezoning and therefore, areas that are left for open places or public utility provision have all been used for residential purposes.

Mr Speaker, when you come to my constituency, there is an electoral area called Nii Ankraman where we want to put up a six classroom nursery structure for the children. There are no public schools around and there is no land available for such structures. You would realise that there has been rezoning and lands that were earmarked for such functions have all been used for residential purposes.

Mr Speaker, there are areas where buildings are planted in waterways and when flooding occurs, Hon Members of Parliament (MP) are called all over because the regulatory agencies do not work. The agencies that are supposed to ensure that the planning of our towns, villages and cities are done properly do not work as a result of people not doing the right things regardless.

I hope when I say doing the right things regardless, we all understand. We understand where influencing and compromising have become an issue of the country.

Mr Speaker, we all saw the gas explosion that occured recently. The

National Petroleum Authority (NPA) coupled with the Environmental Protection Agency (EPA) and the District Assemblies -- People put up filling stations anywhere, sometimes close to residential areas. In areas that hitherto were supposed to be residential, before you say jack, the area has been rezoned; additions are made and it becomes available to be utilised for filling station and gas station.

Therefore, the regulatory functions are not coming up. Mr Speaker, those gas leakages where gas stations are supposed to operate in a certain direction where there is supposed to be control -- they are not there. Therefore, if we do not ensure that our regulatory agencies work according to the laws that establish them, this country would not move forward.

Parliament also has an oversight responsibility and that is where we must gird our loins together and strengthen Parliament such that our oversight responsibilities in these areas would play the role. We would make sure that the stop gaps that cause all these defects would be filled, and we would put those regulatory agencies on their toes so that they can perform the work that the law has established them to do.

Mr Speaker, apart from these, I do not think this country would move forward. All the regulatory bodies that have been mentioned -- the Lands Commission, the Minerals Commi-

ssion, the Petroleum Commission, the Forestry Commission, the Security and Exchange Commission, the Water Resources Commission, the Depart- ment of Town and Country Planning, the Ghana Maritime Authority, the Fisheries Commission, the National Petroleum Authority and a lot more, which were listed in the Statement -- If we have all these regulatory bodies and yet this country moves in a direction where we cannot conform to rules and regulations, then there is a problem.

I would want to urge Hon Members of Parliament to make sure that we are always present in the Chamber and also take our responsibilities seriously. We should also work at the committee levels and put up our oversight responsibility to make sure that we would play the adequate roles over such regulatory bodies that we oversee.

Mr Speaker, I hope that it is a wake up call for all of us to make sure that we would do well with whatever we have been assigned to do. This is because one day, God would ask all of us what we did when he planted us in this motherland.

We have the best Minerals and Mining Act in this world apart from Kenya. If we had implemented that Act so well, we would not have had galamsey, and our water bodies, our forests and everything would not have been depleted. What would we leave as a legacy for our children? We should all play our roles because one

day, God would definitely ask us and we would have to account for being in Ghana and not in Togo.
Mr Speaker 11:35 a.m.
Thank you very much, Hon Members.
This is one of the most important Statement hours we have experienced in this House for decades.
I would refer this Statement on compliance to the Committee on Government Assurances. Even though, strictly speaking, it is not related to the Committee on Government Assurances, if we look at it generally in view of its covering A to Z in terms of compliance, there is no other Committee responsible for this matter.
In the future, our Committee on Government Assurances could be considered in terms of Committee on Compliance and Government Assurances. I would want this to be noted carefully by the Table Office, so that we would bring it up when we look at our reforms in the Standing Orders.
This is because there are so many other things that cut across our national lives that are so broad but are not covered by the Committees on Food, Agriculture and Cocoa Affairs or Health or any such Committee. It is a very important matter to consider at the appropriate time.
Ms Safo 11:35 a.m.
Mr Speaker, I would want to seek your permission for the Hon Deputy Minister for Finance, Hon Kwaku Kwarteng, to lay the said Paper on behalf of the Hon Minister for Finance.
Mr Speaker 11:35 a.m.
In the absence of any contradiction, the Hon Deputy Minister for Finance.
PAPERS 11:35 a.m.
Mr Speaker 11:45 a.m.
Item listed 4(b) (i) and (ii).
By the Minister for Health --
(i) EPC/Turnkey Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Health) and Contracta Construction UK Limited for a sum of one hun- dred and twenty-nine million euros (€129,000,000.00) for the execution of the Moderni-
Mr Speaker 11:45 a.m.


sation of the Komfo Anokye Teaching Hospital (KATH) Maternity and Associated Infrastructure.

By the Minister for Health --

(ii) Commercial Contract Agree- ment between the Govern- ment of the Republic of Ghana (represented by the Ministry of Health) and JV Tyllium- Eclipse UK Limited for an amount of seventy million euros (€70,000,000.00) for the construction of the Eastern Regional Hospital, Koforidua.

Referred to the Health Com- mittee and leadership of the Finance Committee.
Mr Speaker 11:45 a.m.
Item numbered 4(c) -- Hon Chairman of the Finance Committee.
Ms Safo 11:45 a.m.
Mr Speaker, the Hon Chairman of the Finance Committee is currently in a Committee meeting because of the enormous work scheduled for the Committee. With your permission and with the indulgence of the Minority Leadership, the Hon Vice Chairman will lay the said Paper on his behalf.
I thank you.
Mr Avedzi 11:45 a.m.
Mr Speaker, the Hon Deputy Majority Leader just said that the Hon Chairman is in a Committee meeting, so the Hon Vice Chairman
who is also supposed to be in the same meeting should lay the Report.
Ms Safo 11:45 a.m.
Mr Speaker, the Hon Vice Chairman was called in by the Whips to come purposely to lay this Paper and go back. The Finance Committee is made up of 25 Members. If the Hon Chairman is there, I believe the Hon Deputy Ranking Member is also there, and that is why the Hon Vice Chairman would lay the Paper on behalf of the Hon Chairman.
I thank you.
Mr Speaker 11:45 a.m.
Hon Member, you may lay the Paper.
rose
Mr Speaker 11:45 a.m.
Yes, Hon Member?
Mr Cassiel A. B. Forson 11:45 a.m.
Mr Speaker, I would just want to bring to your attention that the Committee has not met on that particular tax exemption, let alone lay the document.
I thank you, Mr Speaker.
Mr Kwabena A. A. Asiamah 11:45 a.m.
Mr Speaker, rightly said by the Hon Ranking Member, the Report has not been taken by the Committee. We would ask that it be stepped down.
Mr Speaker 11:45 a.m.
Hon Deputy Chairman, is item listed 4(b)(ii) ready?
Mr A. K. Asiamah 11:45 a.m.
Mr Speaker, the Committee is yet to sit on it today.
Mr Speaker 11:45 a.m.
I am asking you whether 4(b)(ii) is ready, please?
Mr K. A. Asiamah 11:45 a.m.
Mr Speaker, it is not ready, please. All the Reports under that section are not ready, please.
Mr Speaker 11:45 a.m.
Item numbered 4(d) -- Hon Chairman of the Committee.
By the Chairman of the Commi- ttee --
Report of the Committee on Roads and Transport on the EPC/Turnkey Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Aviation) and Contracta Construction UK Limited for a sum of fifty-eight million, nine hundred thousand euros (€58,900,000.00) for the execution of the Development of Kumasi Airport (Phase III).
Mr Speaker 11:45 a.m.
Item numbered 4(e) -- Hon Chairman of the Committee.
Mr Ayeh-Paye 11:45 a.m.
Mr Speaker, the report is not ready.
Mr Speaker 11:45 a.m.
Item listed 4 (f) -- Hon Chairman of the Committee, is the Report ready?
Dr Kwabena Twum-Nuamah 11:45 a.m.
Mr Speaker, the Report is not ready.
Mr Speaker 11:45 a.m.
Hon Members, item listed 5 -- Motion.
Hon Deputy Majority Leader, are we in the position to proceed or not?
Ms Safo 11:45 a.m.
Mr Speaker, we are not ready to proceed on item listed 5, but we are ready to proceed on item listed 6 on the Order Paper.
Mr Speaker 11:45 a.m.
Item listed 6 on the Order Paper -- Motion.
MOTIONS 11:45 a.m.
Chairman of the Committee (Mr Emmanuel K. Gyamfi) 11:45 a.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Committee on Mines and Energy on the 2019 Work Programme of the Ghana National Petroleum Corporation (GNPC).
Mr Speaker, in so doing, I would present your Committee's Report.
Introduction
The 2019 Programme of Activities of the Ghana National Petroleum Corporation (GNPC) was laid in Parliament on 5th February, 2019 by the Hon Minister for Energy, Mr John Peter Amewu, in accordance with section 7(3)(b) of the Petroleum
Chairman of the Committee (Mr Emmanuel K. Gyamfi) 11:45 a.m.
iii. completed feasibility studies
on the gas export pipeline;
iv. procurement of contractor to undertake geotechnical studies ongoing; and
v. the PoD is rescheduled for submission to the Minister for Energy in Q1 2019.
Voltaian Basin Project
The following were achievements made at the Voltaian Basin Project:
i.completed Land Access and Farmer Compensation Agree- ment and processed compen- sations for claimants for shooting of 3 lines (103A, 106 and 101A);
ii. completed construction of explosives bunker at Wenchi and commenced the transfer of explosives;
iii. geochemistry data gathering and analysis completed;
iv. produced satellite imagery justification report ;
v. acquired 1,300 line km of 2D seismic data, and
vi. processed about 905 line km of 2D seismic data.
Gas Business
The Corporation achieved the following as part of its gas business operations:
i.executed all material contracts for the Tema LNG project;
ii. commissioned a new due diligence report to replace the existing due diligence on Gazprom due to the transfer from Gazprom to Rosneft for the Tema LNG project;
iii. blystad Energy Manage- ment, operator of the termi- nal, engaged Ghana Maritime and the Ghana Ports and Harbours Authority on the initial works to be executed at the port;
iv. negotiation completed with Draft Contract being sent to the GNPC Board for appro- val;
v. desktop studies on Ammonia/ fertiliser project completed;
vi. the Ministry of Energy gave a policy direction for GNPC to focus on its upstream projects.
Midstream and Other Projects
a. Prestea Sankofa Gold Limited
Provided financial support to the Prestea Sankofa Gold Limited. An interim re-organisation committee was also set up to revamp the company with reorganisation process ongoing.
b. Marine Patrol Vessels:
The Ghana Navy identified a South African company for the purchase and management of the vessels and commenced negotiation.
c. Gas Evacuation Enclave Roads:
The construction works on the enclave roads were continued and an amount of US$4.14 million worth of certificates was paid.
Capital Projects and Works on Landed Properties
a. Head Office Projects
The Corporation has been engaging the Ministry of Lands and Natural Resources and the promoters of the Energy City Project for the location of the Accra office.
A parcel of land has been allocated to GNPC within the Energy City enclave for its office complex and that of other oil majors. The Corporation, again, has completed an architectural brief with spatial and facility requirement for Corporate Opera- tional Head Office in Takoradi.
b. Research and Technology Centre (RAT)
The Project was successfully reviewed leading to a reduction in the projected cost by US$9 million. Construction progressed steadily and sub-structure works is ongoing.
Processes for the selection of a specialist consultant for the geological and IT components of the project was also initiated.
c. Works on landed properties
The Corporation has completed the renovation of 6th, 7th, and 8th floors and 80 per cent of works on the 5th floor of its head Office at the Petroleum House in Tema. It also undertook refurbishment and redevelopment works on Enpro and Unacourt properties.
d. Digital Transformation
The following were achievements made at the Digital Transformation Project:
1. tender documents for IT Sendee Management was evaluated;
2. scope of work on a disaster recovery solution and IT Security has been completed and currently in the phase of stakeholder engagements;
3. virtualisation: Evaluation of tender documents ongoing, and
4. electronic Data Management and Archiving:
i. 922 boxes scanned for the 3rd phase of the project .

ii. 1,652 Well and Seismic Acquisition Reports in the library have been digitised.

iii. Loaded all seismic data variants in-house unto the Kingdom Suite software.

Corporate Social Responsibility Projects (CSRP)

The following were achieved under CSR programmes:

Education and Training

i. Awarded 65 foreign scholar- ships and 1,000 local scholarships for the 2018/ 19 academic year;

ii. Established four professorial chairs to enhance research and development in four public universities in Ghana;

iii. Completed the construction of a 3-unit classroom block for Salankpang in the Mion district;

iv. Began construction of educational infrastructure (i.e. classrooms, dormitory facili- ties, dining halls and toilet facilities) in eleven (11) schools;

v. Provided laboratory cabinets and hundred (100) laboratory stools to Archbishop Porter Girls' Secondary School.

Environment and Social Amenities

i. drilled 113 boreholes across Ghana;

ii. completed construction of one (1) astroturf while three (3) others are at various stages of completion;

iii. construction of sanitary facili- ties in 6 identified markets are ongoing and near comple- tion.

Economic Empowerment

i. Supported the Western D33d3w Group with Agric Extension services to enhance market access and focus support initiative;

ii. skills training organised for about 50 artisans;

iii. commenced discussions to support fishermen with fishing inputs.

Financial Performance for the Year 2018

The Corporation received a total amount of US$223.43 million as at end September 2018, made up of the following:

i. Jubilee Equity financing (share of development and production cost) US$55.24 million;

ii. TEN Equity financing (share of development and produc- tion cost) - US$94.48 million;

iii. 30 per cent share of net proceeds of Jubilee crude revenue -- US$42.45 million;

iv. 30 per cent share of net proceeds of TEN crude revenue -- US$31.26 million; and

v. Cash balance brought forward from the previous
Chairman of the Committee (Mr Emmanuel K. Gyamfi) 11:45 a.m.
Outlook for 2019
Petroleum Projects
Development and Production Projects
Greater Jubilee Field Develop- ment and Production
The execution of the Plan of Development is expected to be continued and permanently spread more the FPSO at a new heading. Production is expected to average 95,000 barrels of oil per day and an average daily gas export of 95 MMScf/d.
The following activities are also expected to be carried out in 2019:
i. Continue production opera- tions. A total of 34.68 MMbbls of oi l to be produced with a projected total gas export of 34.68 Billion cubic feet (Bcf). The Ghana Group is expected to undertake six (6) liftings in
2019;
ii. continue reservoir studies, production surveillance and management;
iii. permanently spread more the FPSO at a new heading;
iv. drill three (3) and complete two (2) development wells;
v. engineer, fabricate, install and commission subsea infra-
structure relating to wells drilled and completed;
vi. continue the Engineering Procurement Construction and Installation (EPCI) for the Oil Offloading System;
vii.remediate Gas lift Riser-9; and
viii. conduct Operational and Financial Audit.
The total project cost to be incurred by the Greater Jubilee Partners in undertaking these activities in 2019 is US$837.29 million. A total budgetary allocation of US$83.47 million has been made in line with GNPC's interest.
Tweneboa-Enyenra-Ntomme (TEN) Development and Produc- tion
The focus in 2019 will be on accelerating development work to increase production from 65,000 bopd to an average of 71,000 bopd and 15 MMScf/d of gas export. The Corporation will also plan to commence commercial negotiations and sign the TEN Non- Associatcd Gas Sales Agreement with the contractor party.
The following activities will be undertaken in 2019:
i.Continue production opera- tions. A total production of 25.92 MMbbls of oil to be produced and 5.48 Bcf of gas to be exported to Atuabo
gas processing plant. GNPC on behalf of the Ghana Group is expected to make five (5) liftings from the TEN field in 2019;
ii. continue reservoir studies, production surveillance and management;
iii. drill three and complete four development wells;
iv. engineer, fabricate, install and commission subsea infra- structure relating to wells drilled and completed;
v. acquire and process 4D seismic data over the field; and
vi. commence commercial nego- tiations and sign TEN Non- Associated Gas Sales Agreement (GSAs).
The Corporation owes the TEN JV Partners an amount of US$235.11 million for its share of accrued development and production costs as at the end of September 2018, out of which a total of US$46.55 million is expected to be paid in 2019.
The development and production costs for the 2019 work programme will amount to US$532.69 million. GNPC's budget towards the TEN project in 2019 is US$109.25 million.
Sankofa - Gye Nyame (SGN) Development and Production
The focus of work in 2019 will be to resolve the reservoir challenges and achieve target oil production of an average of 30,000 bopd and export gas at an average of 130 MMScf/d (contractor gas). The Corporation together with the OCTP-Partners plans to work to ensure critical gas infrastructure needs are resolved in time to enable full offtake of SGN gas.
Key activities on the SGN project in 2019 include:
a. Continue production opera- tions. Total oil production is expected to reach 10.95 MMbbls and gas export is anticipated to reach a total of 47.45 Bcf in 2019. The Ghana Group is projected to lift two (2) parcels of crude from the field in 2019;
b. continue reservoir studies, production surveillance and management;
c. plan and execute acid simula- tion job on the impaired oil production wells;
d. drill one (1) well and complete two (2) wells;
e. engineer, fabricate, install and commission subsea infra- structure relating to wells drilled and completed; and
f. continue and conclude all commercial agreements including;

i. Gas Sales Agreements,

ii. Gas Transportation Agree- ments,

iii. Interconnection Agreements.

The Corporation also owes the SGN JV partners accumulated development and production costs amounting to US$55.27 million as at 30th September, 2018. The develop- ment and production costs for the 2019 work programme will amount to US$463.00 million. The total amount budgeted for the Corpora- tion's obligation in the SGN Project in 2019 is US$77.20 million.

Contractor Gas

Contractor gas constitutes 76 per cent of the Annual Contract Quantity (ACQ) of gas from the OCTP Field. The adjusted price for the gas is US$7.89/MMBtu. It is expected that gas offtake from the OCTP Field will ramp up to full capacity by the end of first quarter, 2019. The Corporation has budgeted for an amount of US$429.09 million as cost of OCTP contractor gas for 2019.

Gas Service Charge

Gas service charge is the aggregate of the fees and charges in the composite price build up attributed to gas gathering, transmission, and processing. It also includes regulatory levy for the Public Utilities Regulatory Commission (PURC). The total estimated price for all the fees and

charges is US$2.07/MMBtu (though this may be reviewed by PURC by the end of 2018).

An amount of US$145.50 million has been budgeted for gas related fees and charges, which will be paid to the respective institutions and agencies responsible for providing those services.

Other Upstream Activities

Tema-Takoradi Interconnection Pipeline

The Takoradi-Tema Interconnec- tion Pipeline Project is aimed at providing a bi-directional onshore gas transmission pipeline connecting Takoradi and Tema. With the coming on stream of significant volumes of non-associated gas from the Sankofa- Gye Nyame field, this project has become very critical to providing stable capacity for evacuating natural gas from the West to the East of Ghana and ensuring supply-security between the two dominant generation and load centres in Ghana.

In 2019, the Corporation plans to work with project partners to successfully execute the Takoradi- Tema Interconnection Pipeline (TTIP) Project. A budgetary allocation of US$184.00 million has been made to execute the Project in 2019.

Cost of Working Capital for Gas Trading

The Corporation is required to make provision for an amount of US$132.54 million to pay for gas and related fees and charges before pay-

ment is received from downstream gas offtakers. This arises due to the imbalance between upstream payment period of about 10 days on average against downstream collec- tion period of about 60 days. GNPC may however incur penalty for late payment if payment is delayed unduly.

GNPC has made a proposal to the Public Utilities Regulatory Commi- ssion (PURC) to make provision for the recovery of GNPC's working capital financing cost in the price build up. A provision of US$7.95 million representing the interest payable on working capital financing has been made for 2019.

Karpowership -- Power Barge Relocation

The Karpowership deal was signed in 2015 to augment the nation's supply of electricity by 450 megawatts. The power barge has since operated on Heavy Fuel Oil (HFO) which is less environmentally friendly but cost-effective compared to natural gas.

To safeguard full utilisation of indigenous gas resources while ensuring the barge reaches its maximum capacity, plans are underway to relocate its operations closer to the indigenous natural gas source in the West by the end of August 2019. The move is also in line with the Corporation's gas aggregator role to ensure full and efficient utilisation of indigenous gas resources

to support national developmental agenda. The barge, when relocated, is expected to take 60 MMScf/d of SON gas.

The Corporation has budgeted an amount of US$31.50 million to support the relocation of the Karpowership power barge adjacent the Sekondi Naval Base close to Aboadze in the Western Region.

De-commissioning of Saltpond Field

Phase I of the decommissioning of the Saltpond Field continued in 2018. GNPC completed the procurement process and selected a consultant to provide project management consultancy services for the pre-de- commissioning (de-commission studies) phase. The consultant is working with GNPC to prepare a de- commissioning execution plan to be implemented in the second phase (decommissioning phase) of the project.

In 2019, the Corporations intents to focus activities on the following;

i.select an operation and management consultant for the decommissioning project;

ii. select a decommissioning project execution contractor for the plugging and abandoning of the wells;

iii. select a decommissioning project execution contractor for topsides/substructure removal dismantling and waste disposal;
Chairman of the Committee (Mr Emmanuel K. Gyamfi) 11:45 a.m.
Table 2: Details of Explorco's Petroleum Agreement Obligations for
2019
SPACE FOR TABLE 2 -- PAGE 17 - 11.45 A.M.
Deepwater Tano/Cape Three Points Block (Aker Energy)
Aker Energy AS assumed operatorship of the Deepwater Tano/ Cape Three Points block following the acquisition of majority interest of 50 per cent previously held by Hess Ghana in 2018. Consequently, submission of the Plan of Develop- ment has been extended to make way for further appraisal works on the
field. The partners are expected to submit the plan of development to the Minister for Energy by first quarter of 2019, upon successful completion of the new appraisal works.
In addition, the following activities are expected to be carried out in
2019;
i.commence development activity;

ii. conduct post well studies;

iii. Front End Engineering and Design (FEED); and

iv. complete feasibility studies on a gas export pipeline.

There would be no financial commitments towards the project in 2019 since the Corporation's interest in the block is carried for both exploration and development. However, the Corporation will continue to work closely with partners to ensure effective execution of the project within time and budget. The total project cost for 2019 will be fully funded by the contractor since GNPC is yet to acquire its additional interest in the block.

Midstream and Other Projects

Takoradi LNG-WAGL

Negotiations in respect of the project will continue and the agreement signed in 2019. An amount of US$30.00 million has been provided for the project.

Fertiliser Project

The Corporation has identified an opportunity to maximise the value of indigenous gas through the establish- ment of a fertilizer plant. We would continue desktop studies and work with the Ministry of Agriculture, Ghana Gas and other stakeholders towards the realisation of this project. An

amount of US$1.00 million has been provided to support activities.

Gas Evacuation Enclave Roads

Works on the gas evacuation enclave roads progressed steadily in 2018. The project is to facilitate the evacuation of Liquefied Petroleum Gas (LPG) from the Gas Processing Plant at Atuabo and open up adjourning communities to the gas plant. As the national gas aggregator, GNPC's investments towards addressing critical infrastructure deficits is key for a well-functioning gas value-chain.

The Corporation was requested by the Ministry of Petroleum in 2015 to pre-finance the construction of the oil and gas enclave roads in the Western Region on behalf of GNPC to be reimbursed by the Ministry of Finance. As at September 2018, the total value of works certified is US$27.61 million out of which a total of US$3.37 million has been paid. A budgetary allocation of US$25.00 million has been made for 2019.

Prestea Sankofa Gold Limited

(PSGL)

The Prestea Sankofa Gold Ltd. is 90 percent owned by GNPC and 10 percent by the Government of Ghana. The company's performance has consistently declined over the years resulting in financial challenges. The operations of the company have ceased since last quarter 2016.

In 2018, the Corporation established an interim re-organisation

committee and provided financial support to revive the company. The process is expected to continue into 2019 with a view of revamping operations. GNPC intends to later offload interest to potential investors. An amount of US$15.51 million has been earmarked for activities relating to PSGL in 2019.

Non-Petroleum Capital Projects

Accra Head Office

The Corporation continued engagements with stakeholders towards acquiring a permanent office within Government-led Energy City in Accra. In 2018, the Corporation was allocated a 40 acre land within the Energy City enclave for its office complex and that of other oil majors. GNPC wall spearhead the execution of the project by engaging a developer. An architectural brief with spatial and facility requirements for the design of the head office building has been completed.

GNPC in 2017 secured approval from Parliament to borrow an amount of US$75.00 million towards the head office project. The Corporation intends to complete the arrangement for this facility and drawdown as the need arises. The Corporation will commence construction within the designated area in 2019. A total of US$20.00 million has been earmarked towards this project. The total cost for GNPC's office within the Energy City will be determined and made available after detailed design work is completed.

Corporate Operational Head Office -- Takoradi

In line with Management's commitment towards relocating GNPC's operations to Sekondi- Takoradi, the Corporation, in 2018 completed an architectural brief with spatial and facility requirements for a corporate operational office in Takoradi.

Due diligence was undertaken on identified project sites and works are underway to secure parcels of land by end of 2018.

The Corporation is committed to engaging owners of identified properties and other stakeholders towards the realisation of this project. Construction is earmarked to commence in 2019, as such, a provision of US$10 million has been made towards the project.

Research and Technology (RAT) Project

In a programme to redevelop the Laboratory & Data Centre into a modern facility, the Corporation redeveloped a new design for a state- of-the-art Research and Technology Centre to enable effective and efficient information management and repository of the Corporation's oil and gas exploration, development and production data.

The RAT Centre is also to serve as a reference point for training professionals in the use of cutting- edge technology in the petroleum industry. The construction of the RAT
Chairman of the Committee (Mr Emmanuel K. Gyamfi) 11:45 a.m.


Centre commenced in May 2018 and is programmed to be completed in 24 months.

The project has since progressed steadily, and substructure works are currently ongoing. As at end of September 2018, actual physical progress of works stood at 13.62 percent. The focus of work in 2019 is to ensure that the project is executed according to contractual terms. A total of US$25.00 million has been allocated towards planned activities in 2019.

Works on Landed Property

A total amount of US$10.75 million has been allocated to continue undertaking refurbishment works on some selected GNPC landed properties in 2019 as discussed below.

Refurbishment of Petroleum House

The Corporation has commenced major refurbishment works on its current head office building (Petroleum House). The scope of the project is to renovate and upgrade the Petroleum House office building to meet contemporary standards with a unique working space for staff. Refurbishment works continued steadily in 2018. So far, the 6th, 7th and 8th floors of the Petroleum House building have been completed. Total expenditure incurred on the project from inception to September 2018 stood at US$1.68 million.

The focus in 2019 is to complete the remaining floors of the Petroleum House building. Additional scope of work to be completed include redesigning of the outer perimeter of the building and other ground works on parking lots to accommodate growing staff numbers. A budgeted amount of US$5.81 million has been allocated for this project in 2019.

GNPC Clinic

The Corporation has identified a suitable property in West-Airport residential area to be adapted into a state-of-the-art clinic. Spatial planning for furnishing and clinical equipment have been completed and costing for adaptation works has been undertaken. Execution of the Tenancy Agreement for the rental is planned for November, following which payment is expected to be made by end of 2018.

The clinic will be operated by the Corporation with a resident doctor to provide excellent occupational medicine and fit-for-work advisory services. The GNPC Clinic is expected to safeguard staff health and wellbeing and minimise costs in the long term. A provision of US$1.50 million has been made in 2019 to commence works towards operationalising the facility in 2019.

Chapel Hill Completion Works

Following the relocation of some critical operations of GNPC to the Western Region, the Corporation identified and purchased the Chapel Hill residential properties to

accommodate staff in Takoradi. The Chapel Hill facility consists of a mix of two and three bedroom flats/ bungalows totalling 18 units and other ancillary facilities.

Following acquisition, the Corporation in 2018 undertook a survey to scope and identify additional completion works to bring the facility to full functionality. A continuous programme of work is to be followed for the completion works on the
Chairman of the Committee (Mr Emmanuel K. Gyamfi) 11:45 a.m.
Works on Other Landed Proper- ties
The breakdown of works on other landed properties that will be undertaken in 2019 are presented in Table 3 below:
Table 3: 2019 Cost of Works on Other Landed Properties
SPACE FOR TABLE 3 -- PAGE 22 - 11.45 A.M.
Digital Transformation
The Corporation will continue its digital transformation agenda, which began three years ago. This project is in two (2) parts, made up of IT Projects and Data management Projects. A budgetary allocation of US$10.25 million has been made for
2019.
IT Projects
The Corporation will continue with its digital transformation agenda, which began three years ago. Activities to be undertaken in 2019 include;
i.IT security (Proactive Security, incident and event

management solution in- cluding end-to-end security solution)

ii. Disaster recovery systems

iii. Enterprise resource manage- ment solutions Phase II

A budgetary allocation of US$8.22 million has been made to support the project.

Electronic Data Management and Archiving

A budgetary allocation of US$2.03 million has been made towards the electronic data management and archiving project in 2019.

Data Transcription

The project involves the digitisation and vectorisation of all seismic sections and logs in order to ensure data integrity, usability and preservation. As at the end of September 2018, the first phase of this project which involves transcription of all seismic data on tape and storage had been completed. A copy of this data was made available to Petroleum Commission.

In 2019, the following activities will be undertaken:

i. Digitisation and Vectorisation contractor would be pro- cured;

ii. equipment including servers and storage devices would be procured and configured;

iii. staff capacity would be built in areas of software and hardware utilisation and management.

Digital Document Records Management (EDRMS)

GNPC's physical documents, records and archives are being digitised in a format which can be integrated into the Laserfiche EDRMS Solution. As at the end of September 2018, a 1,000 boxes of documents out of 8,900 boxes had been scanned and digitally filed. In 2019, the Corporation will continue scanning and filing of documents and also commence the digitisation phase of the project. It will also purchase additional equipment and storage to facilitate the EDRMS Project.

Reference Database / Open Data Portal

Open Data Portal is GNPC's data viewer that makes exploration, production and industry data available to company personnel, prospective investors and other stakeholders. The information consists of Wells Data, Licences, Seismic Surveys, Facilities as well as a link to Geographic Information System (GIS) to enable users view the data spatially.

Phase 1 of the Open Data Portal has been completed and launched which involved making data available to all staff on the Local Network.

The Phase II of the open data will commence in 2019 and will involve:

i. purchasing of servers of larger capacity; and

ii. launching of the portal over the internet.

Corporate Social Responsibility (CSR) Projects

GNPC views sustainability as a strategic business function aligned with its core business. Following the re- focusing of the Corporation's approach to CSR in 2017, significant projects have been executed in 2018 towards consolidating the impact of CSR on the people of Ghana. In 2019, the Corporation, through the GNPC Foundation, will continue to implement its CSR agenda under the following three focal areas

i. education and Training -- with emphasis on Science, Technology, Engineering and Mathematics (STEM),

technical skills and special needs education.

ii. economic Empowerment -- focusing on targeted economic interventions that promote ventures for sustained livelihood for persons affected by oil and gas activities.

iii. environment and Social Amenities -- investing to protect the environment and improve the social conditions of Ghanaians.

In addition, the Corporation will collaborate with some JV Partners in efforts to harmonise CSR initiatives by players in the upstream oil and gas sector. This integrated approach to CSR will be effective in building synergies that accrue a more profound impact of these projects as well as gain and retain acceptability by host communities.

A total of US$43.05 million has been budgeted in 2019 to cater for the Corporations CSR obligations in 2019. Table 4 below presents details of allocations to the various CSR project areas.
Chairman of the Committee (Mr Emmanuel K. Gyamfi) 11:45 a.m.


Finance is to bring for Parliamentary approval the amount.

Corporate Social Responsibilities

In justifying an allocation of appreciable amount of US$43.05 million for corporate social programmes, the Corporation explained that Ghana has adopted petroleum local content and local participation policy with an objective of maximising the benefits of oil and gas endowments. However, the sector is currently dominated by foreign participation in terms of key positions and major contracts making the realisation of such policy objective impossible.

The three-prong concept of the Corporation's CSR is therefore geared towards creating harmonious condition for the development of requisite local human resources for Ghana's petroleum industry. The programmes (Education and Training, Economic Empowerment and Environment and Social Amenities) are interdependent in that investment in Education and Training can only become meaningful and sustainable when people are healthy and there is peace and security at the oil producing communities to work.

Conclusion And Recommendation

The Committee has thoroughly scrutinised the Programme of Activities of GNPC and the associated financial requirements for the 2019 Financial Year and it believes that the activities

outlined fall within the scope of the mandate of the Corporation as stated under PNDC Law 64.

The Committee, therefore, re- commends to the House to adopt its Report and approve the 2019 Programme of Activities of the Ghana National Petroleum Corporation (GNPC) in accordance with Section 7(3)(b) of the Petroleum Revenue Management Act, 2011 (Act 815).

Respectfully submitted.
Mr Mutawakilu Adam (NDC -- Damongo) 11:55 a.m.
Thank you, Mr Speaker.
I beg to second the Motion.
Mr Speaker, your Committee had the opportunity to look at the GNPC Work Programme; subsequently, a revised programme was brought. We realised that in the fund requirement of GNPC, there was an item listed royalty oil that was US$232.82 million, and it is about GH¢1.2 billion, which GNPC recognises as revenue contrary to the Petroleum Revenue Management Act. As a result, that was taken out.
Mr Speaker, when it was taken out, we realised that the deficit had increased because we thought by taking out the figure, GNPC would have reduced certain expenditure items, so that at least their net position would be sizeable.
Mr Speaker, but as a result of taking that out, GNPC's fund requirement came to US$376.47 million, which is about GH¢ 1.9 billion. The expenditure shot up to US$870 million, which is GH¢ 4.3 billion, with a net position of US$493.59 million; that amounts to GH¢ 2.5 billion. We realised that what GNPC is required to borrow is more than what is required for the year. We believe that it is not the best, as a company. They had reservation in certain key items -- one is the upstream gas payment obligation of US$250 million.
Mr Speaker, under the ENI Agreement, there is supposed to be a reserved escrow account for GNPC such that, when the gas is consumed and we are not able to pay, ENI could fall on that reserve escrow account.
Mr Speaker, since October 2018, the Volta River Authority (VRA) has assumed about US$14.2 million monthly on gas, but it is unable to pay. We expect that if VRA was able to pay, the fund requirement would have been minimised. If it continues, does it mean that every year GNPC would have to borrow to put in the reserve escrow account to pay ENI? If it continues, GNPC would accumulate huge debts on their balance sheet, and it would not go well with what we expect GNPC to do.
It also goes to confirm the Minority's position that the power sector is bankrupt. It is in liquidity challenges, and that is causing dumsor. This is a clear example.
Mr Speaker, what is worrying to us is the investment of US$60 million in the petroleum hub. Apart from the policy document, there is no concrete document to support the expenditure. The Committee is just given a sheet of paper itemising expenditure. We think it is not right; we expected, at least, a maximum of US$10 million to undertake feasibility studies, acquisition of land and the other things that are necessary to lay the foundation for bigger projects.
The Minority has reservations on lumping it just like asking them for a blank cheque, so that they would do whatever they want with it. We support the Report; but the Minority would not stand with that item, and we would want it to be on record. We cannot approve something that is just one page.
Mr Speaker, with these few words, I would request Hon Members to support the Report, except the item on US$60 million.
Mr Speaker 12:05 p.m.
Thank you very much, Hon Member, for your contribution.
Question proposed.
Mr Kobina T. Hammond (NPP -- Adansi Asokwa) 12:05 p.m.
Mr Speaker, I am grateful to the Hon Ranking Member who just spoke. He encapsulated the thinking of the Committee and, indeed, the gravamen of the Report itself in the few
Mr Kobina T. Hammond (NPP -- Adansi Asokwa) 12:05 p.m.


comments that he made. Particularly, with the financial predicament of GNPC, he relates that back to the difficulty that the various electricity stakeholders experience, particularly,

VRA.

Mr Speaker, they take the gas and from what we hear -- he gave a figure, which is about US$14.5 million a month; there is a difficulty. We just encourage Ghanaians, as a whole, to pay up because if we do not, these companies would be in cataclysmic difficulties and the end result would be that GNPC would be asked to carry a burden that they were not necessarily structured to carry. So, Mr Speaker, we plead with them to pay up so that GNPC would be eased of their difficulties and liabilities.

Mr Speaker, quite a lot of items have been applied in the Report. There is a lot on the plate of GNPC, but my Hon Colleague took an issue with the investment in the petroleum hub. I am not sure what he meant by the fact that we expected some documents which did not come.

Mr Speaker, at the various Committee meetings that we had about this particular matter, the Hon Minister was at pains to explain and to establish the importance -- indeed, the criticality of the items that are supposed and are really outlined here and why the hub is necessary.

Mr Speaker, he went on to identify them and actually talked on item 11.5, the very last one of the bullet points,

about the co-investment of GNPC with selected partners to establish a company in the selected area. Mr Speaker, they might do whatever they want to do either in relationship with the oil, the refinery, fertiliser plant, petrochemical industry -- quite a few of them there. They were identified together with their significance explained to us. I actually left the meeting with the belief that we had sufficiently been explained to and were satisfied. I am not so sure what he now means by his Hon Colleagues not being satisfied with that.

Mr Speaker, I think that every item here and the investment in the petroleum hub would inure to the interest of Ghana.

Mr Speaker, I think this is a matter that troubled just him. So if we could accept the explanation that was rendered by the Hon Minister and the Chief Executive Officer of GNPC and his officials, we would invite the House to support it.

Now, let us put it on record that giving them that money, which is only US$60 million “only” in the context of the amount of money GNPC handles — but the fact that we approve that GNPC should have the US$60 million does not necessarily mean that somebody would sign off a cheque for that much for them to do as they please. No. At any material time, there would be crosschecks and balances as to what exactly that US$60 million would be used for. So I do not think that there should be any panic in the House at all.

Mr Speaker, I invite my Hon Colleagues to support this Motion, and let us give GNPC the approval to get on with the very difficult job of handling all these difficult areas of their operation.

Thank you very much, Mr Speaker, for the opportunity.
Mr Speaker 12:05 p.m.
Thank you very much, Hon K. T. Hammond.
Hon Dr Donkor?
Dr Kwabena Donkor (NDC -- Pru East) 12:05 p.m.
Thank you, Mr Speaker, for the opportunity to contribute to the Motion.
Mr Speaker, in supporting the Report of the Committee, I would want to refer to paragraph 10.3.1 on the work programme; item (iv) and (v) -- In item numbered (iv), GNPC asked for funds to drill one exploratory well. In item numbered (v), GNPC asked for money to undertake environmental impact assessment.
Mr Speaker, drilling onshore is a totally different ball game from drilling offshore. Thank God Mr Speaker is in the Chair, having been a former Hon Energy Minister.
Mr Speaker, the complications of onshore drilling or exploration is far more complex than offshore. There are surface rights, human settlements, and all other issues.
Mr Speaker, we have not yet done the environmental impact assessment, how then do we go ahead to drill an exploratory well? We should concentrate on doing the right things first.
Mr Speaker, per chance, if they drill a well and find oil in commercial quantities, we cannot halt the rush, that we, as a nation, would want to go into in order to go into commercial production, but we would have done the fundamentals.
Mr Speaker, there are settlements and livelihoods at stake. Therefore, I would support the Committee's Report, but insist that we defer the drilling of the exploratory well until environmental impact assessment and the various studies have been done.
Mr Speaker, we have only shot a a bit of 2D seismic. The interpretation and analysis are yet to be done. The 3D seismic is yet to be shot, so why the rush to drill an exploratory well when we have not done the environmental impact assessment?
Mr Speaker, this is about Ghana. We must do things and do them right. It would be a tragedy if we go ahead drilling without an environmental impact assessment. This is the Voltaian basin where people live and earn their livelihood. There is a lot of ground work to be done before we go into commercial drilling.
Mr Speaker 12:05 p.m.
Hon Member, we have got that point; your next point.
Dr Donkor 12:15 p.m.
Mr Speaker, what is the nature of the environmental impact assessment? There are different types of environmental impact assessments. I am not convinced that the environmental impact assessment for settlement is necessarily the same as offshore.
Mr Speaker, I would support the Report, but I want to put it on record that until an environmental impact assessment is properly done, some of us would find it difficult to support any drilling of an exploratory well.
Thank you, Mr Speaker.
Mr George M. Duker (NPP -- Tarkwa-Nsuaem) 12:15 p.m.
Mr Speaker, it is important for us to observe that GNPC is the national oil company and it is our baby, which we need to protect at all times.
Mr Speaker, it is on record that your Committee met GNPC, and they eloquently explained to the Commi- ttee why we should have an oil industry hub in the western enclave of Ghana.
Mr Speaker, if we take Kuala Lumpur in Malaysia -- I am mentioning Kuala Lumpur because we started with Malaysia with the same per capita income. Petronas Towers has been established in Kuala Lumpur, and it has done so well in contributing to the economy of Malaysia.
Mr Speaker, also, the national oil company in Abu Dhabi has employed
not less than 25,000 people out of the establishment of this hub. It is not ending there. In Calgary, Canada, they have a hub and these countries that have oil have established oil hubs and what prevents Ghana from having an oil hub? If we invest US$60 million in our hub, what is wrong with that?
Mr Speaker, I am worried that the Hon Ranking Member is emphatically stating that they did not bring up a detailed report to that effect. At the Committee level, we indicated that we needed a list of what they will do with the money and they have provided that document to us.
It is not even ending there as in Houston, they have a hub to that effect and so, what is wrong? Can we not grow as a nation and have a hub in the Western Region of Ghana? Is it not important to have an oil refinery or hub in the western enclave and is that what we are telling Ghanaians? It is time for us to grow as a nation.
Mr Speaker, this Corporation will continue to establish and support the GNPC to have a hub any time necessary.
In their presentation, they went on to outline their corporate social responsibilities and I am glad that they took into consideration the Act that established the local content. They are doing well in terms of education and training, economic empowerment and environmental and social amenities. These are entities that your Corpora- tion is doing well.
Mr Speaker, what I observed and the Committee also mentioned is the aspect of a leakage that is happening around the Saltpond Oil Field. They contributed that there is the need for us to speedily have it de-commi- ssioned and that has also been taken care of at the Committee level.
It is also time for us as a nation to do away with this menace of ‘take or pay'. We can have a principle of ‘take and pay'. If you look at the upstream gas commitment, we are committing not have less than US$42 million a month as a result of ‘take or pay' and we do not have the gas infrastructure. This time around, the Government is working so hard to put up the infrastructure to consume the stranded gas. God willing, by the month of August, we will move the Karpower to the western enclave to consume this stranded gas and that is also revealing as your Committee was excited to see that commitment from the GNPC.
Mr Speaker, I will not bore you with much words but urge the House to elegantly support this Report and deal with it and in the future, the GNPC is going to be a Corporation to support this nation.
Mr Speaker, I so submit.
Mr Speaker 12:15 p.m.
One more from each Side and then Leadership. So arrange yourselves accordingly.
Mr Edward A. Bawa (NDC -- Bongo) 12:15 p.m.
Mr Speaker, thank you very much for the opportunity to contribute to the debate. In doing so, it is important to clearly state that there is obviously a legal basis for which this activity was directed to the Committee on Mines and Energy.
Mr Speaker, it gets its basis from the Petroleum Revenue Management Act, 2011, Act 815 which indicates that part of oil proceeds must be committed to the GNPC for its work. Indeed, part of the Act indicates that, the GNPC has to bring a Work Programme annually for approval. The basis for this is to ensure that moneys that are committed to the GNPC are used judiciously, which is the keyword.
Mr Speaker, first of all, I will go to the item that has been discussed thoroughly by other contributors which has to do with the petroleum hub. You will recall that last year, a look at the original document that was brought to Parliament by the GNPC, there was this US$50 million alloca- tion for the establishment of a refinery.
It was supposed to be a 15 per cent stake by Government in a future refinery that was supposed to be established in the Western Region. Last year, your Committee rejected this particular request on the basis that there had not been a feasibility study report that will give us the viability of the project and why we should be committing US$50 million for an establishment of a future refinery.
rose
Mr Speaker 12:15 p.m.
Order! Hon Chairman of the Committee, do you come on a point of order or correction?
Mr Gyamfi 12:15 p.m.
On a point of order. Mr Speaker, the Hon Colleague is
saying that the Committee rejected the proposal by the GNPC in the year 2018 for the establishment of a refinery because feasibility studies had not been done.
Mr Speaker, that was not the case. If you take the Committee's Report for the 2018 Work Programme for the GNPC -- what happened at the
Committee was that, that particular request did not come with the original Work Programme and that the Committee was not comfortable taking on board that request. That was what happened. So it was not on the basis that feasibility studies had not been conducted and that was why the Committee rejected it.
Mr Speaker, thank you.
Mr Speaker 12:15 p.m.
Order!
Mr Bawa 12:15 p.m.
Mr Speaker, it is important for the Hon Chairman to realise that even this year, there were certain aspects of this particular Report that we are discussing today that was not part of the original document that came to Parliament. Indeed, on the original document, they had asked for another US$50 million for equity stake for a future refinery. It was an amendment of that at the Committee level that they changed the wording from a refinery into a petroleum hub.
So it is not strange that last year, even though the original document did not have that as part of the Order Paper Addendum that came to the Committee, it was clearly stated that they needed US$50 million for that and we indicated that, after all, the GNPC did not even have the mandate to do that as it was a downstream activity and the GNPC is not a fully integrated organisation.
So we felt that they needed to keep to their activities upstream and therefore, we rejected it. This year, it
has come again in the same form but at the Committee level, it was changed to mean that it was a petroleum hub.
Mr Speaker, I want to make --
rose
Mr Speaker 12:15 p.m.
Hon Member, do you have an objection or a correction?
Mr Afenyo-Markin 12:15 p.m.
Mr Speaker, rightly so.
Mr Speaker, my respected Hon Colleague on his feet just submitted that the GNPC is not a fully integrated organisation. Unless, he slipped, he should correct himself before [Interruption] --
Mr Speaker, if you argue that the GNPC is not a fully integrated organisation in respect of registration in terms of object to the particular mandate that it is carrying out, then what are you suggesting?
Mr Speaker, my Hon Colleague does not seem to appreciate the very issue on the Floor. In the past --
Mr Speaker 12:15 p.m.
Integrated or not integrated?
Yes, Hon Member.
Mr Afenyo-Markin 12:15 p.m.
Mr Speaker, he is using his left hand --
Mr Speaker 12:25 p.m.
Hon Member, are you responding to the Hon Member or to me?
Hon Member, you would address only me. Is it integrated or not integrated?
Mr Bawa 12:25 p.m.
Mr Speaker, thank you very much and I am sorry for that.
Mr Speaker, in the oil industry when an oil company is fully integrated, then what it means is that it combines the upstream, midstream and the downstream. If we look at the current architecture in terms of the oil industry, we have a separated upstream company and that is GNPC and we have downstream companies that are also part of state entities. Therefore, when I say as an example that the GNPC is not a fully integrated oil company, then I simply mean that the mandate as per its establishment does not extend to downstream activities.
Mr Speaker, but it is important to state this particular --
Mr Speaker 12:25 p.m.
Hon Member, so how relevant is that when we are talking about exploration matters?
Mr Bawa 12:25 p.m.
Mr Speaker, it is relevant because GNPC is venturing into refinery and this is a purely downstream activity. This is the point that I made.
Mr Speaker, but it is important to also state that after we demanded --
rose
Mr Speaker 12:25 p.m.
Yes, Hon Member.
Mr Hammond 12:25 p.m.
Mr Speaker, thank you very much.
Mr Speaker, my Hon Colleague is continuously misleading --
Mr Speaker 12:25 p.m.
Hon Member, in view of what has been just stated, I would want you to patiently respond if you care; that GNPC by its mandate has no business venturing into certain areas.

Hon Members, let us listen to one another.
Mr Hammond 12:25 p.m.
Mr Speaker, I would deal with it but give me a second. My Hon Colleague is misleading the House because the Hon Chairman made the point that when the issue of refinery came up the last time, it was not rejected by the Committee. Mr Speaker, it was never rejected and as the Hon Chairman explained, it was not dealt with because it was found out that it was not part of the compendium of the documents that originally came to this House. Mr Speaker, that was the reason we decided to set it aside for the time being, but this time round it has been encapsulated properly in the document that was laid.
Mr Speaker, to a specific point that he missed, I would invite him to go and read the GNPC Establishment Act. He has not read it and he has come to this House to tell us that GNPC does not do --
Mr Speaker 12:25 p.m.
You would invite him to go and read it so that when he reads he would find what? [Laughter]
Do not just leave it at that.
Mr Hammond 12:25 p.m.
Mr Speaker, I like that because under you as the Hon Minister for Energy, I recall perfectly a Question on GNPC to come back to their core mandate was discussed variously and among one of the core objects was to simply integrate their activities. That is to drill, refine oil, explore, export and convert it to whatever shape. Mr Speaker, so refinery is an integral part of the oil industry that GNPC is involved in.
Mr Speaker, I do not understand what he is talking about. He should go to sections 2, 3 and 4 of the Act that they deal with the objects and activities of GNPC. Mr Speaker, the answers are there.
Mr Speaker 12:25 p.m.
Hon Member, would you advise yourself on the objects of GNPC? That is why I quickly drew the attention of Hon K. T. Hammond to the core issue and I would want you to address yourself to that core issue now, otherwise you would have to withdraw. And I mean that for the records.
Mr Bawa 12:25 p.m.
Mr Speaker, I am very convinced and I am well-grounded on the fact that the GNPC's mandate is limited just to the upstream as per the
Act that established it. Mr Speaker, so I am very --
Mr Speaker 12:25 p.m.
I do not want us to just go forward and backwards.
Hon Dr Donkor, this is a question to you in terms of the parameters of GNPC's mandate. Hon Members, let us get some of the things as a factual issue.
Dr Donkor 12:25 p.m.
Mr Speaker, per Act 919 which also encapsulates GNPC's activities, GNPC is an upstream exploratory company. In the original PNDC Act -- at that time GNPC was given --
Mr Speaker 12:25 p.m.
Hon Members, do you not want us to --
Dr Donkor 12:25 p.m.
Mr Speaker, in the original PNDC Act of 1983, GNPC was given a role of any other business and that was what led it into cocoa and other things. Mr Speaker, but currently the practice is that GNPC should be an upstream exploration company.
Mr Bawa 12:25 p.m.
Mr Speaker, thank you very much and I thank my senior Hon Colleague for indicating it clearly that as the current Act stands, GNPC is restricted to upstream activities.
Mr Speaker, but what is more interesting in this is that after we had asked them to give us documentation on how the US$50 million would be
expended, this is what they did exactly; they brought us a half-paged document indicating that in terms of their core investments to a future partner, they would need US$50 million.
The second line was for land acquisition that they need US$8.5 million and for environmental impact studies, they would need US$1.5 million. Mr Speaker, that was the documentation that accompanied it for this Parliament to approve an equivalent of GH¢300 million for usage. That was why we said that as per the Petroleum Revenue Manage- ment (Amendment) Act (PRMA) which indicates that we must use these moneys judiciously, we felt that this particular amount of money --
rose
Mr Speaker 12:25 p.m.
Hon Chairman of the Committee.
Mr Gyamfi 12:25 p.m.
Mr Speaker, my Hon Colleague is seriously misleading the House.
Mr Speaker, this was the request that the Committee made to the Hon Minister, that the US$60 million should be broken down. Mr Speaker, the Hon Minister did exactly that and this is the letter that was submitted to that effect.
Mr Speaker, at the Committee level, we said that when they bring the breakdown, then with the fine details of what was to be implemented by mid-year, the Committee would engage GNPC and the Ministry to look at that. This was agreed by every Member of the Committee.
Mr Speaker 12:25 p.m.
The breakdown was duly provided and that is why we have the breakdown as we have it now.
Hon Member, you would conclude.
Mr Bawa 12:25 p.m.
Mr Speaker, the next point that I would want to talk about and which is very important has to do with the fact that GNPC has asked that we give them US$184 million as part of their expenditure for the reverse floor, that is, evacuating stranded gas from the western enclave into the eastern enclave. Mr Speaker, but it is very interesting that the same GNPC has also asked that we give them US$31.5 million to relocate the West African Gas Limited (WAGL) Project from the eastern enclave -- which is supposed to supply us with liquefied petroleum gas -- into the western enclave where we already have stranded gas.
Mr Speaker, the question now is, why would they want us to expend US$184 million to evacuate gas from the west to the east and at the same time they are asking us to give them another US$31.5 million to bring gas from the east to west? Is that not sabotaging their own project?
Mr Speaker, what is even more intriguing besides that is that you would realise that when the ENI Agreement was signed, the gas price that was
indicative and after the full cost had been established, we would then have savings.
Indeed, ENI itself and the Government had indicated to us that the amount of money that was used for the project -- the indicative cost of project was around US$691 million. Mr Speaker, but in their own final report it was clear that we had made a savings of about US$300 million and this amount was supposed to be used for two main things. One was to apply it on the gas price to bring it down and the second was to use it to fund the reverse flow. As we speak today, why would GNPC be asking us -- [Interruption.] --
Mr Speaker 12:25 p.m.
Hon Members, order!
Hon Member, you are concluding and you are starting another point. I know that another Hon Member is on the wait.
Mr Bawa 12:35 p.m.
Mr Speaker, yes. So, I would just conclude with this point.
Mr Speaker 12:35 p.m.
Thank you very much.
The next Hon Member from my right?
Yes, Hon Member?
Mr Kwabena Ohemeng-Tinyase (NPP -- Kade) 12:35 p.m.
Mr Speaker, I thank you for the opportunity.
Mr Speaker, we are at sea now because the Report from your Committee indicates that the two sides of the Committee agree to this document. They all agree to this document, and in finality, they have brought this document before Plenary for approval. How come that the Minority Side is now criticising the same thing they have approved at the Committee? There was no dissenting views stated in this Report.
Mr Speaker 12:35 p.m.
Hon Member, no Hon Member is restricted by whatever happens at Committee to freely air his or her views on any matter whatsoever. In fact, a committee's unanimous recommenda- tion could be accepted or not by this Honourable House. Say something else, please.
Mr Ohemeng-Tinyase 12:35 p.m.
Mr Speaker, in saying something else -- [Laughter] -- I rise to contribute to the adoption of this Report on the grounds of the very good social responsibility that GNPC has exhibited over the years and has been talked about in this Report, on top of what was done last year.
We have always talked about local content in this country. The local content we understand is that we need to train our people to take over the foreign expertise we have in our system especially in the area of oil and gas. There is the need to have more of our local experts in the field. GNPC has done this excellently.
Coming back to our local level, look at the various infrastructural
developments GNPC has undertaken last year and this year in support of educational and all other things that would help the development of the country. Talk about the boreholes. It is interesting to note --
rose
Mr Speaker 12:35 p.m.
Hon Member, do you stand on a point of order or correction?
Mr Hammond 12:35 p.m.
Mr Speaker, indeed, yes. I have got the Act here; the bit you asked me to deal with.
Mr Speaker, section 2(3)(f) provides as follows 12:35 p.m.
GNPC may
“(f) engage in any other activities alone or in association with others as may be necessary or desirable for the carrying out of its petroleum operations.”
Mr Speaker, this is the law. So “refinery” is not cooking my mother's kenkey; “refinery” is oil, and it is related to the activities of GNPC.
Mr Speaker 12:35 p.m.
Information granted.
Mr Ohemeng-Tinyase 12:35 p.m.
Mr Speaker, further to what I was saying, regarding the hub they were talking about go to Malaysia, at one-stop end, you would get everything excellently about oil. Why do we not want such a facility in Ghana; a facility that would
Mr Speaker 12:35 p.m.
Thank you very much, Hon Member.
Leadership -- Yes, Hon Member?
Mr John A. Jinapor (NDC -- Yapei/Kusawgu) 12:35 p.m.
Thank you very much, Mr Speaker.
There has been a debate about the core mandate --
Mr Speaker 12:35 p.m.
The conclusion by Hon Leaders would be five minutes from each Side.
Mr Jinapor 12:35 p.m.
Mr Speaker, page 3 of the Hon Chairman's Report states
the strategic objectives of GNPC. This is the Hon Chairman's Report, and it gives us the strategic objectives of
GNPC.
Mr Speaker, but there is a fundamental issue I would want to raise. I refer to our own Budget Statement approved in this House. I refer to page 2010 of the Budget Statement of 2019, Appendix 4b. In that Report, this House approved a total amount of GH¢1.2 billion as receivables for GNPC. However, if you look at GNPC's proposed budget to us, GNPC's total oil revenue has been put at GH¢1.7 billion.
Mr Speaker, there is a clear discrepancy. This is what this House has proposed. I say so in accordance with the Petroleum Revenue Management Act, (Act 815) which states that all oil revenues whether from gas, oil, royalty, surface rental and from all other sources must first of all be lodged into the Petroleum Holding Fund. From that, the net of it which constitutes GNPC's equity and participating interest as far as any other funds shall be released to them. Parliament has the supreme authority to approve how much ought to go to
GNPC.
Mr Speaker, so how could Parliament under your able leadership approve GH¢1.2 billion and GNPC then present GH¢1.7 billion to us and expect us to approve?
Mr Speaker, this is illegal. This is not partisan. It is a serious matter, and it goes to the core. We cannot pass an Appropriation Act only for GNPC
to go and violate it and expect this House to approve it.
Mr Speaker, I am pleading with the Honourable House; let us do what is proper and right. If GNPC believes that GH¢1.2 billion is less than what they require, they should justify it, and that should be captured in the Budget to be approved in the Appropriation Act. But when they justify and we give them GH¢1.2 billion and they later turn round and come to us that we give them GH¢1.7 billion, it is absolutely illegal. I am dealing with the revenue side.
Mr Speaker, let me quickly also deal with the expenditure side.
Mr Afenyo-Markin 12:35 p.m.
On a point of order. Mr Speaker, I have two issues.
Mr Speaker 12:35 p.m.
It can be only one issue; the issue on which you stood. Go on.
Mr Afenyo-Markin 12:35 p.m.
Mr Speaker, with respect, Hon K. T. Hammond had made a correction.
Mr Speaker 12:35 p.m.
Hon Member, please, tell us what you are objecting to specifically. Do not refer to Hon K. T. Hammond.
Mr Afenyo-Markin 12:35 p.m.
Mr Speaker, I am objecting to the submission that per paragraph 6.0 whereupon the Committee talks about strategic objectives, that provision overrides the legal position of the mandate of
GNPC as quoted by Hon K. T. Hammond.
Mr Speaker, Hon K. T. Hammond --
Mr Speaker 12:35 p.m.
Hon Member, you are going backwards.
Mr Afenyo-Markin 12:35 p.m.
Mr Speaker, that is the first.
Secondly --
Mr Speaker 12:35 p.m.
Hon Member, I would not allow you to go back. I have told you I did not see you standing at that time. Now that I have seen you, I would want you to specifically object to the latest statement. So say what the Hon Member said and go on to tell me.
Mr Afenyo-Markin 12:45 p.m.
Mr Speaker, the Hon Member argues rather forcefully, that we approved an amount less than the work plan, which is before us. To him, if we proceed with this Work Programme, it would amount to an illegality.

Mr Speaker, Hon Members should keep quiet and show some respect because I am their Hon Colleague. Sometimes, if Hon Members listen quietly, they would be able to note down some things and correct it. The
rose
Mr Afenyo-Markin 12:45 p.m.
Mr Speaker, they must sit down!
Mr Speaker 12:45 p.m.
Hon Member, you are not the one to tell anybody to sit down. You should make your point.
Mr Afenyo-Markin 12:45 p.m.
Mr Speaker, I could make my point in an environment --
Mr Speaker 12:45 p.m.
Hon Member, a point of order is in the process, and there could be no point of order within a point of order, like you know.
Mr Afenyo-Markin 12:45 p.m.
Mr Speaker, as a result of this rather unpalatable intimidation --
Mr Speaker 12:45 p.m.
Hon Member, no comments. You should make your point.
Mr Afenyo-Markin 12:45 p.m.
Mr Speaker, all that I am saying is that the Hon Colleague is creating the impression that by approving this work plan, we would be engaging in an illegality, and that is not correct. What was approved in the Budget Statement and what is before us, he must properly reconcile the facts as he is putting them out, before he goes on that angle of we engaging in an illegality.
Mr Speaker, that cannot be the case, and that is the point. This is because even in the past, the Work Programme was never brought at all.
They were not bringing it. At the time that the Hon Member was there in the Executive, the Work Programme was not even coming at all. We then in the Minority forced for this law to be respected. So if he creates this impression -- In any event, the Hon Member should not now talk about the issue of equity participation and all that to mean that we are spending more than was approved.
Mr Speaker, the Hon Member should put it in proper context, so that we appreciate his submission.
Mr Speaker, thank you very much, the Hon Member should get up and do the needful without frowning.
-- [Interruption] --
Mr Speaker 12:45 p.m.
Hon Members, Order!
Hon Member --
rose
Mr Speaker 12:45 p.m.
Yes, Hon Deputy Minority Leader?
Mr Avedzi 12:45 p.m.
Mr Speaker, thank you very much for the opportunity.
Mr Speaker, the Hon Colleague spent almost four minutes on a point of order.
Mr Speaker 12:45 p.m.
There were interruptions.
Mr Avedzi 12:45 p.m.
Mr Speaker, there were interruptions, but the time that
he spent should be taken account of, when the Hon Member resumes making his contribution.
Mr Speaker, I am not directing you, but I am only drawing your attention to the period and the time that the Hon Member used on the point of order, so that you could give the Hon Member an extension.
Mr Speaker 12:45 p.m.
Yes, Hon Member?
Mr Jinapor 12:45 p.m.
Thank you, Mr Speaker.
Mr Speaker --
Mr Speaker 12:45 p.m.
Hon Member, just a moment.
To assist you, if a prior amount had been allocated, can a body come to this Honourable House, the sole House that approves of moneys, and then ask in effect for more, or ask for something for which the Executive could subsequently provide for by way of a supplementary budget or any other legitimate means? Then, we all make progress.
Hon Members, Order!
Mr Jinapor 12:45 p.m.
Mr Speaker, I am happy that you have raised this matter. That is why there is an Appropriations Act and that is why there is the Public Financial Management Act. These laws state that when under your guidance we approve of the Appropriations Act, we could go below it, but we could never exceed it.
Mr Speaker, if there is the need to exceed it, then the Hon Minister must come before this House under this Act, and it is only the Hon Minister for Finance that has the authority, and even with that, he must come and justify for us the implication in terms of the fiscal rigidities and all that -- the fiscal implications, then we would take the totality of everything into consideration, and then we approve it.
Mr Speaker, if we accept what my Hon Colleague is saying, what he is saying is that we should give the Ministry of Education US$100 million and they could then come with US$200 million. The Judiciary could come with US$300 million, and other people could come -- it would throw the Budget Statement out of course, and that is why there is the Appropriations Act. When we go beyond that, there are sanction regimes captured in this Act. I however have a lot on my table, and so with your permission, I would move on, and knowing that you are a benevolent Speaker, I believe that you would give me extra time to deal with this.
Mr Speaker 12:45 p.m.
Hon Member, proceed.
Mr Jinapor 12:45 p.m.
Thank you, Mr Speaker.
Mr Speaker, GNPC is asking us that we should approve a pro- gramme, which would incur a liability of about US$500 million this year alone. If we take all our oil revenues
Mr Jinapor 12:45 p.m.


since we started drilling oil in this country, with three FPSS and all the oil, on the average, the whole of this country would make about US$500 million annually. However, they ask us to approve of a programme for them, such that they would incur a liability in just one year, US$500 million. Where is the concept of prudence, and where is the concept of responsibility? When a corporation is going through financial challenges, we do what we call prioritisation. We do first things first, and that is why we are saying that some of these expenditure --

An Hon Member -- rose --
Mr Speaker 12:45 p.m.
Hon Member, there would be a right of reply from your end, so please hold on.
Yes, Hon Member, continue.
Mr Jinapor 12:45 p.m.
Mr Speaker, they should hold some of these expendi- tures.
Mr Speaker, with this US$250 million that we are debating, I would refer to the law I quoted, article 55, and it says that subject to article 181 of the Constitution and this Act, the Minister has the authority to raise loans on behalf of the Government, both within and outside the country, in local and foreign currency. The Act goes on to list all the entities, including corporations.
Mr Speaker, GNPC is a Corpora- tion and so at the Committee, we said that we should get a written response
from the Hon Minister for Finance, confirming that he agrees in principle, knowing that the Hon Minister for Finance would have to come here with the terms of the loans, in accordance with this Act for approval.
Mr Speaker, what we are now doing is that we are granting GNPC the opportunity to begin to spend. Because of the accrual concept, once we grant them this permission, they could begin to spend in anticipation of this money, but we must do what is proper and what is right.
Mr Speaker, why are we borrow- ing US$250 million? This is simply because gas is trapped in the west. The Karpowership that we are all talking about was originally conceived to move straight to Takoradi. It was not supposed to go to Tema, and that is why we put a 225 megawatts in Tema as a stop guard.
Mr Speaker 12:45 p.m.
Hon Member, be concluding.
Mr Jinapor 12:45 p.m.
That is why we put a 225 megawatts in Tema as a stop guard, so that the 450 megawatts would go to Takoradi. They slept on the job; they did not do it, and one year down the lane, they allow the batch to go back to Tema, and today we are incurring US$42 million per month.
Mr Speaker, in conclusion, I would refer to the Budget Statement again. I would refer to paragraph 335 of page 78. We did state and we gave approval to the Hon Minister, that an amount of US$181 million accruing
from gas sales would not be recognised. We are waiving it, but GNPC is putting it here as their revenue.
Mr Speaker, this document is full of irregularities; it is full of inaccuracies and I would want to move that this House --
Mr Speaker 12:45 p.m.
Hon Member, you are moving out of tangent.
Mr Jinapor 12:45 p.m.
Mr Speaker, you may live long, thank you.
Mr Speaker, I therefore hold the position that they should withdraw this budget, go and correct the figures, and bring them, so that we could approve it. Other than that, I cannot be part of this barge because it is full of irregularities.
Mr Speaker, thank you.
Mr Speaker 12:55 p.m.
Thank you very much.
We would move on to the Majority Side, after that, the Hon Chairman or the Hon Minister may make --
Deputy Minister for Energy (Mr Joseph Cudjoe) (MP): Mr Speaker, I have followed the comments that have been made in approving the GNPC Work Programme for the year 2019. I
would want to give explanation to some of the comments that were made to give some comfort to my Hon Colleagues on the other Side.
First of all, Mr Speaker, on the request for the breakdown, I gave the breakdown to the least possible breakdown that is attainable. I explained to them during the Committee meeting that US$50 million is earmarked for co-investment with a selected partner that would come along as we develop the petroleum hub, and this is an activity earmarked for 2019, and for which reason we looked for that commitment to be approved for spending in the course of the year.
I gave a comprehensive list of other activities, including the pre-feasibility studies and every documentation that would be done, including even making the necessary regulatory laws that would govern the petroleum hub. This has been given to them, so it comes as a surprise to me that this matter has come again as an impediment to approving the Work Programme.
In particular, Mr Speaker, Hon Kwabena Donkor made a case of drilling a well and a feasibility study that should lead to drilling the well. I would want to advert his mind to the fact that there is a list of activities that have been given on page 16 of the Report.
One of them is feasibility study and another is drilling the well. Maybe, it is the order of the arrangement that has confused him because drilling the well comes before the feasibility
Mr Speaker 12:55 p.m.
Hon Members, there is too much of background noise.
Hon Member, can you repeat that?
Mr Cudjoe 12:55 p.m.
I would want the House to distinguish between the investment and operational activities of GNPC, which one relates to upstream oil and gas activities as has been highlighted. In investment activity, GNPC has investment in Mole National Park and I wonder if we would reconcile that in Airtel Mole National Park, Sankofa Prestea Gold, et cetera.
Mr Speaker, GNPC can invest in these investment activities once they see their essence to further the attainment of GNPC's strategic objectives. So we should clearly distinguish between the two. The
explanation we have given -- GNPC co-investment in an area of oil and gas or petroleum tank fund for all those investment activities, so we should take note.
In the implementation of the 2019 Work Programme, GNPC would take cognisance of all other concerns that have been raised, and make sure that everything is done to conform to every compliance or legal issue that has been raised.
Thank you, Mr Speaker.
Mr Speaker 12:55 p.m.
The putting of the Question on this Motion is deferred accordingly.
Hon Deputy Majority Leader, after deferring this, where do we move to? The debate is concluded and the Question would be put subsequently.
Ms Safo 12:55 p.m.
Mr Speaker, I thought the Question would be put imme- diately. [Pause.]
Mr Speaker, we can go to the Consideration Stage of the Compa- nies Bill, 2018.
Mr Speaker 12:55 p.m.
It means all the other items are hereby deferred.
The Hon Second Deputy Speaker would take the Chair at this stage for the Consideration Stage.

Hon Deputy Majority Leader, is there any difficulty at this stage?

Hon Members, there is a whole conference taking place. I do not want to start mentioning names.
MR SECOND DEPUTY SPEAKER
Mr Second Deputy Speaker 1:05 p.m.
Hon Deputy Majority Leader?
Hon Members, please, resume your seats. There are too many of you on your feet.
Ms Safo 1:05 p.m.
Mr Speaker, before the Rt Hon Speaker vacated his seat, I had proposed that we continue with the Consideration Stage --
Mr Second Deputy Speaker 1:05 p.m.
Hon Deputy Majority Leader, the Rt Hon Speaker has not vacated his seat.
Ms Safo 1:05 p.m.
Mr Speaker, I do not mean “vacate'' as in creating a vacuum, but for you to have sat in the Chair, there ought to have been a vacant Chair.
Mr Second Deputy Speaker 1:05 p.m.
You should have said, “before I assumed the Seat''.
Ms Safo 1:05 p.m.
All right, Mr Speaker. So the word “vacant'' could be used in that context.
Mr Speaker, before you assumed the Seat, I proposed that we continue with the Consideration Stage of the Companies Bill, 2018, but at this point, I would want to move that we suspend Sitting.
I have seen the Hon Ranking Member of the Committee and the Hon Chairman of the Committee have also indicated that if we suspend Sitting and come back in an hour, we would be in the position to continue with the Consideration Stage of the Companies Bill, 2018.
Mr Speaker, since it is not past 2 o'clock, I humbly move that we suspend Sitting for an hour.
Mr Speaker, I thank you.
Mr Second Deputy Speaker 1:05 p.m.
Hon Deputy Minority Leader, there is a request from the Hon Deputy Majority Leader that we suspend Sitting for an hour.
Mr Avedzi 1:05 p.m.
Mr Speaker, I agree with the Hon Deputy Majority Leader but I just want to inform her that the one hour should be one hour -- If the Hon Deputy Majority Leader could listen to me -- [Interruption.] -- Hon K.T. Hammond, please sit down because I am on the Floor. He is causing confusion in the House.
Mr Speaker, we could suspend Sitting for an hour but the one hour should be one hour. The time is 10
Mr Avedzi 1:05 p.m.


minutes past 1 o'clock, so we should be back in the Chamber at 10 minutes past 2 o'clock.
Mr Second Deputy Speaker 1:05 p.m.
Hon Members, your Hon Leaders have proposed that we suspend Sitting for an hour. Is that the sense of the House?
Some Hon Members 1:05 p.m.
Yes.
Mr Second Deputy Speaker 1:05 p.m.
Please, if it is an hour, it must be an hour. I do not want to be in the Lobby for several minutes and just a few Hon Members would be in the Chamber and would not constitute quorum for us to continue with the Business.
Attendance this morning has been good. So if we would suspend Sitting for an hour, it must be an hour. Do we agree to that? If not, I would not suspend Sitting.
Ms Safo 1:05 p.m.
Mr Speaker, we would suspend Sitting for an hour and that is the proposal --
Mr Second Deputy Speaker 1:05 p.m.
An hour means 60 minutes.
Ms Safo 1:05 p.m.
Rightly so, Mr Speaker.
I expect the Hon Deputy Minority Leader to be on time because this morning, we looked for him and the Hon Minority Leader, but they were not around.
Mr Speaker, we would all make ourselves available to continue exactly an hour from now.
Mr Second Deputy Speaker 1:05 p.m.
Hon Members, the House is accordingly suspended for an hour. We would resume proceedings at exactly 10 minutes after 2 o'clock.
1.11 p.m. -- Sitting suspended.
2.37 p.m. -- Sitting resumed.
Mr Second Deputy Speaker 1:05 p.m.
Hon Members, we were at item numbered 12 on the Order Paper.
The Companies Bill, 2018, at the Consideration Stage.
BILLS -- CONSIDERATION 1:05 p.m.
STAGE 1:05 p.m.
  • [Continuation of debate from 9/ 04/19]
    • Mr Second Deputy Speaker 1:05 p.m.
    Hon Majority Chief Whip, were we at clause 113 or 201?
    Mr Ameyaw-Cheremeh 1:05 p.m.
    Mr Speaker, we are on clause 201.
    Clause 201 -- Derivative actions
    Mr Ben A. Banda 1:05 p.m.
    Mr Speaker, I beg to move, clause 201, subclause (1), opening phrase, line 2, delete “shareholder” and insert “member” and do same wherever “shareholder”
    appears in the clause unless the context otherwise deter-mines.
    Mr Speaker, the reason is simple. A “member” is defined and interpreted to mean a “shareholder”. But, consistently in the Bill, what has been used throughout is a ‘member'. A “member” is the same as the “shareholder”, so it is in order to ensure consistency that this amendment is being done. It would therefore read:
    “Subject to subsection (3), the Court may, on the application of a member or director of a company, grant leave to that member or director to…”
    This is one of the new provisions that are being incorporated in the current Bill.
    Question put and amendment agreed to.
    Clause 201 as amended ordered to stand part of the Bill.
    Clause 202 -- Costs of derivative action to be met by company
    Mr Banda 1:05 p.m.
    Mr Speaker, it is the same consequential amendment in clause 202, line 1, and whenever it appears --
    Mr Second Deputy Speaker 1:05 p.m.
    Hon Chairman, I would give a direction on it.
    Clauses 202 and 203 ordered to stand part of the Bill.
    Hon Members, let us take note of the consequential amendment in clause 202.
    Clause 204 -- Compromise, settlement or withdrawal of derivative action
    Mr Banda 1:05 p.m.
    Mr Speaker, it is the same consequential amendment by the deletion of “shareholder” and the insertion of “member” in line (1) of clause 204.
    Mr Speaker, it reads 1:05 p.m.
    “Where proceedings in which a member or a director intervenes, as the case may be, with leave of the Court are brought under subsection (5) of section 201, the proceedings shall not be settled or compromised or discontinued without the approval of the Court.”
    Mr Second Deputy Speaker 1:05 p.m.
    Hon Members, I would just direct that the draftsperson should effect the consequential amendments; wherever “shareholder” appears in the clause unless the context otherwise determines, it should be deleted and “member” inserted.
    Question put and amendment agreed to.
    Clause 204 ordered to stand part of the Bill.
    Mr Banda 1:05 p.m.
    Mr Speaker, I beg to move, clause 205, paragraph (e), delete “201 of this section” and insert “200”.
    Mr Speaker, with your leave, I would like to further amend this proposed amendment because the current proposed amendment would not fit well in the provision. So instead of the deletion of “201 of the section”, I am seeking your leave to delete “201 of”, so that it would read:
    “(e) in relation to proceedings under section 200, this section, shall be supplemented by the provisions of that section;”
    Mr Speaker, what it means is that, in relation to proceedings concerning section 200 of the Bill, this section, which is section 205 shall be supplemented by the provisions of that section. However, if we are to adopt this proposed amendment, it will change the meaning and not make the reading of it understandable.
    So my proposed amendment is that, instead of; “clause 201 of thus section”, it should rather be; ‘201 of' which should be deleted and then a comma inserted and we add the following; ‘, this section shall be supplemented by the provisions of that section;' Yes, it should be; ‘200,'
    Mr Speaker, I do not know whether I am clear.
    Mr Second Deputy Speaker 2:47 p.m.
    Well, you are very clear in your explanation; it is only how it is captured. The way it is captured in the paragraph is not too elegant. It is proposed for your consideration, if it is allowed in drafting; those of you who have attended the drafting school may assist in this.
    I propose that you rather say;
    ‘in relation to proceedings under section 200, the provisions of this section are supplementary'.
    Is that allowed in drafting? “In relation to proceedings under section 200, the provisions of this section are supplementary” instead of “supple- mented by the provisions of that section”. I do not know whether the technical rules of drafting will accept that.
    Yes, Hon Member for Wa West?
    Mr Chireh 2:47 p.m.
    Mr Speaker, it sounds good but it may carry a different meaning. If something is supplementary, I think the idea is that this paragraph is to be subjected to section 200 but if you want to say; ‘in relation to proceedings under section 200 of this Act, --
    Mr Second Deputy Speaker 2:47 p.m.
    The proposal by the Hon Chairman is this and maybe, if you get that, you will be in a better position to support. It says; “in relation to proceedings under 200, this section shall be
    supplemented by the provisions of that section”.
    Mr Chireh 2:47 p.m.
    Mr Speaker, yes; that is better.
    Mr Second Deputy Speaker 2:47 p.m.
    Hon Member, you are not on your feet.
    Yes, Hon Member for Bolgatanga East?
    Dr Dominic A. Ayine 2:47 p.m.
    Mr Speaker, I think that the Hon Chairman's rendition should be maintained. The reason is, we are dealing with two types of actions by or on behalf of the company. So one is in relation to representative action captured by section 205 and then section 200 deals with the enforcement of civil liabilities. For instance, in a situation where a director of the company breaches a duty and the breach of the duty gives rise to a liability, a member of the company may bring an action; either in his individual capacity or in a representative capacity.
    So section 205 is supposed to be supplemented by section 200 so that in situations where those proceedings are brought, it should be possible for the two sections to work together to achieve the desired end.
    Mr Speaker, I believe that the Hon Chairman's rendition makes a lot of sense.
    Mr Second Deputy Speaker 2:47 p.m.
    The issue is, which section is supplementing which? Now the
    rendition that the Hon Chairman has given shows that it is this paragraph or the provisions of section 205 that are supplementing the provisions of section 200. Is that the case?
    Mr Banda 2:47 p.m.
    Mr Speaker, section 205 is what is being referred to; ‘…shall be supplemented by the provisions of section 200'. That is what it is saying. If you take it from the beginning, it reads; ‘in relation to proceedings under section 200 which deals with enforcement of liabilities, this section shall be supplemented…” If you want to take a representative action as captured under section 205, all that this provision says is that under the representative actions, pro- ceedings thereof shall be supplemen- ted by the provisions under section
    200.
    Mr Second Deputy Speaker 2:47 p.m.
    So it is the other way round. Yes, Hon Member for Wa West?
    Mr Chireh 2:47 p.m.
    Mr Speaker, I want us to look at what clause 200 says concerning the proceedings, and then in subclause (e), it says -- If some provisions of clause 200 are to apply in the case of this, it will sound better but not the use of the word “supplemented”. This is because one is dealing with proceedings and you want similar things to happen in the case of this and so, the word should not be “supplemented”; it should be, ‘one of them applies' --[Interrup- tion.]
    If you want to do so under subclause (e), then ‘it is subject to' and because of the opening statement
    Mr Chireh 2:47 p.m.


    that you said, subject to clause 200, it means that whatever you say has to have a relationship but not the word “supplementary”. It has to use either the proceedings there or the proceedings there should apply in this case. What informed the proceedings as they are?
    Dr Ayine 2:47 p.m.
    Mr Speaker, unfor- tunately, I do not have a proper dictionary here but may I refer to the synonyms of ‘supplemented' on Google? They are, augment, increase, add to, boost, swell, amplify, enlarge, make larger and so on.
    Mr Speaker, so I think the point is that, in clause 200, we are dealing with “Legal proceedings to enforce liabilities” and the liabilities are defined. In clause 200, subclause (1), it says;
    “Proceedings may be instituted by the company or by a member of the company to
    (a) enforce the liabilities referred to in section 199 or to restrain a threatening breach of a duty under section 190 to 192.
    So when action is taken under clause 200, it would be supplemented by the provisions of clause 205 in the sense that any person who takes an action under clause 200 could do so in a representative capacity, so that it
    does not have to take all the members of the company to go to court in order to conduct proceedings.
    Mr Speaker, respectfully, I still stand by my position that the Hon Chairman's initial rendition should be captured.
    Mr Second Deputy Speaker 2:47 p.m.
    It introduces a terminology that I have not come across in law. We always talk about applying; but with provisions being supplemented, I do not know where I have come across that but it may be right. Like you talked about the definition -- “add to”, “augment”, “improve” -- but they want to simply say that the provisions in clause 205 apply equally in proceedings on the provisions of clause 200.
    Hon Deputy Minority Leader.
    Mr Avedzi 2:47 p.m.
    Mr Speaker, the rendition based on the amendment proposed by the Hon Chairman does not come out clearly. Mr Speaker, which section supplements the other?
    Mr Speaker, it reads 2:47 p.m.
    “In relation to proceedings under section 200, this section shall be supplemented by the provisions of that section.”
    Mr Speaker, it is not clear. So I think that if we say 2:47 p.m.
    “In relation to proceedings under section 200, this section shall supplement the provisions of that section.”
    Mr Second Deputy Speaker 2:57 p.m.
    What about if it says: “In relation to proceedings under this section”. That is, “in relation to proceedings under clause 200, the provisions of this section shall apply.”
    Hon Chairman, you have had intensive deliberations on this matter, so let me listen to you.
    Mr Banda 2:57 p.m.
    Mr Speaker, the reason “supplemented” could not be done away with is that it has to be used advisedly because if we go to clause 201 which is “Derivative actions”, there is a procedure to use, and there are provisions that apply to clause 201. Mr Speaker, if we come to clause 205, which is “Represen- tative actions”, there is a procedure to use and are provisions that apply.

    I am trying to explain why “supplemented” has been used to read “come to support, or supplement or to add on to the provisions of section 205”. Mr Speaker, with all due respect, that is why I am saying that “supplemented” has been used advisedly so that where the necessity arises for a provision under clause 201 to be used, then same would be used under clause 200.
    Mr Alexander K. K. Abban 2:57 p.m.
    Mr Speaker, I would want to proffer another amendment to read as:
    “The proceedings under section 200, shall be supplemented by the provisions of this section”.
    Mr Second Deputy Speaker 2:57 p.m.
    Well, it would not work with the opening of clause 205. I am sure that you did not read the main opening statement under clause 205.
    Hon Member for Wa West.
    Mr Chireh 2:57 p.m.
    Mr Speaker, the issue has to be looked at clearly because paragraph (e) alone cannot say “the provisions of this section.” All these paragraphs would supple- ment clause 200, but as paragraph (e) stands -- if it was also the last paragraph, then we could refer to all the previous paragraphs in which case they would supplement clause 205. Mr Speaker, but the way it has been captured in the original rendition, we do not even know which clause supplements which other clause.
    Mr Speaker, clause 200 says that “Proceedings may be instituted by the company or by a member of the company” and some provisions follow. Clause 205 reads:
    “Where under a section of this Act, it is provided that if legal
    Mr Second Deputy Speaker 2:57 p.m.
    The rendition that the Hon Chairman gave meant that the provisions under clause 200 are supplementary to the provisions under clause 205.
    Hon Chairman, am I right?
    Mr Banda 2:57 p.m.
    Mr Speaker, that is so.
    Mr Second Deputy Speaker 2:57 p.m.
    Hon Deputy Minority Leader.
    Mr Avedzi 2:57 p.m.
    Mr Speaker, I have another rendition. So we would delete the entire paragraph (e) and insert:
    “Provisions of this section shall be supplemented by the provi- sions of section 200.”
    Mr Second Deputy Speaker 3:07 p.m.
    Your rendition is that “Proceedings under this section shall be supple- mented by the provisions of section 200”; but I think the intention is rather to make the provisions of section 205 supplement that of section 200.
    Mr Banda 3:07 p.m.
    Mr Speaker, the intention is rather to make the provisions in section 200 supplement the provisions under section 205. That is what the Hon Deputy Minority Leader captured. I seem to be swayed by his rendition. What he said captured the sense I intend to bring across.
    Mr Second Deputy Speaker 3:07 p.m.
    Then let us get your rendition again.
    Hon Deputy Minority Leader.
    Mr Avedzi 3:07 p.m.
    Mr Speaker the rendition is:
    “The proceedings under this section shall be supplemented by the provisions of section
    200.”
    Mr Second Deputy Speaker 3:07 p.m.
    I think this is more straightforward and clearer.
    So Table Office, the proposal now is to amend paragraph (e) of clause 205 to read as follows:
    “The proceedings under this section shall be supplemented by the provisions of section
    200.”
    Question put and amendment agreed to.
    Mr Second Deputy Speaker 3:07 p.m.
    There would be no need to put the Question with respect to the earlier proposed amendment by the Hon Chairman, particularly so as the Hon Chairman accepts this new rendition.
    Clause 205 as amended ordered to stand part of the Bill.
    Clause 206 ordered to stand part of the Bill.
    Clause 207 -- Payments to directors in connection with takeover bids
    Mr Banda 3:07 p.m.
    Mr Speaker, I beg to move, clause 207, subclause (3), closing phrase, line 1, before “commits” insert “or that person acting on the directives of the director or former director under paragraph (b)”.
    Mr Speaker, the rendition would, therefore, read 3:07 p.m.
    “(3) Where
    (a) the director or former director fails to take the reasonable steps, or
    (b) a person who has been properly required by that director or former director to include the particulars in or send them with the notice fails to do so,
    that director or former director or that person acting on the directives of the director or former director under paragraph (d) commits an offence and is liable on summary conviction to a fine of not less than twenty- five penalty units and not more than one hundred and fifty penalty units.”
    Mr Speaker, the intention is to make anybody acting on the directive of the director or former director also culpable as well, as captured in subclause (3) (b). This is because, under subclause (3) (b), a director, or former director could instruct another person to carry out the assignment.
    So in the case where there is a failure, we would not hold the director or former director only liable; but whoever has been so authorised to carry out that function by the director, or former director to the extent of this proposed amendment is also equally liable. That is the intention we would want to put across.
    Mr Second Deputy Speaker 3:07 p.m.
    The way you have extended the law, if I act on the directive of director or former director and there is a problem, both of us are held culpable. Is that the intent?
    Mr Banda 3:07 p.m.
    Mr Speaker, it is rightly so.
    Mr Second Deputy Speaker 3:07 p.m.
    Hon Member for Wa West?
    Mr Chireh 3:17 a.m.
    Mr Speaker, this is vicarious liability. The person gave me lawful instructions and I obeyed. Then later on, am I to be punished together with that person? Although the instructions are lawful, if I decided not to comply, it would not be fair. I would have been sacked from my job. Is this what Prof Gower put in the old or current Act 179, or are we modernising it?
    I really do not see the difference we would make from the original where we say the director or former director fails to take the reasonable steps or a person who has been properly required by that director or former director to include the particulars or send them with the notice fails to do so. What has the Hon Chairman changed in this rendition?
    Mr Second Deputy Speaker 3:17 a.m.
    Yes, Hon Member for Kade?
    Mr Ohemeng-Tinyase 3:17 a.m.
    Mr Speaker, in the case where a director in a lawful capacity gives directives to a junior person to act, I believe that in the ordinary sense, the law of agency should prevail where he acts as an agent of the principal in the lawful situation. So, whatever he does, he does it lawfully in the name of the director who asked him to act. So he should not be held liable for the action done within the premises of the law.
    Mr Second Deputy Speaker 3:17 a.m.
    Well, you stated the law of agency, but the proposal here would intrude
    into that law. That is why I am raising the issue for further discussions. I believe that the Hon Member for Wa West has also underlined that issue. So we would expect the Committee to convince the House that, it is the new proposal, and that is how we would want companies now to be run and managed, so that it would give enough notice to everybody.
    One can no longer rely on the fact that one carries on a lawful directive of a principal, who is a director or a former director, and that whatever he does, one is also liable. It would not only be the director or the former director that would be held liable.
    Hon Chairman, is that not the situation?
    Mr Banda 3:17 a.m.
    Mr Speaker, the current position of the law does not make the representative liable, but it is captured in section 212 of the Companies Act, 1963 that where such an assignment has not been performed by the director or the representative of the director, it is the director or the former director who is culpable.
    In this particular case, it must not rest only on the director or the former director. So, we are trying to extend liability or culpability to a person who has been so authorised by the director and has failed.
    Mr Speaker, the director has discharged his duties and has told him that he should do that, but that person has failed to carry out the instructions. This current Bill says that it is not only
    the director who is culpable, but the person who was so adequately given the instruction but failed to carry it out is also equally culpable.
    Mr Speaker, that is all that we are trying to legislate on; unless, probably, that is not the position of the law. In which case, the question may arise whether vicarious liability would apply if a person fails to carry out on instruction given by a director.
    Mr Second Deputy Speaker 3:17 a.m.
    The clause deals with payments to directors in connection with takeover bids.
    Mr Ohemeng-Tinyase 3:17 a.m.
    Mr Speaker, let us clearly distinguish between whether the director gave a lawful instruction or directive that was followed or not. The distinction should be made. If it is that the person acting did not follow the directive of the director as per a rightful or lawful instruction, then whoever did not take the lawful instruction or took it the wrong way should suffer. If he acted lawfully within the premises of the directives by the director, then I believe we would do an injustice to the person. Other than that, we would get a situation where when people are given lawful instructions, they would refuse to obey.
    Mr Speaker, on the other hand, in the case of payments, if it comes out that whoever implements the directives of the former or current
    director is privy to the fact that whatever they are doing is wrong, then both could be held liable. If he is privy to the fact that the payment is made wrongfully, then both could be held responsible; but if he is not privy to that fact and is an accomplice in the action in the ordinary course of business or lawful duties, then I do not believe that he should be held responsible with the director.
    Mr Chireh 3:17 a.m.
    Mr Speaker, I tried to look at the Memorandum that deals with this clause. As was early on pointed out, the Memorandum says that clause 207 indicates the circumstances in which payments to directors in connection with takeover bids may be made.
    Mr Speaker, now, the issue is, if a director issues instructions to a subordinate to put in bids and in the process, he does so or fails to do so and there is a problem, that director is to be held responsible. As we are trying to distinguish, for the second part of this clause, it is the failure of the subordinate to carry out truthfully or actually what he has been instructed to do. So, in that case, the issue of agency would not come in.
    Mr Speaker, this is because the person is punished for failure to comply with what he was asked to do. But because this Bill is very huge, sometimes, we may try to look at one clause or subclause as a whole, not affecting the rest of the subclauses. That is where we have the problem because we start with payments to directors but suddenly, the issue of punishment arises.
    Mr Iddrisu 3:17 a.m.
    Mr Speaker, I support the Hon Chairman's amendment, but I respectfully request him to read subclause (2). If he did not find it prudent to amend it in subclause (2), then why is he doing it in subclause (3)?
    Mr Speaker, subclause (2) reads, and with your permission, I quote,
    “Where an offer for the acquisition of shares is made under subsection (1), and in connection with that offer it is proposed that a payment shall be made or a payment has been made to a director or former director of a company…”
    Mr Speaker, if he insists that it should be in subclause (3), then he should have amended subclause (2).
    This is because, here, it is not just the director or former director, but a person acting on behalf of the director must also be caught within the remit of subclause (2).
    If he does not find it suitable in subclause (2), then I would have a difficulty supporting subclause (3), unless he wants to say that the provisions in subclause (2) carry different intent than what is in subclause (3). However, with the principle, I agree with him, but if we read subclause (2) very well, it says: “made to a director or a former director…,” but what of a person authorised by that director per the directive that he has referred to?
    Thank you, Mr Speaker.
    Dr Ayine 3:27 p.m.
    Mr Speaker, I believe the confusion that is attendant upon the discussion arises as a result of the fact that we think of this as payments that would go directly to the directors to benefit them, but that is not it. It must be seen in the context of a takeover bid by persons who are not currently shareholders of the company but have made bids or offers to the directors because they are the managers of the company.
    So in the process of accepting offers, it may be that a director acts criminally so that the highest bid is not accepted by the company, and that would not inure to the benefit of the
    company. If the director then gives instructions to a manager or the accountant of the company to deal with the payment that has been received and enters, its particulars in the records for it to be reflected and that person then fails to also do so, the intendment here is to extend the scope of punishment to include that person.
    Mr Speaker, the person does not get away by not carrying out the directives of the director, and making sure that the takeover bid fails and the company then loses. If we look at subclause (1), it says that if the payment is higher in receipt to the company and the person does not enter the particulars -- So the company would lose money as a result of the conduct of that director, manager or representative of the company, and that is the context within which we have to look at this.
    In fact, I was tempted to agree with the Hon Deputy Minority Leader that the punishment is not even severe enough. I heard the Hon Minority Leader himself whisper why we have not included imprisonment so that the severity of the punishment would be higher. In principle, the idea is to punish all the actors in the chain who may be responsible for the failure of the bid.
    Mr Second Deputy Speaker 3:27 p.m.
    You have no basis to talk about imprisonment because in this provision, there is no imputation of dishonesty; it is just failure to carry out an instruction or directive. They
    tried to hold both culpable because the director or former director should supervise the other representative to make sure that the right thing is done.
    I believe that they want to, so that people would really be focussed on whatever they do. So we should not talk about imprisonment; but if you want us to enhance the penalty units, that is a different thing altogether.
    Mr Chireh 3:27 p.m.
    Mr Speaker, when we referred to subclauses (1) and (2), it has now become clearer as the Hon Member who just spoke explained. It is because the person failed to do something that would benefit the company.
    I believe we should support the amendment of the Hon Chairman because we looked at this as a separate issue; but once it is linked, then it follows that the amendment and the new thinking different from the current Act is what we should adopt.
    An Hon Members 3:27 p.m.
    We will enhance -- [Interruption.]
    Mr Chireh 3:27 p.m.
    No, we will not enhance anything.
    Question put and amendment agreed to.
    Mr Avedzi 3:27 p.m.
    Mr Speaker, I would want to propose a further amendment to clause 207(3) that in the concluding phrase, line 2, delete “seventy-five” and insert “two hundred” and in line 3, delete “fifty” and insert “four hundred”.
    Mr Speaker, seventy-five penalty units is only GH¢900, and this is something that is on summary conviction that goes through the court processes. Therefore, it is too small and would not serve as a deterrent to anybody who wants to behave that way. Increasing it to two penalty units would, at least, make it a minimum of GH¢2,400 and then GH¢4,800 maximum.
    Mr Speaker, I propose that we increase the penalty units from “seventy-five” to “two hundred” and from “fifty” to “four hundred”.
    Mr Second Deputy Speaker 3:27 p.m.
    I have a problem with your proposal, but let me listen to the Hon Member for Bolgatanga East.
    Dr Ayine 3:27 p.m.
    Mr Speaker, I rise to support the proposed amendment of the Hon Minority Leader. The reason is that we are dealing here with corporate commercial transactions, and there is the principle of efficient breach where if it would cost one less to breach a statute, it is better to go ahead, breach it and then pay the
    penalty than to observe it and lose big time in terms of the financial gains.
    So where we deal with takeover bids, it is very important that the penalty should be a deterrent so that transactions are not sabotaged in order for those who sabotage to turn around and benefit in a great way. So I support the proposed amendment.
    Mr Second Deputy Speaker 3:27 p.m.
    I am not against enhancement, but we do not have the law on penalty units to guide us. This one deals with summary trials. There is a law on penalty units, and I think that there are some --
    Mr Avedzi 3:27 p.m.
    Mr Speaker, I am only asking that the draftspersons may use that guide to come out with this.
    Mr Second Deputy Speaker 3:27 p.m.
    That must have been used by the draftspersons but we do not have it here to guide us. So when you enhance it, you may take it into another category and we do not have it here to guide us. That is my concern.
    Mr Avedzi 3:27 p.m.
    Then, Mr Speaker, that guide should be looked at again.
    Mr Second Deputy Speaker 3:27 p.m.
    We do not have the draftspersons here to guide us.
    Mr Chireh 3:27 p.m.
    Mr Speaker, it is clear that once we enhance it, if there are equivalents of going to prison, that is where we normally would say the penalty units should match the term of imprisonment; but for this one, so
    long as we say penalty units, we could always enhance it without reference to whether it is summary conviction or by any other method that we may determine.
    Mr Second Deputy Speaker 3:27 p.m.
    I am not clear on that. Is that the state of the law?
    Mr Chireh 3:27 p.m.
    Mr Speaker, the law is that if a person infringes, whether it is administrative penalty and somebody wants to enhance it, it is the penalty unit that would be looked at. Currently, it is GH¢12 and that was how he got the GH¢900.
    So it is not the mode of trial or conviction that is the issue in determining. The equivalence is in prison terms, that is, if the person does not provide this or both. If it is enhanced to GH¢200, then it means that if there were provisions about prison terms, then that is where we could say there should be some equivalence that the higher the penalty units, the longer the prison terms.
    Mr Second Deputy Speaker 3:27 p.m.
    If you state this for sure that that is what the law says, I have no problem but we have to be guided. This is because he wants it enhanced from 75 to 200 penalty units and then 150 to 400 penalty units.
    Hon Chairman of the Committee, what do you say to the proposal?
    Mr Banda 3:37 p.m.
    Mr Speaker, I think we need to do the calculation. One penalty unit is GH¢12, so if we propose 200 that would be around
    GH¢2,400.
    Mr Avedzi 3:37 p.m.
    Mr Speaker, GH¢2,400 which is the 200 penalty unit and the 400 penalty units which is the upper limit is GH¢4,800, but with the current one we have, the 75,000 penalty units is only GH¢900 and then the 150 penalty units is
    GH¢1,800.
    Mr Banda 3:37 p.m.
    Mr Speaker, the GH¢900 may be low because even the initiation of the criminal proceedings from the police station to court and considering the cost, time and inconveniencies involved at the end of the day, could be more than GH¢900 if we want to quantify it in monetary terms.
    Just as the Hon Deputy Ranking Member of the Committee stated, somebody may want to intentionally breach it and think that at the end of the day he or she would not pay much. If the person knows that when he or she breaches it, it would inure to his or her benefit, then he or she would breach it and go to court and pay GH¢900 and be free.
    Mr Speaker, so I think that the GH¢900 is on the low side and it could be enhanced to the figure the Hon Deputy Minority Leader proposed. But we must not also lose sight of the fact that, sometimes, people are taken to court and they
    Mr Banda 3:37 p.m.


    are slapped with GH¢200 or GH¢300 which they pay, especially, the traffic offences.

    Mr Speaker, to a large extent, I agree with them and so, it could be enhanced to a minimum of 200 and a maximum of 400 penalty units.
    Dr Ayine 3:37 p.m.
    Mr Speaker, I have a point of correction. The Hon Chairman of the Committee referred to me as the Hon Deputy Ranking Member. I am no longer the Hon Deputy Ranking. I am the Hon Chairman of the Subsidiary Legislation Committee. [Laughter.]
    Mr Second Deputy Speaker 3:37 p.m.
    It is noted.
    Hon Members, in the earlier provisions, we came across similar proposals using the penalty units and summary convictions. I do not know whether those were also enhanced or you want us to do that. I realised that in clause 195, it is “disclosure of interest by directors'' and failure to do so is disclosure of interest. A summary conviction to a fine of not less than 250 penalty units and not more than 500 penalty units. That is disclosure -- [Interruption] -- non- disclosure once you fail to do that -- and I consider that as even more a serious matter than this one. [Interruption.] You disagree with me. Why do you disagree with me?
    Mr Chireh 3:37 p.m.
    Mr Speaker, we have passed laws severally on this “non- disclosure'' and it is not as serious as somebody --
    Mr Second Deputy Speaker 3:47 p.m.
    This is takeover bid.
    Mr Chireh 3:47 p.m.
    Yes, Mr Speaker. If a person has a company and people try to buy it or take it over and somebody offers GH¢4 million and another person offers GH¢2 million, then the one who receives the bid decides to conceal the GH¢4 milion
    -- 3:47 p.m.
    Mr Second Deputy Speaker 3:47 p.m.
    No, Hon Member, you are imputing something. You said “decide to conceal''.
    Mr Chireh 3:47 p.m.
    Mr Speaker, it is the failure I talked about. Somebody could genuinely fail to do something, but the loss involved -- and it is the interest he may have in the other person getting that bid rather than the one whose bid should have been accepted. That is where the seriousness of the offence is. The loss to the company is too much. With non-disclosure, it would not have even lost much but with this one, they would lose a difference of GH¢2 million which is too much.
    I support the enhancement even though originally I was not for it.
    Mr Second Deputy Speaker 3:47 p.m.
    The reason we decided not to add “prison term'' is that, it is an administrative failure. Now, we want to impute a lot of elements of dishonesty to enhance the nature of the offence, but we said it is administrative failure.
    Whatever the situation is, it is for the House to decide.
    Hon Members, the Hon Deputy Minority Leader has proposed that we enhance the fine from 75 penalty units to 200 penalty units and also from 150 penalty units to 400 penalty units in clause 207(3) (b).
    Question put and amendment agreed to.
    Mr Banda 3:47 p.m.
    Mr Speaker, I beg to move, clause 207, subclause (4), opening phrase, line 2, delete “(4)” and insert “(5)”.
    The new rendition would be:
    ‘The payment distributed in a manner provided by subsection
    (5)…''
    Mr Speaker, it is wrong cross- reference.
    It should rather be subclause (5) which deals with the redistribution of the payment; it is not subclause (4).
    Mr Second Deputy Speaker 3:47 p.m.
    Hon Chairman of the Committee, before I put the Question, look at subclause (5); it is also referring to the same subsection (4), so is that one right?
    Mr Banda 3:47 p.m.
    Mr Speaker, according to my notes, that is right.
    Mr Second Deputy Speaker 3:47 p.m.
    Hon Chairman, you said the
    “distribution” is subsection (5), but it is still referring to “distribution” in subsection (4) of subclause (5).
    Mr Chireh 3:47 p.m.
    Mr Speaker, the problem in that subclause (4) was referring to itself and that is where it is wrong. But now that we have substituted that with subclause (5), subclause (5) can refer to subclause
    (4).
    Mr Second Deputy Speaker 3:47 p.m.
    I would want to know which of the subclauses is doing the distribution. Subclause (4) says: “The payment shall be distributed in the manner provided by subsection (4)…” So that one is referring to itself and there is no distribution in there. Is there any? [Pause.] The proposal is for us to insert subclause (5) and when I go through subsection (5) which would now read subclause (5) --
    Chairman of the Committee?
    Mr Banda 3:47 p.m.
    Mr Speaker, if you read subclause (5), it is referring to a distribution of some payments. With your permission, if I may take my time to read what subclause (5) is saying, so that we can all get the sense of it, whether it is subclause (5) that is making the distribution or subclause
    (4).
    Mr Speaker, subclause (5) reads 3:47 p.m.
    “Where a payment is to be distributed in accordance with subsection (4), the person making or proposing to make the payment and the director or former director to whom it is
    Mr Second Deputy Speaker 3:47 p.m.
    Hon Members, it is clear now so I would put the Question.
    Question put and amendment agreed to.
    Mr Ebenezer K. Kum 3:47 p.m.
    Mr Speaker, there is a small amendment to be made on subclause (5). The penultimate line reads: “… receives the payment, that director or former director shall hold the payment on trust for those persons” . It should be hold
    the payment ‘in trust' for those persons but not “on trust”.
    Mr Second Deputy Speaker 3:47 p.m.
    Hon Member, it should be “in trust” and not ‘on trust'.
    Mr Kum 3:47 p.m.
    Mr Speaker, that is so.
    Mr Second Deputy Speaker 3:47 p.m.
    Hon Chairman of the Committee, what do you say to that proposed amendment?
    Mr Banda 3:47 p.m.
    Mr Speaker, these days that we are told that the English language is progressive and some of the words and phrases keep on changing, “in trust” is correct and legally not wrong and “on trust” may not also be wrong.
    But for the avoidance of doubt, let us take “in trust” as that phrase has been used several times in our statutory books.
    Question put and amendment agreed to.
    Clause 207 as amended ordered to stand part of the Bill.
    Clauses 208, 209 and 210 ordered to stand part of the Bill.
    Mr Avedzi 3:47 p.m.
    Mr Speaker, I have made an observation that the sponsors of the Bill, which is the Hon Attorney-General and the Minister of Justice, represented by, the Hon Deputy Attorney-General and Minister for Justice, is here but
    unconcerned; he is seated somewhere that he cannot even be seen and is not following what we are doing.
    Mr Speaker, none of the Leadership on the Majority Side is here. I do not think we should be subjected to this kind of treatment. [Interruption.] Why? The owners of the Business are not interested and I propose that we adjourn this Sitting until they come.
    rose
    Mr Second Deputy Speaker 3:47 p.m.
    Once you mentioned the Hon Deputy Attorney-General's name, I will give him the opportunity to react. Yes?
    Mr Kpemka 3:47 p.m.
    Mr Speaker, I am so surprised since I have always been in the House from the very first day we started considering this Bill and I have never missed a single day. I am surprised that my very good Friend and older brother is saying this. I have been here every day and I take part in every aspect of the debate of this Bill.
    Once in a while I see the Hon Member but I am always here and he has turned it the other way round. With the greatest of respect, if Hon Chireh had said this, I would have understood him but I have always been here and I am here.
    Mr Second Deputy Speaker 3:57 p.m.
    [Laughter.] -- Well, I can attest to
    the fact that you are always present. The issue he raised is that, it looks like the responses and your concen- tration is relaxed and that people were not focused on the Consideration of the Bill again.
    I was not getting the responses well and we have diminishing returns setting in. So I am tempted to, but the Leadership is here and they have to guide me. Once you mentioned the Hon Member for Wa West's name, he wants to have to a bite.
    Mr Chireh 3:57 p.m.
    Mr Speaker, thank you very much. As for the Hon Deputy Attorney-General and Minister for Justice, he is always here, but today, the Hon Deputy Minority Leader did not say that he is not here.
    Mr Speaker, the Hon Kpemka said that he normally sits with the Hon Chairman and now, he is somewhere reading something and not listening to the amendments we are considering. The most serious issue is that where he sat is far away from where we can see him showing interest, may be -- I would not say the rest. [Laughter.] We are tired, and there is no concentration.
    I was warning the two Hon available Leaders that when you call for voice votes, they were quiet and so who should shout? The Speaker himself will be shouting at the top of his voice and he wants a corres- ponding response from us and so, it appears that, generally, it is either we
    Mr Second Deputy Speaker 3:57 p.m.
    Hon Members --
    rose
    Mr Second Deputy Speaker 3:57 p.m.
    Hon Member, are you the Hon available Leader?
    Mr Kum 3:57 p.m.
    Mr Speaker, that is so.
    Mr Second Deputy Speaker 3:57 p.m.
    Since you are the Hon available Leader, your Chief Whip is in now but once I recognised you, you may have a word before your Hon Chief Whip.
    Mr Kum 3:57 p.m.
    Mr Speaker, thank you. Just to correct an impression that has been created, that we were not responding. We were actually responding and participating in the Consideration Stage of this Bill. We are not tired and I believe that we have done some work for the day and if the Hon Deputy Minority Leader is tired, maybe, he could say that, but the Hon Chief Whip is here so I will take my seat.
    Mr Second Deputy Speaker 3:57 p.m.
    Hon Member, we got to clause 210 and subject to the guidance of Leadership, it is a very good number to adjourn but if you insist, we can add 30 more minutes.
    Mr Alhassan Umar 3:57 p.m.
    Mr Speaker, thank you. I rise on Standing Order 48 which is on quorum. With your leave, I will read it.
    Mr Second Deputy Speaker 3:57 p.m.
    Hon Member, Standing Order 38?
    Mr Umar 3:57 p.m.
    Mr Speaker, no. Standing Order 48. It says:
    “The Presence of at least one- third of all the Members of Parliament besides the person presiding shall be necessary to constitute the quorum of the House.
    Mr Second Deputy Speaker 3:57 p.m.
    I have ruled on this matter before. Standing Order 48 is part of Part 6, and Part 6 deals with Sittings and Adjournments of the House. That is why in Standing Order 48 (1), you have (2) following immediately and it says:
    “If at the time of sitting a Member takes notice or objection that there are present in the House, besides the person presiding, less than one-third of the number of all the Members of Parlia- ment, and after an interval of ten minutes a quorum is not present, the person presiding shall adjourn the House without Question put until the next sitting day.”
    I have ruled and I will continue to rule that this is at the time of commencement of a Sitting of Parliament on a daily basis that this can be raised. When you see that at that time no Question is put and they are talking about the House being adjourned to the next Sitting day, but when the Business is proceeding and there is a reduction in number, there are other provisions we use but not this one.
    It is not my duty to draw your attention to them and I will not do that. Let us go back to the issue of listening to the Leadership as to the appropriateness or otherwise of continuing with Business when it is very clear that fatigue has set in and concentration has greatly reduced and we are getting diminishing returns.
    Yes, so Hon Majority Chief Whip, what do you say to that?
    Mr Ameyaw-Cheremeh 3:57 p.m.
    Mr Speaker, I think that some progress has been made today and where we
    have reached, that is clause 210, is a convenient point for us to adjourn and it being after 2 o'clock, we are entirely before you as you have the power to adjourn. For me, we may take an adjournment at this stage.
    Mr Second Deputy Speaker 4:07 p.m.
    Yes, Minority Bench?
    Mr Avedzi 4:07 p.m.
    Mr Speaker, I support the proposal from the Hon Majority Chief Whip.
    Mr Second Deputy Speaker 4:07 p.m.
    Hon Members, this brings us to the end of the Consideration Stage of the Companies Bill, 2018, for today.
    Hon Members, I think this is a convenient time to take a bow until tomorrow.
    ADJOURNMENT 4:07 p.m.
  • The House was adjourned at 4.09 p.m. till Thursday, 11th April, 2019, at 10.00 a.m.