Debates of 12 Aug 2020

MR SPEAKER
PRAYERS 11:35 a.m.

VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 11:35 a.m.

Mr Speaker 11:35 a.m.
Hon Members, the Votes and Proceedings of 11th August, 2020.
Page 1 -- 8 …
Mr Samuel Nsowah-Djan 11:35 a.m.
Mr Speaker, yesterday I was here but I have been marked absent. That is item 69 on page 8 of the Votes and Proceedings.
Mr Speaker 11:35 a.m.
Thank you.
Page 14 -- 30
Hon Members, the Votes and Proceedings as corrected is hereby admitted as the true record of proceedings.
Hon Members, we have the Official Report of 24th July, 2020. Is there any correction therein?
  • [No correction was made to the Official Report of Friday, 24th July, 2020.]
  • Mr Speaker 11:35 a.m.
    Hon Members, we have the Official Report of 27th July, 2020. Is there any correction therein?
    Mr Speaker 11:35 a.m.
    Urgent Question -- The Hon Minister for Agriculture would, please, take the appropriate chair.
    Hon Alhaji Bashir Fuseini Alhassan?
    URGENT QUESTIONS 11:35 a.m.

    MINISTRY OF AGRICULTURE 11:35 a.m.

    Alhaji Bashir Fuseini Alhassan (NDC -- Sagnarigu) 11:35 a.m.
    Mr Speaker, I beg to ask the Hon Minister for Agriculture the urgent measures the Ministry has put in place to ensure the production of high yielding cocoa
    seedlings for the cocoa industry, having regard to the fluctuation in the levels of cocoa production over the past five years.
    Minister for Agriculture (Dr Owusu Afriyie Akoto) 11:45 a.m.
    Mr Speaker, thank you for the opportunity to respond to the Urgent Question on the floor of this august House.
    Mr Speaker, the cocoa sector, as we are all aware has been the main steer of Ghana's economy until the discovery of oil in recent times. That notwithstanding, the sector has its own problems that has contributed to its underperformance in recent times.
    Indeed, there has been a systematic decline in the country's cocoa production in the last five years as observed. Available data indicates that the decline actually started 10 years ago. The following records dating back to 2010 buttress this point.
    The total output for the 2010/11 was over 1 million metric tonnes and 2011/12 was 879,349 metric tonnes. In 2012/13, it declined further to 865,466 metric tonnes. In 2013/14,
    it was 896,220 metric tonnes, and in 2014/15, it was 740,254 metric tonnes.
    Mr Speaker, in 2015/2016, 778,843 metric tonnes, then is 2016/ 17, it rose to 969,511 metric tonnes and in 2017/18 to 904740; in 2018/ 19 to 811,608 metric tonnes.
    Mr Speaker, prominent among the major factors that have contributed to the decline in production levels is the Cocoa Swollen Shoot Disease (CSSVD). Swollen shoot is a virus. The mitigation of this problem has therefore been the main focus of the research activities of COCOBOD among others; one of the solutions being the development of hybrid seedlings with relatively high resistance to the disease.
    Together with the Cocoa Health Extension Division (CHED) of COCOBOD and the Seed Production Division of Ghana Cocoa Board (COCOBOD) they are responsible for the production and distribution of hybrid cocoa seedlings to farmers for transplanting.
    Cocoa seedlings are raised at selected nursery sites located within the cocoa farming communities for:
    Replacing on CSSVD-treated farms;

    Rehabilitation of over-aged and moribund farms;

    Replanting of burnt farms;

    The establishment of new farms; and
    Alhaji B.F. Alhassan 11:55 a.m.
    Mr Speaker, it is obvious that in the face of this decline, there is also a decline in jobs in the industry. How does the Hon Minister hope to take this programme to tackle the issue of declining jobs in the industry and the potential that it could further decline to the detriment of the people?
    Mr Speaker 11:55 a.m.
    Hon Minister, if you have got the Question, you may please answer.
    Dr O. A. Akoto 11:55 a.m.
    Mr Speaker, I think I missed part of the question put to me by the Hon Member.
    Mr Speaker 11:55 a.m.
    I thought as much.
    Hon Minister, please take your seat so that the Hon Member would come out with clarity.
    Alhaji B. F. Alhassan 11:55 a.m.
    Mr Speaker, I said that in the face of the fluctuations and decline of production, there has been a decline in
    employment; many people have left the industries and industries have lost jobs. How does the Hon Minister hope to take advantage of this programme to resuscitate the industries and also help employ people? -- [Interruption] --
    Mr Speaker, there has been a decline and in its face, jobs have also been lost.
    Mr Speaker 11:55 a.m.
    Hon Member, would you please be patient? Who or what are in the decline? Please, frame your question fully; Do it step by step and patiently.
    Hon Member, please ask your question.
    Alhaji B. F. Alhassan 11:55 a.m.
    Mr Speaker, my question is very simple. The decline has affected jobs. How does the Hon Minister hope to use this particular programme to revitalise jobs in the industry?
    Dr O. A. Akoto 11:55 a.m.
    Mr Speaker, as I explained in the Answer, new measures are being put in place, first, to stop the decline and to increase production. As production increases, it creates the demand for employment both for the maintenance of the newly planted seedlings and also, for the harvesting of the crops when they mature. As you know, these new
    Alhaji B. F. Alhassan 11:55 a.m.
    Mr Speaker, I would want to find out from the Hon Minister whether the receptacles for the nursing of the
    seedlings have been tested to ensure, that they are reliable means for the generation of the requisite level of efficiency in the seedlings that we are expecting?
    Dr O. A. Akoto 11:55 a.m.
    Mr Speaker, I wonder whether the Hon Member of Parliament is aware of the history of the Cocoa Research Institute in Tafo?. That is where everything is coming from. The Institute is the leading Cocoa Research Centre in the whole world. It started in 1939. It has a reputation and other countries come to learn from us. So I have no doubt that, whatever product comes out of that Institute would sustain and expand our production of cocoa. Other experts from around the world come here to learn from the scientists.
    Therefore I am absolutely sure that the seedlings produced by COCOBOD will not only survive but also help to flourish the cocoa industry in Ghana.
    Mr Speaker, thank you.
    Mr Speaker 11:55 a.m.
    Hon Member, finally? --
    Thank you very much Hon Minister --
    Several Hon Members -- rose --
    Mr Speaker 11:55 a.m.
    Yes, Hon Member?
    Mr Sampson Ahi 11:55 a.m.
    Thank you very much, Mr Speaker.
    Mr Speaker, from the Hon Minister's Answer, it means that most cocoa farmers have lost their farms as a result of the cocoa swollen shoot disease. It means the farmers have lost their source of income. Are there livelihood programmes in place to support farmers, who have lost their farms while they go through the programmes put in place by the Government to resuscitate their farms?
    Dr O. A. Akoto 11:55 a.m.
    Mr Speaker, I wonder whether the Hon Member listened to my Answer. I made it clear that during the time of his government, the grant for farmers for removing the diseased trees was withdrawn. We have reintroduced the grant, not only for the farmers involved, but also for the landlords whose lands are being used by migrant farmers to sustain them for the three years that the new seedlings would come to fruition.
    So yes, we have reintroduced the support for farmers which was removed by the previous government, as a strategy to ensure that this revitalisation programme succeeds.
    Mr Speaker, I thank you.
    Mr Richard Acheampong 11:55 a.m.
    Thank you very much, Mr Speaker for the opportunity.
    Mr Speaker, in the Answer provided by the Hon Minister, there is a data, and I would want to rehash the numbers that he quoted, so that I would ask my question.
    Mr Speaker, the Hon Minister said that between 2010/2011 the production level of cocoa was 1,024,553 metric tonnes; for 2011/ 2012, it was 879,349 metric tonnes; 2012/2013, 865,466 metric tonnes; 2016/2017, it was 969,511 metric tonnes.
    Mr Speaker, just yesterday, COCOBOD, which falls under the Ministry of Agriculture provided another data because they are seeking for US$1.3 billion syndicated facility to buy cocoa.
    They told us that between 2012 and 2013, the cocoa production level was 835,617 metric tonnes, a whopping difference of 29,849 metric tonnes. So, could the Hon Minister reconcile these two figures for us? This information is coming from the same Ministry.
    Mr Speaker 11:55 a.m.
    Yes, Hon Minister?
    Dr O. A. Akoto 11:55 a.m.
    Mr Speaker, I wish to confirm to the Hon Member that as Minister for Agriculture, I am responsible for the cocoa industry in this country; that is the first point. The second point is that I was not there yesterday when they had discussions, and all the figures I have quoted here are straight from Ghana COCOBOD so; if he wants to take any issue with Ghana COCOBOD with the figures that they gave you at your Committee, I think that I am the wrong person to be asked because all the information that I have given is from Ghana COCOBOD and as I said, I was not party to the meeting that the Hon Member referred to so, I cannot make any further comments.
    Mr Speaker 11:55 a.m.
    And Hon Member, is what you are referring to now before us?
    Mr R. Acheampong 11:55 a.m.
    Mr Speaker, rightly so. I have the document which I could table before you. The document is before the Finance Committee.
    Mr Speaker 11:55 a.m.
    Is it before the Finance Committee?
    Mr R. Acheampong 11:55 a.m.
    Yes, Mr Speaker.
    Mr Speaker 11:55 a.m.
    Has it reached this honourable House?
    Mr R. Acheampong 11:55 a.m.
    Rightly so because the facility was laid before this House and same was referred to the Finance Committee.
    Mr Speaker 11:55 a.m.
    Yes, has a Report come from the Finance Committee to this honourable House?
    Mr R. Acheampong 11:55 a.m.
    Mr Speaker, even if you check the Order Paper—
    Mr Speaker 11:55 a.m.
    No, do not tell me ‘even if'. If a Report is not before this honourable House, you are totally out of order giving the impression that the House is ceased with this Report. Do you not know our procedures?
    Mr R. Acheampong 11:55 a.m.
    Mr Speaker, it is before this House.
    Mr Speaker 11:55 a.m.
    Hon Member, you are misleading the House and that is most unfortunate. Any other question?
    Mr Haruna Iddrisu 11:55 a.m.
    Mr Speaker, just to indulge you and to get your guidance; what the Hon Acheampong seeks to do is to appreciate which figures to rely on having heard from the Hon Minister for Agriculture whose data as printed in our Order
    Paper of Wednesday, 12th August, 2020 against a submission to the Finance Committee, the Report of which the House may be considering today or tomorrow on the 13 billion —
    Mr Speaker 11:55 a.m.
    Hon Minority Leader, with all deference to your position, and as a lawyer, is the House either seized with a document or it is not?. As at today, this House is not seized with a Report from our Committee placed before us. We do not know what kind of changes they may make tomorrow so; please, we have not got to the river. It would be most premature for us to talk of a paper that the House is seized of.
    Hon Minister, thank you for attending to the House and answering our Questions. You are respectfully discharged.
    Hon Members, the item listed 9; Hon Chairman of the Finance Committee? Hon Majority Leader, your Chairman; the item listed 9 or where do we go? -- [Pause]-- Sorry, for the time being, we will also have a Statement. Maybe, the Hon Member is timing the situation somewhere around. We have a Statement, and today is International Youth Day. Hon Dr Okoe Boye has filed a Statement in this regard.
    STATEMENTS 11:55 a.m.

    Dr Bernard Okoe Boye (NPP -- Ledzokuku) 11:55 a.m.
    Mr Speaker, I thank you for the opportunity to make this Statement today, 12th August, 2020, a day set aside annually to mark International Youth Day.
    Mr Speaker, this year's theme for the celebration, “Youth Engagement for Global Action”, seeks to highlight the ways in which the engagement of young people at the local, national and global levels are enriching national and multinational institutions and processes, as well as drawing lessons on how their representation and engagement in formal institutional politics can be significantly enhanced.
    Mr Speaker, we, the youth of this world have been given this day in the year to occupy the space and receive the necessary attention because we possess the energy, enthusiasm and the drive that shaped the world in the past, modelled the form of the present global economy and carries the key to unearth the future. The objective of the International Youth Day, 2020 is to call for engagement of the youth at all levels in the process of making policy and enacting laws. State and or political institutions are being called up on such a day to ensure that the
    Mr Speaker 12:15 p.m.
    Thank you very much Hon Dr for your Statement. Yes, Hon Member?
    Mr Ras Mubarak (NDC -- Kumbungu) 12:15 p.m.
    Mr Speaker, thank you very much for the opportunity to contribute to the Statement.
    As we celebrate the International Youth Day today, two things are at stake -- one is the loss of values from our young men and women in the country and secondly, the lack of opportunities. I would like to address these two issues briefly.
    Mr Speaker, in respect of the lack of opportunities, more often, when young people are looking for jobs, they are asked about work experience. You would know that without any form of work, they cannot come by experience. So, I am making an appeal to all employers that we have the duty to give young people a leg in the door by giving them an opportunity. That is the only way they can come by work experience.
    What young people may lack in experience, they make up for in innovation, creativity and energy and
    Mr Frank Annoh-Dompreh (NPP -- Nsawam-Adoagyiri) 12:15 p.m.
    Mr Speaker, let me commend our own Dr Bernard Okoe-Boye.
    Mr Speaker, the theme of this year's International Youth Day as identified by the United Nations is “Youth Engagement for Global Action”. I was not surprise when three prong engagement levels were identified by the UN. Community level engagement, national level engagement and global level engagement. I identify with many of the things my colleague, Hon Ras Mubarak who was once at the Youth Authority. One could feel the passion with which he spoke.
    From the 60s, particularly the 50s when Nkrumah set out young pioneers. He set the tone for the engagement and the involvement of our youth in nation building. It was followed suit by Dr K. A. Busia's National Service Scheme which is still in operation. So clearly, for Ghana as a country, the involvement and engagement of our youth is not lost on us. Right from independence, we have been clear in our minds, what we want to do and the path we want to blaze.
    However, truth be told and this is not controversial, military interventions in pursuit of our governance process have in one way or the other taken us backwards. As Hon Mubarak identified, there is lack of volunteerism and lack of patriotism on the part of our youth. These interventions by military leadership have in one way or the other come to undermine our progress.
    Mr Speaker, recent administrations from former President Kufuor right to the current President have made clear and consistent youth intervention programmes such as the National Youth Employment Programme (NYEP), Ghana Youth Employment and Entrepreneurial Agency (GYEEDA), Young Entrepreneurs and Leaders' Summit (YELS), Local Enterprise Skills Development
    Programme (LESDEP), Micro- finance and Small Loans Centre (MASLOC), Savannah Accelerated Development Authority (SADA) and all the other youth intervention programmes you can name.
    There are some wonderful modules across the world that we need to look at. We can talk about the emerging powers like South Korea, Singapore and India. There is a certain approach that runs power in common with these countries and that is the sense of inclusiveness of the youth right from policy formulation. I think that this is where we may also have to pay some particular attention to.
    Mr Speaker, there is also, the good example espoused by Germany, United States, Australia in terms of hands on training of most of the skills that have been imparted. Developed jurisdictions that we can take a cue from have often focused on hands on education, so we may have to veer off a bit from overly focusing on theoretical impartation and look at how as a country, we can focus on hands on education.
    I believe the last thing any country wants to do is to risk the wrath of the youth. We have read the Arab springs in history, looked at violence visited on innocent lives, many of which are perpetrated by the youth. We do not
    Mr Frank Annoh-Dompreh (NPP -- Nsawam-Adoagyiri) 12:25 p.m.
    want this to be repeated in our part of the world and in our country, hence, Europe has launched a new programme which is the 2019 to 2027 Agenda called, Engagement, Connecting and Empowerment of the Youth. I think that with our youth policy passed in 2010, we should be able to be frank enough on this day to identify areas where we are doing well and where we are drifting off so we can be able to refocus and energise our youth for the betterment of our country.
    In all, I would say that the current leadership under H. E. President Akufo-Addo is giving true meaning to youth empowerment.

    The appointment of few youthful limbs in Government is not enough. There should be a clear policy. We could see consistency from former President Kufuor's youth employment programme, to President Nana Addo Dankwa Akufo-Addo's programme. If we are able to sustain this and get a legislation to back it, we would make a difference in our part of the world.

    Mr Speaker, I thank the Hon Member who made the Statement and I would want to use this opportunity to urge the youth in our country to buy into the popular statement that we should not wait for

    what our country would do for us but we should always seek first, what we could impact and do for our country.

    Mr Speaker, I thank you for your kindness.
    Mr Speaker 12:25 p.m.
    Hon Leadership, could you choose or decide to speak for yourselves? One on each Side more as we move into other things.
    Minority leadership, could you please --
    Minority Chief Whip (Alhaji Mohammed-Mubarak Muntaka) 12:25 p.m.
    Mr Speaker, I know we have a lot of Business to do but I want to briefly comment on the Statement which was ably made by the Hon Deputy Minister for Health, Dr Okoe Boye. I would want to thank him for reminding us about the need to get our youth on board.
    Mr Speaker, I associate largely with most of the comments made, but we all have to admit that if we need to get the youth on board, we need to do more than we have done. With the greatest of respect, since we came into democratisation, many of the policies and interventions that government after government seem to do is just a token and I would term it as tokenism. We just do a little and
    expect an exponential result. This is something we should look at from the side of leadership. Whereas we try to engage the youth that would idle and virtually pay them, as former President Kufuor said, “pretend to pay them so that they also pretend to work”, when in the actual sense we could deploy them into agencies and industries where they would develop their skills.
    Mr Speaker, in Germany, when people go through the technical education, they are not complete until they are attached to an industry, where they would have to work and be able to pass out before they are called graduates. Through that their youth becomes skilful to sustain themselves.
    The programmes done by NACOB and YEA is just tokenism. For example, if NACOB sent close to 20,000 youth to the Ghana Revenue Authority (GRA) but they do not have any schedule because they are too many and only a few of them are engaged, the rest are idle but at the end of the month, they are paid.
    Mr Speaker, again, with the youth in afforestation, if we are determined to plant a lot of forest growth, there is a lot of work to be done within our communities in the forest zone areas but we do not do that. Most of them
    are in the urban centres and every morning they go to write their names and go back home and at the end of the month, they are paid. When we do this, we just encourage laziness in the youth because we do not properly engage them.
    The same amount of money could be given to companies that would engage and truly train them. For example, if we decide to put 2,000 youth under Unilever Ghana Limited and give that same amount to Unilever, I could assure us that it would be used to make sure that they really work and earn the money instead of just idling. There are so many other companies that may be able to help if these moneys are channelled through them.
    Mr Speaker, sadly, today, what happens to the country is that almost every youth that has an affiliation to one politician or the other thinks that the easiest way to make it is to join politics -- and we all saw the results in the just ended voters' registration exercise. Almost all the political parties had massing youth that came with all manner of stories and we all run after each other and at the end most of them hurt themselves and they used it as a bargaining tool. Each time a new government comes to power, we should look at the way the youth behave.
    Mr Speaker 12:25 p.m.
    Thank you very much, Hon Minority Chief Whip.
    Majority leadership -- ? [Interruption] -- That is all right.
    That would end Statements time.
    At the Commencement of Public Business. We would please move to the Order Paper Addendum. Presentation of Papers, by the Hon Minister for Finance.
    Dr Anthony Akoto Osei -- rose
    -- 12:25 p.m.

    Mr Speaker 12:25 p.m.
    Yes, Hon Member?
    Dr A. A. Osei 12:25 p.m.
    Mr Speaker, I crave your indulgence to lay the Paper on behalf of the Hon Minister for Finance.
    Mr Speaker 12:25 p.m.
    Very well.
    PAPERS 12:35 p.m.

    Mr Speaker 12:35 p.m.
    Hon Members, we go to the original Order Paper for item listed 5, Presentation of Papers by the Chairman of the Committee on Mines and Energy.
    Dr A. A. Osei 12:35 p.m.
    Mr Speaker, I am told the Paper is not ready for item number 5.
    Mr Speaker 12:35 p.m.
    Thank you very much.
    We would leave out items numbered 6, 7 and 8 for now.
    Item listed 9, Motion by the Chairman of the Committee on Finance.
    Hon Chairman for the Committee on Mines and Energy, is your paper ready for presentation?
    Dr A. A. Osei 12:35 p.m.
    Mr Speaker, instead of item numbered 9, can we move to item numbered 15 and 18?.
    Mr Speaker 12:35 p.m.
    Item listed 15, Motion by the Chairman of the Committee.
    Dr Mark Assibey-Yeboah 12:35 p.m.
    Mr Speaker, the Report will cover two procedural Motions as well as two substantive Motions and two Resolutions. That would be items numbered 15 and 18 and the substantive Motions would be items numbered 16 and 19.
    Mr Speaker 12:35 p.m.
    Please, would you kindly move the procedural Motions numbered 15 and 18?.
    Dr Assibey-Yeboah 12:35 p.m.
    Mr Speaker, because there is nobody sitting close by me, I would want to take off my facemask.
    Mr Speaker 12:35 p.m.
    No, please, keep your facemask on. We hear you well, so, please, go on.
    MOTIONS 12:35 p.m.

    Chairman of the Committee on Finance (Dr Mark Assibey- Yeboah) 12:35 p.m.
    Mr Speaker, I beg to move,
    That notwithstanding the provisions of Standing Order 80(1) which require that no Motion shall be debated until at least forty-eight hours have elapsed between the date on
    which notice of the motion is given and the date on which the Motion is moved, the Motion for the adoption of the Report of the Finance Committee on the Terms of a Receivables- backed Trade Finance Facility between Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial Institutions, with the Government of the Republic of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States dollars (US$1,300,000,000) to finance the purchase of cocoa for the 2020/2021 Crop Season by the Ghana Cocoa Board may be moved today;
    AND 12:35 p.m.

    Mr Ras Mubarak (NDC-- Kumbungu) 12:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Speaker 12:35 p.m.
    Hon Chairman of the Committee, you may please move Motions listed 16 and 19.
    Receivables-backed Trade Finance Facility Between Ghana
    Cocoa Board and Financial Institutions, GOG as Guarantor
    Dr Assibey-Yeboah 12:35 p.m.
    Mr Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Terms of a Receivables-backed Trade Finance Facility between Ghana Cocoa Board (COCOBOD) and a Consortium of Banks and Financial Institutions, with the Government of the Republic of Ghana as Guarantor, for an amount of up to one billion, three hundred million United States
    AND 12:35 p.m.

    AND 12:35 p.m.

    Mr Kwame Governs Agbodza (NDC-Adaklu) 12:35 p.m.
    Mr Speaker, I beg to second the Motion for the approval of US$1.3 billion for the activities of COCOBOD and also for the tax waivers.
    Mr Speaker, cocoa is very critical to the health of Ghana's economy. Indeed, someone may argue that perhaps if we applied the amount of time and resources we put into oil exploration and everything to cocoa production, we might be better off.
    Mr Speaker, if we go to paragraph 6.4 on page 7 of the Committee's Report, it talks about the loan facility disbursement. A lot of things were listed there and under farming services cost, one of those items is cocoa roads but in the body of the text, nothing really has been said.
    Mr Speaker, from 2017, the Government sought to make the country aware of the challenges on cocoa roads to the extent that cocoa roads projects were suspended in 2017 pending the outcome of an audit report. We are yet to see any report of the cocoa road audit appear in this House either as part of the work of the COCOBOD themselves or the Government.
    Dr Assibey-Yeboah 12:35 p.m.
    Mr Speaker, my Hon Colleague is asking about the audit report of cocoa roads. The Committee on Finance cannot pronounce on that matter. What is before us is the term loan facility of a receivables-backed trade finance facility amount of US$1.3 billion which we do annually.
    Mr Speaker 12:45 p.m.
    In fact, whoever oversees this is not the real issue but the fact is that, that which was mentioned is not what is before us.
    So, Hon Member please keep to the Report before us.
    Mr Kwame Governs Agbodza 12:45 p.m.
    Mr Speaker, if my very good friend who happens to be the Hon Chairman of the --
    Mr Speaker 12:45 p.m.
    Hon Member, please, it is a very valid point.
    Mr Agbodza 12:45 p.m.
    Mr Speaker, on page --
    Mr Speaker 12:45 p.m.
    Please, move on without that reference.
    Mr Agbodza 12:45 p.m.
    Mr Speaker, all I sought to do was that we have allocated money for further works on cocoa roads as seen on page 7. I am saying that it would have been good if the Committee reported on the outcome of some of the projects they did which the Ministry said it was not happy about it.
    Mr Speaker 12:45 p.m.
    Can we have one on each Side?
    [Interruption] --
    Hon Members, Order!
    Mr Richard Acheampong (NDC -- Bia East) 12:45 p.m.
    Mr Speaker, thank you very much for the opportunity to contribute to the Committee's Report presented to the House for its approval of an amount of US$ 1.3 billion with an attached tax waiver for the purchase of cocoa for the 2020/2021 crop season.
    As the Hon Chairman has explained, it has become an annual ritual that we need to solicit for financial support to purchase cocoa so that our farmers can also improve their livelihoods in terms of road construction, provision of fertilizers and other means of support to sustain this economy of ours.
    Mr Speaker, when we met with the executives from COCOBOD, they gave the utilisation on last year's facility that we took to be in the position to approve the current facility before us. When they gave us the breakdown, they informed us that last
    year, they took a US$ 600 million facility from African Development Bank (AfDB) to support farmer improvement activities and they transferred US$10 million from the Syndicated Loan to facilitate the US$ 600 million.
    Originally, when they appeared before the House for the approval of the US$1.3 billion facility, that US$10 million was not mentioned in the request. So, the question is, how can they go back to their offices, take a decision to spend a whopping sum of US$10 million to contract a US$600 million facility? As we speak, the drop down is about US$200 million and we spent US$10 million of cocoa Syndicated facility to procure a US$ 600 million.
    Mr Speaker, what we know is that if one is taking a loan facility of US$600 million, part of the facility should be used to finance it because we are told that they spent US$2.250 million as arrangement fees and US$212,309 as legal fees. So, how come they are still spending another US$10 million from a Syndicated facility for the US$600 million that they contracted?
    Again, with all these investments, like the question I posed to the Hon Minister for Agriculture, they gave us detailed production levels of the country from the year 2010 to date.
    Mr Fuseini Issah (NPP -- Okaikoi North) 12:45 p.m.
    Mr Speaker, thank you very much for the opportunity to support the Motion on the US$1.3 billion --
    Mr Speaker 12:45 p.m.
    Hon Member, please, wear your face mask.
    Mr Issah 12:45 p.m.
    Mr Speaker, thank you very much for the opportunity to support the Motion on the US$1.3 billion receivable trade finance facility.
    Mr Speaker, before I go on, I would want to assure my Hon Colleague on the other Side that after the re-capitalisation of the banks, they are in a better position to form a consortium to financing big ticket deals than it was in the year 2016.
    This is one of the reasons we have gone on to do the financial sector clean-up and then going forward, I believe that we are going to be in a position where our local banks
    capitalised at 400 million, will be in a position to finance big ticket deals like our annual receivable-backed trade finance for the cocoa sector.
    Today, the cocoa sector is of crucial importance to the Ghanaian economy. It is a major contributor to our GDP, annually, it provides us with very important foreign exchange, along the value chain it employs over two million people and it also supports infrastructural development.
    Mr Speaker, the cocoa sector is synonymous to Ghana's economy even before we discovered oil to help in the expansion of our economy, the cocoa sector had been the mainstay of our economy. So, I urge the House to support this facility to enable the sector finance its activities for the 2020/2021 cocoa buying season.
    Mr Speaker 12:45 p.m.
    Thank you very much, Leadership?
    Mr Benjamin K. Kpodo (NDC -- Ho Central) 12:55 p.m.
    Mr Speaker, thank you for the opportunity. My issue with this Report is that there is a clear revelation that COCOBOD has been doing something that is illegal and I want to draw your attention to this.
    Mr Speaker, in the 2020 Budget Statement that was presented to this House and approved last year, there was no provision for export duty on our cocoa exports.
    rose
    Mr Kpodo 12:55 p.m.
    The figure allocated was zero but when I raised the issue here, the Hon Member who is on his feet to challenge me --
    Mr Speaker 12:55 p.m.
    Dr Osei?
    Dr A. A. Osei 12:55 p.m.
    Mr Speaker, my Hon Colleague said that “COCOBOD has been doing something that is illegal”. Mr Speaker, this is an accusation that cannot be proved because he is neither -- [Interruption]
    Mr Speaker, my Hon Colleagues should listen. The Hon Member said “illegal” -- but he is not a court. Since when did the Hon Member become a Supreme Court or a High Court to pronounce that COCOBOD has done something which is illegal?
    Mr Speaker, if the Hon Member wants to say that it is possible that “COCOBOD might have” then I would not have any problem with that. However, he said that “COCOBOD
    Mr Speaker 12:55 p.m.
    We must be very sober in language. If we engage in hyperboles with the view to do politics then we would always fall into this kind of difficulty. Hon Member, you want to accuse COCOBOD of engaging in illegalities but you do not have any serious support. Please you are pursuing a very difficult path and this is the mildest language I can use.
    Kindly withdraw and in fact apologise.
    Mr Kpodo 12:55 p.m.
    Mr Speaker, I withdraw the word “illegal”, however, I would --
    Mr Speaker 12:55 p.m.
    If you would withdraw the word “illegal” then just say so and proceed.
    Mr Kpodo 12:55 p.m.
    Mr Speaker, I have done that.
    What I observed from the presentation made to us at the Finance Committee meeting was that, COCOBOD has allocated an amount GH¢456,630,574 on cocoa roads and this is classified as “Export Duty”. It has also allocated an amount of GH¢128,407,552 and classified it as “Export Duty”. However, we know that duties, levies and other taxes on exports and imports are the prerogative of the Ghana Revenue Authority (GRA). GRA determines the amounts to be paid by importers and exporters and no other institution or agency has been clothed with the power to do this.
    Mr Speaker, I was calling your attention to the fact that cocoa was being exported but no duty was being paid and this is stated in the 2020 Budget Statement. At page 214 of the 2020 Budget Statement, under export duty, the allocation is zero. I remember writing this down.
    Mr Speaker, what I want to draw your attention to is the fact that Parliament is the body that has the power to determine and approve taxes payable by citizens including exporters and importers. Nobody can go behind Parliament to levy or determine duty payable; I cannot say that I am importing a vehicle through our ports and decide the amount I want to pay as import duty.
    Mr Speaker, but in this presentation, it was quite clear that COCOBOD is determining the duty that it would pay. Also, they spend the money on whatever they wish to do and this is what I refer to as undermining parliamentary authority. Mr Speaker, this must be brought to your attention and the perpetrators would have to be made to do what is right.
    Mr Speaker, my second issue --
    Mr William A. Quaittoo -- rose
    -- 12:55 p.m.

    Mr Speaker 12:55 p.m.
    Hon Member, are you up on a point of correction? Otherwise, wait for your turn to contribute because I have the indication that you are the next contributor.
    Hon Kpodo, please proceed.
    Mr Kpodo 12:55 p.m.
    Mr Speaker, my second issue with the presentation is what I refer to as a very high cost of financing these loans. In the same presentation, GH¢1,240,141.18 has been allocated to finance the cost of borrowing and this is the second highest expenditure on producer price of cocoa.
    Mr Speaker, we are borrowing moneys to do things that are very good but a chunk of it goes to service the loans that we borrow. That is why I feel that COCOBOD can do something to reduce the cost of financing its activities so that gradually we would start putting moneys aside to give capacity to COCOBOD to use its own funds to purchase cocoa. So that we can reduce these financing costs, because in spite of these high costs, COCOBOD made a loss last year of GH¢1,154,394 and this year it has budgeted for operational loss of GH¢259,977,032. Mr Speaker, this is the deficit that we would get from the operations of COCOBOD this year.
    Mr Speaker, can we not do a better management to reduce the overall operation cost so that COCOBOD can, in preparing itself, be able to spend on their own?. These are my concerns regarding this annual ritual of borrowing moneys from Europe where we celebrate this borrowing but with its attendant cost. I think we can do better.
    Mr Speaker, these are my two concerns and I would emphasise that we have to borrow this year because it is too late, but in future, we have to change our agronomy and do better than we are doing now.
    Mr Speaker 12:55 p.m.
    Thank you very much.
    Hon Member, I got an earlier indication that you are next to contribute and that is why I wanted you to hold on.
    Mr William A. Quaittoo (NPP -- Oda) 1:05 p.m.
    Mr Speaker, there are some erroneous impressions that have been created by the Hon Member who just contributed. The Hon Member said that COCOBOD on its own determines the tax it has to pay and that is wrong. Well, this page that the Hon Member was looking at, which is the appendix after page 11 is the Report of the Producer Price Review Committee (PPRC) chaired by the Hon Minister for Finance. So this page comes from the Ministry of Finance and so everything here is agreed on by the Ministry and not COCOBOD.
    Mr Speaker, so it cannot be that he is raising the issue that COCOBOD determines its own taxes and approves of its own taxes. The PPRC is chaired by the Ministry of Finance, and so anything on this
    page is approved by the Ministry of Finance, and the Ghana Revenue Authority (GRA) is an agency of the Ministry of the Finance.
    Mr Speaker, if he says that export duty for last year was zero and we are saying the export duty for this year in lieu of Cocoa Roads is about GH¢456 million, and in respect of Bui Dam it is about GH¢128.4 million, it is rightly so. Last year, the figures were GH¢456 million in respect of Cocoa Roads and the GH¢99 million in respect of the Bui Dam.
    Mr Speaker, these are debts that were created long ago. The Bui dam was built on the proceeds of cocoa, and so it has been there and we are all paying. So if Government is expecting some dividend in terms of taxes and the Ministry of Finance itself agrees that it should be used in paying this debt, I do not think there is anything wrong with it, and nobody is perpetuating any illegality here as the Hon Member made us to understand.
    This page was approved by the Ministry of Finance because the PPRC is chaired by the Minister for Finance.
    Mr Speaker, if you look at the same page, it talks about item 9 in the second column. It talks about a number of items, but I would dwell
    on the item numbered 9 which is on Repayment of 10 Year Loan. COCOBOD incurred a certain huge amount of debt over years ago, and now, we are paying for that amount. The amount allocated for that repayment is about GH¢461.4 million. Who created this debt about 10 years ago? Ten years ago, this was the total debt of COCOBOD. It was over GH¢5 billion, and what did he say?
    The last Hon Member who spoke said that last year we incurred a debt of about GH¢1.9 billion. What is the total debt today compared to the total debt in five to ten years ago? This year, if we are proposing to do a debt of GH¢259 million, which one is better? Mr Speaker, gradually, we are reducing the debt portfolio of COCOBOD. They are talking about production.
    Mr Speaker, what we need to know is that, cocoa is a plant that could be affected by diseases and anything, and production could reduce drastically.
    Mr Speaker, right now, COCOBOD is spending a lot of money on resolving all the negative issues on the cocoa plants. They are putting in place a number of measures including a hand pollination, pruning, moribund farms and so on.
    Mr Speaker, if we do not do these, a time would come when the plant itself would not be there at all. Because of all these, cost is going high, therefore, production would also come down. However, at a point, when we have resolved all these issues, the cocoa trees would become young and the yields would go up. As it is now, we have a higher percentage of the plants being moribund. That is the plants are of much age and the production level have come down drastically.
    Mr Speaker, if you look at the cost that is put here, you would realise that a lot of it is geared towards rehabilitation of the plants. Therefore, we have to invest before we could reap the benefits much later in the years ahead.
    Mr Speaker, there is nothing wrong with this performance of the COCOBOD for this year. As it were, this annual ritual of taking loans to buy cocoa beans and using part of the dollars to balance our foreign exchange debt and others is laudable. This was instituted some years back by the Provincial National Defence Council (PNDC) Administration, and every Government has followed that.
    Mr Speaker, we are all looking at the day when COCOBOD and Ghana for that matter would be come
    Mr Speaker 1:05 p.m.
    At the conclusion of the debate --
    Please, I asked on the leadership slot. But if that is so, Hon Deputy Minority Leader, you may contribute.
    Deputy Minority Leader (Mr James K. Avedzi): Thank you, Mr Speaker.
    I rise to support the Motion but to raise few issues. Basically, one main issue has already been raised but the response from the Hon Member, who I do not know to be an expert in cocoa affairs but the Chairman of the Committee on Education.
    Mr Speaker, the issue raised by Hon Kpodo is that the Ministry of Finance did not make provision for export duty at all from the cocoa sector, both in the main Budget and in the Mid-Year review Budget. If the
    Ministry of Finance is not expecting any revenue from the cocoa sector in the form of export duties, then we do not expect COCOBOD to make provision for the payment of export duties as an expenditure. So we need to reconcile these two as Hon Kpodo quoted, in the main Budget on page
    214.
    Appendix 3A, the Ministry of Finance, under international trade taxes has export duty to be zero. So nothing is expected for export duty.
    Now, if you come to the Mid-Year Budget Review, in Appendix 4B, you would also see provision made for COCOBOD having export duty as zero. So if the Hon Member says the table in the appendix is coming from the Ministry of Finance, why should the Ministry of Finance be making provision for COCOBOD to pay export duty yet they themselves know that they are not receiving any money for export duty?. This is the issue we need to clarify.
    rose
    Mr Speaker 1:05 p.m.
    Hon Chairman, do you rise on a point of order or correction?
    Dr Assibey-Yeboah 1:05 p.m.
    Mr Speaker, COCOBOD has not made provision for paying export duty. In the budget,
    the Ministry of Finance sets export duty to zero. COCOBOD is being transparent by saying that the export duty that we would have paid which has been waived by the Ministry of Finance as zero in the Budget would be used for Cocoa Roads and the Bui Dam commitments. This is what is here.
    Mr Avedzi 1:15 p.m.
    Mr Speaker, this explanation should be captured in the Report.Firstly, how did COCOBOD determine that this is the amount that they would have paid as export duty? [Interruptions] -- Please, why are you all feeling the heat? [Interruptions] -- Let me explain the issue to you.
    Mr Speaker 1:15 p.m.
    I like a systematic approach. Order!
    The question has been posited: how can COCOBOD suo motu determine that which they are liable to pay for which matter they have already made appropriate allocations and explanations?.
    Dr A. A. Osei 1:15 p.m.
    Mr Speaker, COCOBOD does not on its own determine --
    Mr Speaker 1:15 p.m.
    Hon Members, the commentary --
    Dr A. A. Osei 1:15 p.m.
    Mr Speaker, our laws require that if the Ministry of Finance wants to waive a tax, the Minister has to come properly before Parliament. That is our law.
    Mr Speaker, in the table referred to by my Hon Chairman, there is an export duty now observed. It means that the Ministry of Finance is requesting Parliament to waive taxes to COCOBOD. That is the waiver that they brought before us legally.
    But in working with COCOBOD, they have to let COCOBOD understand that in lieu of this waiver, they want them to do a number of cocoa roads and some down payments. But legally, the Hon Minister has asked permission and we have approved it that we have waived the taxes, but COCOBOD internally must keep note to remind itself that in lieu of export duty, which has been waived, they are expected to do a number of roads and Bui Dam. So there is nothing illegal about it. That is why I was surprised that my Hon Colleague said it is illegal.
    Mr Speaker 1:15 p.m.
    Hon Members, those who want to speak may rise. Sitting and running your commentary is not acceptable.

    good that this issue has come up for more education to be given.

    Mr Speaker, this is very clear, that under article 174 of the Constitution, we are mandated as Parliament to waive taxes. So if COCOBOD would not pay export duty, the Hon Minister for Finance would have even determined that amount of money and come to the House and requested us to waive it. But they made provision for zero revenue without knowing how much the quantum of the tax at the time we were passing the budget was. If they knew, they would have come to the House.

    Mr Speaker, I do not think that it is the proper thing for the Ministry for Finance to make zero provision for export duty and then determine that value and give it to COCOBOD to apply for either Bui Dam or for cocoa roads. I do not think that is the best thing to do.

    Mr Speaker, why this description? We all know that COCOBOD has been using part of their proceeds to finance cocoa roads. Why do they want to say that this is the amount they are going to use, this is the tax which should have gone to Government and then they would have used it for cocoa roads?. Why would they not just say that as part of the expenditure, an

    amount of money is going to be spent on cocoa roads? That would have cleared every doubt. What kind of transparency are they talking about? They are rather creating problems.

    The Hon Minister for Finance should have come to this House with the document to request that an amount of money is supposed to be collected from COCOBOD as export duty but that they want a waiver. That was not done. They made provision for zero revenue and they are coming through the backdoor to say that this is the explanation. Mr Speaker, it is not clear and that is my concern.
    Mr Speaker 1:15 p.m.
    Hon Dr Akoto Osei, you owe the House an assistance. Are we not going to be interested in putting things properly on the record?
    Dr A. A. Osei 1:15 p.m.
    Mr Speaker, Hon Avedzi is asking a question that should have been asked last year and this year when we were approving the Budget, that when he says export duty is zero, what does he mean? I agree with him. This is not the first time COCOBOD is doing this but in Committee, they explained to us and the Ministry of Finance why they are doing this.
    So I understand. If he wants to know how much is in export duty, it is a legitimate question to ask but I am saying that legally, because they are waiving export duties, they have to put zero. If he wants a further explanation, he can require them to put it in there so that he knows the amount. But COCOBOD internally must match the amount of export duty to the equivalent of cocoa roads for its internal -- so that it knows.
    It could be that; it could be less; it could be more. So I do not have any difficulty but I think that as you said, we are discussing it and that is why I did not want my Hon Colleague to say that it is illegal. It is not illegal. When he brings it and we approve, we have legally waived it. If he has further questions, he should ask us. I do not have any difficulty with that.
    Mr Speaker 1:15 p.m.
    Hon Avedzi, you may please continue?.
    Mr Avedzi 1:15 p.m.
    Mr Speaker, thank you very much.
    Mr Speaker, if that is the explanation, we want the position to be clarified; probably next year. The situation should not be the same that if they are making provision for a zero revenue from the export duty from the
    cocoa sector.If they want to waive that amount, they should come to the House and request for the waiver.
    Thank you very much, Mr Speaker.
    Majority Leader (Mr Kyei- Mensah-Bonsu) 1:25 p.m.
    Mr Speaker, thank you very much for the opportunity to make a few comments on the Report before us. Mr Speaker, first of all, the facility that is being sought is US$1.3 billion. Mr Speaker, the target for the cocoa beans to be procured is 900,000 metric tons. We heard today from the Hon Minister for Agriculture who related to the production levels since the 2010/11 production year.
    Mr Speaker, we saw that the figures generally had been declining but lately, there is a small increase in the production levels, which is what the Hon Minster related to. Indeed, in 2018/2019, the level of reduction, which has not been reviewed yet is 811,606 metric tons. For 2019/2020, it is envisaged that production levels would go a bit up to 900,000 metric tons, which is, they are looking to an amount of US$1.3 billion.
    Mr Speaker, that should suggest that what the Ministry is doing with respect to the treatment of the
    Mr Speaker 1:25 p.m.
    Hon Members, Resolutions numbered 17 and 20.
    Yes, Hon Minister for Finance?
    Mr Kyei-Mensah-Bonsu 1:25 p.m.
    Mr Speaker, the Hon Minister for Monitoring and Evaluation will stand in for the Hon Minister for Finance.
    Mr Speaker 1:25 p.m.
    Thank you very much. Yes, Hon Minister?
    RESOLUTIONS 1:25 p.m.

    Dr Assibey-Yeboah 1:25 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    STAMP DUTY WAIVER 1:25 p.m.

    Dr Assibey-Yeboah 1:25 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Speaker 1:25 p.m.
    Hon Members, item numbered 21 -- Motion, by the Hon Chairman of the Committee.
    Mr Kyei-Mensah-Bonsu 1:25 p.m.
    Mr Speaker, first of all, I need to draw the attention of the House to what we did under the Order Paper Addendum. I think there is a mistake in what we did.
    Mr Speaker, the Paper that was presented, because it is a concessionary agreement, it should have been: The Concessionary Agreement between the Government of the Republic of Ghana, (represented by the Ministry of Transport) and the other party, not the Ministry of Finance in this regard. And the referral ought to have gone to the Committee on Roads and Transport, and not the Committee on Finance. So, just to -
    Mr Speaker 1:25 p.m.
    Hon Member, to which Committee was the referral made?
    Mr Kyei-Mensah-Bonsu 1:25 p.m.
    Mr Speaker, so that is it. And what appears as the second one, which was presented by the Hon Minister for Transport, ought not to have been done at all by the Hon Minister, because it is the Hon Minister who ought to have done item numbered 1. So, the second leg did not have to be advertised on the Order Paper Addendum and the referral is to the Committee on Roads and Transport. Mr Speaker, for the Table Officers to capture it, we would go to item --
    Mr Speaker 1:25 p.m.
    Hon Member, the referral was made to the Committee on Roads and Transport.
    Mr Kyei-Mensah-Bonsu 1:25 p.m.
    Mr Speaker that is so.
    Mr Speaker 1:25 p.m.
    Hon Member that was what was done.
    Mr Kyei-Mensah-Bonsu 1:25 p.m.
    Mr Speaker, the first leg was referred to the Committee on Finance.
    Mr Speaker 1:25 p.m.
    Hon Member, with regard to the statement, that is the referral that was made. It was not referred to the Committee on Finance.
    Mr Kyei-Mensah-Bonsu 1:35 p.m.
    Mr Speaker and I am saying that the referral ought to have gone to the Committee on Roads and Transport. The first leg; the presentation ought to have been done by the Hon Minister for Transport, and not the Hon Minister for Finance, in the first place. I would liaise with the Table Officers and the appropriate thing would be done and the referral would have to go to the Committee on Roads and Transport.
    Mr Speaker 1:35 p.m.
    Hon Minority Leader, any disagreement? Very well, the correction is made accordingly.
    Mr Kyei-Mensah-Bonsu 1:35 p.m.
    Mr Speaker, we could now deal with the item numbered as 6. -- [Pause] -- Mr Speaker, could we now take the item listed as 12?
    Mr Speaker 1:35 p.m.
    Hon Members, the item listed as 12, Motion.
    MOTIONS 1:35 p.m.

    Dr Mark Assibey-Yeboah 1:35 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80(1) which requires that no Motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the Motion is given and the date on which the Motion is moved, the Motion for the adoption of the Report of the Finance Committee on the Request for waiver of Import Duties, Import VAT, NHIL, GETFund Levy, EXIM Levy and Special Import Levy amounting to the Ghana cedi equivalent of eight hundred and thirty- five thousand, and seventy-nine United States dollars (US$835,079.00) on materials, equipment, and vehicles required for the execution of the Greater Accra Sustainable Sanitation and Live- lihoods Improvement Project (GASSLIP) may be moved today.
    Mr Speaker 1:35 p.m.
    Hon Chairman, the item listed as 13, Motion?
    MOTIONS 1:35 p.m.

    Chairman of the Committee (Dr Assibey-Yeboah) 1:35 p.m.
    Mr Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Request for waiver of Import Duties, Import VAT, NHIL, GETFund Levy, EXIM Levy and Special Import Levy amounting to the Ghana cedi equivalent of eight hundred and thirty- five thousand, and seventy-nine United States dollars (US$835,079.00 on materials, equipment, and vehicles required for the execution of the Greater Accra Sustainable Sanitation and Livelihoods Improvement Project
    (GASSLIP).
    Mr Speaker, in so doing, I would present your Committee's Report 1:35 p.m.
    1.0 Introduction
    The request for the waiver of Import Duties, Import VAT, NHIL, GETFund Levy, EXIM Levy and Special Import Levy amounting to the Ghana cedi equivalent of eight hundred and thirty-five thousand seventy-nine United States dollars (US$835,079.00) on materials, equipment and vehicles required for the execution of the Greater Accra Sustainable Sanitation and Livelihoods Improvement Project (GASSLIP) was presented to the House on Wednesday, 5th August, 2020 by the Hon. Minister responsible for Parliamentary Affairs, Mr. Osei Kyei-Mensah-Bonsu on behalf of the Minster for Finance.
    The Rt Hon Speaker referred the request to the Finance Committee for consideration and report.
    The Committee met with the Minister for Sanitation and Water Resources, Hon Cecilia Dapaah, a Deputy Minister for Finance, Hon Kwaku Kwarteng, a Deputy Minister for Sanitation and Water Resources, Hon Patrick Boamah and officials from the Ministry of Finance, Ministry of Sanitation and Water Resources and the Ghana Revenue Authority (GRA) to consider the request.
    2.0 Documents Referred To
    The Committee referred to the following documents during its deliberations:
    The 1992 Constitution of Ghana;
    The Public Financial Management Act, 2016 (Act 921);
    The Loan Agreement between the Government of the Republic of Ghana and the African Development Fund for an amount of thirty-five million, nine hundred and fifty thousand Units of Accounts (UA35,950,000) [equivalent to US$48.85 m million] to finance the Greater Accra Sustainable Sanitation and Livelihoods Improvement Project (GASSLIP); and
    The Standing Orders of the Parliament of Ghana.
    3.0 Background
    Sanitation is a main challenge for municipalities in the city of Accra despite increasing efforts by authorities to spend more of municipal budgets on sanitation services. Uncollected and indiscriminate disposal of solid waste by some residents result in choked drains,
    stench and unsightly environmental conditions. The situation is even worse in the low income and peri- urban areas with the attendant public and environmental ill-health.
    In order to tackle the problem, Government is implementing the Greater Accra Sustainable Sanitation and Livelihood Improvement Project (GASSLIP). It is a participatory sanitation project that involves 11 Metropolitan, Municipal and District Assemblies in the Greater Accra region.
    The Greater Accra Sustainable Sanitation and Livelihoods Improvement Project is designed within the context of Ghana Shared Growth and Development Agenda (GSGDA-II 2014-2017) objective for the water and sanitation sector which is to “Increase access to adequate, safe and affordable water, improved environmental sanitation and hygiene education to ensure a favourable state of health of the general population”.
    In order to implement the programme successfully, the African Development Fund granted a loan facility amounting to UA35.95 million (equivalent to US$48.85 Million) to
    Mr Speaker 1:35 p.m.
    Thank you very much. Can we conclude that here?
    Question put and Motion agreed to.
    Mr Speaker 1:35 p.m.
    The Resolution; Hon Dr Akoto Osei, if you may move the Resolution?.
    RESOLUTIONS 1:35 p.m.

    Dr Assibey-Yeboah 1:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Speaker 1:35 p.m.
    Yes, Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 1:35 p.m.
    Mr Speaker, we could deal with the item listed 21.
    Mr Speaker 1:45 a.m.
    Hon Members, the item listed 21, Hon Chairman of the Committee, procedural Motion? [Pause]
    Hon Chairman of the Committee on Roads and Transport?
    Chairman of the Committee (Mr Samuel Ayeh-Paye) 1:45 a.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80(1) which requires that no Motion shall be debated until
    at least forty-eight hours have elapsed between the date on which notice of the Motion is given and the date on which the Motion is moved, the Motion for the adoption of the Report of the Committee on Roads and Transport on the Addendum No. 1 to the Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Development Authority]) and the Messrs AFCONS Infrastructure Limited of India for an amount of forty-eight million, eight hundred and forty-three thousand, four hundred and ninety United States dollars fifty- four cents (US$48,843,490.54) for the variation in respect of the ongoing railway construction works between the port of Tema and Mpakadan may be moved today.
    Mr Kwame Governs Agbodza (NDC -- Adaklu) 1:45 a.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Mr Speaker 1:45 a.m.
    Now, the substantive Motion by the Hon Chairman of the Committee. Item numbered 22?
    MOTIONS 1:45 a.m.

    Chairman of the Committee (Mr Samuel Ayeh-Paye) 1:45 a.m.
    Mr Speaker, I beg to move, that this honourable House adopts the Report of the Committee on Roads and Transport on the Addendum No. 1 to the Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Development Authority]) and Messrs AFCONS Infrastructure Limited of India for an amount of forty-eight million, eight hundred and forty-three thousand, four hundred and ninety United States dollars fifty- four cents (US$48,843,490.54) for the variation in respect of the ongoing railway construction works between the port of Tema and Mpakadan.
    Mr Speaker, in so doing, I seek your leave to present your Committee's Report.
    1.0 Introduction
    On Monday, 3rd August, 2020 the Addendum No. 1 to the Contract Agreement between the Government
    of the Republic of Ghana (Represented by the Ministry of Railways Development [Ghana Railway Development Authority]) and Messrs AFCONS Infrastructure Limited of India for an amount of forty-eight million, eight hundred and forty-three thousand, four hundred and ninety United States dollars fifty- four cents (US$48,843,490.54) for the variation in respect of the ongoing Railway Construction works between the Port of Tema and Mpakadan was presented to Parliament by the Minister for Defence, Hon. Dominic Bingab Aduna Nitiwul on behalf of the Minister of Railways Development.
    The Rt Hon Speaker referred the Agreement to the Committee on Roads and Transport for consideration and report in accordance with article 103 of the 1992 Constitution and Order 189 of the Standing Orders of Parliament.
    The Committee is grateful to the Minister of Railways Development, Hon. Joe Ghartey, the Chief Director and other Officers of the Sector Ministry for attending upon the Committee.
    2.0 Reference Documents
    i. The 1992 Constitution;
    Mr Kwame Governs Agbodza (NDC -- Adaklu) 1:45 a.m.
    Mr Speaker, I beg to second the Motion ably moved by the Hon Chairman of the Committee and also make a few comments.
    Mr Speaker, this is just a variation to an agreement that is already in effect. I want to thank you, the Hon Minister, and the Hon Majority Leader who I talked to when I noticed that when the variation came to Parliament, the Finance Committee did their part but the subject matter Committee, in this case, the Committee on Roads and Transport did not appear to have the details of the commercial agreement. You acted positively and today, we have the commercial agreement. I think that the developer is more secured, knowing very well that both the facility and the commercial agreement have been dealt with.
    Mr Speaker, we are aware that the original project was supposed to terminate at Akosombo. At the start of the project, it was determined that the termination point should be Mpakadan. Various reasons were given but we have passed that stage. The fact is that we are going to Mpakadan currently, across the river and there is requirement for US$48 million to be able to build a bridge over the River Volta instead of a tunnel under the river at a point in time. If you go to the Report, all the features of a contract agreement are in place and we have no reason to not support this.
    Mr Speaker, indeed, AFCONS is doing a good job in terms of quality of work with, at least ,what they have done so far. It is not yet a railway we can use but AFCONS, an Indian company has got a record of doing this effectively elsewhere. So, we believe that when this project is concluded, it would be added to the stock of rail network in our country.
    Mr Speaker, I also got assurance from the Hon Minister that when they build the bridge over the river at a place close to Royal Senchi, we believe the clearance between the bridge and the water should not impede recreational activities. This is because currently, boats use that stretch. The Hon Minister made us aware that it has been taken care of.
    Mr Speaker, we just hope and pray that this project would be concluded in good time. Mpakadan is not the destination but a point in the long stretch all the way to the north. We want to see what happens after Mpakadan. Are we going back unto the river or going to build a railway from Mpakadan, all the way to the north?. Those are the future projects that would be done when the time is due.
    With these few words, I support the Motion and encourage my Hon Colleagues to do same. Thank you very much.
    Mr Speaker 1:45 a.m.
    Yes, Hon Minister?
    Minister for Railways Development (Mr Joe Ghartey) 1:45 a.m.
    Mr Speaker, I want to thank you and the Hon Members of the Committee for your kind indulgence. Today, we have brought the commercial contract as the financial agreement has already been looked at.
    Mr Speaker, as the Hon Ranking Member rightly said, we are starting the journey and Mpakadan is not the final destination. The water transport will be developed along the Volta River and that is under the auspices of the Ministry of Transport. At the same time, the railway line would also be developed to the north.
    We should not forget that Sheini Iron Ore Reserves are in the north and indeed the plans to build the railway lines from Tema to Paga includes taking Sheini into account. There are studies that show that both the water and the railway line can exist together with both being very economically
    Minister for Railways Development (Mr Joe Ghartey) 1:55 p.m.
    viable. What has happened is that the railway line would not continue from Mpakadan but would rather continue from Juapong because from Juapong, it turns left to Mpakadan.

    Mr Speaker, the good thing is that from Juapong to Paga, the journey has been cut by about 100kms and from Tema to Paga by 800kms. This line is 90 something kms, so we have cut the journey by about 100kms. With regards to the line from Juapong to Paga with the branch line to Sheini, Ho and to all the regional capitals on the way, we would give it out on a Build, Operate and Transfer (BOT) bases.

    Three companies have been shortlisted and hopefully, when the House resumes from recess, we would have finished that process which would be brought to Parliament and it would be a continuation of what we have done. Mr Speaker, I thank you once again and I also thank the Hon Members of the Committee.

    Question put and Motion agreed to
    RESOLUTIONS 1:55 p.m.

    Minister for Railways Development (Mr Joe Ghartey) 1:55 p.m.
    Mr Speaker, I beg to move, that
    WHEREAS by the provisions of article 181(5) of the Constitution the terms and conditions of any international business or economic transaction to which the Government of Ghana is a party shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
    Pursuant to the provisions of the said article 181(5) of the Constitution, and at the request of the Government of Ghana acting through the Minister responsible for Railways Development, there has been laid before Parliament the terms and conditions of an Addendum No. 1 to the Contract Agreement between
    the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Development Authority]) and Messrs AFCONS Infrastructure Limited of India for an amount of forty-eight million, eight hundred and forty-three thousand, four hundred and ninety United States dollars fifty- four cents (US$48,843, 490.54) for the variation in respect of the ongoing railway construction works between the port of Tema and Mpakadan.
    THIS HONOURABLE HOUSE 1:55 p.m.

    HEREBY RESOLVES AS 1:55 p.m.

    Chairman of the Committee (Mr Samuel Ayeh-Paye) 1:55 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Speaker 1:55 p.m.
    Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 1:55 p.m.
    Mr Speaker, item numbered 27.
    Mr Speaker 1:55 p.m.
    The Hon First Deputy Speaker would please take the Chair.
    Also, in view of the Business ahead of us and the time, I direct that Sitting be extended beyond the regular hours.
    Chairman of the Committee (Mr Samuel Ayeh-Paye) 1:55 p.m.
    Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80(1) which requires that no Motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the Motion is given and the date on which the Motion is moved, the Motion for the adoption of the Report of the Committee on Roads and Transport on the Commercial Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Authority) and Amandi Investment Limited for an amount of five hundred million euros (€500,000,000.00) for the construction of sections of the Western Railway Line on standard gauge from Takoradi Port to Huni Valley may be moved today.
    Mr Kwame Governs Agbodza 1:55 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to
    Resolved accordingly.
    Mr Speaker 1:55 p.m.
    Item numbered 28.
    MOTIONS 1:55 p.m.

    Chairman of the Committee (Mr Samuel Ayeh-Paye) 1:55 p.m.
    Mr Speaker, I beg to move that this honourable House adopts the Report of the Committee on Roads and Transport on the Commercial Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Authority) and Amandi Investment Limited for an amount of five hundred million euros (€500,000,000.00) for the construction of sections of the Western Railway Line on standard gauge from Takoradi Port to Huni Valley.Mr Speaker, in so doing, I present your Committee's Report.
    1. Introduction
    On Monday, 3rd August, 2020, the Commercial Contract Agreement between the Government of the Republic Of Ghana (Represented by the Ministry of Railways Development [Ghana Railway Development Authority]) and Amandi Investment Limited for an amount of five hundred million euros (€500,000,000.00) for the
    construction of sections of the Western Railway Line on Standard Gauge from Takoradi Port to Huni Valley was presented to Parliament by the Hon. Minister for Defence, Mr Dominic Bingab Aduna Nitiwul on behalf of the Hon. Minister for Railways Development, Mr Joe Ghartey.--
    The Contract Agreements was referred to the Committee on Roads and Transport for consideration and report in accordance with article 103 of the 1992 Constitution and Order 189 of the Standing Orders of Parliament.
    The Committee met the Hon. Minister for Railways Development, Mr Joe Ghartey and Officials from the Ministry and the Ghana Railways Development Authority (GRDA) on Friday, 7 th August, 2020 and considered the referral. The Committee is grateful to the Minister for Railways Development and the officials from the Ministry of Ghana Railways Authority for assisting the Committee.
    2. Reference Documents
    i. The 1992 Constitution of Ghana;
    ii. The Standing Orders of Parliament;
    iii. Commercial Contract Agreement between the Government of the Republic of Ghana (Represented by the Ministry of Railways Development [Ghana Railway Development Authority]) and Amandi Investment Limited for an Amount of five hundred million euros (€500,000, 000.00) for the construction of sections of the Western Railway Line on Standard Gauge from Takoradi Port to Huni Valley.
    3. Background
    The Western Railway Line which is from Takoradi to Kumasi (340kms) with a branch line from Dunkwa to Awaso. It was a major route for the transportation of minerals and bulk commodities such as manganese, bauxite, cocoa, timber, cement and petroleum products. Some years back, a very busy passenger service from Sekondi-Takoradi to Kumasi and from Dunkwa to Awaso was also operated on the Western Line. However, due to several decades of neglect and underfunding, most sections of the Western Rail Line is in a deplorable condition.
    Mr Kwame Governs Agbodza (NDC -- Adaklu) 1:55 p.m.
    Mr Speaker, I beg to second the Motion.
    Mr Speaker, as stated by the Hon Chairman of the Committee, this is largely a new construction and the conversion of sections that are currently on narrow gauge to standard gauge. This is a good thing and as usual, it is just a small section of what we should do but once we incrementally add to the stock of our rail network, eventually, we would get there.
    In recent times, in the Western Region, we have carried out some works around Takoradi which has indeed, impacted positively on the transportation of bauxite and other items to the Takoradi port. This particular project would open up the area which leads towards Kumasi but that would be on another contract.
    The features of this contract are all in line but it is an EPC turnkey project, so with details in terms of quantities, local contents and other things are not clear.
    However, the Committee insisted that now that Ghana as a State has intended to invest heavily in railway, we acknowledge the fact that railway is capital intensive and if the
    MR FIRST DEPUTY SPEAKER
    Mr James Klutse Avedzi (NDC -- Ketu North) 2:05 p.m.
    Mr Speaker, I rise to support the Motion but I would want to ask some basic questions and I need your direction.
    Mr Speaker, when you look at paragraph (vii) on page 6 of the Report; Value for Money Audit, with your permission, I quote:
    “The Committee observed that the GRDA, [that is Ghana Railway Development Authority] is going through the necessary processes to engage an independent consultant to undertake a VfM audit for the contract.”
    Mr Speaker, the Authority has not even engaged a consultant to do the VfM audit. They are now going through the processes to engage a consultant.
    The Committee also observed that the procurement process that the Ministry and Agencies go through to select independent consultants is cumbersome, so, they are proposing that a legislation is passed to enable
    Mr First Deputy Speaker 2:05 p.m.
    Hon Member, your Leader is on his feet and you want objection against him?
    Mr Avedzi 2:05 p.m.
    Mr Speaker, that is why in the Fifth Parliament, you would realise that the Hon Madam Speaker at the time always insisted that before an Agreement of this nature came to the House, it was accompanied with VfM audit report, then, we would know clearly what we are approving, but we have dropped that requirement that VfM audit process should be conducted.
    Then, the value which now comes to the House becomes the true value of the project. We are now going back to the previous situation where we approve the report here in the House and VfM audit is conducted later and we do not know what happens to the report.
    Mr Speaker, we need some clearance on how we should go about this process. If we should go back to what Madam Speaker then directed that Agreements of this nature should come along with the VfM audit report, clearly, most people would be clear in their minds on what we are approving as a House.
    Mr Speaker, I thank you very much.
    Mr Kwabena Owusu-Aduomi (NPP -- EJISU) 2:05 p.m.
    : Mr Speaker, I thank you.
    Mr Speaker, VfM audit report is simply an assessment of the risk that the employer, which is Government of Ghana, would go through in having a contract agreement with the contractor who is supposed to execute the job.
    Mr Speaker, now, if we go through the Committee's Report, the legal aspect of the Report, that is the conditions of contract, we would realise that provisions have been made in the contract that is acceptable to the Committee and it meets international standards. We have the performance security for proper performance of the job by the contractor; and the advance payment guarantee in which if an advance payment is supposed to be released to the contractor, there is a guarantee; bill of quantities --
    Mr Speaker, the Hon Deputy Minority Leader talked about a situation where the amount is less than what would be approved by the House. The Committee in paragraph (xi) on page 7, indicated that there is a detailed bill of quantities attached. The Committee agreed that that attachment was detailed enough and urged the Ministry to ensure that the bill of quantities quoted there are at least maintained.
    Mr Speaker, so, provisions have been made in this contract. A detailed bill of quantities has been attached. The financial and fiscal impact, defect liability period and insurance of the work which is very critical.
    All these are mentioned in the conditions of contract to reduce the risk that the employer would go through in undertaking this project.
    Mr Speaker, so, yes, it is true that the written reports on the value for money has not been done but aspects of this contract that this Committee had looked into, suggests that the risk that the employer will go through has been or is being reduced.
    We do not have to panic because the value for money audit report is not attached because all these are assessments of the risks that the employer will go through and these are all indicated in the contract that the Committee has gone through. Maybe, what I have not seen here is the environmental impact but I am sure that if the Committee had gone through it, they might have realised that the environmental impact has also been assessed and approved.
    Mr Speaker, so, I believe that there should not be any fears at all for this House to go through this Report and adopt it for acceptance.
    Mr Kwame Governs Agbodza 2:15 p.m.
    Mr Speaker, I think the points raised by the Hon Deputy Minority Leader are germane however, it is the nature of sole-sourced contracts and the way it is in the FIDEC form of contract that is the issue.
    Mr Speaker, one of the features of a sole-sourced contract is that we can contract at the time that we do not know all the details of the project and so, we do not need a full-scale design to start. However, there is always that part of the clause which says that the conclusive figure at the time of value for all becomes the real contract price. So, there is no ambiguity about that. Indeed, in this contract, that is a part of the condition precedent.
    What the Hon Deputy Minority Leader read about the Committee asking for Ghana Institute of Surveyors (GhIS) is a critical thing that the House has discussed before. As we speak, the GhIS do not have an Act that establishes them like the Ghana Bar Association (GBA), Institute of Architects and so on. So, when we hear people say that the GhIS has been asked to do certain things, we are probably operating slightly below the bar line. It is important for the nation to take the steps to establish by laws so that they
    can go and further licence value for money auditing firms and then the Public Procurement Authority (PPA) will lift those from their website.
    So, if the Hon Minister for Railways Development wants to carry out value for money, he does not necessarily have to go to the Ministry of Finance but visit their website, he is given a quotation and then he is good to go. Currently, there are entities that have gone through approval in this House and their projects are locked up and it is not in the interest of the nation.
    Mr Speaker, we are just re-echoing what this House has already said, that we need a regime where we can have Ghanaian value for money auditing firms that everybody knows just like we have ordinary auditing firms and so on to be able to facilitate the work of Government and the nation in this particular case.
    So, I believe that the point raised by the Hon Deputy Minority Leader is very germane and it is the duty of those in Government now to carry that out to see how we can help ourselves by addressing that particular issue.
    Prof George Yaw Gyan- Baffour (NPP -- Wenchi) 2:15 p.m.
    Mr Speaker, I think this has been a normal practice in the House, that we
    approve such things and then allow the Ministry or whoever is responsible to go for the value for money audit.
    However, the issue raised by the available Minority Leader is germane but not specific to this particular one; it could be a generic issue. When we approve of these things in the House and then we ask them to go for value for money audit, what happens is the question that he asked that such things are not worth the amounts that we are actually approving.
    Mr Speaker, as a House, I think we would have to decide on what we want to do. Maybe, we can say that we approve of it on the condition that we get the value for money audit that actually ties in with amount or we actually make a resolution that we are going up to a certain amount. So, if we go back and the value for money audit is lower than for instance, this €500 million then they can come back to the House and tell us that no, it is actually €450 million so that it does not appear in the books that it is €500 million when the value for money audit actually says that it is €480 million.
    So, I think that should be a separate exercise not relating to this particular issue but as a House, we would have to decide on how to handle those
    Alhaji (Dr) Abdul-Rashid Hassan Pelpuo (NDC -- Wa Central) 2:15 p.m.
    Mr Speaker, this is about the second time the issue of whether to audit value for money before bringing a document here or to do it after an approval.
    Mr Speaker, I recall in the year 2011 that a ruling was made here which was that Hon Ministers should do value for money audit before they bring the document before the House. This is because after the approval of the House, they can do anything with the document and I do not see anyone violating Parliament's decision or even if we go back to do value for money audit and the value is lesser than the approved amount, what do we do?
    So, normally, it can still be manipulated and money can still be stolen so to say. I think that the best is to insist on value for money audit before we bring it to the House so that we can operate on level grounds that we are approving something that we are confident that it matches with the expenditure that goes with it.
    Majority Leader (Mr Osei Kyei-Mensah-Bonsu) 2:25 p.m.
    Mr Speaker, we must all appreciate that rail construction is a new area for us in Ghana and I think that because of this, we need to get our bearings right at the very outset.
    If we interrogate the issues, we get to know the standard cost of rail construction just as we do know the standard cost for the construction of bitumen surface roads and double layered asphaltic roads.
    Mr Speaker, I think the Committee has not really helped much because this Report comes with no comparative study before us. Annually, when the Parliament of Ghana is fashioning out its own budget, we set aside moneys to engage consultants and expect, these allocations we set aside never get used by any Committee. In this case, the Ministry of Railways Development is required to submit a value for money report to us but it has not yet come to Parliament as of now.
    Even if it comes from the Ministry, Parliament is not required to take that value for money report, lock, stock and barrel but can do its own due
    diligence but we never do that and come here lamenting. In the meantime, we have some amount set aside for this exercise.
    Mr Speaker, if my memory serves me right, for this year, I think we allocated something in the region of about GH¢5 million which has never been used by any Committee.
    We are not at the beck and call of any Ministry; if the Ministry submits a value for money report to us, we can interrogate it. In fact, even before the Hon Minister or the Ministry submits their own report to us, we can also engage experts and consultants. We have GH¢5 million sitting there but we are not doing anything with it yet we blame the Ministry for not submitting a value for money report as yet.
    Let us stop the lamentation and utilise our own allocations and I think that the Committee on Roads and Transport, the Committee on Education, the Committee on Health and the Committees that superintend over the infrastructural sectors have the responsibility to serve Parliament with these reports. Mr Speaker, they never do that yet they come to the Floor to lament.
    Mr Speaker, having said so, with the approval process as has been said, because of the admission of the Committee, we may require of us to
    approve of this subject to the content of page 6 in respect of paragraph 6 (vii). The Committee stated that they have observed that the GRDA is ongoing through the necessary processes to engage an independent consultant to undertake a value for money audit on the contract.
    Mr Speaker, so we can approve of this subject to the submission of that report to Parliament. If Parliament is not convinced and persuaded by the report, we can further interrogate it and in that regard arrive at a determination as to the content of the report that would be brought to us.
    Mr Speaker, but the Hon Member for Wenchi also leads us on another path. The construct of this states as follows with permission:
    “Commercial Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Authority) and Amandi Investment Limited for an amount of five hundred million euros (€500,000,000.00) for the construction of sections of the Western Railway Line on standard gauge from Takoradi Port to Huni Valley.”
    Mr Speaker, Prof Gyan-Baffour is indicating to us that perhaps we have to look at the construct of the Agreement and whether we must better serve this country if we had said that:
    “Commercial Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Authority) and Amandi Investment Limited for an amount of up to five hundred million euros (€500,000, 000.00) for the construction of sections of the Western Railway Line on standard gauge from Takoradi Port to Huni Valley.”
    Mr Speaker, this would then satisfy the situation where in the consideration and approval of any agreement, perhaps, the value for money report could not have been brought to Parliament. So, if we climb down then we are good to go. I think that henceforth we should consider the construct of the terms of the agreements that are brought before us.
    Mr Speaker, but for the time being, I believe that we can approve this subject to the observations we have
    Mr First Deputy Speaker 2:25 p.m.
    Hon Minister for Railways Development?.
    Minister for Railways Development (Mr Joe Ghartey) (MP) 2:25 p.m.
    Mr Speaker, thank you very much for this opportunity. I also thank Hon Members for their various contributions; I listened with rapt attention when various authorities in the House were referring to rulings in 2012 and 2013. Unfortunately, we were never supplied with the copy of the ruling and as we know in this House, one Parliament does not bind another.
    However, we can be guided by that ruling if it did exist, but it would have been very instructive that when people are giving us rulings of such importance, to be able to read the ruling out to us. One cannot just recall that something happened during the era of the Rt Hon Madam Speaker because we were all here during her tenure.
    Mr Speaker, first of all, I would want to point to clause 7.2 of the Commercial Contract -- it was
    placed in the pigeon holes of Hon Members but I do not think all of us have it here so I want to read it out with your permission. It reads:
    “This contract shall come into full force and effect after the fulfilment of the following conditions precedent: obtaining Executive approval, obtaining Ministry of Finance approval in accordance with sections 33 and 96 of the Public Financial Management Act, 2016 (Act 921), obtaining approval from the Public Procurement Authority in accordance with section 40 of the Public Procurement Act, 2013 (Act 663 as amended), obtaining Parliamentary approval in accordance with article 181(5) of the Constitution of the Republic of Ghana 1992, obtaining the environmental and social impact assessment report according to the IFC performance standards, conducting a value for money audit, execution of the financial agreement of this project, receipt of the performance bond and full advance payment to the contractor.
    If any of the condition precedents as set out in clause 6.2 above is not satisfied within
    12 months from the date of signing of this country or within a period of extension as mutually agreed in writing by the parties, either party may terminate this contract by written notification to the other party.”
    Mr Speaker, obtaining value for money audit is one of the conditions for this contract to be effective which is the same as obtaining Parliamentary approval as one of the conditions for the contract to be effective. Mr Speaker, Parliament always has the right in furtherance of its supervisory jurisdiction to ask any Hon Minister or Ministry to report to it about a particular matter.
    In any event, the Auditor-General audits all these matters. So, if a contract, has not become effective and an Hon Minister, Ministry or an agency starts to execute a contract then it is entirely up to that entity or individual and it would be a matter that would come to the attention of the Auditor-General or it is a matter that Parliament can request from a report on.
    Mr Speaker, so once Parliament has not defined -- we are drafting a new Standing Order -- so if we want to define this as part of our new Standing Orders then we can do so. But once we have not defined it as part of our Standing Orders, then we can follow various precedents in this House, one of which is conducting the value for money assessment before parliamentary approval or the value for money assessment is done after Parliament's approval.
    Mr Speaker, whether it is done before or after parliamentary approval, does not mean that value for money assessment should be avoided and the consequences of not doing it. It is clear that the Auditor- General in his overriding responsibility to audit all the accounts of Ghana would audit this agreement and if it is concluded that there is no value for money, it would be in the report submitted to Parliament and the Hon Chairman of the Public Accounts Committee, Hon Avedzi, -- who I hope would continue as the Hon Chairman because he would still be in opposition -- would receive the report and consider it.

    Mr Speaker, the point that is being made and which has also been made so eloquently by the Hon Ranking Member and other Hon Members is that we have reached a situation in this country that can only be described by the words of Jesus Christ in Mark Chapter 2 verse 27, where he said that “The Sabbath was made for man , not man for the Sabbath”.
    Minister for Railways Development (Mr Joe Ghartey) (MP) 2:35 p.m.
    Mr Speaker, what has happened is that we are making rules continuously and it is even becoming impossible to execute a project. So, what is being suggested by the Committee, that I agree with, is that let us have a standing group who are authorised to do a value for money audit.
    They would be authorised by the Institute of Surveyors, Institute of Engineers et cetera, so that an entity going through the process would just approach one of them to conduct the value for money assessment. Otherwise, as was said by the Hon Ranking Member, some of the projects are stuck because we only use one or two companies to conduct the value for money and they are stuck in the Ministry of Finance. The former Hon Minister of State at the Ministry of Finance is aware of this matter.

    And I thought you would rather rise to support it other than saying what he said.

    Mr Speaker, that been said, on this occasion, I hesitate to say that I agree more with the Hon Ranking Member than with the former Minister of State at the Ministy of Finance. We are working in the interest of Ghana.

    This is because, procurement is important, but the process to even get the contract done would be about four years. We should not forget that under our Constitution, we have a four year mandate. Why is it that most Governments sign contracts at this time? It is because of these processes that they have to go through. We are just saying that if we simplify this value for money audit by identifying five to nine firms that have been prequalified, we could just go and pick them. They should be indigenous firms and not foreign firms.

    In this value for money audit, AESL was contacted and agreement was not reached, and now they have contacted the Ghana Highways Authority to do it for them in which they are looking at whether they could reach agreement?. But it is not as if they did not make an effort. There are other firms, but some of the other firms available are not indigenous. But we would want to use indigenous firms, and we would want to use the Ghana High Ways Authority which is a State owned enterprise with engineers who have the capacity to do it.

    Mr Speaker, having left Mark chapter 2 verse 27, I would now move to the issue of Ghanaian participation. It was mentioned by one of the previous speakers that it is important that Ghanaians participate

    in this sector. If we are not careful, with a billion dollar sector, other people would participate in it; the money would leave Ghana and we would remain where we are. Whether it is a loan or it is paid directly, we would be the major people who would pay for it.

    Mr Speaker, if you look at the contract itself, you would see that there are extensive provisions in the contract that seeks to protect the indigenous Ghanaians to participate. For example, in terms of unskilled labour, no non-Ghanaian would participate. In terms of skilled labour, it would be 50:50. However, even with the material that they must buy, we are saying that unless they could prove that they cannot get them from Ghana, they must buy it from Ghana.

    Mr Speaker, the contract that is being done on Tema to Mpakadan rail line for instance, the sleeper was imported. The Indians are doing their own sleepers here. There is a Ghanaian company, LMI Holdings that build sleepers. With the line that was constructed from Takoradi to Kojokrom and to Sekondi between 2012 and 2017, the sleepers were imported from abroad. We have about five to six cement factories in Ghana and we have iron rods in Ghana, why can we not build the sleepers in Ghana?.

    Mr Speaker, for example, we are insisting that this time around, the sleepers must be built in Ghana. From here, we must go to the next stage, and the next stage is that Ghanaians must become the main contractors. All the contractors that we give contracts to construct railways, when it comes to the last 10 per cent, there are specialist companies throughout the world who could provide that last 10 per cent which is what we call permanent way.

    They come in and do the last 10 per cent and go. However, before that, I am told by the road contractors that what is being done in terms of the calbrite and in terms of the bridges is like doing a road. There was a time in this country where asphalt was done by foreign companies; Construction Pioneers and so on. I believe the first asphalt that was done by an indigenous contractor was during the Acheampong era from Accra to Nsawam.

    The Ghanaian industry completely went down and we started using Construction Pioneers that did some of the work. In fact, during the era of President Kufuor, the Accra to Cape Coast road was constructed by Japanese.

    However, today, I do not know the numbers but there are at least 10 to 15 Ghanaian companies that could
    Minister for Railways Development (Mr Joe Ghartey) (MP) 2:35 p.m.


    construct asphalt. In my construction and in my region, there is Jesmore Construction Limited, there is Kingsport Construction and several of them.

    So we have to move to a situation where Ghanaian companies are doing railways, and it is possible because we are talking about a billion dollar sector, and Ghanaians must have a significant part of that billion dollars. This is why we have also gone a step further to sign the necessary memorandum of understanding with the University of Mines and Technology (UMaT), Tarkwa to set up a School of Railways and Infrastructural Development as a school of the University. The UMaT itself started as a school of mines as part of the Kwame Nkrumah University of Science and Technology

    (KNUST).

    It is our hope that within five years they would mature enough to be a university on their own. People are asking whether we need a railway university?. My answer has been whether we need a Maritime University, University of Tele- communications?. This is the order of the day to have specialised universities. And if we are talking about an industry which would
    Prof. George Y. Gyan-Baffour (NPP -- Wenchi) 2:35 p.m.
    Mr Speaker, he needed the “Hear! Hear!” I was just telling him to stop just because at times this Hon Minister forgets that he is now the Minister for Railways Development. He talks as though he is still the Attorney-General. He talks right to left and right. Mr Speaker, at times he also veers into areas like a historian would do. He would talk about the history of Gold Coast and mention cocoa and all that.
    Mr Speaker, what I would say is that, with the issue of value for money audit, the issue was not necessarily about the number of companies that do it, but his concern was whether or
    not we have to come back if after the audit, it is realised that the amount is more than what applied for. That is all that he was trying to say. So at that point, what do we do? He is attempting to only find a solution for the problem and not attacking what is requested here today.
    Mr Speaker, this is all we were concerned about. Assuming one comes in for €500 million and we approve of it; you go in there for the value for money audit report and the report says it should be €420 million, what should we do? This is all that we were concerned about. That is where he was trying to get a solution for. If you come back, that would waste time. This is what he was actually concerned about and not about the number of company that do it.
    Mr Speaker, the number of companies that do it is also very relevant here because we are always for a ransom by the only company who does it very often, which is the Crown Agent. You would take it to them and forever and ever they do not do it.
    If we do that, it may delay the Hon Minister's work for almost a whole year. So let us get the approval, but
    Mr Ghartey 2:35 p.m.
    Mr Speaker, I rose to complain vehemently about what my Hon Colleague said, but now that you have recognised me, please I stand to complain.
    He said I am threatening people that I am speaking as such. When I was the Attorney-General, I was not threatening anybody. In fact, I never threatened anybody. I was as quiet as a mouse because I did not need to threaten anybody to take the person to court.
    Mr First Deputy Speaker 2:35 p.m.
    Hon Minister for Railways Development, I think that threat is unparliamentary. You demonstrated the threat in so many ways.
    Question put and Motion agreed to.
    RESOLUTIONS 2:45 p.m.

    Minister for Railways Development (Mr Joe Ghartey) 2:45 p.m.
    Mr Speaker, I beg to move, that
    WHEREAS by the provisions of article 181(5) of the Constitution the terms and conditions of any international business or economic transaction to which the Government of Ghana is a party shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
    Pursuant to the provisions of the said article 181(5) of the 1992 Constitution, and at the request of the Government of Ghana acting through the Minister responsible for Railways Development, there has been
    laid before Parliament the terms and conditions of a Commercial Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Railways Development [Ghana Railway Authority) and Amandi Investment Limited for an amount of five hundred million euros (€500,000,000.00) for the construction of sections of the Western Railway Line on standard gauge from Takoradi Port to Huni Valley.
    THIS HONOURABLE HOUSE 2:45 p.m.

    HEREBY RESOLVES AS 2:45 p.m.

    Mr Ayeh-Paye 2:45 p.m.
    Mr Speaker, I rise to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Kyei-Mensah-Bonsu 2:45 p.m.
    Mr Speaker, you noticed how long a time we have spent on dealing with item numbered 28.
    Mr Speaker, I keep insisting that 28 is not a very tough figure for us as a country but I believe we can deal with item numbered 5.
    Mr First Deputy Speaker 2:45 p.m.
    Hon Members, presentation of Papers, item numbered 5.
    PAPERS 2:45 p.m.

    Mr Kyei-Mensah-Bonsu 2:45 p.m.
    Mr Speaker, may I request that we suspend Sitting for an hour and come to continue with the consideration of the two Bills that we have listed as item numbered 33 and 35. Item numbered 34 would be preceded by
    34.
    Mr Kyei-Mensah-Bonsu 2:45 p.m.


    is sufficient so we urge Hon Members that we come back at exactly the time requested so that we can finish the rest of the items on the Order Paper.
    Mr First Deputy Speaker 2:45 p.m.
    Hon Members, the House is accordingly suspended until 4 p.m. sharp.
    2.50 p.m. -- Sitting suspended.
    4.41 p.m. -- Sitting resumed.
    BILLS -- CONSIDERATION 2:45 p.m.

    STAGE 2:45 p.m.

    Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:45 p.m.
    Mr Speaker, could we begin with item number (i), clause 7?.
    Mr Speaker, last time, we considered this amendment and at winnowing, we decided --
    Mr First Deputy Speaker 2:45 p.m.
    Hon Member, I have not called it out.
    All right, clause 7, debate to continue. There are two people who
    will contribute: the Hon Majority Leader and the Hon Chairman of the committee on Constitutional, Legal and Parliamentary Affairs.
    Yes, Hon Chairman, can I hear you?
    Dr Assibey-Yeboah 2:45 p.m.
    Mr Speaker, all three of us have agreed to abandon the amendment -- [Interruption] --
    Mr Kyei-Mensah-Bonsu 2:45 p.m.
    Are you our spokesperson? -- [Laughter]
    Mr First Deputy Speaker 2:45 p.m.
    Hon Member, you are not part of the list of people --
    Dr Assibey-Yeboah 2:45 p.m.
    Mr Speaker, the Hon Chairman is on the list.
    Mr First Deputy Speaker 2:45 p.m.
    All right. So have you agreed to abandon the proposed amendment? -- Very well.

    Clause 7 as amended ordered to stand part of the Bill.
    Dr Assibey-Yeboah 2:45 p.m.
    Mr Speaker, just to remind the Clerks-at-the-Table that, we had earlier on Monday,
    looked at clause 8 where there was an amendment. So it is not to suggest that there is no amendment to clause 8. Amendments were effected on Monday, 10th August, 2020 and Question put on clause 8. We stood clause 7 down.
    Mr First Deputy Speaker 2:45 p.m.
    Hon Member, so I did not need to put another Question on clause 8? - Very well.
    Clause 9 - Provisional approval
    Mr First Deputy Speaker 2:45 p.m.
    Hon Members, amendment proposed in the name of the Hon Minority Leader. He is not here to move his Motion. Has anybody been authorised to move the Motion on his behalf?
    Dr Assibey-Yeboah 2:45 p.m.
    Mr Speaker, though not advertised, I would want to move an amendment on clause 9.
    Mr Speaker, I beg to move, clause 9, subclause (1), and line 3, delete “if” and insert “where”.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 2:45 p.m.
    Hon Members, in that case, item numbered (ii) is abandoned and item numbered (iii) is overreached.
    Hon Members, item numbered (iv) reads: delete “approval” and “insert” “license”.
    Mr Kyei-Mensah-Bonsu 2:45 p.m.
    Mr Speaker, I think that amendment should not be moved. In any event, we cannot have license with ‘s' in this context. If it is to be moved, “licence” should have a “c”. So really, that “license” does not even belong.
    Mr First Deputy Speaker 2:45 p.m.
    The draftspersons will effect those changes - have they not been moved? - Very well, item numbered (iv) is also abandoned.
    Question put and amendment agreed to.
    Clauses 9 as amended ordered to stand part of the Bill.
    Clause 10 to 13 ordered to stand part of the Bill.
    Mr Kyei-Mensah-Bonsu 2:45 p.m.
    Mr Speaker, it is just a minor matter. Clause 12(2) provides that:
    “A person who transfers or assigns a licence issued by the Bank of Ghana is liable to pay to the Bank of Ghana an administrative penalty of not less
    Mr First Deputy Speaker 2:45 p.m.
    If it is an administrative penalty, they will use a legal process to enforce it, because it is not a criminal one, the person cannot be sent to prison.
    Clause 14 -- Refusal of an application for a licence.
    Dr Assibey-Yeboah 4:51 p.m.
    Mr Speaker, I beg to move, clause 14, Subclause (2), line 2, after “shall”, insert “within fourteen days”.
    Mr Speaker, it would now read 4:51 p.m.
    “Where the Bank of Ghana refuses an application under subsection 1, the Bank of Ghana shall within fourteen days, give reasons in writing for the refusal of the application”.
    Question put and amendment agreed to.
    Clause 14 as amended ordered to stand part of the Bill.
    Clause 15 -- Revocation of a licence
    Dr Assibey-Yeboah 4:51 p.m.
    Mr Speaker, I beg to move, clause 15, subclause (1), paragraph (e), delete “judgement” and insert “opinion”.
    Question put and amendment agreed to.
    Mr Kyei-Mensah-Bonsu 4:51 p.m.
    Mr Speaker, paragraph (e) provides:
    “The Bank of Ghana may revoke a licence issued under this Act, where
    (e) in the opinion of the Bank of Ghana, the development finance institution persistently engages in unsafe or unsound business practices that are inconsistent with the object of this Act.”
    Indeed, the Hon Chairman proposes that we substitute “opinion” with “judgement”. Mr Speaker, it is not an opinion; it is a determination that they make. They would have
    determined that the development finance institution has persistently engaged in this so, we should just say that:
    “The Bank of Ghana may revoke a licence issued under this Act where the Bank of Ghana determines…”
    Or maybe, we just leave it at that, not the opinion or judgement; it is a determination.
    Alhaji I.A.B. Fuseini 4:51 p.m.
    Opinion means in the view. It is not in the view; it must be on determined basis but it must not be an opinion. The “judgement” should be there. In fact, when the Hon Chairman was moving it, I said that even though I was in Koforidua, I think that we should leave the “judgement”. It is in the judgement; they must come to a determination.
    Mr Ben Abadallah Banda 4:51 p.m.
    Mr Speaker, I also think that “in the opinion” makes it too subjective without taking into consideration the available facts. And “in the judgement of the Bank of Ghana”, does not make it too good but I would rather support the rendition by the Hon Majority Leader that “where the Bank of Ghana considers or maybe,
    determines”. So, “determines” would presuppose that the Bank of Ghana would have considered all prevailing circumstances and facts and come to —
    Mr First Deputy Speaker 4:51 p.m.
    Hon Members, let us read the rendition again:
    “The Bank of Ghana may revoke a licence issued under this Act, where
    (e) in the judgement of the Bank of Ghana, the development finance institution persistently engages in unsafe or unsound business practices that are inconsistent with the object of this Act…”
    Now, if we are talking about the company or the institution engaging in unsafe or unsound business practices, then, it is a question of fact; it is neither a judgement, nor is it an opinion.So, if the Bank of Ghana finds that the development finance institution -- something the Bank of Ghana can prove that they have done “A”, “B”, “C”, or “D”..
    Mr Joseph Yieleh Chireh 4:51 p.m.
    Mr Speaker, I think we should leave “judgement”. Judgement is the
    Mr First Deputy Speaker 4:51 p.m.
    Yes, Hon Majority Leader, what is the position?
    Mr Kyei-Mensah-Bonsu 4:51 p.m.
    Mr Speaker, judgement is correct in the context except that we are fashioning out a law, and as we all do know, judgement would usually emanate from a Court of competent jurisdiction. It is for that reason that we want to avoid the use of the word, “judgement”. Otherwise, it is appropriate, and that is why I say that, to be consistent with our own usage, the determination that is made, would ensue from a comparative analysis of event.
    So I believe that the word, “determination” would be appropriate here even though I agree that the use of the word, “judgement” is not offensive; it is not inappropriate except that, of course, we are making laws and we have been referring to matters that should go to Courts of competent
    jurisdiction and we should just avoid that word. Otherwise, it is correct but in the context, and because of what we are doing, if we rather use “determination”, I think it would be most appropriate.
    Alhaji I.A.B. Fuseini 4:51 p.m.
    Mr Speaker, but let me say that yesterday, you were sorely missed. Mr Speaker, “judgement” is the ability to make a considered decision. So, the Bank of Ghana makes a considered decision that they -- [Interruption] -- or comes to sensible conclusions. That is judgement. So, if Hon Majority Leader says that in the circumstances, he is right, except that he thinks that it is reserved for the Court. The Advanced Learner's Dictionary explains it as in one's considered opinion. But we want “judgement”; let us leave it there and go.
    Mr First Deputy Speaker 4:51 p.m.
    Hon Chairman, what do you propose we do?
    Dr Assibey-Yeboah 4:51 p.m.
    Mr Speaker, the amendment has been withdrawn.
    Dr Assibey-Yeboah 4:51 p.m.
    Mr Speaker, I beg to move, clause 15 add the following new subclause:
    “For the purpose of this section, ‘cases of emergency' mean a situation that may pose a threat to the stability of the financial system.”
    Mr Speaker, the phrase is used in the clause. If we go further -- Mr Speaker, we are defining it here because this is not defined in the interpretation section but, I think in clause 50 or thereabout, same phrase is defined so, we felt we should define it here to avoid taking it to the interpretation section.
    So, we felt we should define it here to avoid taking it to the interpretation.
    Mr Speaker, it should be “cases of emergency” --
    Mr First Deputy Speaker 5:01 p.m.
    Which clause are we referring to?
    Dr Assibey-Yeboah 5:01 p.m.
    Mr Speaker, the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs says the definition here should be “cases of emergency means” with an “s” and the Ranking Member disagrees.
    Mr First Deputy Speaker 5:01 p.m.
    Yes, what is the proposed amendment?
    Yes, Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs?
    Mr Banda 5:01 p.m.
    Mr Speaker, we are defining the phrase and it means, so, “cases of emergency means”. It cannot be “case of emergency means”.
    Mr First Deputy Speaker 5:01 p.m.
    Where is the “case of emergency” used in this subclause?
    Mr Banda 5:01 p.m.
    Mr Speaker, subclause 7.Mr First Deputy Speaker: It reads:
    “Despite subsections (3) and (4), the Bank of Ghana may in cases of emergency, or in the public interest revoke the licence of a development finance institution without notice”.
    So, it is plural and it is “in cases of emergency”.
    Dr Assibey-Yeboah 5:01 p.m.
    Mr Speaker, let us add the “s” and leave it as it is.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 5:01 p.m.
    There is a proposed amendment in the name of the Hon Minority Leader. Does anyone have the power to move it on his behalf? [Pause] Very well. In the absence of the amendment being moved, I will consider the amendment abandoned.
    Clause 16 ordered to stand part of the Bill.
    Clause 17 - Unauthorised development finance activities
    Dr Assibey-Yeboah 5:01 p.m.
    Mr Speaker, I beg to move, clause 17, subclause (1), paragraph (b), line 1, after “record”, insert “return”.
    Mr Speaker, the same consequential amendment will run through in clause 17, subclauses (1)(c) and (f) and subclause 2 (a), line
    1.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 5:01 p.m.
    The same amendment runs through, so I direct the draftspersons to insert the proposed amendments as contained in items numbered 33 (ix), (x) and (xi). Is that agreeable? Very well.
    Mr Kyei-Mensah-Bonsu 5:01 p.m.
    Mr Speaker, I just think that the Hon Chairman would say, “consequentially
    where these words appear” because (xi) just deals with subclause 2, paragraph (a), line 2. However, in line 4, there is the same construct that should also be affected. So, if he says so, then subclause 2, line 4 --
    Question put and amendment agreed to.
    Clause 17 as amended ordered to stand part of the Bill.
    Clause 18 -- Places of business to be licensed
    Mr Ahiafor 5:01 p.m.
    Mr Speaker, the headnote for clause 18 is “Place of business to be licensed”. If you read the whole of clause 18, it talks about authorising place of business which for me is not licence per se. So, we can amend the headnote to be “Place of business”, then the body would tell us -- [Interruption] Then it means we would have to introduce the word “license” instead of “authorise”.
    Alhaji I.A.B. Fuseini 5:01 p.m.
    Mr Speaker, the headnote says, “Places of business to be licensed” and there is a significant difference between “licensed” and “authorised”. You can authorise a business to be carried on at a place when it is not licensed. [Interruption] Clause 18 (1) reads:
    “A development finance institution shall not carry on a development finance business at a place other than a place licenced…”

    So, places of business should be “authorised”?
    Dr Assibey-Yeboah 5:01 p.m.
    Mr Speaker, we agreed that in clause 18 the only amendment would be the headnote, “place of business.” [Interruption]
    Mr Chireh 5:01 p.m.
    Mr Speaker, I am finding it difficult to understand the change of word “license” to “authorise”. In any case do we license places where banking should take place? If we do, that is the authority we have given, that is, we have authorised them at the authorised place.
    However, if we do not license places that banks should operate, then the headnote can be changed. Why are we saying that it should be “authorise”? How do we authorise it? We need to indicate how the authority is given. Is it a licence? If yes, then one must place the licence plate on the premises to show that they have
    been authorised to operate within this institution. If we are now saying “authorise”, what would be the indication of the authority?
    Mr Kyei-Mensah-Bonsu 5:11 p.m.
    Mr Speaker, in his previous life before his current life, the Hon Member for Wa West, was a pharmacist and he knows that if a person wants to operate a pharmacy, the person is licensed to do that then the person has to be authorised for a particular place.
    Mr Speaker, I would not go further.
    Mr Chireh 5:11 p.m.
    Mr Speaker, the Health Facilities Regulatory Agency (HeFRA) Act, 2011 (Act 829) was passed in this House and in that Act we said that the place has to be licensed. So, pharmacies were put under HeFRA but the Pharmacy Council said no, because they were concerned with professional licensing but the HeFRA should do the licensing for the premises. HeFRA, could close down a hospital if the hospital did not have a licence to operate and they also considered the facilities available. In terms of these things, it is a licence, otherwise, he should tell me which other authority is available? If that is done in planning, in pharmacy, the place is licensed.
    Mr Kyei-Mensah-Bonsu 5:11 p.m.
    Mr Speaker, what he said is inaccurate and he knows that. I operate a pharmacy and as far as I am concerned he cannot bamboozle me in this. The business is licensed and the person is authorised to operate at a designated place because they have a minimum distance, so if the person goes beneath that he or she would not be allowed -- that place would not be authorised for the person to operate.
    That is the import of it. If we have to, perhaps, drop it and say “place of business”, we could even deal with it because I do not see why we should be splitting hairs over this. It is the place of business to be authorised and that is the import of what is contained in clause 18(1). It says and I beg to quote:
    “A development finance institution shall not carry on a development finance business at a place other than a place authorised in accordance with this Act.”
    So the person should be authorised to operate at a particular location. That is how it is.
    Mr Ahiafor 5:11 p.m.
    Mr Speaker, it is not about “license'' but about “authority'' -- particularly, if we read clause 18(2) which says:
    “A development finance institution shall not open, close or relocate
    (a) a branch
    (b) the head office, or
    (c)any other operational or support centre or office...”
    We cannot give licence for closing down and relocation. So, it should be “authorisation”.
    Mr Speaker, I want to propose that the headnote should read 5:11 p.m.
    “Authorisation of place of business”.
    Mr First Deputy Speaker 5:11 p.m.
    Or “places of business to be authorised”.
    Question put and amendment agreed to.
    Clause 18 as amended ordered to stand part of the Bill.
    Clause 19 -- Representative office
    Dr Assibey-Yeboah 5:11 p.m.
    Mr Speaker, I beg to move, clause 19, subclause 1, line 2, delete “the country” and insert “Ghana”.
    The new rendition would read:
    “A foreign development finance institution shall not establish a representative office in Ghana unless…”
    Mr Speaker, in line 2, delete “the country” and insert “Ghana” and further in line 3, delete the first “the” before prior.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 5:11 p.m.
    I direct the draftspersons to effect a similar amendment in clause 19(2), as agreed on in clause 19(1).
    Dr Assibey-Yeboah 5:11 p.m.
    Mr Speaker, I want us to note that in clause 19(1), two amendments were effected.
    Dr Assibey-Yeboah 5:11 p.m.
    Mr Speaker, I beg to move, clause 19, subclause 1, line 2, delete “the country” and insert “Ghana”.
    Question put and amendment agreed to.
    Dr Assibey-Yeboah 5:11 p.m.
    Mr Speaker, I want us to note that the “country”' in clause 19(2), line 5, would stay.
    Mr First Deputy Speaker 5:11 p.m.
    You have moved the amendments specifically, so those we have not touched would stay.
    Clause 19 as amended ordered to stand part of the Bill.
    Mr Kyei-Mensah-Bonsu 5:11 p.m.
    Mr Speaker, we should have a rearrangement of what obtains in clause 19(6), which says:
    “With respect to a reporting requirement under this Act, the Bank of Ghana may determine.
    Mr Speaker, we should have a re- engineering of the opening phrase because the subject is the “Bank of Ghana”, so it may have to begin the construction.
    Mr First Deputy Speaker 5:11 p.m.
    So, what is your proposal? I have heard it but should I put the Question on that and leave it or not? If it has to be re- engineered let us do it.
    Alhaji I.A.B. Fuseini 5:11 p.m.
    Mr Speaker, the proposal would be to split “may” and “determine”, so that it would read:
    “The Bank of Ghana may in respect to a reporting requirement under this Act, determine…”
    Mr Banda 5:11 p.m.
    Mr Speaker, the Hon Member is right except to say that it should be “in respect of a reporting requirement”.
    Mr Chireh 5:21 p.m.
    Mr Speaker, the subclause as presented is better because it says “with respect to a reporting requirement under this Act, the Bank of Ghana may determine…”
    It is closer to the activity than to go and say something else and now bring “the Bank of Ghana may”. So, I think we should keep it as it is. It is clearer.
    Dr Anthony Akoto Osei 5:21 p.m.
    Mr Speaker, I support my Hon Friend, Yaw Chireh [sic]. We should maintain it as it is.
    Mr Kyei-Mensah-Bonsu 5:21 p.m.
    Mr Speaker, I am not really rising to challenge it but we can see the difference between the Cavendishers and the non-Cavendishers; the old school. [Laughter]
    Clause 19 as amended ordered to stand part of the Bill.
    Clauses 20 -- 25 ordered to stand part of the Bill.
    Mr Benjamin K. Kpodo 5:21 p.m.
    Mr Speaker, I would want the Hon Chairman of the Committee to consider an amendment to line 2 of clause 25, subclause (1).
    I propose that we delete “profit” and replace it with “income”. It would read “net income” because that is the terminology now used for residual income after deduction of all expenses. It is no longer “net profit”.
    Mr Speaker, those days when I was studying Accounting, we used “net profit” but now it is “net income”.
    Mr First Deputy Speaker 5:21 p.m.
    Hon Members, this is for the consideration of the House unless it is a case of style. We would want to differentiate between “income” and “profit” because not all incomes are profit.
    Yes, Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 5:21 p.m.
    Mr Speaker, some terminologies keep changing. This Bill that we are dealing with today really is coming from the Bank of Ghana and they are proposing these terminologies to us. They consider these as industry terminologies. So, why should we arrogate to ourselves the authority to change these terminologies that are known to the Bank of Ghana? If we have to do that then perhaps we may
    have to go to the Interpretation column to then give interpretation to it by saying that “net income” means “net profit”. I honestly do not think we need to do that.
    Mr Speaker, this is how the Bank of Ghana does it and they understand it, so, I am not in agreement with the proposal from the Hon Colleague.
    Alhaji I.A.B. Fuseini 5:21 p.m.
    Mr Speaker, even his justification for the change of “net profit” to “net income” is “suspect” because this Bill was printed in July this year, which is just last month, and he is referring to when he was in secondary school and when he subsequently left secondary school; that is a long time ago when President Kwame Nkrumah was in Guinea. Just in July, however, the Bank of Ghana printed this Bill and used those words, so, it means that “net profit” is not archaic.
    Mr Chireh 5:21 p.m.
    Mr Speaker, we should leave it as it is because this Bill largely reflects to the Banks and the Special Deposit-Taking Institutions Act and many of the provisions here are taken directly from them and there is no need to change it.
    Mr Speaker, if you look at it carefully, it will be reflecting the reserve fund and I think that we
    should be consistent in terms of what was provided in that Act.
    Mr Kpodo 5:21 p.m.
    Mr Speaker, even the Bank of Ghana no longer prepares what we used to call profit and loss accounts. What they prepare now is comprehensive income statement.
    I have been trying to persuade my Hon Colleagues to listen to this but each time they want to go to those terminologies which were used in the very old past. We can link up with the Institute of Chartered Accountants, Ghana (ICAG) and find out whether they have been referring to profit and loss accounts.
    Unfortunately, we have not gone through the Institute of Chartered Accountants Bill, and if we would read the Companies Act which we have already dealt with, we would see that the requirements are comprehensive income, net income, et cetera. That is what we use, so, if we are insisting on this “net profit”, it is alien to modern day description of the items in the accounting lines.
    Mr Speaker, I have made my proposal and if the Hon Majority Leader says he does not want to be modern, he can stick to the “net profit”.
    Mr Kyei-Mensah-Bonsu 5:21 p.m.
    Mr Speaker, but for the records, we dealt with the Banks and Specialised Deposit-Taking Act, 2016 (Act 930) only in 2016. The provision on reserved funds is about the same thing that we are repeating here. That is in section 34 which says:
    “A bank or a specialised deposit-taking institution shall establish and maintain a reserve fund in which shall be transferred out of the net profits for each year.”
    Mr Speaker, it is the same rendition and my Hon Colleague is saying that I am a yesterday-man as far as this is concerned. It cannot be true.
    Mr Speaker, I plead with you that we should be consistent.
    Mr First Deputy Speaker 5:21 p.m.
    Hon Majority Leader, we are done. Let us move on with clause 26. I have already put the Question on clause
    25.
    Clause 26 -- Restrictions on declaration and payment of dividends
    Dr Assibey-Yeboah 5:31 p.m.
    Mr Speaker, I beg to abandon the amendment in clause 26. At the Committee level, the Hon Member for Ho Central in the same vein that he tried changing the “net profit”, virtually forced this one on us and because he is an old- fashioned accountant, I just gave in but following from the arguments advanced, I would want to abandon it. If he wants to go ahead and move the amendment, that is fine but he said that we should change the ‘accounts' to ‘financial statements' and even at that time, the Bank of Ghana resisted. So, I want to abandon that proposed amendment.

    Clauses 26 and 27 ordered to stand part of the Bill.
    Mr First Deputy Speaker 5:31 p.m.
    Clause 29 --
    Mr Kyei-Mensah-Bonsu 5:31 p.m.
    Mr Speaker, I beg to move, that clause 28, subclause (1), delete “one or more”. It provides:
    “The Bank of Ghana may by directives prescribe one or more liquidity requirements for development finance institutions”.
    Mr Speaker, why do we say; “one or more”? We can just say ;
    ‘The Bank of Ghana may by directives prescribe liquidity requirements'.
    Mr First Deputy Speaker 5:31 p.m.
    Very well.
    Question put and amendment agreed to.
    Clauses 28 as amended ordered to stand part of the Bill.
    Clause 29 to 32 ordered to stand part of the Bill.
    Clause 33 -- Disapproval of transfer of shares
    Mr Kyei-Mensah-Bonsu 5:31 p.m.
    Mr Speaker, I beg to move , that clause 33, subclause (1) (a) delete “would” and “be” in line (2) and insert ‘is' before “not”.
    Mr Speaker, clause 33 (1) (a), provides 5:31 p.m.
    “The Bank of Ghana may disapprove a proposed transfer of shares in the interest of sound and prudent management of a development finance institution
    and the functioning and stability of the overall financial system by preventing --
    (a) the acquisition of shares by a person who, in the opinion of the Bank of Ghana, would not be a fit and proper person…”
    Mr Speaker, I think it should be; ‘the acquisition of shares by a person who, in the opinion of the Bank of Ghana, is not a fit and proper person'. However, to use the expression; ‘who would not be', is too futuristic. Maybe, 10 to 20 years from now, one ‘would not be' but it is established that, that person is ‘not a fit and proper person'.
    Mr First Deputy Speaker 5:31 p.m.
    So, the amendment would be to delete “would” and “be” in line (2) and insert ‘is' before “not”. So, it will read:
    ‘The acquisition of shares by a person who, in the opinion of the Bank of Ghana, is not a fit and proper person or who may exercise influence to the detriment of that development finance institution'.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 5:31 p.m.


    Clause 33 as amended ordered to stand part of the Bill.

    Clauses 34 and 35 ordered to stand part of the Bill.

    Clause 36 -- Board of Directors and key management personnel
    Mr First Deputy Speaker 5:31 p.m.
    Hon Chairman? All right. The amendment stands in the name of the Hon Minority Leader.
    Yes?
    Dr Assibey-Yeboah 5:41 p.m.
    Mr Speaker, if we go to the interpretation section, ‘key management personnel' is defined and it has been listed up to (n) and it reads: “any person with similar responsibilities”.
    Mr Speaker, that is why in clause 36 (c), we have “such other officers”. So, if there is an officer who is key, the bank could designate that officer as a key management person.
    For instance, until recently, the banks did not have cyber security managers. Now, the Bank of Ghana requires that every bank should have a head of cyber security and such heads, when appointed becomes key management personnel of the banks.
    Dr A. A. Osei 5:41 p.m.
    Mr Speaker, my only concern is what the headnote is trying to do. This is because immediately after we talked about the responsibility of the Board of Directors. I think that the headnote should only refer to the Board of Directors. If we want a section for key management personnel then we should have that, but we should separate the two because the Board of Directors cannot be part of the key management personnel. Let us not confuse it.
    The headnote reads “The development finance institution shall have a Board of Directors, Chief Executive Officer …” Mr Speaker, the Chief Executive Officer is a member of the Board of Directors. Are we talking about the Board of Directors or the key management personnel?
    We should separate the two because the next clause defines the functions and responsibilities of the Board of Directors. So I do not understand why the headnote is referring to “key management personnel”. I know it is defined but the key management personnel have different responsibilities.
    Mr Banda 5:41 p.m.
    Mr Speaker, the emphasis is not only on the Board of Directors but it is also on the key management personnel and that explains why paragraphs (a) and (b) move together. But paragraph (c) can also be classified as being part of the key management personnel.
    Mr Speaker, so it is not out of place to have the headnote reading “Board of Directors and Key Management Personnel”. It is because of the inclusion of paragraph (c).
    However, I have a little problem with the rendition in paragraph (c). It reads “… such other officers and staff considered necessary”. Mr Speaker, I would want to further amend this to read “…any other officers and staff”.
    Mr First Deputy Speaker 5:41 p.m.
    Hon Member, it is the same thing. It does not add any value.
    Mr Banda 5:41 p.m.
    Mr Speaker, the words “considered necessary” is --
    Mr First Deputy Speaker 5:41 p.m.
    Yes, because there is someone responsible. Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 5:41 p.m.
    Mr Speaker, the construct in paragraph (c); “… such other officers and staff considered necessary”.
    Mr Speaker, they are considered necessary by who? Is it the Bank of Ghana or the development finance institution? Really, it is the development finance institution and so for the avoidance of doubt, we can just state ‘any other officers and staff that the development finance institution considers necessary'.
    Mr First Deputy Speaker 5:41 p.m.
    Hon Members, we are dealing with the headnote and there are two proposals to amend it. Let us deal with that --
    Mr Kyei-Mensah-Bonsu 5:41 p.m.
    Mr Speaker, to the extent that we have paragraph (c), the headnote is appropriate because it covers the two.
    Mr First Deputy Speaker 5:41 p.m.
    Very well. Hon Members, items numbered (xiv) and (xv) are abandoned.
    Mr First Deputy Speaker 5:41 p.m.
    Hon Majority Leader, you may now move your further amendment.
    Mr Kyei-Mensah-Bonsu 5:41 p.m.
    Mr Speaker, I beg to move, that paragraph (c) of clause 36 should read ‘any other officers and staff that the development finance institution considers necessary'.
    Mr First Deputy Speaker 5:41 p.m.
    Item numbered (xvi) standing in the name of the Hon Minority Leader.
    Alhaji I.A.B. Fuseini 5:41 p.m.
    Mr Speaker, with regard to that amendment, we are not setting up a Board of Directors for the development finance institution. It is a structure that must be there and they would determine whether they need a five or seven member board.
    Mr First Deputy Speaker 5:41 p.m.
    Very well. Items numbered (xvi) and (xvii) are abandoned.

    Clause 36 as amended ordered to stand part of the Bill.

    Clause 37 ordered to stand part of the Bill.

    Clause 38 -- Separation of powers
    Mr Banda 5:41 p.m.
    Mr Speaker, I do not know if the headnote should read ‘Conflict of interest' or “Separation of powers”. The intention is understood but “Separation of powers” is too pedestrian. I think the appropriate language should be ‘Conflict of interest' where -- [Interruption]
    Mr First Deputy Speaker 5:41 p.m.
    We have situations where some people say that they are ‘Executive Chairmen', but if an institution is licensed as a development finance institution, then the person can either be a Board Chairman or a Chief Executive. It is separating the powers.
    Clauses 38 and 39 ordered to stand part of the Bill.
    Clause 40 -- Independent director
    Mr First Deputy Speaker 5:41 p.m.
    Item numbered (xviii).
    Dr Assibey-Yeboah 5:41 p.m.
    Mr Speaker, I beg to move, clause 40 subclause (3), opening phrase, line 1, after “is”, insert “wholly or partly”.
    Mr First Deputy Speaker 5:41 p.m.
    What is the purpose of this amendment?
    Mr Shaibu Mahama 5:51 p.m.
    Mr Speaker, the “wholly or partly” does not make any difference. Once it is state-owned, it is either wholly or partly -.
    Mr First Deputy Speaker 5:51 p.m.
    Yes, Hon Chairman, what do you propose to do?
    Dr Assibey-Yeboah 5:51 p.m.
    Mr Speaker, being state-owned, it could be wholly or partly owned by the State.
    Mr First Deputy Speaker 5:51 p.m.
    If it is not wholly owned by Government, where Government has 100 per cent shares. Even if it is majority shares, could it not be State-owned?. I do not think it is necessary to add “wholly or partly”. Hon Chairman, move your amendment.
    Dr Assibey-Yeboah 5:51 p.m.
    Mr Speaker, I have already moved the amendment.
    Mr First Deputy Speaker 5:51 p.m.
    Justify it. I do not understand you.
    Dr Assibey-Yeboah 5:51 p.m.
    We are talking about the appointment of independent directors.
    Mr Kyei-Mensah-Bonsu 5:51 p.m.
    Mr Speaker, I think the purpose of having this amendment is that whether or not
    the Development Finance Institution is entirely or partly owned by the State. Assuming the State is a minor shareholder, even if the State is a minor shareholder, the independent director shall be a person who is a director appointed by the Government of Ghana in the capacity of the government as a shareholder.
    Even where the government is a minority shareholder, that independent director shall be an appointee of Government. Other than that, the majority shareholders would crowd out Government. But to the extent that Government has some shareholding, whether minority or majority, the independent director shall be appointed by the Government of Ghana.
    Mr Speaker, this is what it means. It is just for emphasis that whether or not the Government is a majority or minority shareholder, the independent director shall be a Government appointee. This is the import of it.
    Mr Ahiafor 5:51 p.m.
    Mr Speaker, I support the proposed amendment in the sense that if we leave the rendition as it is, somebody could argue that it is partly owned by the State and therefore, the conditions would not apply. In order to erase the ambiguity of whether it is partly or wholly owned by the State, the person must have these qualities. So the amendment is in order.
    Mr Patrick Y. Boamah 5:51 p.m.
    Mr Speaker, I am opposed to this amendment because every Development Finance Institution would be properly incorporated under the laws of Ghana. Secondly, they would all have a constitution or what we use to call regulations of the company. That would determine the strength of all shareholders within the structure.
    The Board and the regulations would determine the governance structure and operations of the company. So whether it is wholly or partly, let us leave it to the strength of the parties that constitute the company to determine. The shareholding structure or the composition of the company has to determine how the person is appointed. Mr Speaker, this is my view.
    Mr Chireh 5:51 p.m.
    Mr Speaker, the Banks and Specialised Deposit- Taking Institution Act, 2016 (Act 930) gives powers to the Bank of Ghana. Recently, they issued the directives specifying that if a person is a Government appointee, he cannot be appointed to be a Board member. That is where the issue is.
    So I tend to agree with the addition of “partly or wholly owned”, but as you indicated clearly, that should be in the definition which makes an entity a majority shareholder. Otherwise, we should not allow government officials to be made members of such boards. This is the rule now, and it was this House that passed that law, giving the Bank of Ghana powers to decide who should be on this Board.
    Mr Kyei-Mensah-Bonsu 5:51 p.m.
    Mr Speaker, I was pointing out to Hon Patrick Yaw Boamah who raised this matter relating to the ordinary structures imposed by the Companies Act for instance. Mr Speaker, it is the reason in section 22, we said that where there is conflict or inconsistency between the Companies Act, 2019 (Act 992) and this Act, this Act shall prevail. There may be that conflict, but we are saying that regardless of the import of the provisions in the Companies Act, where in this case there is a conflict, the provisions in this Act shall prevail.
    Mr Speaker, it is the reason we have the new insertion proposed by the Hon Chairman of the Committee just for the avoidance of doubt because it is sequel to what we have done in section 22, that where the State institution is wholly or partly owned by Government, this structure shall be followed, which is unlike what prevails in the Companies Act.
    Mr Speaker, so I think we can deal with the amendment moved by the Hon Chairman and move forward.
    Mr First Deputy Speaker 5:51 p.m.
    Yes, Hon Ranking Member of the Committee on Constitutional, Legal and Parliamentary Affairs?
    Alhaji I.A.B. Fuseini 6:01 p.m.
    Mr Speaker, I think you are right. The phrase “wholly or partly” should not come in. Assuming the bank has 30 per cent shares in Standard Chartered Bank, will the bank appoint an independent director of State to Standard Chartered Bank? They cannot do that. In that case, the relative strengths of the equity holding would determine representation on the Board.
    I come to the firm conclusion that it is where the bank is state-owned. All officers in the bank would be
    public officers because the bank is state-owned. That is why they are making a provision for an independent director who would not be a public servant or a civil servant, and who would not be a party person.
    That is why they are making that provision because if it is State bank, everybody in it would be a public servant so we need somebody who is independent and not a public servant and not a party person.
    The only amendment, which I am convinced this should be the case would be: If the Government of Ghana has 10 per cent shares in a multilateral bank, would it appoint an independent director? It cannot do that. So that would flout the equity holding arrangement. [Interruption] No. It does not apply in the case of this Act. It cannot distort.
    That is why the only amendment I see -- I was tempted to agree with him when I read paragraph (a). Paragraph (a) gives the impression that what he is saying is the position. It is a director appointed by the Government of Ghana in the capacity of the Government as a shareholder. It means that there can be other shareholders. So when we read it that way, the interpretation is right but if we take the intendment of this thing, it is not intended to distort. It is
    Dr A. A. Osei 6:01 p.m.
    Mr Speaker, I am not in favour of the proposed amendment. If it is state-owned, then it does not matter whether it is one per cent or 100 per cent. So wholly or partly does not matter here. So I think the Chairman should abandon the amendment so that we go on.
    Mr Kpodo 6:01 p.m.
    Mr Speaker, I would not want to draw into the debate but I agree with the last contributor, Hon Fuseini. But when we read subclause 3(a), it is a director appointed by the Government of Ghana. Which director shall we anticipate to be of independent judgement if he is appointed by the ruling government of the day?
    Mr First Deputy Speaker 6:01 p.m.
    I think when it comes to subclause (3) (a), the emphasis is really about Government being a shareholder. That is where the emphasis should be. This is because the independent director is appointed by the Government of Ghana in the capacity as a shareholder. They want to distinguish
    between the Government of Ghana as the executive of the country but as a shareholder who holds the same power and right as every other shareholder. That is why I think the “wholly or partly” does not matter.
    Mr Kpodo 6:01 p.m.
    Mr Speaker, I would think that it would be left in (b) for the Bank of Ghana to determine whether the person can exercise independent judgement or not. With this Act, compulsorily, the person must be appointed by the Government. So if we take that off, then we leave it with the Bank of Ghana to be able to determine whether in their opinion, a person can exercise independent judgement. Once we bring in subclause 3(a), even subclause 3(e) is made nonsense of. The Government of the day would definitely be a party person in Ghana.
    Dr Assibey-Yeboah 6:01 p.m.
    Mr Speaker, the amendment is withdrawn.
    Mr First Deputy Speaker 6:01 p.m.
    Amendment withdrawn. Let us proceed.

    Clause 40 as amended ordered to stand part of the Bill.

    Clause 41 -- Composition and qualification of Board of Directors.
    Dr Assibey-Yeboah 6:01 p.m.
    Mr Speaker, I beg to move, subclause (5), line 3, before “serving”, insert “while”.
    Mr Speaker, it would read 6:01 p.m.
    “A member of the Board of a development finance institution shall not hold more than seven directorship positions in other institutions or companies, be they foreign or local, while serving as a member of the Board of Directors of the development finance institution.”
    Question put and amendment agreed to.
    Mr Banda 6:01 p.m.
    Mr Speaker, there is an expression there which does not look elegant. In clause 41, subclause 5, line 3, “be they foreign or local” -- [Laughter] --
    Mr Speaker, I think in everyday English, it is correct but within this context, for drafting purposes, I think that “whether foreign or local”.
    Question put and amendment agreed to.
    Clause 41 as amended ordered to stand part of the Bill.
    Clause 42 ordered to stand part of the Bill.
    Clause 43 -- Meetings of the Board of Directors
    Dr Assibey-Yeboah 6:01 p.m.
    Mr Speaker, I beg to move, subclause (5), line 2, after “through”, insert “written” and in line 3, delete “in writing”. Mr Speaker, it would read:
    “The Board of Directors shall discuss the business affairs of the development finance institution through written reports as submitted by management.”
    Mr Boamah 6:01 p.m.
    Mr Speaker, I want to make a further amendment: clause 43 -- subclause 5, line 1, after “business” delete “affairs”.
    The affairs of the development finance institution is part of the business of the development finance institution. So we are discussing the business, which is supposed to be their core mandate. So what is the meaning of “business affairs”?
    Mr Dafeamekpor 6:01 p.m.
    Mr Speaker, I agree with my learned Brother that the placement of “affairs” there is surplusage. It does not serve any purpose.
    Question put and amendment agreed to.
    Mr Kyei-Mensah-Bonsu 6:01 p.m.
    Mr Speaker, the subclause 5:
    Mr Kyei-Mensah-Bonsu 6:01 p.m.


    “The Board of Directors shall discuss the business of the development finance institution through written reports as submitted by management in writing.”

    Mr Speaker, I have a small problem with that construction. The Board of Directors discuss the business affairs or the business of the development finance institution through written reports. That is incorrect. We should have a better formulation.
    Mr First Deputy Speaker 6:11 p.m.
    Yes Hon Member, what is the proposed amendment?
    Dr A. A. Osei 6:11 p.m.
    Mr Speaker, I have advised the Hon Chairman to delete “through” and insert “relating to written reports by management”. That is fine, but not “through”.
    Dr Assibey -Yeboah 6:11 p.m.
    Mr Speaker, may I take the subclause (5) as variously amended?.
    “The Board of Directors shall discuss the business of the development finance institution relating to written reports as submitted by management.”
    Mr First Deputy Speaker 6:11 p.m.
    Frankly, what do we want to achieve?
    Mr Shaibu Mahama 6:11 p.m.
    Mr Speaker, I do not think we even need this clause, lest the confusion will continue. What I think it seeks to convey is that reports are submitted to the Board and they are discussed. That is normal of the Board's business affair anyway. So, we do not need subclause (5). We could take it off and we will still have the meetings of the Board of Directors probably captured under subclauses (1) to (6).
    Mr First Deputy Speaker 6:11 p.m.
    Hon Chairman, continue to subclause (6), it refers to subclause (5).
    Alhaji I.A.B. Fuseini 6:11 p.m.
    Mr Speaker, the subclause should be there. I was a member of the Board of Director of the National Investment Bank (NIB) some time ago. They do not want a situation where management would come to board meetings and present oral reports of activities of the bank for discussion. They are trying to provide for a situation, where management will be compelled to provide written reports for discussion. So, we need to put it there.
    Dr A. A. Osei 6:11 p.m.
    Mr Speaker, instead of saying “relating to”, we could say, “by considering written reports” submitted by management.
    Mr First Deputy Speaker 6:11 p.m.
    Hon Member, kindly read your rendition after your proposed amendment.
    Dr A. A. Osei 6:11 p.m.
    Mr Speaker,
    “The Board of Directors shall discuss the business of the development finance institution by considering written reports as submitted by management.”
    Mr Kyei-Mensah-Bonsu 6:11 p.m.
    Mr Speaker, same sense. In subclause (4):
    “A meeting of the Board of Directors may be conducted...”
    So, a meeting would be conducted. I would want to say that for subclause
    (5):
    “In the conduct of the business of the development finance institution, the Board of Directors shall consider written reports submitted by management.”
    Mr Speaker, I think that is better.
    Mr First Deputy Speaker 6:11 p.m.
    Hon Members, the current proposed amendment is what is before the

    Question put and amendment agreed.

    Clause 43 as amended ordered to stand part of the Bill.

    Clauses 44 and 45 ordered to stand part of the Bill.

    Clause 46 -- Audit Committee
    Dr Assibey-Yeboah 6:11 p.m.
    Mr Speaker, I beg to move, that clause 46, subclause (2), paragraph (a), delete “qualified”.
    Dr A. A. Osei 6:11 p.m.
    Mr Speaker, I need the reason behind that. Not every chartered accountant is qualified. Some people pose as Chartered Accountants but they are not qualified -- [Interruption] --
    Mrs Osei-Asare 6:11 p.m.
    You cannot be a chartered accountant and not qualified -- they call themselves that, but they are not chartered accountants.
    Mr First Deputy Speaker 6:11 p.m.
    Yes, Hon Member for Ho Central?
    Mr Kpodo 6:11 p.m.
    Mr Speaker, a person cannot call himself a chartered accountant when he is not qualified

    -- [Laughter] -- So, what my Hon Colleague is saying is not necessary.
    Mr First Deputy Speaker 6:11 p.m.
    Hon Members, let us proceed.
    Question put and amendment agreed to.
    Clause 46 as amended ordered to stand part of the Bill.
    Clause 47 -- Risk Committee
    Mr Kyei-Mensah-Bonsu 6:21 p.m.
    Mr Speaker, clause 47, acknowledges the presence of perhaps the constitution of a risk committee. It begins:
    “The Risk Committee shall be chaired by an independent director…”
    It presupposes that the Risk Committee exists somewhere. If it does not, then we should formulate clause 47(1) in a better way -- [Interruption] -- I am convinced by what the Hon Member has said, so I drop my amendment.
    Clauses 47, 48 and 49 ordered to stand part of Bill.
    Clause 50 -- Chief Internal Auditor
    Dr Assibey-Yeboah 6:21 p.m.
    Mr Speaker, I beg to move, clause 50, subclause (2), paragraph (b), line 3, delete “of” and insert “on”.
    Mr Speaker, paragraph (b) would read 6:21 p.m.
    “…have the professional competence to collect and analyse financial information, evaluate audit evidence and the ability to communicate with the stakeholders on the internal audit function”.
    Question put and amendment agreed to.
    Mr Banda 6:21 p.m.
    Mr Speaker, just a minor one on clause 50(1)(c); the word, “practise”, I think should end in ‘ce' because the ‘se' is the verb and ‘ce' is the noun.
    Mr First Deputy Speaker 6:21 p.m.
    Very well, the draftspersons are directed to effect that correction.
    Clause 50 as amended, ordered to stand part of —
    Mr First Deputy Speaker 6:21 p.m.
    To which subclause are you proposing the amendment to, clause 50(1)(b) or 50(2)(b)?
    Mr Kpodo 6:21 p.m.
    Mr Speaker, sorry, clause 50(2)(d).
    Mr First Deputy Speaker 6:21 p.m.
    50(2)(d); “be a member of relevant recognised professional body”.
    Mr Kpodo 6:21 p.m.
    Yes, Mr Speaker. And I am saying that we should change it to “shall be a member of the Institute of Chartered Accountants, Ghana”. Somewhere in this law; I cannot just immediately refer to the clause, it is clearly stated there that he must be a member of the Institute of Chartered Accountants, Ghana.
    Dr A. A. Osei 6:21 p.m.
    Mr Speaker, I did not hear his logic for saying Institute of Chartered Accountants, Ghana. It should be a member of the relevant body, not the Institute of Chartered Accountants which is only in Ghana. It can be from elsewhere, once they are properly chartered. That is why it says “relevant body”, not the specific one that he wants it to be.
    Mr First Deputy Speaker 6:21 p.m.
    Hon Member, you have not justified why it should be CA and not ACCA or ICSA or not any other but only CA. You have to justify that.
    Mr Kpodo 6:21 p.m.
    Mr Speaker, my lawyer wants to talk for me --
    [Laughter]--
    Mr First Deputy Speaker 6:21 p.m.
    You deferred to your lawyer?
    Mr Ahiafor 6:21 p.m.
    Mr Speaker, currently, there is a Bill before the House that it is to the effect that before one practises that profession, one must be a member of the Institute of Chartered Accountants, Ghana. The Bill has not been passed yet, that is why I would like to assure the Hon Kpodo that he should allow the provision as it is so that if that law is passed, then, that would be the recognised professional body from which the person would have to come from. So, when that law is passed—
    Mr Kyei-Mensah-Bonsu 6:21 p.m.
    Mr Speaker, I do not know of any law that we have passed in this House. When for instance we have said that a lawyer should be in good standing for a determined period, we have never said that any lawyer practising in Ghana should belong to the Ghana Bar Association. It is not done that
    Mr Kpodo 6:21 p.m.
    Mr Speaker, this law is about Ghana and the body -- [Interruption]-- that is already existing though it is to be amended; a new one is coming, but that is not what I am standing on. There is already the institute by charter in Ghana, which is the Institute of Chartered Accountants, Ghana; that is responsible for all —
    Mr First Deputy Speaker 6:21 p.m.
    Is that not a professional body?
    Mr Kpodo 6:21 p.m.
    Yes, but there are other professional bodies.
    Mr First Deputy Speaker 6:21 p.m.
    Yes, but the Hon Member for Akatsi South says that there is a Bill before this House; I am not familiar with, that is proposing that before one practises accountancy, one must be recognised by the Institute of Chartered Accountants, Ghana. So, if that passes, then, it becomes the only relevant professional body and it
    would solve your problem, but, as at now, if I am a holder of ACCA and I have been licensed to practise, you cannot cut me; that would be unconstitutional.
    Mr Kpodo 6:21 p.m.
    Mr Speaker, as it is now, there is a law; you do not have to anticipate the law that is coming. If one has ICAEW, ACCA, CPA, before one can practise in Ghana as an auditor, one has to still register with the ICA, Ghana. That is what happens now. One can work anywhere, but, before one can certify any accounts in Ghana, the person must be a member of the ICA, Ghana. So, if we just say that once one is a member, he or she qualifies, it then takes care of now and even then. And that is why I say it should be a member of the Institute of Chartered Accountants, Ghana.
    In this Bill, except that I am not getting the particular clause now, it is stated clearly - I think somewhere towards the end, that one must be a member of the Institute of Chartered Accountants, Ghana. It is there in this Bill already.
    Alhaji I.A.B. Fuseini 6:21 p.m.
    Mr Speaker, I pray the Hon Kpodo to let us make progress. If a chief internal auditor is from the Institute of Chartered Accountants, Ghana. ICA
    would qualify as a relevantly recognised professional body. It would qualify, but it must be a recognised professional body.
    Clause 50 as amended, ordered to stand part of the Bill.
    Clauses 51, 52,53 and 54 ordered to stand part of the Bill…
    Mr First Deputy Speaker 6:31 p.m.
    Can I have all Hon Members participating in this discussion?
    Chairman of the Committee, item numbered 33 (xxiii)?.
    Dr Assibey-Yeboah 6:31 p.m.
    Mr Speaker, I beg to move, clause 55, subclause (1), paragraph (e), line 4, at end, add “unless the Bank of Ghana expressly exempts the director or key management personnel” and delete same as the closing phrase.
    Mr Speaker, in clause 55, we set out things that disqualify a member of the Board or key management personnel. So, it reads:
    “(1) A person shall not be appointed, elected or, accept an appointment or election, as a member of the Board of Directors or a key management personnel of a development finance institution if that person
    (e) has been a director, key management personnel or associated with the management of an institution which is being or has been resolved by a regulatory authority on account of insolvency or other regulatory breaches…”
    The closing then does not apply to the entire list from (a) to (i) but only to (e).
    Question put and amendment agreed to.
    Clause 55 as amended ordered to stand part of the Bill.
    Clauses 56 and 57 ordered to stand part of the Bill.
    Mr Kyei-Mensah-Bonsu 6:31 p.m.
    Mr Speaker, in clause 56 (3) (a) and (b), we have adopted a template that covers the closing phrase of (a) and (b). I would urge the Clerks-at-the-
    Mr First Deputy Speaker 6:31 p.m.
    Very well. The Table Office shall work with the draftspersons to effect the proposed changes.
    Clauses 58 to 62 ordered to stand part of the Bill.
    Clause 63 -- Restriction on financial exposure to an insider
    Dr Assibey-Yeboah 6:31 p.m.
    Mr Speaker, I beg to move, clause 63, subclause (5), lines 2 and 3, delete “related person or group of related persons” and insert “of the related parties”.
    The new rendition would read:
    “A development finance institution shall not take a financial exposure in respect of the related parties and the related interests of the related parties…”
    Question put and amendment agreed to.
    Clause 63 as amended ordered to stand part of the Bill.
    Clauses 64 and 65 ordered to stand part of the Bill.
    Clause 66 -- Restriction on establishment of a subsidiary company
    Mr Kyei-Mensah-Bonsu 6:31 p.m.
    Mr Speaker, I wanted some explanation from my Hon Colleague, the Chairman of the Finance Committee in respect of the ceiling in clause 64 (3), where it provided that:
    “The aggregate amount of loans on preferential terms, both secured and unsecured, by a development finance institution to employees shall not exceed twenty per cent of the regulatory capital of that development finance institution.”
    Mr Speaker, I think that given what we have witnessed in this country in respect of these banks that have collapsed, 20 per cent is too huge a ceiling. I was asking him whether we cannot lower that ceiling to about 10 per cent?. Twenty per cent of all regulatory capital to employees of the bank is too serious.
    Mr First Deputy Speaker 6:31 p.m.
    Hon Majority Leader, how many are the employees we are talking about here?
    Dr Assibey-Yeboah 6:41 p.m.
    Mr Speaker, I refer the House to Act 930 which regulates banking, and in Section 69 (3), on restrictions on lending to staff, the aggregate amount of loans on preferential terms both secured and unsecured by a bank or specialised deposit-taking institution, shall not exceed 20 per cent of the net owned funds of that bank.
    It is the net owned funds of that bank. We have the regulatory capital but in the case of Act 930, if it were regulatory capital, that would be GH¢400 million and 20 per cent thereof, would be GH¢80 million and it would not exceed it. If we go further down into the bank, there are other restrictions.
    For example, the exposure of each employee, shall not exceed 40 per cent -- so if a person takes loans, his or her monthly repayments shall not exceed 40 per cent of his or her income. This is another level of checks and balances on the bank. This is even good to say that they would not exceed 20 per cent of their regulatory capital.
    Mr First Deputy Speaker 6:41 p.m.
    We shall proceed.
    Hon Majority Leader, if you propose an amendment, I shall consider it.
    Mr Kyei-Mensah-Bonsu 6:41 p.m.
    Mr Speaker, the language in the Banks and Specialised Deposit Taking Institution Act is the aggregate amount, which is the 20 per cent of net owned funds and not the 20 per cent regulatory capital.
    That would be smaller. Why do we not use the same construction but we say that it should be 20 per cent of the regulatory capital? For now, it is GH¢400 million, and we say that the employees could access GH¢80 million. That is my worry because the net would be smaller. However, if they think that they are comfortable with the 20 per cent -- but we should look at the circumstances of this country.
    Dr A. A. Osei 6:41 p.m.
    Mr Speaker, I want to convince the Hon Majority Leader. The regulatory capital is not restrictive. The net owned funds could be substantially more than the regulatory capital -- it could be billions. So, it is more dangerous. With this, we know what the regulatory capital is and it is the aggregate amount of loans to staff. It is more restrictive, so we should agree with the Bank of Ghana, since they know what goes on.
    Mr First Deputy Speaker 6:41 p.m.
    Very well. Nobody has proposed an amendment, so I would proceed.
    Clauses 65 to 70 ordered to stand part of the Bill
    Mr Kpodo 6:41 p.m.
    Mr Speaker, I want to propose an amendment to clause
    71 (1).
    Mr Speaker, I beg to move, clause 71, subclause 1, line 1, delete “accounts and''.
    So that the new rendition would read:
    “A development finance institution shall prepare financial statements in the form, and provide details, in accordance with…''
    Mr Speaker, further in clause 72, we would find out that the accounts that have been referred to, have been catered for in “keeping accounting records''. So, there is no need to request that we prepare accounts and financial statements in the form.
    Dr Assibey-Yeboah 6:41 p.m.
    Mr Speaker, I wanted to indicate that we would oppose the amendment but once you have put the Question --
    Mr First Deputy Speaker 6:41 p.m.
    If you want to oppose it, it is open. Do you oppose or you do not oppose it?
    Dr Assibey-Yeboah 6:41 p.m.
    Mr Speaker, I oppose the amendment because there is no value addition. On a monthly basis, banks prepare accounts but the financial statement is prepared by the auditor.
    Mr Speaker, for the avoidance of doubt, we should leave it at “accounts and financial statements''.
    Dr A. A. Osei 6:51 p.m.
    Mr Speaker, this is a similar amendment that was proposed earlier and it was shot down. The Bank of Ghana is the institution that does the work and they have chosen their words carefully. They want “accounts'' and the Hon Member wants to change it to “financial statements''. It would not work because they define them differently. Please, let us go on. This does not add any value to it. If they change it, it can cause a problem in the way they do things. We cannot impose our definition on them.
    Mr Kpodo 6:51 p.m.
    Mr Speaker, I hope this clause is referring to the accounting records. There are individual ledger accounts; debit and credit. These are not reports for presentation in the form as being described here. That is why clause 72 is taking care of the detailed accounting records that would be kept for each transaction in the Development Finance Institution.
    The real detailed presentations that are made for financial audit purposes are the financial statements and they
    are made up of about six items. We have what we used to call the balance sheet, the comprehensive income statement, changes in --
    Mr First Deputy Speaker 6:51 p.m.
    Hon Member, please, read paragraph (a):
    “Statements in the form provide details in accordance with
    (a) internationally accepted accounting standards;
    (b) rules or standards based on the Basel core principles as prescribed by the Bank of Ghana.”
    I think this should be the guiding principle.
    Alhaji I.A.B. Fuseini 6:51 p.m.
    Mr Speaker, my Hon Colleague would have to be patient and if he is patient he would realise that they have not made a mistake.
    Clauses 72 talks about keeping accounting records and clause 73 talks about preparation of financial statements. So, they could not have made a mistake.
    Question put and amendment agreed to.
    Clauses 71 to 73 ordered to stand part of the Bill.
    Clause 74 -- Appointment of an auditor
    Mr First Deputy Speaker 6:51 p.m.
    But who is the regulator?
    Dr Assibey-Yeboah 6:51 p.m.
    Mr Speaker, this is a report of an auditor. The Bank of Ghana regulates banks. They are saying that if they are not satisfied with the report of, for example, Ernst and Young, -
    Mr First Deputy Speaker 6:51 p.m.
    If they are not satisfied with the audit report of Ernst and Young on Bekwai Banking for Small Business, Bank of
    Ghana says they would appoint another auditor and you are saying they do not have the power? Why?
    Dr Assibey-Yeboah 6:51 p.m.
    Mr Speaker, if we are not careful then sooner than later, the Bank of Ghana would say that they are not satisfied with the job of a lawyer.
    Mr First Deputy Speaker 6:51 p.m.
    If they are not satisfied with the report of a lawyer on a job --
    Dr Assibey-Yeboah 6:51 p.m.
    Mr Speaker, that should be the job of the General Legal Council and not the Bank of Ghana saying that they are not satisfied with the report of an auditor. It should be the Institute of Chartered Accountants, Ghana.
    Alhaji I.A.B. Fuseini 6:51 p.m.
    Mr Speaker, it was not about the report. The subheading is “Appointment of an auditor”. It is not about the report of an auditor. That is why we suggested that “or satisfied with the report of an auditor”. It is appointment of an auditor.
    Mr Speaker, if the Bank of Ghana is dissatisfied with the appointment of or a bank fails to appoint an auditor, then the Bank of Ghana can appoint one in its stead. But the second part talks about “or the Bank of Ghana is
    not satisfied with a report”. Even though I agree with you, the headnote is on appointment of an auditor and not the report of an auditor.
    That was why we said that that part appeared to be incongruous with the headnote because the headnote is “Appointment of auditor” and that part is dealing with a report of the auditor.
    Mr Samuel Atta Akyea 6:51 p.m.
    Mr Speaker, it is just not the appointment. When you appoint an auditor, the auditor is supposed to work and if we want to give space to the Bank of Ghana as a regulator, the word which is very important for our consumption is “satisfied” so that where it is in their determination, the auditor's report is shoddy or below standards, do we not think the regulator has the power to say, no, I reject this report and I would want to appoint X to look at it again?.
    Mr Speaker, if we do not give them the space to do so, we would have fettered the Bank of Ghana as a regulator and they would have to accept any report hook, line and sinker. That would take so much from the Bank of Ghana as a regulator, with the greatest of respect.
    Mr Chireh 6:51 p.m.
    Mr Speaker, at the Committee discussion, the problem that was created was that Bank of Ghana, after an appointed auditor has performed his duty very well, and Bank of Ghana does not like it, they can then decide to say no -- but the issue is that if one does an audit, it is the Institute of Chartered Accountants, Ghana, that regulates one's work. If they say that an auditor's report does not basically satisfy professional standards, then that is it.
    Mr Speaker, there may be the tendency for Bank of Ghana to refuse to accept any auditor's report because of hence the way it is found, we wanted an objective way of determining whether an audit report is correct or not. Therefore, it is the professionals within that profession who should determine whether the auditor followed due process and all the standards. That was why this was rephrased.
    Mr Patrick Y. Boamah 6:51 p.m.
    Mr Speaker, I think the amendment has some challenges. First, the Bank of Ghana and the said Institution must agree. If the regulator fails to appoint an auditor as it is being espoused here -- [Interruption]
    No, because we are saying the Bank of Ghana must appoint an auditor if the said institution fails but my view is that if that breach occurs
    Mr First Deputy Speaker 7:01 p.m.
    Let me listen to Hon Ahiafor first.
    Mr Ahiafor 7:01 p.m.
    Mr Speaker, I am opposed to the proposed amendment to clause 74 and my reasons are not far-fetched.
    Generally, from clause 74 which reads; ‘An auditor of a development finance institution shall be appointed at an annual general meeting of the development finance institution'.
    So, generally, the appointment is an exclusive preserve for the development finance institution. However, the circumstances by which the BoG can come in to do the appointment is firstly, when the development finance institution fails to do the appointment then the BoG will come in to appoint.
    Secondly, if the auditor appointed by the development finance institution produces a report which is not satisfactory to BoG then the BoG can appoint the auditor. So, the word used in clause 74 (7) is; “where” indicating the circumstances based on which the BoG would go out of the ordinary to do the appointment. That is, failure to do the appointment or they have appointed but the report produced by the appointed auditor is not satisfactory then BoG would appoint.
    Mr Speaker, so, we should leave the provision as it is.
    Dr A. A. Osei 7:01 p.m.
    Mr Speaker, I agree with the first part that, if they fail to do it then we can go ahead and appoint but if the report is shabby, they must appoint with the consent of the DFI; the two must agree. The BoG should not, by itself say that they do not like the report and so, they are going to appoint one.
    I think the DFI must consent to that new appointment; they should not give the BoG room that they can do what they want.
    Mr Banda 7:01 p.m.
    Mr Speaker, clause 7 is appropriate and we should not delete the second leg of clause 7 as being proposed by some Hon Members which is dealing with the Report. That leg of the provision is also dealing with the appointment of an auditor and so, it tallies squarely with the heading of clause 74. My only problem is the way these two parts have been joined together; one dealing with the finance institution failing to appoint an auditor and the second aspect of it having to do with the seeming shoddy work embedded in the report.
    So I would want to propose that we separate the first part from the second to have a substantive sub clause 7 and probably, have a substantive subclause 8 dealing with the report of the auditor which is probably shoddy for which reason, the BoG will then step in to appoint a new auditor.
    Mr Kpodo 7:01 p.m.
    Mr Speaker, to a large extent, I agree with the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs that we separate
    the two circumstances. One, where the FDI fails to appoint and then we find a way of dealing with that failure but where even the BoG considers a particular report not to be good in its opinion, we should find another way of dealing with that situation as well.
    We should not give the power to the BoG to determine that an auditor's report is not satisfactory and so they have thrown it away and then they go to another auditor. It can even transcend into a situation where the BoG can just determine that they do not like the chartered accountant to be called so and so and so, his or her report is not good and therefore, they have sacked him or her and thrown away the report.
    Mr Speaker, the Institute of Chartered Accountants has regulatory powers over its members. Recently, there was a case which happened and some of the members of the Institute involved in that were punished and so, they have a way of regulating their members. So I do not think that we should give the power to--
    Mr First Deputy Speaker 7:01 p.m.
    Hon Members, I think we are confusing two things. The regulator is the recipient of the auditor's report and he finds out that what he has been given, does not satisfy the requirements contained in the

    institution he regulates and if he is satisfied that the accountant is simply incompetent for the job, why should he not appoint another accountant? I do not see why he should not.

    Then the issue of the competence or otherwise of the auditing firm is not what the BoG is going to determine but will only consider the report; the report is not fit for my purpose and after interview, they are satisfied that the accountant does not know how to do the report and so, there is no point in letting the accountant review it.

    The Bank of Ghana is not determining the competence of the accountant nor considering his or her integrity but the work that the BoG needs to regulate the institution I have oversight of.

    I think we should differentiate between that and discipline or the regulation of the professional body.
    Mr Kyei-Mensah-Bonsu 7:01 p.m.
    Mr Speaker, I think that the way clause 7 is captured, is problematic. This is because if we take it from clause 74 (2) which provides that:
    “The Board of Directors of a development finance institution may appoint
    Mr Speaker, (b) reads 7:01 p.m.
    ‘an auditor to act in place of the auditor who is for any reason unable or unwilling to act until
    (i) a new auditor is appointed at an annual general meeting;'
    Then subclause (2) (ii) provides:
    “The Bank of Ghana appoints an auditor'.
    So, if the person is unable or unwilling, the BoG could appoint an auditor. If we compare this with the Banks and Specialised Deposit-
    Taking Institutions Act, there is a difference. The directors of the banks of specialised deposit-taking institutions appoints the auditor of the bank or specialised deposit-taking institutions or an auditor to act in place of that auditor, who is, for any reason, unable or unwilling to act until a new auditor is appointed at an annual general meeting.
    Mr Speaker, where the Bank of Ghana comes in section 82 of Act 930 is where the bank or Specialised Deposit Taking Institution which for a continuous period of three months is without an auditor then the Bank of Ghana comes in to appoint. It has nothing to do with the reports that the auditor may or may not have submitted. So, I think that is where the problem is coming from. I do not know whether -- ?
    Mr First Deputy Speaker 7:11 p.m.
    They have no experience and that is costing the country billions of money. So, that being experienced, it should reflect in the new legislation. I think the Bank of Ghana has since the passage of this Act come out with new experience; they have experienced new things
    with new reports showing terrible misconducts on the part of auditors'. So, this should reflect in their thinking in crafting the new law.
    Mr Kyei-Mensah-Bonsu 7:11 p.m.
    Mr Speaker, I am only saying that we should look at the order where Bank of Ghana can come in. Is it on the fact as contained in subclause (7) that “the Bank of Ghana is not satisfied with the report of an auditor appointed by a development finance institution, the Bank of Ghana may appoint an auditor and order the submission of a report”?.
    Mr Speaker, if we have this understanding then we shall just clean up clause 74(2). This is the point I am making so that we are sure of what we are doing.
    Alhaji I.A.B. Fuseini 7:11 p.m.
    Mr Speaker, by all the legislations we have passed especially the recent Companies Act and even by this law, Board of Directors have the right to appoint an auditor before the first Annual General Meeting and that auditor is the first auditor. By law, auditors must be appointed at an Annual General Meeting.
    So any auditor appointed outside the remit of the law is the first auditor. If the first auditor is unable to perform then they would appoint an acting
    Alhaji I.A.B. Fuseini 7:11 p.m.


    auditor until the General Meeting is convened for the appointment of an auditor. This is how they go about it.

    Mr Speaker, if a development finance institution is incorporated, they have between one year and one and a half years to convene an Annual General Meeting, but even within that time they must have an auditor.
    Mr Chireh 7:11 p.m.
    Mr Speaker, I still want to revisit the proposal by the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs and separate the satisfaction of Bank of Ghana off the report. It is as simple as I go to a hospital and a doctor performs a procedure on me which turns out to be faulty. As the patient I would complain, but who is to determine whether the doctor followed what was supposed to have been done? This has to be done by a regulator and that would be separate from my dissatisfaction.

    We are not talking about appointment but if the Bank of Ghana wants to act capriciously, an institution would present an audited

    report but the Bank of Ghana would say no. What would be the basis? Mr Speaker, somebody else must say that they did not follow the procedure to arrive at this. That is why I think that we should separate the acceptance or satisfactory nature of the report to Bank of Ghana. It should not even be there because the Bank of Ghana has the authority to appoint --

    In this case, why is it even the Bank of Ghana that must appoint the auditor? If it is a failing institution, and a supervisor must be appointed then that is a different matter. Mr Speaker, but we were afraid that the Bank of Ghana could be capricious in its determination of whether an institution's report is good or not depending on what they expect. So, it is only the regulator of the auditor that can tell that the procedure was not followed.
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, I want to go with the earlier proposal by the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs for us to split clause 74(7) and leave the rest to stand.
    Mr First Deputy Speaker 7:11 p.m.
    So, it would be clause 74(7) (a) and (b).
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, we could stand that one down and do further winnowing.
    Mr First Deputy Speaker 7:11 p.m.
    Very well. Hon Members, consideration of clause 74 is deferred. I think this is a good point to bring proceedings to a close for today.
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, we do not have any advertised amendments to clauses 75 to 77 so we can take clause 78.
    Mr First Deputy Speaker 7:11 p.m.
    Hon Chairman, it is already 7.15 p.m.
    I would continue up to 7.30 p.m. but I would listen to Hon Acheampong and after that excuse myself for some few minutes and return.
    Mr Richard Acheampong 7:11 p.m.
    Mr Speaker, even though we stood down the entire clause 74, I have a concern about 74(3).
    Mr First Deputy Speaker 7:11 p.m.
    Hon Member, we have deferred it so join the winnowing team and send your proposal to them.
    Hon Members, I would return to the Chair in five minutes.
    Mr First Deputy Speaker 7:11 p.m.
    Very well. Shall we continue with clause 75?
    Clauses 75 to 76 ordered to stand part of the Bill.
    Clause 77 -- Rights of an auditor to access information
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, I beg to move, clause 77, subclause (1), paragraph (a), line 2, delete “documentary evidence” and insert “documents”.
    Question put and amendment agreed to.
    Clause 77 as amended ordered to stand part of the Bill.
    Clause 78 -- Report of an auditor
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, I beg to move, clause 78, subclause (2), paragraph (a), line 1, delete “accounts give” and insert “financial statements gives”.
    Question put and amendment agreed to.
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, in the advertised amendment is “financial statements gives” but it should be “financial statement give”.
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, I beg to move, clause 79, subclause (1), opening phrase, line 1, delete “between” and insert “among”.
    The new rendition would read:
    “(1) The Bank of Ghana may, periodically arrange meetings among --
    (a) the Bank of Ghana
    (b) a development finance institution, and
    (c) the auditors to the development finance institution …”
    Question put and amendment agreed to.
    Clause 79 as amended ordered to stand part of the Bill.
    Clause 80 -- Duties of an auditor to the Bank of Ghana
    Dr Assibey-Yeboah 7:11 p.m.
    Mr Speaker, I beg to move, clause 80, subclause (1), opening phrase, line 2, delete “that”.
    The new rendition would be:
    “(1) An auditor appointed under this Act shall inform the Bank of Ghana if there is sufficient reason to believe”.
    Question put and amendment agreed to.
    Mr Kpodo 7:11 p.m.
    Mr Speaker, in clause 80, subclause (3), line 4, the final word there is “account”.
    Mr Speaker, auditors do not qualify accounts; they qualify financial statements. So the word “accounts” there is wrong. Auditors do not qualify accounts; they qualify financial statements presented to them for audit.
    I beg to move, clause 80, subclause (3), line 4, delete “accounts” and insert “financial statements”.
    Question put and amendment agreed to.
    Clause 80 as amended ordered to stand part of the Bill.
    Clause 81 ordered to stand part of the Bill.
    Clause 82 -- Termination of appointment of an auditor
    Dr Assibey-Yeboah 7:31 p.m.
    Mr Speaker, I beg to move, subclause (4), line 3, delete “or a successor body”.
    Question put and amendment agreed to.
    Dr Assibey-Yeboah 7:31 p.m.
    Mr Speaker, though not advertised, there is a second one I want to move.
    Mr Speaker, I beg to move, subclause (1), line 2, delete “if” and insert “when”.
    Question put and amendment agreed to.
    Clause 82 as amended ordered to stand part of the Bill.
    Clauses 83 and 84 ordered to stand part of the Bill.
    Dr Assibey-Yeboah 7:31 p.m.
    Mr Speaker, I want to add this so that you may direct the Winnowing Committee to look at clause 74.
    Mr First Deputy Speaker 7:31 p.m.
    That brings us to the end of consideration of the Development Finance Institutions Bill, 2020 for today.
    Mr Kyei-Mensah-Bonsu 7:31 p.m.
    Mr Speaker, I think we should be very thankful to you for your endurance. I guess if you had been here yesterday, we would have finished with this Bill today. But it is not too late; I believe tomorrow, we should be able to finish early enough and then afford ourselves the opportunity to begin with the Security and Intelligence Agency Bill, 2020. That is the only outstanding Bill. So we should be able to finish the two.
    Mr Speaker, I want to appeal to the small band to meet so that we deal with the outstanding points in clause 74. I believe that should not take us more than 15 minutes and we should move from here to your base. Other than that, we can do it at the holding room of the Clerks-at-the-Table.
    Mr First Deputy Speaker 7:31 p.m.
    Is that announcement for me or --? [Laughter]
    Mr Kyei-Mensah-Bonsu 7:31 p.m.
    Mr Speaker, it is for the winnowing group.
    Mr First Deputy Speaker 7:31 p.m.
    Very well. So when we adjourn, you can have the time.
    Alhaji I.A.B. Fuseini 7:31 p.m.
    Mr Speaker, just to reiterate what I said earlier that indeed you were missed yesterday --We know the difficult circumstances in which you are, but
    Mr First Deputy Speaker 7:31 p.m.
    On that note, the House is adjourned.
    ADJOURNMENT 7:31 p.m.