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, GETFund Levy, NHIL, EXIM Levy, Special Import Levy and Domestic VAT amounting to the Ghana cedi equivalent of thirty-one million, nine hundred and forty-seven thousand, six hundred and seventy- Six United States dollars and twenty- five cents (US$31,947,676.25 [made up of US$31,611,020.00 on imports and US$336,656.25 on local purchases]) on materials and equipment to be procured in respect of the supply of Armoured Vehicles to the Government of Ghana by Elbit Systems Land Limited of Israel.
And in so doing, I present your Committee's Report:
1.0 Introduction
The request for waiver of Import Duties, Import VAT, GETFund Levy, NHIL, EXIM Levy, Special Import Levy and Domestic VAT amounting to the Ghana Cedi equivalent of thirty- one million, nine hundred and forty- seven thousand, six hundred and seventy-six United States Dollars and twenty-five Cents (US$31,947,676.25)[made up of US$31,611,020.00 on imports and US$336,656.25 on local purchases]) on materials and equipment to be procured in respect of the supply of Armoured Vehicles to the Government of Ghana by Elbit Systems Land Limited of Israel was laid in the House on Thursday, 29th October, 2020 by the Minister responsible for Planning, Hon. Prof George Yaw Gyan -Baffour on behalf of the Minister responsible for Finance.
Rt. Hon Speaker referred the request to the Finance Committee for consideration and report.
The Committee met with the Minister for Defence, Hon Dominic Bingab Aduna Nitiwul, a Deputy Minister for Finance, Hon Kwaku Agyeman Kwarteng and officers from the Ministry of Finance, the Ministry of Defence and the Ghana Revenue Authority (GRA) to consider the referral.
2.0 Documents Referred To
The Committee referred to the following documents:
1. The 1992 Constitution;
2. The Public Financial Management Act, 2016 (Act 921);
3. The Standing Orders of the Parliament of Ghana; and
4. The Contract of US$80,000,000.00 between the Government of Ghana (represented by the Ministry of Defence) and Elbit Systems Land Limited of Israel for the supply of Armoured Vehicles to the Government of Ghana.
3.0 Background
The Ghana Armed Forces (GAF) is primarily responsible for the defence of the State as enshrined in article 210(3) of the 1992 Constitution. The Ghana Armed Forces is also involved in internal security operations with other sister security services for the safety of the general public.
The Ghana Armed Forces has thus over the years performed supportive roles towards the political, social and economic spheres of national development.
The GAF therefore requires sophisticated platforms and equipment to combat the threats of terrorism and also help other security agencies such as the Ghana Police Service in managing internal conflicts.
One of such equipment is armoured vehicles. Armoured vehicles play a vital role in the work of the Army. GAF's current deployment for Operation Conquered Fist (a military counter-terrorism operation to counter terrorist threats) requires a relatively significant number of heavy armoured vehicles particularly 8x8 and 6x6 armoured vehicles.
This is because these vehicles guarantee protection and mobility as well as efficient fire power, thereby ensuring the safety of military personnel.
Unfortunately, these equipment are in short supply which adversely impacts the operations of GAF.
The Government is therefore keen on equipping the military with modern equipment in the desired quantities to ensure that the military is adequately resourced to work effectively.
