Debates of 5 Aug 2021

MR FIRST DEPUTY SPEAKER
PRAYERS 11:52 a.m.

VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 11:52 a.m.

Mr First Deputy Speaker 11:52 a.m.
Hon Members, Correction of Votes and Proceedings of Tuesday, 3rd August,
2021.
Page 1... 2 --
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Mr First Deputy Speaker 11:52 a.m.
I see about four Hon Members on their feet. Is it in relation to the Votes and Proceedings? If it is not, kindly resume your seats please.
Pages 3…7 --
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Mr First Deputy Speaker 11:52 a.m.
Yes, Hon Member for Sekondi?
Mr Mercer 11:52 a.m.
Mr Speaker, I was present on Tuesday, but I have been marked absent.
Mr First Deputy Speaker 11:52 a.m.
Hon Member, what page are you referring to?
Mr Mercer 11:52 a.m.
Mr Speaker, page
7.
Mr First Deputy Speaker 11:52 a.m.
Very well. The Table Office would take note.
Page 8…9 --
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- 11:52 a.m.

Mr K. Nyarko 11:52 a.m.
Mr Speaker, with regard to item numbered (vi) on page 8, there should be a “:” after “Ningo-Prampram''.
Also, on item numbered 8, there should be an “h” after the “s” to read “distinguished''.
Mr First Deputy Speaker 11:52 a.m.
Very well. The Table Office would take note.
Page 9…10 -
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Alhaji I. Seidu 11:52 a.m.
Mr Speaker, with regard to item numbered (viii) on page 9, the designation of H. E. Luis Fernando, does not sound right. I verified and it should read “Presidential Secretary for Institutional Communication and Press Affairs”. The Table Office could double check to get the right rendition.
Mr First Deputy Speaker 11:52 a.m.
Very well. The Table Office would verify from the records submitted to the House.
Page 10 --
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Mr First Deputy Speaker 11:52 a.m.
Yes, Hon Member?
Alhaji I. Seidu 11:52 a.m.
Mr Speaker, with regard to item numbered 11on page 10, the article “the” is missing from the second line. The correct rendition should read: “the President of the Republic''.
Mr First Deputy Speaker 11:52 a.m.
Very well.
Page 11…22 --
Hon Members, in the absence of any further corrections the Votes and Proceedings of Tuesday, 3rd August, 2021 as corrected is hereby adopted as the true record of proceedings.
Hon Members, item numbered 5 -- Urgent Questions.
The first Urgent Question is in the name of the Hon Member for Amenfi West, Mr Eric Afful.
Hon Minister for Food and Agriculture, kindly take your seat.
Hon Member, for Amenfi West, you may ask your Question.
URGENT QUESTIONS 11:52 a.m.

MINISTRY OF FOOD AND 11:52 a.m.

AGRICULTURE 11:52 a.m.

Mr Eric Afful (NPP -- Amenfi West) 11:52 a.m.
Mr Speaker, I beg to ask the Minister for Food and Agriculture the plans the Ministry has to re-open the 2021/2022 main crop season to purchase the abundance of cocoa
Minister for Food and Agriculture (Dr Owusu Afriyie Akoto) 10:40 a.m.
Mr Speaker, a regular cocoa crop here in Ghana runs for 12 calendar months. It starts from the first Friday of October which marks the beginning of the main crop season and ends on the 30th of September every year. The main crop period normally closes at the end of May and the cocoa calendar reopens in July as light crop season.
Mr Speaker, the one month break between the main and the light crop seasons is for operational reasons - to allow the licensed buying companies (LBCs) to organise their warehouse, prepare for light crop purchases and to give room for the categorisation and grading of cocoa beans held in the warehouse.
Mr Speaker, the good harvest that farmers have made is part of the current 2020/2021 crop season and would not be carried into 2021/2022. At the end of the 2020/2021 main crop season, the country had made a record production of 982,864 metric tonnes and on a good note of no
outstanding payments to be made by the Ghana Cocoa Board (COCOBOD) to the LBCs.
Mr Speaker, I would wish to inform the honourable House that the 2021/2022 cocoa season would commence on the first Friday of October, 2021. COCOBOD is nearing the final stages of the annual ritual syndication process to secure funding for the 2021/2022 crop season. In due course, my Ministry would engage stakeholders, mainly, representatives of cocoa farmers, LBCs and the cocoa haulage companies to agree on the producer prices, buyers margin and haulage rates. All these processes would be completed by the end of September, 2021 and thus usher in a new cocoa calendar year in 2021/2022.
I thank you, Mr Speaker.
Mr Eric Afful 10:40 a.m.
Mr Speaker, I thank the Minister so much for giving the dates in which the season would be opened. In connection with the same cocoa purchases in this country, there is a communication gap among COCOBOD itself, the LBCs and the farmers out there.
Mr Speaker, during the season under consideration, COCOBOD has not been funding the LBCs to purchase the cocoa. This has resulted
in the LBCs crediting cocoa from the farmers. So, the cocoa farmers have a challenge in terms of finance. This also compelled the LBCs to also solicit moneys somewhere to purchase the cocoa before the cocoa is evacuated to the COCOBOD.
I would like to ask the Hon Minister
Mr First Deputy Speaker 10:40 a.m.
Hon Member, kindly listen to me; I just heard the Hon Minister say that there is no outstanding payments to the LBCs.
Are you challenging that? Otherwise, you should reframe your question.
Mr Eric Afful 10:40 a.m.
Mr Speaker, we all knew that the LBCs and the farmers were in financial crisis during the season under consideration. Was it that the Ministry run out of seed fund or it is a new style of marketing cocoa in this country?
This is my question.
Dr Owusu Afriyie Akoto 10:40 a.m.
Mr Speaker, the COCOBOD has a record of 47/48 years of purchasing cocoa from farmers and it has never been the case that at the end of the season, the farmers or the LBCs are
owed moneys. So, I do not know where the Hon Member is getting his information that by the close of the season COCOBOD owed - COCOBOD does not owe money to any LBCs. That is the latest information. There may have been delays only and I have been here in this House to explain the delays that because of the COVID-19, demand for cocoa beans, chocolates and so on were down and therefore, our usual sale contracts were adversely affected. Therefore, that was the source of the delays.
But as we speak, LBCs have been paid and no cocoa farmer is owed money by the COCOBOD.
Mr First Deputy Speaker 10:40 a.m.
Are you done? [Interruption] Very well, the Hon Member for South Dayi, Rockson-Nelson Dafeamekpor?
Steps Taken to Pay Fertiliser Suppliers to Avert the Acute Shortage Farmers Presently
Face in the Country
Mr Rockson-Nelson Etse Kwame Dafeamekpor (NDC -- South Dayi) 10:40 a.m.
Mr Speaker, I would like to ask the Minister for Food and Agriculture what steps the Ministry has taken to pay fertiliser suppliers to avert the acute shortage presently facing farmers in the country.
Dr Owusu Afriyie Akoto 10:40 a.m.
Mr Speaker, the Ministry of Finance has released funds for the payment of 2020 arrears owed fertiliser companies. From May to July, 2021, a total amount of GH¢260,432,490.94 has been released to pay the companies. The release comprises of an amount of GH¢186,631,445.00. Actual payments made to the companies this far from the amount is GH¢73.8 million while it is being processed by the Ministry of Food and Agriculture through the GIFMIS.
These payments represent 44 per cent of the total debt of GH¢587,876,784.00 owed all the fertilizer companies that supply fertilizer to farmers under the 2020 Planting for Food and Jobs campaign.
Mr Speaker, furthermore, the Ministry has approved an upward adjustment of the prices of the planting for Food and Jobs fertilizer for 2021 to cushion the fertilizer companies on account of the increased world market prices due to the effect of the COVID-19 pandemic on commodities on the international markets. The adjustment would enable the fertilizer companies to import and distribute fertilizers for the 2021 planting season. The Ministry has organised an emergency meeting with the fertilizer companies to discuss
fertilizer shortages and its adverse effects on food security.
Mr Speaker, monitoring of the availability and distribution of fertilizer to farmers have been improved significantly in the Region's sense.
Mr Dafeamekpor 10:40 a.m.
Mr Speaker, can the Minister tell us how many bags of fertilizers, for instance, were supplied to the Volta Region between January and now?
Mr First Deputy Speaker 10:50 a.m.
Hon Member, that is not a follow-up question, kindly ask a follow-up question; this is a formal question on its own. This is asking for specifics to a region.
Mr Dafeamekpor 10:50 a.m.
Mr Speaker, the Hon Minister has told the House that supply has improved significantly --
Mr First Deputy Speaker 10:50 a.m.
Hon Member, I determine the questions that are admissible and that question is not admissible. You can ask another follow-up question.
Mr Dafeamekpor 10:50 a.m.
Mr Speaker, very well.
Now, what steps is the Hon Minister taking to ensure that we have sufficient supply till the end of the year? We are now in the month of August and news about the shortage hit us about two weeks ago and we are approaching the late season and I would like to find out from him if he can assure the House that there will be sufficient supply, at least, till the end of the year?
Dr Akoto 10:50 a.m.
Mr Speaker, this country has three seasons for the various regions. In the forest and southern parts of Ghana, we have two rainy seasons and so, two planting seasons. In the northern and savannah regions, we have only one rainy season and so, one planting season.
As we speak, the major season in the south has been completed, we are in the process in the north and savannah where farmers are planting now and thus demand fertilisers.
Mr Speaker, the minor season which starts from somewhere September to October is yet to come in the southern part and that is where most of our production food takes place in the south because of the climate change, farmers are adapting to the whole system and moving their
production activities from the main rainy season to the minor season.
What has happened is that COVID-19 pandemic has hit the global fertiliser industry to the extent that prices have gone up by more than one third, freight prices have also gone up three times from West Africa, Europe and to Asia. So, through this, we have made arrangements to ensure that at least, in the minor season which is yet to set in, in about two to three months from now, we would have sufficient fertilisers for our farmers in order for them to conclude on their production processes for us to have a good harvest as we have had in the past.
Mr Dafeamekpor 10:50 a.m.
Mr Speaker, that will be all for the Hon Minister.
Mr First Deputy Speaker 10:50 a.m.
Very well.
Question numbered 5 (c) by the Hon Member for Bawku Central.
[Pause] --
Very well.
Question numbered 5(d) by the Hon Member for Wa East - Dr Seidu Jasaw.
Mr Dafeamekpor 10:50 a.m.
Mr Speaker I have his authority to seek your leave to ask the Question on his behalf.
Mr Dafeamekpor on behalf of
Mr Mahama Ayariga) 10:50 a.m.
Mr Speaker, I beg to ask the Minister for Food and Agriculture --
Mr First Deputy Speaker 10:50 a.m.
Hon Member, I have not yet granted you leave. You have only sought it.
Very well. You may now ask on his behalf.
Mr Dafeamekpor 10:50 a.m.
Mr Speaker, I jumped the gun.
Inaccessible Fertiliser under the Fertiliser Subsidy Programme
Mr Dafeamekpor 10:50 a.m.
Mr Speaker, I beg to ask the Hon Minister for Food and Agriculture why farmers could not access fertiliser under the Fertiliser Subsidy Programme.
Mr First Deputy Speaker 10:50 a.m.
Yes, Hon Minister, Question numbered 5(d). No, I called Question numbered 5(d). Yes, Hon Deputy Minority Leader?
Mr James Klutse Avedzi 10:50 a.m.
Mr Speaker, you finished with item
numbered 5(b) and to move to (c). I do not know whether you have any information --?
Mr First Deputy Speaker 10:50 a.m.
Hon Member, I called Question numbered 5(c) but no Hon Member was on his feet after looking round I called 5(d) and then Hon Dafeamekpor said he had the Hon Member's authority to seek permission from me.
Mr Avedzi 10:50 a.m.
Mr Speaker, we thought you were mentioning item numbered 5(c).
Mr First Deputy Speaker 10:50 a.m.
I had gone beyond (c) to (d). So, what Question did the Hon Member ask and whose authority does he have?-
Mr Dafeamekpor 10:50 a.m.
Mr Speaker, I have the authority of Hon Member for Bawku Central - Mr Mahama Ayariga.
Mr First Deputy Speaker 10:50 a.m.
You should have stated so because I had called out item numbered 5(d) and I was looking out and did not know -
Very well, Hon Minister, you may answer Question numbered 5(c).
Dr Akoto 10:50 a.m.
Mr Speaker, I did not hear the Question can the Hon Member --?
Mr First Deputy Speaker 10:50 a.m.
Hon Member, kindly repeat Question numbered 5(c).
Mr Dafeamekpor 10:50 a.m.
Mr Speaker, I beg to ask the Hon Minister for Food and Agriculture why farmers could not access fertiliser under the Fertiliser Subsidy Programme?
Dr Akoto 10:50 a.m.
Mr Speaker, the Ministry of Food and Agriculture has contracted seventy-one fertiliser companies to supply both organic and inorganic fertiliser to farmers under the 2021 Planting for Food and Jobs campaign.
Contract agreements by the Ministry and the fertiliser companies were signed on 30th November, 2020. The international market prices for fertiliser increased significantly six months after the contracts were signed as a result of the COVID-19 impact on the industry.
Mr Speaker, the development adversely impacted the working capital of the fertiliser companies rendering them incapable of
importing adequate quantities for distribution. Other factors accounting for the problem of inadequate subsidised fertilisers are;
a) delays in the payment of fertiliser companies engaged for the 2020 PFJ campaign.
b) smuggling of fertiliser and illegal cross border trade of fertiliser between traders in Ghana and Burkina Faso and other neighbouring countries.
c) erratic rainfall patterns in the second quarter of 2021 in the 11 regions of the Southern sector.
Mr Speaker, in conclusion, the Ministry of Food and Agriculture has been working tirelessly to address the challenge of shortage of fertilisers in the country. The outcome has been the release of a total of GH¢260,432,490.90 to make good the Ministry's indebtedness to the fertiliser companies. The distribution of subsidised fertilisers especially to the northern parts of the country has significantly imporved following an emergency meeting between the suppliers and the Ministry.
Mr Dafeamekpor 11 a.m.
Mr Speaker, the Hon Minister has given the same Answer that he gave to my question.
Now, how much is a bag of fertiliser under the Subsidiary Programme?
Dr Akoto 11 a.m.
Mr Speaker, a 50kg bag of fertiliser is GH¢145 and because of the subsidy we sell it to the farmers at GH¢74 per bag. So, they take half of the cost and we also take another half.
Mr Dafeamekpor 11 a.m.
Mr Speaker, would the Hon Minister be kind enough to tell this honourable House the total investment on fertiliser for this year?
Dr Akoto 11 a.m.
Mr Speaker, according to the Budget Statement, a provision has been mad to cover GH¢560 million as Government's share of the subsidy.
Mr Dafeamekpor 11 a.m.
Mr Speaker, I would want to find out how long the Government's subsidy programme has been running?
Dr Akoto 11 a.m.
Mr Speaker, the subsidy programme for fertilisers was
initiated under former President Kufuor's administration in 2007, it came into operation in 2008 and it has since been in operation.
rose
Mr First Deputy Speaker 11 a.m.
Hon Members, we have a tall list of Questions to be asked today so we agreed that --
We would move to the Question standing in the name of Hon Godfred Seidu Jasaw.
Hon Leader?
Mr Annoh-Dompreh 11 a.m.
Mr Speaker, with respect, we have had some common understanding with Hon Colleagues so I seek your leave to vary the order of business and to also allow the Hon Deputy Minister for Energy to lay the Paper advertised on the Order Paper Addendum. Then we can return to Question time.
Mr First Deputy Speaker 11 a.m.
Very well.
Hon Members, we would move to the Order Paper Addendum - at the Commencement of Public Business. Presentation of Papers by the Hon Deputy Minister for Energy on behalf of the Hon Minister for Energy.
PAPERS 11 a.m.

Mr First Deputy Speaker 11 a.m.
Hon Members, we would return to Question time and take the Urgent Question numbered as item 5(d) standing in the name of the Hon Member for Wa East.
URGENT QUESTIONS 11 a.m.

MINISTRY OF FOOD AND 11 a.m.

AGRICULTURE 11 a.m.

Dr Akoto 11 a.m.
Mr Speaker, the Government of Ghana has so far issued permits for 60,000 metric tonnes of yellow maize for the poultry industry. Under the Ghana Cares Obataanpa Programme, poultry farmers would be given interest rate subsidies and negotiations are ongoing between the Ministry of Food and Agriculture and the Ministry of Finance on the rate of the subsidy levels to be applied. Broiler farmers would be given subsidised inputs as follows: 50 per cent of the cost of day old chicks, 50 per cent of the cost of vaccines and 50 per cent of the cost of feed for the first two weeks of production.
Mr Speaker, this is the level of support Government is giving to the poultry industry.
Dr Jasaw 11 a.m.
Mr Speaker, I thank the Hon Minister for his Answer.
I would want to find out if the Hon Minister is considering renegotiating some of the existing facilities that poultry farmers have engaged in already so that they would be given
Mr First Deputy Speaker 11 a.m.
Was that a question or just a comment?
Dr Jasaw 11 a.m.
Mr Speaker, the question is that is the Hon Minister also considering to negotiate longer payment period for the credit facilities that these farmers are already engaged in?
Dr Akoto 11 a.m.
Mr Speaker, the short answer is No. Thank you.
Dr Jasaw 11 a.m.
Mr Speaker, why no, since the industry is dying? So, why would the Hon Minister not consider this?
Mr First Deputy Speaker 11 a.m.
Hon Minister, he wants to know why you would not consider negotiating long- term payment systems for them.
Dr Akoto 11 a.m.
Mr Speaker, as the Hon Member may know, the Ghana
Cares Programme is a 100 billion and it is for the whole economy of Ghana and because of the concern of this Government for poultry farmers, that is why we have been able to set aside these moneys as subsidies and it is unprecedented in the history of poultry farming in this country. Mr Speaker, so we have gone as far as we can and there are other areas and sectors of the agricultural economy that we are looking at. So we have reached the limit of the support that we can give to the poultry farmers.
Dr Jasaw 11 a.m.
Mr Speaker, the Hon Minister mentioned some arrange- ments such as interest rates subsidies including the cost of vaccines and so on. May I know when this would take effect?
Dr Akoto 11:10 p.m.
Mr Speaker, in fact, this programme started last year as a pilot project. So the intervention of the CARES programme is to step it up so that more poultry farmers could benefit.
Mr First Deputy Speaker 11:10 p.m.
Very well. I would proceed. Question captured as item numbered 5(e), Hon Member for Atwima-Nwabiagya South, Mr Emmanuel Agyei Anhwere, you may ask your Question.
Ministry's awareness of the reported shortage of maize for poultry farmers and steps being taking to arrest this imminent threat
Mr Emmanuel Agyei Anhwere (NPP -- Atwima-Nwabiagya South) 11:10 p.m.
Mr Speaker, I beg to ask the Minister for Food and Agriculture whether the Ministry is aware of the reported shortage of maize for poultry farmers which is affecting production, and what steps the Ministry is taking to arrest this imminent threat.
Minister for Food and Agriculture (Dr Owusu Afriyie Akoto) 11:10 p.m.
Mr Speaker, yes, the Ministry is aware of the situation and acknowledges that maize is a major component of poultry feed. The shortage has occasioned high poultry production cost in recent months.
The Ministry has established that traders from neighbouring countries are the main cause of shortages because of their trading activities with farmers in the country especially in maize. The traders have in recent times flooded the country to buy maize to their respective countries due to the effect of the COVID-19 pandemic on agriculture. Generally, in the Economic Community of West African States (ECOWAS) Sub-
Region, Ghana has become the food basket.
Mr Speaker, the ECOWAS Protocols allows free movement of goods and services. Therefore, the current situation calls for strategies to mitigate the demand for Ghana's maize by our neighbours. To compound the situation, the southern part of the country experienced severe drought during the cause of the 2020 crop season which affected production despite the massive efforts made under the Planting for Food and Jobs campaign.
Mr Speaker, to address the situation in the immediate to short- term, there is the need to import maize to augment local suppliers. Accordingly, some of the companies and poultry farmers associations were issued permits to import yellow maize for their work. Regrettably, the imported maize is yet to arrive in Ghana contrary to the expectation. It has also been observed that maize prices in the international market was substantially higher than what is on our local market and is therefore financially imprudent for them to import.
Mr Speaker, so in spite of the fact that maize prices are high, world prices of maize are higher than what we have in Ghana today. Therefore, it is not profitable to import maize into
Mr Anhwere 11:10 p.m.
Mr Speaker, I would like to ask the Hon Minister about his position on restraining grain export to neighbouring countries?
Dr Akoto 11:10 p.m.
Mr Speaker, two factors are leading to an action which is being spearheaded by my Ministry. One is to do with the fact that there is a massive expansion in the production of maize since the Government of Akufo-Addo came into office. When we took over in 2016, the total production of maize was 1.8 million metric tonnes in Ghana. In 2020, the figure had increased to nearly three million metric tonnes. Had it not been the drought of last year, we would have crossed the three million metric tonnes mark and above. This is one portion.
The second has to do with trade with our neighbouring countries which is going on unofficially. Traders come from across all West Africa to change
their CFA on our markets, buy the maize and take them across our borders. As a result of all this, we are proposing a Grains Development Authority, which is now being prepared for Cabinet and eventually to this august House to approve so that this Authority would become a regulatory body to promote the production of grains in this country and to also regulate the trade both internally and externally to ensure that we have adequate stock for consumers and also for the poultry and other animal subsectors in the country.
Mr Anhwere 11:10 p.m.
Mr Speaker, my last question. Under the CARES programme, what would be the support for the poultry farmer?
Dr Akoto 11:10 p.m.
Mr Speaker, I just mentioned in an answer to a Question from the Other side that the CARES programme is meant to support industries, not only in agriculture but to all sectors of the economy as a response by this Government to the damage done by the COVID-19 pandemic to our economy.
In this, agriculture has got its fair share including support for the various areas that we have mentioned. So the subsidy programme for interest rates, depending on the response we get
from the farmers, would determine the amount of money that would be specifically going to support the subsidy programmes.
Of course, we now have the opportunity for the farmers to take up this subsidy programme for interest rates that they owe the banks. We wait to see the response that would come then Government would take the appropriate measures.
Mr First Deputy Speaker 11:10 p.m.
Yes, Hon Anhwere?
Mr Anhwere 11:10 p.m.
Mr Speaker, I am done with my questions. I am grateful.
Mr First Deputy Speaker 11:10 p.m.
Hon Minister, I am interested in getting some more information. I was at a funeral less than a week ago when I was accosted by a group of people who say they were the leadership of the poultry farmers. I only said I would listen to them and that when I get the opportunity, I would ask the Minister.
Listening to you, you have increased maize production. But we appear to have also expanded in consumption. Apart from giving them money, even if they have money, how else could we get maize? I think that is their basic challenge.
Dr Akoto 11:20 a.m.
Mr Speaker, the Poultry Farmers Association made a formal petition to me as the Minister responsible and we have been communicating with them ever since. The problem is that the general commodities trade globally has been hardly hit by the COVID-19 to the extent that our poultry farmers are crying about the prices of maize and the world price of maize on the Chicago Commodity Exchange is higher today as I speak. So this is why we are able to give 60,000 metric tonnes of permit for the poultry farmers themselves to bring in the items and they realised that they could not. When I was signing the permit, I knew that they could not because I checked on the Chicago Commodity Exchange and the prices that they were complaining about in Ghana were far lower than what is on the global market where we are going to import the items from.
So, Mr Speaker, the answer is very simple. We need to increase our
production and also regulate the trade. Our production is increasing; farmers are really doing very well. As I said, from 1.8 million metric tonnes that we inherited when the Akufo-Addo Government came into Office, we are now in the 3 million metric tonnes range, and we believe that if we carry on with what we are doing, Ghana can even produce as much as 6 million metric tonnes of grains in this country. So we have to carry on with what we are doing in a more forceful manner. Farmers are responding to us but then we need to regulate the trade. That is another angle.
Mr Speaker, this is why we are bringing to you, hopefully in the next Parliamentary Session, a Bill which would be creating an authority for grains, which would regulate the trade not only externally but also internally, to make sure that poultry farmers and the urban consumers of maize and their products would have reasonable prices for this produce.
So, Mr Speaker, in answer to your question, there are two things we have to do. We have to keep doing what we are doing which is increasing grain production and at the same time regulate the trade to ensure that we have enough stock to satisfy the needs of the people of Ghana.
Thank you.
Mr First Deputy Speaker 11:20 a.m.
Very well. The next Question is in the name of the Hon Minority Leader.
rose
Mr First Deputy Speaker 11:20 a.m.
Hon Member, why are you on your feet?
Mr Anhwere 11:20 a.m.
Mr Speaker, I have a follow up.
Mr First Deputy Speaker 11:20 a.m.
You have exhausted your question. This was my follow up. I am moving on.
Let me discharge the Hon Minister for Food and Agriculture before I proceed to the next one.
Mr Annoh-Dompreh 11:20 a.m.
Mr Speaker, I could not have agreed more with my Hon Colleague. This is because there are other Questions also slated for the Hon Minister for Food and Agriculture. So, if you would permit, let us go ahead as you have directed then the Hon Minister for Transport, since it is also an Urgent Question, we can exhaust his and deal with all the other Urgent Questions and then move to the ordinary Questions for the Hon Minister for Food and Agriculture. So we would invite the Minister for Transport.
Mr Avedzi 11:20 a.m.
Mr Speaker, the Hon Minority Leader has asked me to seek
your leave to ask the Question for him.
Mr First Deputy Speaker 11:20 a.m.
Very well. I would grant you leave to ask the Question but the proposal is that since there are Questions other than Urgent Questions for the Hon Minister for Food and Agriculture, we should continue and finish with him so that we can then return to the other Minister.
Mr Avedzi 11:20 a.m.
Mr Speaker, the Urgent Question for the Hon Minister for Transport is only one. So if we can finish with him, then he can go and then we continue with the Hon Minister for Food and Agriculture.
Mr First Deputy Speaker 11:20 a.m.
There are other Questions for the Hon Minister for Transport in the original Order Paper as well, so when we finish with the Hon Minister for Food and Agriculture, then we will come to the Hon Minister for Transport and take the whole thing.
So Hon Minister for Transport, kindly wait. We would return to you.
Hon Minister for Food and Agriculture may continue with the other Questions.
So now, I move to Question numbered 145 standing in the name
ORAL ANSWERS TO 11:20 a.m.

QUESTIONS 11:20 a.m.

MINISTRY OF FOOD AND 11:20 a.m.

AGRICULTURE 11:20 a.m.

Mr Frederick Yaw Ahenkwah (NDC -- Jaman North) 11:20 a.m.
Mr Speaker, I beg to ask the Minister for Food and Agriculture what accounts for the inability of the Ministry to fix a satisfactory minimum producer price for cashew in the 2021 cashew crop season despite the coming into fruition of the Tree Crop Authority.
Minister for Food and Agriculture (Dr Owusu A. Akoto) 11:30 a.m.
Mr Speaker, the Tree Crops Development Authority (TCDA), established by Act 1010, 2019 is a body corporate with perpetual succession, mandated to regulate and develop in a sustainable environment, the production, processing, and trading of cashew, coconut, mango, shea, oil palm and rubber.
To achieve this objective, the Authority is charged with several regulatory and development functions,
key among which are the registration and licensing of actors and pricing of produce of the mandated tree crops.
Cashew Development in Ghana
In the early years (1980s-1990s) of cashew production in Ghana, the industry suffered a set-back due to the absence of the needed support in terms of policies to facilitate its development as an infant industry.
Issues like low producer prices, underdeveloped market structures and inadequate information regarding appropriate husbandry practices for the commodity caused farmers enthusiasm in the crop to wane considerably.
Farmers abandoned and left their farms to the mercy of rampant bush fires and fuel wood collectors. Thankfully, from the early 2000s to now, the situation has changed after government and non-governmental organisations provided interventions that improved the cultivation and capacity of farmers to adopt best agronomic practices through research, training and other support programmes.
The only complex challenge in the industry that was not addressed sufficiently and continued to dominate in the discussions was developing a pricing mechanism or model that will
cater for the expectations of the various value chain operators - producers, traders/exporters and local processors. The absence of this important component of cashew trade generated mistrust and suspicion among industry players, especially producers.
The country witnessed a number of farmers demonstrations, agitations as well as press conferences to drive home their anger on the absence of a pricing model for Raw Cashew Nuts
(RCN).

The efforts made by the President of the Republic of Ghana, H.E. Nana Addo Dankwa Akufo-Addo to inaugurate the Board of the TCDA on the 29th of September, 2020, and appointed an Acting CEO and two Acting Deputy CEOs to take office in January and April, 2021.

In November 2020, the Cashew Producers Association of Ghana petitioned the Board of TCDA to fix producer price for cashew for the 2021 crop season which starts from January and ends in June. The Board agreed and made the attempt by consulting various stakeholders and development partners in the cashew sector for appropriate information and data; and met twice on the matter in

December 2020, and January 2021. However, the Board finally decided to defer the price fixing assignment to the 2022 crop season because of the following factors:

1. Price fixing is a regulatory function and it is made to regulate the marketing activities of both producers and licensed aggregators/ buyers/exporters. That is, those to be regulated should be under the hold of the regulator through registration and licensing. As we speak, registration and licensing of actors is yet to begin in this third quarter. A price in that situation could have been disregarded by the unknown actors and this would have had a negative effect on the mandate of the Authority.

2. Regulated pricing is only effective when the commodity is well defined in terms of standards (moisture content, shape, size, colour et cetera). As at the time, Ghana Standards Authority (GSA), with the help of GIZ, was yet to complete the standardisation of RCN and cashew kernel. While some farmers sell their produce after drying them properly,
Mr Ahenkwah 11:30 a.m.
Mr Speaker, I would want to use this opportunity to
thank the Hon Minister for the clarity. I am really satisfied with the answer given. I know that my constituents are very happy to hear from him.
Mr First Deputy Speaker 11:30 a.m.
Thank you.
Mr Ahenkwah 11:30 a.m.
Mr Speaker, I am building a premise; I will ask my question. [Laughter]
Mr First Deputy Speaker 11:30 a.m.
Hon Member, kindly proceed to the question. I thought you said you are satisfied?
Mr Ahenkwah 11:30 a.m.
Mr Speaker, the Hon Minister categorically stated in his answer that there is mistrust between the producers and the buyers. This is a problem that we have in the cashew producing areas. Government is putting in efforts to ensure that production is increased and farmers have no challenge with that at all. But their problem is the pricing regime. The prices keep dwindling every year, so with what the Hon Minister has said so far and now that all the parametres required to set a minimum satisfactory price for the 2022 cashew crop season are available, I would want the Hon Minister to assure me and my constituents who are cashew producers --

MR OKOFO-DATEH]Mr First Deputy Speaker: Hon Member, do you have a question?
Mr Ahenkwah 11:30 a.m.
Mr Speaker, I am asking the question.
Mr First Deputy Speaker 11:30 a.m.
Do you mean all these are part of the question? [Laughter.]
Mr Ahenkwah 11:30 a.m.
Mr Speaker, I am landing. I would want the Hon Minister to assure me, this House, and my constituents, that the 2022 cashew crop season will see a medium satisfactory price.
Dr Akoto 11:30 a.m.
Mr Speaker, I hereby assure.
Mr Ahenkwah 11:30 a.m.
Mr Speaker, may I know from the Hon Minister whether he has a fair idea of the price range that farmers should anticipate in the 2022 crop season?
Mr First Deputy Speaker 11:30 a.m.
Hon Member, this is into the future. Our rules do not permit speculation. Hon Member, for your guidance, Standing Order 67(1)(e) states:
“a Question shall not solicit the expression of an opinion or the solution of an abstract legal case or a hypothetical proposition.”
Whatever he will say will still be hypothetical because he has no power to determine the price.
Mr Ahenkwah 11:30 a.m.
Thank you, Mr Speaker.
Mr Williams Okofo-Dateh 11:30 a.m.
Mr Speaker, thank you for the opportunity. The Hon Minister has given the details and functions of the TCDA. Its main duty is the licensing of actors and also the determination of prices. But from his answer, as of now, none of such activity has been achieved.
11. 40 a.m.
There has not been any licensing of actor, and there has been no registration, which is the first one. Again, he also went on to say that the Ghana Standards Authority is yet to finalise the standardisation of the nature of the crop before buyers can sell, and that one too is yet to be achieved because it is not yet done.
Mr First Deputy Speaker 11:30 a.m.
Hon Member, what is your question?
Mr Okofo-Dateh 11:30 a.m.
Mr Speaker, dwelling on what I have said, all these things are yet to be done, but we have just about five months to get to the beginning of the cashew season. From
his Answer, he said that last year, they tried but they could not fix any price for the year 2021. Meanwhile, we have about just five months to go, and they are still “hoping”. From the Answer, he says, and with your permission I quote:
“…Almost all the parameters and conditions required for the determination of a satisfactory pricing formula are available or accessible and it is our “hope” to start the process early to be able to fix a very satisfactory and competitive producer price.”
So, we have just about five months to go, and the process has not yet started. Therefore, I would want to know from the Hon Minister, how soon and how sure are they that they can achieve this before the next season?
Dr Akoto 11:30 a.m.
Mr Speaker, with all due respect, I thought that I answered the question with the assurance given by our Hon Colleague who asked the original Question. It would be done.
Mr First Deputy Speaker 11:30 a.m.
Hon Minister, he wanted to know how soon. Do you have any idea of how soon it would be?
Dr Akoto 11:30 a.m.
Mr Speaker, the peak season is from January to June, so, before the beginning of the season, it would be in place.
Mr Ahmed Ibrahim 11:30 a.m.
Mr Speaker, per the Hon Minister's Answer, he says that on 29th September, 2021, His Excellency the President appointed an Acting Chief Executive Officer (CEO) and two Acting Deputy CEOs, who took office in January and April 2021. I would want to ask the Hon Minister whether the Board, which met twice to fix the cashew price and did not succeed is still in place? I would also want to know whether there is a new Board to be formed, or whether the Board has been formed already?
Dr Akoto 11:30 a.m.
I know that the Hon Member is a big producer of the crop, so, he is very concerned about what goes on with the Authority. I can assure him that the same day that the President inaugurated or outdoored the management, a 29-member Board was also sworn-in at Kumasi at the same event. So, there is a 29-member Board of which only about five are from Government organisations. The rest are purely from the private sector, and they include farmers, processors, exporters and so on, so that they would control this Authority.
Mr First Deputy Speaker 11:30 a.m.
Very well, I would proceed to the next Question for the Minister of Food and Agriculture, which stands in the name of the Hon Member for Kintampo North, the Hon Joseph Kwame Kumah.
Status of the proposed cattle grazing parks at Kintampo North Municipality.
Mr Joseph Kwame Kumah (NDC -- Kintampo North) 11:30 a.m.
Mr Speaker, I beg to ask the Minister for Food and Agriculture about the status of the proposed cattle grazing parks at Kintampo North Municipality.
Dr Akoto 11:50 a.m.
Mr Speaker, the Kintampo North Municipal in the Bono East Region is among four (4) districts selected to benefit from four (4) pilot projects for the development
of grazing reserves and corridor systems for peaceful transhumance practice in the country. The other districts are the Adaklu District in the Volta Region, Fanteakwa North District in the Eastern Region, and Sekyere Afram Plains and Sekyere Kumawu Districts in the Ashanti Region. The technical studies and financial proposals have been completed by the Technical Team of the Ghana Cattle Ranching Project.
As part of their mandate, the Technical Team has had consultations with stakeholders and community members on key implementation steps towards the establishment of the grazing parks in the Municipality.

The key steps comprise the identification of existing and proposed cattle mobility routes and grazing reserves; identification and availability of potential feed resources and the estimation of the carrying capacity in the proposed grazing reserves.

The study outcome include:

1. The area delineated for the grazing reserve, borders the Black Volta to the North and West and covers an area of about 100,000 ha (247,105

ac), with a perimeter of approximately 150 kms;

2. A five (5) km distance between the grazing reserve and the river has been deliberately provided in the design to protect the environmental integrity of the river from direct contact by cattle as a watering source;

3. Three (3) proposed cattle mobility corridors have been clearly mapped and various service points and facilities proposed;

4. The establishment of the cattle mobility corridors may affect some existing farm lands which might require the compensation of affected farmers. The compensation would facilitate their relocation, prevent conflict and eliminate interferences in the operations of the grazing parks;

5. The development of the grazing reserve, corridors and service facilities is estimated to cost Gh¢7,200,000.00; and

6. The carrying capacity for the reserve is 153,600 cattle for 121days (December to March).
Mr J. K. Kumah 11:50 a.m.
Mr Speaker, looking at the Answer from the Hon Minister, I get the understanding that we are listing about five instead of the four places to benefit. Would Sekyere Afram Plains and Sekyere Kumawu Districts benefit from the project? I understand that there are five districts, as he mentioned now. May I get the clearance so that Kintampo Municipality would not be left out?
Dr Akoto 11:50 a.m.
Mr Speaker, it is a very good point he has raised, but I do not have the answer now. I would find the answer and then contact the Hon Member to let him know.
Mr J. K. Kumah 11:50 a.m.
Mr Speaker, my emphasis is about Kintampo. It is just because the communities are more than the number that is why I want to get it clear.
Mr Speaker, I thank God the Hon Minister is the incumbent Minister. At the time my predecessor, Hon Kwasi Etu-Bonde, who was a member of the Committee on Food, Agriculture and Cocoa Affairs was here, there was a journey to Canada. There was a reciprocal visit where the Canadians came down to Kintampo and they

talked about cattle ranching. By this Answer, I would want to find out from the Hon Minister if the Canadians are still involved so that we would get their example about beef and others that were supposed to be part of that project.
Dr Akoto 11:50 a.m.
Mr Speaker, I am not sure whether he talked about Nigerians or Canadians. It was not clear.
Mr J. K. Kumah 11:50 a.m.
Mr Speaker, it was the Canadian Deputy Minister for Agriculture that came down.
Dr Akoto 11:50 a.m.
Mr Speaker, I would have to find out from my Directorate of Animal Production and get back to him because I know about this collaboration, but I do not know how far it has gone. Mr Speaker, if I may, I would have to come back on that.
Mr J. K. Kumah 11:50 a.m.
Mr Speaker, would the grazing park be in parks or it would be open where cattle can go round the way they want? Would it be an open grazing park or it would be in gardens where when they graze from one point, they can move to the next one while grass begins to grow on the other side? Is that how it would be or it would be a different style?
Dr Akoto 11:50 a.m.
As clearly indicated in my Answer to the main Question, they
would not be just open fields; these would be compartmentalised, and the specifications are given in the Answer. I could give him a copy of my Answer and he would know that it is not just any open field. We are talking about compensations to farmers who would be affected and all that. It is a very serious first time attempt to make sure that this Fulani conflict would become a thing of the past.
Dr Godfred Seidu Jasaw 11:50 a.m.
Mr Speaker, I would want to find out whether the Hon Minister is considering this model for other parts of the country, especially the northern sector. He cannot solve the problem by just dealing with Kintampo Municipality.
Mr First Deputy Speaker 11:50 a.m.
The Question was on a specific area. You may ask a Question relating to your area if it is that important to you.
Mr Ahmed Ibrahim 11:50 a.m.
Mr Speaker, I know the Hon Minister for Food and Agriculture is a very experienced man in the field. The question the Hon Member for Kintampo North raised in connection with the Canadian assistance was initiated by his predecessor. I just want the Hon Member to call his predecessor so that they go to the office of the Hon Minister and brief him so that they carry it from there. It is not a question.
The Hon Etu-Bonde initiated the Canadian cattle ranching in Kintampo. They even invited Ghana's delegation, but later, there was a friction between the MP and the Municipal Chief Executive and that stalled the whole thing. He and his predecessor can go to the office of the Hon Minister, and I know the Hon Minister would carry it from there.
Mr First Deputy Speaker 11:50 a.m.
Hon Members, the Question numbered 147, standing in the name of the Member for South Dayi, Hon Rockson-Nelson Etse Kwame Dafeamekpor.
Cocoa Roads Audit Report
Mr Rockson-Nelson Etse Kwame Dafeamekpor (NDC -- South Dayi) 11:50 a.m.
Mr Speaker, I beg to ask the Minister for Food and Agriculture when the report on the audit commissioned into “Cocoa Roads” under construction would be ready and if Hon Members can be given copies.
Dr Akoto 11:50 a.m.
Mr Speaker, this is a very important Question, and I am still waiting for a comprehensive answer from COCOBOD. I can assure the Hon Member that as soon as I get it, I would give an indication and come and answer the Question.
Mr Dafeamekpor 11:50 a.m.
Mr Speaker, I would want to thank the Hon Minister. My only worry is that we may adjourn sine die tomorrow and come back in two months perhaps. I just want to entreat him that - I am sure by October when we come back --
Mr First Deputy Speaker 11:50 a.m.
Hon Member, the Eighth Parliament would come to an end in January 2025 so, do not be in a hurry.
Hon Minister for Food and Agriculture, you could answer the Question numbered 194, which stands in the name of the Hon Member for Wa East.
Handing Over of the Bulenga Warehouse Project
Dr Godfred Seidu Jasaw (NDC -- Wa East) 11:50 a.m.
Mr Speaker, I beg to ask the Hon Minister for Food and Agriculture when the contractor working on the warehouse project in Bulenga in the Wa East District would hand over the facility for use by the community.
Dr Akoto 11:50 a.m.
Mr Speaker, I think I may need more than a bottle of water.
Mr First Deputy Speaker 11:50 a.m.
Hon Minister, I am sorry, I did not hear what you said.
Mr First Deputy Speaker 11:50 a.m.
Very well. The Clerks-at-the-Table would arrange for more water for you.
Dr Akoto 11:50 a.m.
Mr Speaker, the Bulenga Warehouse in the Wa East District is one of eight uncompleted warehouses (out of 30) being constructed by the Ministry of Food and Agriculture, under the One District One Warehouse programme. The last report of the consultant on the project indicated 82 per cent level of completion, and we are also informed that the contractor vacated site in January 2020. Two warning letters, the last dated 20th July, 2020, had been issued to the contractor by the consultant to return to site or suffer appropriate sanctions.
In March 2021, the Ministry invited all consultants and contractors working on the eight projects to a meeting to discuss the delay in the execution of their projects. An ultimatum was issued at the said meeting to the contractors to complete work by 30th July, 2021, or have their contracts terminated.
The monitoring team of the Ministry is expected to submit a report on all
eight uncompleted projects by the first week of August 2021. The outcome of the report will determine the next line of action, which includes handing over and management arrangements to ensure sustainability and efficient use of the facilities.
Mr Speaker, thank you and I also thank you for the bottle of water.
Dr Jasaw 11:50 a.m.
Mr Speaker, I thank the Hon Minister for his response. However, I want to find out from him what specific date was given to the contractor to return to site?
Mr First Deputy Speaker 11:50 a.m.
Hon Member, you mean in the warning letter?
Dr Jasaw 11:50 a.m.
Yes, Mr Speaker.
Mr First Deputy Speaker 11:50 a.m.
Hon Minister, did you give any specific date in the warning letter for the contractor to return to site?
Dr Akoto 11:50 a.m.
Mr Speaker, if I may quote from the Answer that I gave, the last line of the second paragraph said “An ultimatum was issued at the said meeting to the contractors to complete work by 30th July, 2021, or have their contracts terminated''.
Dr Jasaw 11:50 a.m.
Mr Speaker, today, is 5th August, 2021, so I would want
to know if the contract has been terminated?
Mr First Deputy Speaker 11:50 a.m.
Hon Member, those are technical things and it is not for the Hon Minister. You could ask another question.
Dr Jasaw 11:50 a.m.
Mr Speaker, the Hon Minister indicated in the first paragraph of his Answer that the warehouse in question is one of the eight out of 30 being handled by the Ministry. I would want to know how many warehouses in total are being handled by the Ministry currently?
Mr First Deputy Speaker 11:50 a.m.
Hon Member, the answer is in it.
Dr Jasaw 11:50 a.m.
Mr Speaker, may I hear from the Hon Minister because I know why I ask that question.
Mr First Deputy Speaker 11:50 a.m.
No! The answer is implicit in what you quoted so you can ask another question or if you want you could put it in another way.
Dr Jasaw 11:50 a.m.
Mr Speaker, this particular gang of warehouses as indicated in the answer are 30, but I am interested in warehouses that the Ministry would make available for the holding of food and profound
produce. I would want to find out from the Hon Minister how many warehouses are handled by the Ministry at the moment?
Mr First Deputy Speaker 11:50 a.m.
Hon Member, maybe, I should guide you by the rules. Order 67 (1) (h) says:
“a Question shall not be asked the answer to which is readily available in official publication''.
You have just referred to his Answer that one of the eight out of the 30 is being handled by the Ministry. The answer is readily available and that is why I ruled you out. If you do not have another question, I would move on.
Dr Jasaw noon
Mr Speaker, may I just draw your attention to paragraph 252 in the Mid-Year Budget Review that was presented by the Hon Minister for Finance. With your permission I beg to quote:
“The Ministry officially took over 50 warehouses that are being constructed under the erstwhile Ministry of Special Develop- ment Initiative. At the time of takeover, 42 of the projects were completed remaining eight''.
Mr First Deputy Speaker noon
Hon Member, kindly read the answer again.
“Mr Speaker, the Bulenga warehouse in the Wa East District is one of eight uncompleted warehouses (out of thirty 30) being constructed by the Ministry of Food and Agriculture, under the One District One Warehouse programme''.
The Hon Minister again added that the other was under the Ministry of Special Development Initiative. Those were part of his answer so he actually distinguished between the two; those the Ministry did and those which were with the Ministry of Special Development Initiative. So, do not confuse the two figures. I think you have no further question so I would proceed.
Dr Jasaw noon
Mr Speaker, I am guided.
Mr First Deputy Speaker noon
Hon Member, I would actually proceed. The Question numbered 195, which stands in the name of the Hon Member for Krachi West, Ms Helen Adjoa Ntoso.
Construction of Warehouse for Krachi West
Ms Helen Adjoa Ntoso (NDC -- Krachi West) noon
Mr Speaker, I beg to ask the Hon Minister for Food and Agriculture when the construction of the warehouse for Krachi West would commence and be completed.
Dr Afriyie noon
Mr Speaker, it is the policy of Government to build, at least one warehouse in every district in the country to strengthen Ghana's food system, ensure sustainable food security and guarantee income for farmers. The warehouses will store surplus farm produce for future use, particularly during the lean seasons, and also serve as holding facilities of the country's strategic stocks for national emergencies.
The Oti Region, where the Krachi West District is located, benefitted from two warehouse projects under the first phase of the programme. The programme will be scaled up under a
second phase after all issues arising from a current evaluation of the programme have been addressed.
Ms Ntoso noon
Mr Speaker, with your permission, I beg to quote the first line of the second paragraph of the Hon Minister's Answer which says:
“The Oti Region where the Krachi West District is located, benefitted from two warehouse projects under the first phase of the programme.''
Mr Speaker, I have with me a document from the Ministry of Food and Agriculture title “National Competitive Tender - Construction of various warehouse structures across the country.''
It has been stated in the document that Nkwanta South and Krachi West. However, the Hon Minister said that the region benefitted from two projects, so I want to know from him where the Krachi West project is?
Dr Akoto noon
Mr Speaker, it is one of those questions that I would need to go back to my technical staff to ascertain the location and answer the
question that the Hon Member has asked. I would have to come back to the House with the answer.
Ms Ntoso noon
Mr Speaker, I want to know from the Hon Minister how soon he would come back to answer this particular question?
Mr First Deputy Speaker noon
Hon Minister, how soon would your answer be ready?
Dr Akoto noon
Mr Speaker, I know this House is on the verge of going on recess and I would not want to wait till the House comes back. I would be in touch with the Hon Member in the course of the recess and I would supply the information to her directly.
Ms Ntoso noon
Mr Speaker, I would take him for his words.
Mr First Deputy Speaker noon
Hon Members, the Question numbered 196, which stands in the name of the Hon Member for Wa East.
Supply of Agro-inputs to Farmers
Dr Godfred Seidu Jasaw (NDC -- Wa East) noon
Mr Speaker, I beg to ask the Hon Minister for Food and Agriculture what specific arrangements are being put in place
Gakpey

[FIRST DEPUTY SPEAKER][MR KYEI-MENSAH-BONSU]

to supply agro-inputs (seed, fertilizers, pesticides, weedicides) to farmers in the Wa East Constituency under the Planting for Food and Jobs (PFJ).
Dr Akoto noon
Mr Speaker, I did not realise that the Hon Member for Wa East had any hostile questions for me because they have all been friendly questions and so is this one.
Mr Speaker, in November 2020, the Ministry of Food and Agriculture signed contracts with 71 fertilizer companies and 80 seed companies to supply various types of fertilizer and seeds respectively under the Planting for Food and Jobs campaign.
Prior to signing the contracts, the Ministry assessed the inputs requirement of the regions and shared the information with the Regional Departments of Agriculture (RDAs), District Departments of Agriculture (DDAs) and the companies contracted to distribute fertilizer and seeds to small-holder farmers across the country.
Following implementation of the programme, the Ministry has been monitoring the distribution of inputs at the district, regional and national levels to meet demand in relevant areas including the Wa East District. To
promptly address emergency issues, information gathered through monitoring visits is shared with the various stakeholders including the fertilizer and seed companies for necessary action.
With specific reference to the Wa East District, the District Director of Agriculture (DDA) has been furnished with the contact details of all input suppliers under this year's campaign to enable the Department alert the companies promptly and directly to address shortages.
In conclusion, Mr Speaker, Ministry of Food and Agriculture through its monitoring team is constantly in touch with the DDAs to ensure that fertilizer and seeds are available in all relevant constituencies including the Wa East.
Dr Jasaw noon
Mr Speaker, I am satisfied with the answers that have been provided by the Hon Minister.
Mr First Deputy Speaker noon
Very well.
Hon Minister for Food and Agriculture, thank you for attending upon the House to answer questions. You are discharged.
Hon Minister for Transport, you may take your turn.
The first is an Urgent Question in the name of the Hon Minority Leader, Mr Haruna Iddrisu.
Mr Avedzi noon
Mr Speaker, I beg to ask the Urgent Question on behalf of the Hon Minority Leader.
URGENT QUESTIONS noon

MINISTRY OF TRANSPORT noon

Mr James Klutse Avedzi on behalf of (Mr Haruna Iddrisu) (NDC -- Tamale South) noon
Mr Speaker, I beg to ask the Hon Minister for Transport the number of international passenger traffic to Ghana between September and December 2020, and January to July 2021.
Mr First Deputy Speaker noon
Yes, Hon Minister?
rose
Mr First Deputy Speaker noon
Yes, Hon Majority Leader?
Mr Kyei-Mensah-Bonsu 12:10 p.m.
Mr Speaker, there is a practice that is emerging recently that is unknown to this House.

The Hon Ministers are magnanimous enough for purposes of reporting and capturing Answers to Urgent Questions in the Hansard. So, they forward them ahead of time to the Clerks-at-the-Table. They are not supposed to be published.

Answers to Urgent Questions are not supposed to be published in the Order Paper. Unfortunately, in recent times, the Table Officers have been doing that. That is not the practice of this House. If for reasons of transparency, an Answer is given to you, you are not supposed to publish the Answer in the Order Paper. That is not the practice of this House and I think that we should watch out so that if an Answer is not published on some day, the issue would not be raised against that Minister that he has not supplied the Answer.

Mr Speaker, it is something that I take serious exception to; it is not a practice of this House.
Alhaji Muntaka 12:10 p.m.
Mr Speaker, my Hon Colleague, the Hon Majority Leader is right to some extent. But our Standing Orders also does not say that it frowns on it when it is published. The simple reason is, Urgent Questions could be asked and answered with short notice. So, the process of sending the Answer for it to be printed is the
Mr First Deputy Speaker 12:10 p.m.
Are we going to - I think we are ad idem.
Mr Kyei-Mensah-Bonsu 12:10 p.m.
Mr Speaker, you will go on but if the Chief Whip for the Minority was listening to me, I did not quote the Standing Orders. I said the practice and convention of this House.
Mr Speaker, every House develops not only with the published statutes but with as well, the practice and convention. I was just saying that it is not a known practice and convention in this House but this is evolving and over the past two to three weeks, this is what we are seeing.
Mr Speaker, my worry is, a Minister may come without any such Answer published in the Order Paper and then perhaps, he may be faulted, and I am saying that that is not the practice.
If he was listening to me, that is what I said and it should not be a breach of trust to publish in an Order Paper, if an Answer is given to you ahead of time. I have had the issue to discuss it with the Table Officers; it is not part of the practice and convention of this House. That is the point I am making.
Mr First Deputy Speaker 12:10 p.m.
Hon Members, I do not think we should split heads over this; it has not been the practice. This error, if any, is the error of the Table Office and we should just advise the Table Office to ensure that the practice as has developed over the years is maintained.
Now, Hon Minister, you may answer the Question.
Mr Kwaku Ofori Asiamah 12:10 p.m.
Mr Speaker, between September to December 2020 and January to July 2021, the Ghana Airports Company Limited recorded a total of 403,439
international passenger traffic to Ghana. The September to December 2020 figure was 102,618 with the monthly breakdown as follows in the Table below:
September, 2020 -- 18,316
October, 2020 -- 25,410
November, 2020 -- 23,238
December, 2020 -- 35,654
Total -- 102,618
Also, from January to July this year, the total number of international passenger traffic to Ghana was 300,821 with the monthly breakdown as follows:
January, 2021 -- 39,152
February, 2021 -- 28,356
March, 2021 -- 36,796
April, 2021 -- 37,552
May, 2021 -- 43,442
June, 2021 -- 52,086
July, 2021 -- 63,437
Total -- 300,821
Mr James K. Avedzi 12:10 p.m.
Mr Speaker, I would want to thank the Hon Minister for the information provided. I would want to find out
from the Minister whether the number provided covers both arrival and departure?

the Question was international passenger traffic to Ghana. It means that these are only arrivals.
Mr Avedzi 12:10 p.m.
Mr Speaker, I thank you; it is very clear now. Would the Minister be kind to give us the breakdown if he has it in terms of foreigners and Ghanaians out of the
403,000?
Mr K. O. Asiamah 12:10 p.m.
Mr Speaker, I do not have that particular breakdown and because this House is a House of record, if you give me the opportunity, I may come back and brief the House.
Mr Speaker, it is there but I do not have it here.
Mr Avedzi 12:10 p.m.
Mr Speaker, I asked that question so that we would know how much has been collected in terms of the COVID-19 testing for which a percentage must come to the Ghana Airport Company Ltd.
Mr First Deputy Speaker 12:10 p.m.
Hon Deputy Minority Leader, you can ask that question specifically because you just wanted numbers on this one and he has provided them.
Mr Avedzi 12:10 p.m.
Mr Speaker, has the Ministry been able to monitor this and ensure that the appropriate share of
the COVID-19 testing has been received by his office?
Mr K. O. Asiamah 12:10 p.m.
Mr Speaker, I think the records are there. Based on the contractual obligations between the Ghana Airport Company Ltd and Frontiers Health Services, I do not have any contrary information to the effect that they have not been able to fulfil their obligations to the Ghana Airport Company Ltd.
Mr First Deputy Speaker 12:10 p.m.
Very well, thank you Hon Minister.
Mr Samuel O. Ablakwa 12:10 p.m.
Mr Speaker, I rise to ask a supplementary question of the Minister for Transport.
Does the Hon Minister have the breakdown of these arrivals between minors and adults?
Mr Kwaku O. Asiamah 12:10 p.m.
Mr Speaker, the information is there. Once again, because this is a House of records, I do not have it presently. So, if you give me the opportunity, I would come back to the House with it.
Mr Murtala Mohammed Ibrahim 12:10 p.m.
Mr Speaker, my question is on the age groupings because we know that at certain ages at the airport, one is not supposed to pay the compulsory US$150 as a person who is not holding ECOWAS
passport. So, out of the 102,618, those who are below five years and those above five years and how many of this number were ECOWAS passport holders and those who were not?
Mr First Deputy Speaker 12:10 p.m.
Hon Members, this is a new Question and I encourage you to file that. He was asked to provide data and he has provided that. If you want to ask questions relating to the COVID-19 test, I think that is a specific question that must be asked separately because it requires getting information from other people and not his office.
Mr Murtala Mohammed Ibrahim 12:10 p.m.
Mr Speaker, we are dealing with the Minister here and not even his Deputy and we are dealing with the Minister.
Mr First Deputy Speaker 12:10 p.m.
Very well, I decline your Question.
Question numbered 233 by Mr Vincent Oppong Asamoah, Dormaa West.
Completion and Commissioning of Sunyani Airport
Mr. Vincent Oppong Asamoah (Dormaa West) 12:10 p.m.
Mr Speaker, I beg to ask the Minister for Transport when the Sunyani Airport, which was closed
in 2015 for rehabilitation works, would be completed and commissioned for use.
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, in March 2016, commercial airline operations to the Sunyani Airport was halted by the Ghana Airports Company Limited. This decision was informed by the general poor nature of the airfield pavement (runway) among others.
Consequently, the Ministry, through the Ghana Airports Company limited initiated steps for the rehabilitation and expansion of the Sunyani Airport in two (2) phases. The scope of works for the phase 1 included the rehabilitation of the runway, taxi-link, the apron and the renovation of the Terminal building.
Mr Speaker, the contract for the phase 1 which is being financed from Internally Generated Funds (IGF) commenced on 25th October, 2019 and was scheduled to be completed on 25th July, 2020. However, the COVID-19 pandemic and its related challenges impacted adversely on the finances of the Ghana Airport Company Limited. Therefore, their ability to continue with the project slowed down. Thankfully, with some improvement in cash flow, phase 1 of
Mr Asamoah 12:20 p.m.
Mr Speaker, I would like to ask the Hon Minister about the cost of the phase I of the project and which procurement method was used in awarding the contract for the phase I?
Mr First Deputy Speaker 12:20 p.m.
Hon Members, can we please be guided by the rules? If you want to ask Questions on cost and procurement, that should be independent and not fixed into operations and so on. Kindly ask another question.
Mr Asamoah 12:20 p.m.
Mr Speaker, I would like to ask the Hon Minister who was in office in the month of March and gave May ending as the date for the completion of this project? The President had early on been there in the year 2019 but I understand COVID-19 impacted negatively on the completion of the project. Now, we are hearing a new date in October; can he assure us that by the end of the October, they are going to complete the project and commission it for commercial flights?
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, indeed, it is true that I was in Sunyani in the early part of this year to be addressed about the progress of the project. I was there with the consultant and the contractor and they assured me that they were going to finish by the end of May, that is, if we are able
to pay their certificate - Unfortunately, like I said, because that particular project is being financed by the IGF of the company, it was affected by the outbreak of the pandemic. However, I can assure the House that we have been able to mobilise enough.
Mr Speaker, at the time I was there, the project was about 82 per cent and today, it is about 94 per cent complete. So, I assure the House that by the end of October, we will be able to finance what is left for the completion of the project.
Mr Asamoah 12:20 p.m.
Mr Speaker, I am all right.
Mr Agbodza 12:20 p.m.
Mr Speaker, in the Hon Minister's Answer, he said PPA granted approval for phase II which is yet to take effect and in that case, I assumed that they granted approval for phase I as well. In the approval letter, the cost of the project would have been stated.
Mr Speaker, from the approval letter they received from PPA for phase I, may I know from the Hon Minister, the cost of the project?
Mr First Deputy Speaker 12:20 p.m.
Hon Minister, is the cost stated in the approval letter? It is, how much?
Mr Kyei-Mensah-Bonsu 12:20 p.m.
Mr Speaker, when a Question is asked, it is supposed to be predicated on facts and not on assumptions. He says that he is assuming; I am quoting your own words. You are saying that you are assuming that something was done and based on that he proceeds to ask a question.
Mr Speaker, I am quoting the words of the Hon Member. I am drawing his attention to Standing Order67 (1)(e):
“A question shall not solicit the expression of an opinion or the solution of an abstract legal case or a hypothetical proposition”.
The Hon Member is assuming that something has been done on account of which, that is in respect of phase I that he is now asking his question. What has a ‘no' got to do with this? I am quoting the Hon Member's own words and he is intuitively saying ‘no'.
Mr Speaker, I want you to rule on that.
Mr First Deputy Speaker 12:20 p.m.
I have already re-directed the question. Is the figure stated in the PPA letter? If there is, tell us.
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, it is so. Once PPA approves a project, the figure is in there.
Mr First Deputy Speaker 12:20 p.m.
So, tell us the figure.
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, this is a House of records and I do not have the PPA's letter here and because I am dealing with figures, I can return with the letter and the figure that the PPA quoted.
Mr First Deputy Speaker 12:20 p.m.
Very well.
We would take Question numbered 234 standing in the name of the Hon Member for Wa Central.
Mr Yusif Sulemana 12:20 p.m.
Mr Speaker, I have the permission of the Hon Member for Wa Central to ask the Question on his behalf.
Mr First Deputy Speaker 12:20 p.m.
Please proceed.
Resumption of Commercial Flights to Wa
Mr Yusif Sulemana on behalf of (Dr Abdul-Rashid Hassan Pelpuo) (NDC -- Wa Central) 12:20 p.m.
Mr Speaker, I beg to ask the Hon Minister for Transport when commercial flights to Wa would resume.
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, the rehabilitation of the Wa Airport was completed in 2019 with the Assessment of the Pavement Classification Number (PCN) as the final activity conducted on the runway. This subsequently paved the way for Africa World Airlines (AWA) to start operations in October, 2019.
Mr Speaker, the Ghana Civil Aviation Authority (GCAA) has established a series of Obstacle Limitation Surface (OLS) Standards that define the limits to which objects may project or penetrate the airspace of an airport. Based on the above, it was realised that some telecommunication masts were penetrating the OLS, thus breaching the required standards. Although the Ghana Civil Aviation Authority took steps to remove the affected telecommunication mast, an obstacle on the approach path of the runway still remained, posing danger to safety of aircraft operations. Consequently, Africa World Airlines (AWA) ceased flight operations on 31st March 2020.
Mr Speaker, when I took office earlier this year, together with the Hon Regional Minister, The Interior Minister, National Security and the National Communication Authority, we travelled to Wa to familiarise and to assess the state of affairs of the Airport and its related challenges. It
came to light that a communication mast and other tall trees were directly sited on the flight approach path. Consequently, I directed the dismantling of the said mast and also the removal of the tall trees sighted on the flight approach path.
Mr Speaker, I am happy to inform this august House that as at 19th July, 2021 the obstructions have been removed. Thus AWA can now safely operate to Wa without any significant safety hazard on the approach.
Mr Speaker, my information is that AWA can now commence operations and Passion Air has indicated that they will commence operations into Wa Airport in October 2021.
Mr Speaker, we wish to use this platform to assure the aviation community and the general public of GCAA's continuous commitment to the surveillance of Ghana's Airspace, including Wa to ensure that the established Obstacle Limitation Surface (OLS) is not violated to pose threat to aircraft operations in the country.
Mr Y. Sulemana 12:20 p.m.
Mr Speaker, in the Hon Minister's Answer, he was so precise that Passion Air would start operations in October. I want to find
out specifically when the Africa World Airline would commence operations?
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, the problem with the private sector is that I can give an assurance now but the decision to fly is in the bossom of the company. Indeed, when we had discussions with these two companies, Passion Air indicated to us that by October they would commence and Africa World Airline said that they are assessing the situation and they would revert back to us. They made a demand on us that the mast was posing a danger to navigation and it is the responsibility of the Ministry to remove it. We have done so and indicated same to them but they said they are assessing their operational arrangements and they would indeed commence operations to Wa.
Mr Speaker, so it would be difficult for me to specifically say the exact date that they intend to commence but once they have indicated to me that they are considering the situation, if they get back to me with a specific date, I would furnish the House with the details.
Mr Y. Sulemana 12:20 p.m.
Mr Speaker, I want to know from the Hon Minister if he is ready to share with us how much it cost the taxpayer to remove these obstacles?
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, indeed, the removal of the mast was done by the company that erected it and not done by the Government. I specifically gave instruction for its removal and they have done so without any cost to the State and as I speak, the cost was borne by the company that erected it on the flying path.
Mr Y. Sulemana 12:20 p.m.
Mr Speaker, I would commend the Hon Minister for travelling there with other Hon Ministers, but I want to find out if Hon Ministers must always visit these places before we are able to identify these problems and resolve them?
Mr First Deputy Speaker 12:20 p.m.
Did he say that he identified them? He said Africa World Airline complained that it was their operational challenge and that is why they went there.
Mr Y. Sulemana 12:20 p.m.
Mr Speaker, he said that together with the Hon Minister for the Interior and others travelled to Wa and it was when they went there that they identified these problems and went ahead to solve them. So, I am asking whether it must always take three or four Hon Ministers to visit a place before problems would be identified and solved.
Mr K. O. Asiamah 12:20 p.m.
Mr Speaker, indeed, I took over as Hon Minister in 2021 and the complaint was made in 2020 so they could not have made the complaint to me. They made the complaint to the Ministry.
Mr Speaker, some problems are multi-faceted and must be dealt together with other agencies. As part of efforts to abreast myself of the projects and progress of the various airports, if on a visit there is a particular problem that has been brought to my attention where other Ministries and agencies should be brought in to help solve the problem, this I do not see what is wrong with that.
Mr Mohammed A. Ramadan 12:20 p.m.
Mr Speaker, I would have thought that during the rehabilitation of the Wa Airport, the parking area would have been sorted out. As it is today, any time an aircraft flies into Wa, it is not able to taxi properly and it has to stop on the runaway and the airport would have to be shut until the aircraft leaves the airport.
Also, there is no aviation fuel in Wa so no flight can do a direct service to Wa. All flights to Wa have to stop at Tamale to refuel before they continue.
I want to know what the Hon Minister can do about these.
Mr First Deputy Speaker 12:20 p.m.
These are questions that do not really emanate from the Answer, but it is interesting to me. Hon Minister, do you have any information to share on the questions he has raised otherwise I may ask him to file a specific Question. Hon Minister, but if you have any information, we would be glad to hear.
Mr K. O. Asiamah 12:40 p.m.
Mr Speaker, some of the issues raised may be germane because if you go to the Wa Airport as I talk to you today, if there are two aircrafts, you cannot allow another aircraft to land unless the other aircraft takes off.
These are the challenges that the Ghana Airport Company Limited and the Ghana Civil Aviation Authority are looking at. However, resuming commercial airline activities to Wa would not be impeded by such problems. Indeed, it is true that we need to resolve these. These are some of the problems we are looking at, and going forward, we are improving on some of the activities of all the airports.
For now, what we have is sufficient enough to accommodate commercial operations to Wa.
Mr First Deputy Speaker 12:40 p.m.
What about the refuelling? Is it practicable to fly in without refuelling?
Mr K. O. Asiamah 12:40 p.m.
Mr Speaker, some of these questions may be technical, but per my own assessment, if you look at the location of Tamale and Wa, Tamale can always take care of some of these. Like I said, it is not much of a major challenge, but going forward, if we have it done, it would be good. For now, with Tamale and Wa's location, Tamale could always complement Wa.
Mr First Deputy Speaker 12:40 p.m.
Very well. I would move to Question numbered 235 standing in the name of Hon Member for Salaga South, Zuwera Mohammed Ibrahimah.
Yes, Hon Member?
Status of Construction of the Ferry Landing Bay
Ms Zuwera Mohammed Ibrahimah (NDC -- Salaga South) 12:40 p.m.
Mr Speaker, I beg to ask the Minister for Transport the status of the construction of the Ferry Landing Bay (i.e. Makango Port) referred to by H. E. the President in the State of the Nation Address delivered on the 9th of March 2021.
Minister for Transport (Mr Kwaku Ofori Asiamah) 12:40 p.m.
Mr Speaker, the formation of the Lake and the creation of the Akosombo Dam as we are all aware, displaced people living in over 739 villages and hamlets. The road network connecting these villages were also submerged. The Volta Lake Transport Company Ltd. (VLTC) was therefore established to provide ferry services to ensure continuity, mostly for the rural population living along the lake. However, transportation on the lake has been confronted with a number of challenges some of which included the poor condition of Landing Sites.
Mr. Speaker; His Excellency the President, Nana Addo Dankwa Akufo- Addo's vision is to develop the Volta Lake into a major transportation artery by building modern ferry ports at Buipe, Yapei, Makango, Kwadwokurom, Kete- Krachi, Adawso, Ekye-Amanfrom, Akateng and Boso among others.
The Ministry therefore commenced the construction/ rehabilitation of ferry landing sites and facilities along the Volta Lake namely, Yeji and Makango, Dambai and Dambai Overbank and Agordeke. The Dambai and Dambai overbank sites (Lot 1) commenced in 2018 and is currently about 68 per cent complete whilst the construction and rehabilitation works at Yeji, Makango
and Agordeke landing sites (Lot 2) which also started in 2019 is about 46 per cent complete.
Unfortunately, the Contract for Lot 2 had suffered delays due to incessant rainfall that adversely affect the performance of the Contractor.
Mr Speaker, it would interest you to know that notwithstanding the challenges, the Volta Lake would soon undergo major facelift as part of the overall development of the cross lake ferry services. A Feasibility Study has been completed with funding by Korean Exim Bank under the Economic Development Cooperation Framework between the Government of Ghana and Korea. The Project would equip the VLTC with new ferries, equipment and upgrade of existing infrastructure as well as the construction of new ones. About ten (10) landing stages have been selected for development and Makango is part of the selected sites.
We would soon come to this august House with a request for approval of a loan facility to execute the Volta Lake Transport Development Project which has already been captured in the 2021 Budget (Annex 10C, item number 64). I believe when the time comes, Hon Members would give us their support?
Mr First Deputy Speaker 12:40 p.m.
Yes, Hon Member, any follow-up question?
Ms Ibrahimah 12:40 p.m.
Mr Speaker, in the Hon Minister's response, he says the construction and rehabilitation of the Makango Landing Site is about 46 per cent complete. As we speak, there is nothing happening at Makango, and I can say on authority that there is not even a trip of sand anywhere on any site. Unless the Hon Minister can pinpoint to us the exact location of where the 46 per cent construction activity has been undertaken.
Could the Hon Minister show me as the Hon Member of Parliament of the area so that while on recess I go and visit the site?
Mr First Deputy Speaker 12:40 p.m.
Hon Minister, the Hon Member wants to know where the development is ongoing. She says show her where the construction is ongoing. [Interruption]
Hon Members, he says he did not hear your question. Kindly remove your mask and repeat it to him.
Ms Ibrahimah 12:40 p.m.
Mr Speaker, in the Hon Minister's response, he said the construction and rehabilitation of the Makango Landing Site is 46 per
cent complete. I would want to say on authority that as we speak, there is nothing happening at Makango. Not even a trip of sand has been tipped anywhere around the Makango Landing area.
I would therefore want the Hon Minister to pinpoint to me exactly where the construction activity is being undertaken so that I would go and visit the project.
Mr K. O. Asiamah 12:40 p.m.
Mr Speaker, in my Answer, I said the rainfall pattern is a major challenge as far as Makango is concerned. In constructing a landing site, it is like building a jet. Some work are done in the sea, lake or river that one would not see unless it surfaces. Hon Kwame Agbodza who is an architect knows very well. You would not even see it unless the structure comes up.
Some work has been done. Hon Agbodza is the Ranking Member of the Committee on Roads and Highways. So I assure Hon Ibrahimah that the work is going on, but physically, she might not see it because it is not at the stage where it would come up for her to see. But I can take her with my team at the Ministry and the contractor to the site to explain in details to her the way some of these things are done.
Ms Ibrahimah 12:50 p.m.
Thank you, Mr Speaker. Before my second supplementary question, I would want to assure the Hon Minister that I am ready and available to go with him to Makango so that we can inspect the project together.
Mr Speaker, my second supplementary question - the ferry services as it exists now is that the ferry departs Yeji in the morning around 9 a.m., gets to Makango between 11.00 a.m. and 11.30 a.m. and so people commuting from the northern part of the river are not able to cross before 11.a.m. or 12 noon. Are there any plans within the new development project to look at the timing of the ferries? Is it going to be possible to station another ferry at Makango so that people who are commuting from Makango can leave earlier than they do now?
Mr K. O. Asiamah 12:50 p.m.
Mr Speaker, I have listened to the Hon Member and I think she means so well for her people and I am assuring her that the difficulty we find ourselves in on the Volta Lake today is that we do not have enough ferries to position them at all the stations but per the new
development arrangements we are having with the Korea EXIM Bank, we have taken all these things into consideration and we are going to provide enough ferries but I cannot say the number. This is because I do not have it here. Makango being a major point of commuting from one point to another, I am sure it would be considered. As I assured that at the beginning of the year though Makango was not in the project I was going to push for them to benefit from it and I would be able to do that, So I am assuring her that I would look forward to it that Makango gets it fair share of the ferries when the operations start in the area of the route development that we are looking at.
So, Hon Member, be rest assured that it would be considered.
Thank you, Mr Speaker.
Ms Ibrahimah 12:50 p.m.
Mr Speaker, my final question to the Hon Minister. With the new development ongoing, which include getting new and modern ferries for the area, would this include ferries that would carry only passengers and goods and others that can provide some luxury travel for people who are not otherwise carrying cargo? This is because the situation as it exists now - there is one ferry that takes everybody - animals, foodstuffs, and everything in the same
ferry. Would we have the opportunity to provide some service that people who are not carrying cargo can travel with ease in some comfort? Would the ferries make provision for a bay on the ferry to contain the animals they carry across the river so that they are not mingling with the passengers on the ferry?
Thank you.
Mr First Deputy Speaker 12:50 p.m.
Hon Member, would you consider investing in a ferry that would provide world class services for Members only? [Laughter]
Mr K. O. Asiamah 12:50 p.m.
Mr Speaker, the ferry being carrying both human beings and animals has come about as a result of shortage that we have on the Volta Lake and I am sure that having enough ferries would pave way for us to segregate human beings from animals. This is because if we look at the situation of the Volta Lake, it just cuts across the farming areas and I am sure that the new feasibility studies they have done has taken some of these things into consideration. But thankfully, because the construction of the ferries has not started, we need to go there with the engineers and have a look at it. I will take this into consideration. If it is that it has not been considered, I think that it is a
very important matter. I would raise it with them and see if we can segregate. If so, then we can have one dedicated ferry to commute the animals from one point to the other.
So, I thank the Hon Member very much. I would look at it. If it is not in there, then I would suggest it to them but I am sure her concerns have already been addressed.
Thank you, Mr Speaker.
Dr Apaak 12:50 p.m.
Mr Speaker, in the Hon Minister's response on page 28, he indicated that the contract for Lot 2 had suffered delays due to incessant rains that adversely affected the performance of the contractor.
Mr Speaker, can the Hon Minister give this House a timeline as to when work on Lot 2 would be completed?
Mr K. O. Asiamah 12:50 p.m.
Mr Speaker, because these works are not based on just one year for the construction. It is a multi-year transaction - I need to be candid with this House - we have a challenge with the rainfall pattern on the Volta Lake. We are doing our best to make sure that - so it would be difficult for me. Unless I go back and check.
Mr Speaker, we cannot control it. That is why it would be difficult for
Anyimadu-Antwi
Mr First Deputy Speaker 12:50 p.m.
Very well. Hon Minister, thank you. I think that is the last question to you.
Thank you for attending upon the House.
rose
Mr First Deputy Speaker 12:50 p.m.
Do you want to ask him a question?
Dr Donkor 12:50 p.m.
Yes, Mr Speaker.
Mr First Deputy Speaker 12:50 p.m.
Very well.
Dr Donkor 12:50 p.m.
Mr Speaker, this is a follow up question to that of the Hon Member for Salaga South. One cannot go to Makango without passing through Yeji. Would the Hon Minister consider getting a consultant and possibly a contractor to work on the rock at the Bre which makes
navigation from Akosombo, Krachi, Yeji and Makango impossible during the dry season?
Thank you, Mr Speaker.
Mr First Deputy Speaker 12:50 p.m.
This is a completely new question introducing a completely new subject matter.
Hon Minister, I have declined the question. He can file his own Question.
Hon Minister, we thank you for attending upon the House to answer questions. You are discharged.
Is the Hon Minister for the Interior here?
Mr Kyei-Mensah-Bonsu 12:50 p.m.
Mr Speaker, my understanding is that the Hon Minister appeared and informed that he has not had the opportunity to be served with the Answers to those Questions and in that regard, asked for a rescheduling of those Questions. I think the issue was discussed in the morning before Sitting. So I guess we can go with that.
Mr First Deputy Speaker 12:50 p.m.
Very well.
In that case, that brings us to the end of Question time.
Are we ready to take Statements?
Hon Majority Leader, should I proceed to item numbered 7?
Mr Kyei-Mensah-Bonsu 12:50 p.m.
Mr Speaker, because sometimes there is a mix up on the numbering on page 1 - on page 1, item numbered 7 is the presentation of Papers. I thought really, you meant Statements.
Mr First Deputy Speaker 12:50 p.m.
I do not know which Order Paper. I am looking at page 6, item numbered 7, which is Statements and item numbered 8 is Presentation of Papers.
Mr Kyei-Mensah-Bonsu 1 p.m.
Mr Speaker, I was just saying that the numbering of the first page is different. That was why when you said item numbered 7, I was a bit worried. So if it is page 6, item numbered 7, Statements.

I understand there is commemorative Statement. We may take it and go to other places.
Mr First Deputy Speaker 1 p.m.
Very well. I was wondering if we could do the presentation of these Papers: the one regarding Audit Committee of the Office of the President, and the Pan-
African Parliament Report before we proceed to the Statement.
Mr Kyei-Mensah-Bonsu 1 p.m.
Mr Speaker, I guess we can alter the arrangements for today, and then do item 8 before we come back.
Mr First Deputy Speaker 1 p.m.
Very well, so I will go to Public Business - Presentation of Papers, item numbered 8 (a).
Yes, Hon Majority Leader?
Mr Kyei-Mensah-Bonsu 1 p.m.
Mr Speaker, if you would indulge me, I can lay item 8 (a).
PAPERS 1 p.m.

Mr First Deputy Speaker 1 p.m.
Hon Members, item numbered 8 (a). The Hon Majority Chief Whip will do the presentation on behalf of the Leader of the Delegation.
Mr First Deputy Speaker 1 p.m.
Hon Members, item numbered 8 (c), by the Selection Committee.
Mr Kyei-Mensah-Bonsu 1 p.m.
Mr Speaker, I belong to the Committee on Selection, but I have not seen the Report. I was told that a draft of the Report was ready last week, and that they wanted to show it to me. The Rt Hon Speaker has also not given indication that we have to lay it, so if we can stand it down after some consultation, we can do it tomorrow or perhaps later today.
Mr First Deputy Speaker 1 p.m.
Very well, item numbered 8 (c) is differed.
Hon Majority Leader, are you ready for item numbered 10? I think we can revert to Statements then.
Mr Kyei-Mensah-Bonsu 1 p.m.
Mr Speaker, I guess we can deal with Motion captured as item numbered
22.
Mr First Deputy Speaker 1 p.m.
Yes, Hon Deputy Minority Leader, any objection to that?
Mr James Klutse Avedzi 1 p.m.
Mr Speaker, I am interested in item numbered 18, but we can do this one and the follow-up with items 18, 19, 20 and 21.
Mr First Deputy Speaker 1 p.m.
Hon Member, your interest or the Business of the House - [Laughter] - Very well.
Hon Members, item numbered 22, Motion by the Hon Minister for National Security.
The Second Deputy Speaker to take the Chair.
BILLS -- SECOND READING 1 p.m.

Minister for National Security (Mr Albert Kan-Dapaah) 1 p.m.
Mr Speaker, I beg to move that the National Centre for the Coordination
of Early Warning and Response Mechanism Bill, 2021 be now moved a second time.
Mr Speaker, we do not leave normal times. Our sub-region continuous to be under attack by terrorists and criminals. Mali, Chad, Niger, Burkina Faso and up to Nigeria have been in recent years witnessed a number of atrocities. Some countries have not been attacked, but countries such as Togo, Benin, la Cote d'Ivoire, Ghana and indeed all the other ECOWAS member countries must hold themselves in readiness just in case.
Mr Speaker, it is in connection with this that we need to work together as a sub-region, and in particular to share intelligence in a timely manner. The ECOWAS Early Warning and Response Mechanism is based on the concept of guaranteeing both human and national security through the use of open source data gathering techniques and transparent methods of information sharing.
The goal is to have in place a fully integrated and functional early warning system providing the office of the president of the commission with timely reports and analysis to enable effective responses in preventing and mitigating violent conflicts in the sub- region.
Mr Speaker, the object of this Bill therefore, is to establish the National Centre for the Coordination of Early Warning and Response Mechanism. The idea is to assist ECOWAS in timely identification of emerging crisis in the ECOWAS Sub-Region.
Mr Speaker, the Republic of Ghana ratified a treaty establishing the ECOWAS on 28th May, 1975 in Lagos and revised it on 24th July, 1993 in Cotonou, and it provides for the establishment of Regional Peace and Security Observation System and Peacekeeping Forces where appropriate.
In fact, Chapter 4 of the 1999 Protocol lays down the framework for the establishment of a sub-region peace and security system, and the Supplementary Act adopting the strategic framework for the establishment of national early warning and response mechanism which was signed by the Heads of States and Gvernments in the communique at their 45th Ordinary Session, which was held in Accra on 14th July, 2014 based on Article 51 to be precise.
Mr Speaker, a delegation from the ECOWAS Commission has since conducted an advocacy mission in Ghana from the 11th to 13th of March, 2020 on the modalities for the implementation of the National Centre for the Coordination of Early Warning
MR SECOND DEPUTY SPEAKER
Mr Second Deputy Speaker 1 p.m.
Yes, Chairman of the Committee?
Mr Bryan Acheampong (NPP -- Abetifi) 1:10 p.m.
Mr Speaker, I rise to second the Motion, and in so doing, present the Report of your Committee.
1.0 Introduction
The Memorandum of Understanding (MoU) between the Economic Community of West African States (ECOWAS) Commission and the Republic of Ghana relating to the implementation of the National Early Warning and Response Mechanism was presented to the House on 26th May 2021 by the Minister for the Interior, Hon. Ambrose Dery, on
behalf of the Hon Minister for Foreign Affairs and Regional Integration, Ms Shirley Ayorkor Botctway.
The Rt. Hon. Speaker referred the Agreement to the Joint Committee on Foreign Affairs, and Defence and Interior for consideration and report in accordance with Orders 140(4), 183 and 158 of the Standing Orders of the House.
The Committee met on Wednesday, 28/ July 2021 and deliberated on the Agreement.
In attendance were the Minister for National Security, Hon Albert Kan Dapaah, the Deputy Minister for Foreign Affairs and Regional Integration, Hon Kwaku Ampratwum Sarpong, the Chief Director for Ministry of National Security, Col. Serebuor Ababio (rtd) Officers of the Ministry of Foreign Affairs and Regional Integration and Draftpersons from the Attorney General's Department.
The Committee is grateful to the officials for their inputs during the deliberations.
2.0 Reference Documents
The following documents guided the Committee during its deliberations and in preparing this report:
i. The 1992 Constitution
ii. The Standing Orders of Parliament
3.0 Background
The ECOWAS Early Warning and Response Mechanism is based on the concept of guaranteeing both human and national security through open- source data gathering techniques and transparent methods of information sharing. The ECOWAS early warning and response mechanism aims to put in place a fully integrated and early functional warning system, providing the office of the President of the Commission with timely reports and analysis to enable effective responses in preventing and mitigating violent conflicts in the sub-region.
The initiative to establish the National Early Warning and Response Mechanism in the Member States was endorsed during the 45h Ordinary Session of the ECOWAS Heads of States and Governments held in Accra on 14"July 201 4. The initiative was launched with the aim of assisting Member States respond to national security and human security challenges in a timely and effective manner.
The ECOWAS Commission, with funding support from the US
Government, established National Centres for the Coordination of the Response Mechanism (NCC RM) in five pilot countries between 2015 and 2019. The countries are Burkina Faso, La Coted' lvoire, Guinea Bissau, Mali and Liberia.
The next phase of the project focuses on deploying the Mechanism in Ghana, Benin, Senegal, Niger and Cape Verde with funding from the German Agency for Cooperation (GIZ) and the European Union through the African Peace and Security Architecture (APSA IV) Project.
4.0 Key Provisions of the Agreement
The Agreement has the following key provisions:
a. A definition section which sets forth specific terms and expressions and their meaning as pertains to the Memorandum of Under- standing;
b. The Republic of Ghana is to enact a law establishing an independent and autonomous Centre. The Act shall provide for the mandate and scope of the Center and framework of cooperation with other

organisations and national institutions and shall also stipulate the financial sustainability of the Center;

c. The Centre shall have a governing Board to be chaired by a person appointed by the President and will comprise of key Ministers of State and the Director of the Center;

d. The Government shall make available a suitable office to host the Centre, deploy personnel with the requisite technical skills and experience to the National Centre to ensure the Centre delivers on its mandate;

e. The Government shall, from inception, incur the overhead expenses of the Center, such as utility bills, stationery, and cost of repair/maintenance of the building;

f. The Government shall sensitise national stakeholders and development partners on their role vis-a-vis the Center;

g. Parties shall respect the confidentiality of the information at their disposal

in the course of implementing the MoU;

h. Disputes which may arise between Parties during the implementation of the MoU are to be resolved amicably through diplomatic channels;

i. The MoU may be amended by mutual consent of the Parties and the amendment shall enter into force by exchange of notes between the Parties;

j. A Party may terminate the MoU in whole or in part by giving sixty ( 60) days prior notice in writing to the other Party. Any ongoing activities at the time of termination arising out of the MoU shall be carried out to their conclusion subject to agreement by the Parties; and

k. The MoU will remain in force for a period of five (5) years and shall be automatically renewed unless a Party terminates it by giving sixty (60) days prior notice in writing to the other Party.

5.0 Observations

5.1 Justification for Agreement

The Committee was informed that the main objective of establishing the National Early Warning and Response Centers is to improve the early warning capacity of ECOWAS and its Member States as it would enable Member States to proactively identify emerging crises and to coordinate their responses in tackling the crises. The National Centres would enable ECOWAS Member States share information, implement conflict prevention mechanisms and manage crises and thereby maintain human security at the regional and national levels. The early warning and response programme addresses threats to human security that ECOWAS Member States face in respect of crime, governance, health, and the environment.

The Committee observed that since the Supplementary Act for adopting the Strategic Framework for the establishment of the National Early Warning and Response Mechanism was signed by the ECOWAS Heads of States and Governments at their 45h Ordinary Session held in Accra on 14" July

2014, five West-African states have established their National Centers for the Coordination of Early Warning and Response Mechanism.

Consequently, the imperative was urged on the Committee to expedite action on the Agreement to enable Ghana complete the administrative processes for establishing the National Centre in accordance with the Supplementary Act given that the President of the Republic is the current Chairman of ECOWAS. It is therefore important that the House demonstrates its support to the President and ECOWAS in ensuring the implementation of decisions of the Sub-regional body.

The Committee further noted that the establishment and opera- tionalisation of the Centre would benefit Ghana immensely given the emerging threats of violent extremists' organisations from the Sahel and the activities of bandits and other criminal gangs in the Gulf of Guinea. The Centre will therefore facilitate the timely information sharing and coordination of efforts to combat the threats. Furthermore, Parties to the MoU would be able to access other facilities and support from the ECOWAS Commission and other international partners.
Mr Bryan Acheampong (NPP -- Abetifi) 1:10 p.m.


5.2 Financial Obligation of the Government

The Committee was informed that the implementation of the MoU has financial implications and responsibilities for the country. The Government of Ghana is expected to provide office accommodation for hosting the Centre and the overhead expenses such as utility bills, stationery, and cost of repair/maintenance of office premises and other incidental costs that would be incurred in running the Center. Other responsibilities placed on the Government include the payment of emoluments and incentives to staff recruited for the Centre.

However, the Committee observed that the ECOWAS Commission, with funding from the German International Development Agency (GIZ), and other partners, would support the take-off of the Centre in Ghana.

More specifically, the ECOWAS Commission would be providing office furniture, a vehicle, IT logistics (computers, printers, photocopiers, fax, video conferencing facility and internet connectivity), capacity- building support and assist in the development and implementation of a monitoring and evaluation

framework to assess the effectiveness of the Centre's operations.

When the Committee inquired about the sources of funding for Centre after it has been established, the Committee was informed that the budget of the Center would be part of the budget of the Office of the President.

5.3 Legal implication of the MOU

On the possible legal implication of the Agreement, the Committee was informed that the Agreement would be interpreted in accordance with international law. Accordingly, disputes arising out of its implementation would be resolved amicably by the parties through diplomatic channels.

5.4 Duplication of Functions

The Committee observed that the country has robust security and intelligence architecture that has an early warning and response mechanisms as its key components. For instance, the National Security Council (NSC) provided under Articles 83 and 84 of the Constitution, and the Inter-Ministerial Committee established under the Security and Intelligence Agencies Act of 2020 (Act 1030) could perform the functions expected of the Centre. Some Members of the Committee

argued that establishing another institution to coordinate security and intelligence in the country may amount to a duplication of effort and resources.

However, the Committee was informed that the mandate of the Centre is to harmonise, standardise, and coordinate data and information provided by State parastatals, local authorities, civil society organisations, the ECOWAS Regional Early Warning and Response Centre and propose options following an in-depth analysis of challenges or threats to human security and collaborate with relevant public institutions.

Although the Committee was worried about the duplicity of functions, particularly the Centre's working relationship with the NSC, the Committee was assured that the Centre would complement the efforts of the existing security and intelligence agencies to ensure that the country is able to deal with impending security threats effectively within the Sub- region.

5.5 The Accra Initiative: Comparison with Early Warning and Response Mechanism

On the question of how the Early Warning and Response Mechanism

compares with the Accra Initiative, the Committee was informed that the objectives of the two platforms are different. While the Accra Initiative is a platform involving about eight countries established to coordinate information and intelligence with the objective of preventing the spill over of terrorist activities from the Sahel and the Lake Chad Basin, the ECOWAS Early Warning and Response Mechanism is a broader platform established to coordinate information among all the Member States of ECOWAS. The Accra Initiative countries are Benin, Burkina Faso, Ivory Coast, Ghana, Mali, Niger, and Togo. The initiative has since been providing training for security operatives from the countries involved.

5.6 Inter-agency Consultation

The Committee observed that there has been extensive inter-ministerial consultation among the key Ministries and agencies responsible for the security and intelligence gathering in the country and coordinated from the Office of the Vice President. The vehicle for the consultation was a Task Force for the establishment of the Early Warning System Centre inaugurated at the Office of the Vice President on 13/ May 2020. The Task Force chaired by Professor Joe Amoako-Tuffour, the Secretary/
Mr Bryan Acheampong (NPP -- Abetifi) 1:10 p.m.


Member of the Economic Management Team, comprised representatives of the key sector Ministries, namely, the Ministry of the Interior, Ministry of Health, Ministry of Defence, Research Department, Office of the Attorney General and the Ministry of Justice and the Ministry of Environment, Science, and Innovation.

6.0 Conclusion and Recommendation

The Committee having considered the MoU and satisfied with the terms, recommends that the Agreement be approved by Resolution pursuant to article 75(2) (b of the Constitution).

Respectfully submitted.

Question proposed.
Mr Second Deputy Speaker 1:10 p.m.
Hon Members, first of all, I would invite the Hon Ranking Member of the Committee.
Mr James Agalga (NDC -- Builsa North) 1:10 p.m.
Mr Speaker, I thank you for the opportunity.
Mr Speaker, there are two items that are relative to this subject matter before the House. When we peruse the Order paper, the item numbered 12 has to do with the Report of the Joint Committee of Defence and the
Interior on the Memorandum of Understanding (MoU) between the Government of the Republic of Ghana (GoG) and the Economic Community of West African States (ECOWAS), then we have the Bill.
Mr Speaker, in respect of the Motion relative to the memorandum, I support same. The Committee went through the Motion and have approved of same. We are not in doubt about the times that we all find ourselves in; the terror threats in the sub-region. So, if there would be a national centre for the coordination of information and the sharing of same with the view of dealing with the terror threats and violent extremism in our sub-region, then clearly, we must all support such a Motion. So, we do support same, but having said so, the Report of the Committee captures something on page three, of which I would need the guidance and direction of the Hon Speaker. Page three (b) reads as follows, and with your kind permission I read, it says:
“The Republic of Ghana is to enact a law establishing an independent and autonomous centre. The Act shall provide for the mandate and scope of the centre and framework of operation with other organisations and national institutions, and also stipulate the financial sustainability of the centre.”
Mr Speaker, if we take into account what paragraph (b) envisages, we are supposed to enact a law to domesticate an ECOWAS treaty or protocol. With that being the case, with the greatest of respect, I would want to submit that if we come under article 75 of the Constitution, it is for this House to elect whether to domesticate the ECOWAS protocol by simply passing a resolution to approve of the memorandum, or if we like the ECOWAS treaty that was duly signed and executed by the President of the Republic. Or, elect to come under the item numbered (3b) in the Report, which requires us to enact a legislation to domesticate the terms of the treaty.
Mr Speaker, therefore, this position clearly finds expression in article 75, and it says, and with your permission I quote:
“The President may execute or cause to be executed treaties, agreements or conventions in the name of Ghana.” Subclause (2) goes on to say: “A treaty, agreement or convention executed by or under the authority of the President shall be subject to ratification by (a) Act of Parliament; or…”
That is what is envisaged under paragraph 3 (b) of the Committee's Report. The article goes on to say:
“(b) a resolution of Parliament supported by the votes of more than one-half of all the members of Parliament.”
Mr Speaker, therefore, what this provision in our Constitution clearly envisages is for us to make an election. We either enact a law to domesticate the terms of the treaty “or”, and the word “or” here should be interpreted as a disjunctive “or”, which means that we cannot do both at the same time. Otherwise, we would simply have to come by way of resolution. However, what I see before us is an attempt to invite the House to pass a resolution and at the same time enact a legislation to domesticate the terms of one and the same treaty. So, there is a bill before the House, and we must make an election.
The Bill clearly seeks to domesticate the terms of the treaty that we have already signed on to. So, Mr Speaker, respectfully, this is my candid view, and it is an invitation for you to make a ruling that the memorandum before this House is superfluous. It is an unnecessary repetition which would not add anything to what we seek to do. What we ought to do has to do with the bill, and it is already before us. It has been read the Second time, so, we should
Mr James Agalga (NDC -- Builsa North) 1:20 p.m.
consider the bill, pass it into law and we would be covered. So, there is a disjunctive “or”, which means that we would have to choose one.

I would want the Hon Speaker to guide us because in times past, we had the opportunity to ratify treaties passed by this august House. A clear example is the Enhanced Corporation Military Agreement between this country and the Government of the United States of America. What this House did on that occasion was to pass a Resolution and domesticate the terms of that agreement.

Since we elected to pass a resolution, we did not have to enact a Bill into an Act of Parliament. In this instant case, we are being invited to do the do at the same time. That is not what is contemplated under article 75 of the Constitution. Having said that, I would like to add that I support the Motion save that we need to make an election so that we save our own time.

I thank you for the opportunity.
Mr Annoh-Dompreh 1:20 p.m.
Mr Speaker, my Hon Colleague, Hon Agalga, is right in the sense that there are two sides to the document. There
is also an MoU which is supposed to be done with. I suspect that we should have done that first preceding this Bill. Probably, we could halt the process now, take the MoU, get a Resolution passed, and then afterwards, we can go ahead and take the Second Reading of the Bill. That is my understanding.
Mr Haruna Iddrisu 1:20 p.m.
Mr Speaker, the Hon Agalga may be my senior in the law, but my understanding and appreciation of constitutional law is as good as his. Mr Speaker, while he and the Hon Whip are arguing so strongly - He is my advisor on many of these matters, but I bet to disagree with him. To do so, let me refer you to article 75(1) of the 1992 Constitution which reads:
“The President may execute or cause to be executed treaties, agreements or conventions in the name of Ghana.”
Mr Speaker, I would want to subject this Report to that test. If you read paragraph 30, second paragraph. It says:
“The supplementary act adopting the strategic framework for establishing the National Early Warning and Response Mechanism was signed by the Head of State.”
It means, the President caused to be executed a treaty or agreement. That satisfies article 75(1).
Mr Speaker, we are now subjected to the second test article 75(2) which reads 1:20 p.m.
“A treaty, agreement or convention executed by or under the authority of the President shall be subject to ratification by—
(a)Act of Parliament; or
(b) a resolution of Parliament supported by the votes of more than one-half of all the members of Parliament.”
Mr Speaker, first, the question you ought to have asked is whether when the Heads of States and the President of Ghana on 14th July, 2014 executed this agreement, the President of Ghana brought it to Parliament for ratification as is required of him under article 75 of the Constitution. If not, then article 75(2) now becomes relevant, and I would want to believe it. That is what the Hon Minister is doing.
Instead of coming for ratification, which is normally by a parliamentary resolution, the Hon Minister has just
decided that he wants to domesticate this international law into domestic law. Therefore, he is coming through a Bill. Hence, he brings a Bill which is titled “National Centre for the Coordination of Early Warning and Response Mechanism Bill, 2021”. Mr Speaker, that clearly is in tandem with article 75(2)(a).
rose
Mr Second Deputy Speaker 1:20 p.m.
Hon Leader, please hold on a bit. Let me listen to the Hon Chairman.
Mr B. Acheampong 1:20 p.m.
Mr Speaker, the argument has taken a different tangent. This is what it is - [Pause]. Mr Speaker, on the Order Paper is a Memorandum, a Motion that was referred to the Committee and a Resolution. Therefore, the 2014 ECOWAS Heads of States that endorsed - at the Ordinary Session on 14th July, 2014, the initiative was launched and member states were expected to ratify the Resolution. We are here today to present to you the Motion and the Resolution of that report that happened in ECOWAS after that.
Mr Speaker, if you look at the Committee's Report, the key provisions in the ratification calls for
Mr Second Deputy Speaker 1:20 p.m.
Hon Chairman, I believe you came on a point of order. Let the Hon Minority Leader finish his view.
Mr Haruna Iddrisu 1:30 p.m.
Mr Speaker, if the Hon Chairman of the Committee would accommodate me, I did not finish. This has the potential of distorting my thoughts.
We have an option under article 75 to either ratify by a parliamentary resolution or do so by an Act of Parliament. That is the meaning of the use of the word “or”. Mr Speaker, the phrase “and or” has even been interpreted by the Supreme Court. Here, there is no “and”, but there is “or”. We either can pass the Resolution and an Act. We are within the law.
Mr Speaker, I will help the Hon Chairman in his confusion. He came
with a Bill and read the Report of a Committee on it. We would subject him to the provisions of the Constitution in articles 106, 107, 108 up to 110. A Bill must satisfy the rudimentary legal requirements of article 106. Has there been a publication in the gazette? We are told that it is an urgent Bill so we should forgive them. Is there a mischief? We have been told the mischief would have been satisfied.
Mr Speaker, a Bill is article 106, and ratification by resolution is article 75 of the Constitution. We have been there before. Mr Speaker, the Clerks- at-the-Table should help. When Prof Mike Oquaye presiding at the time, a similar issue arose. What he said was that, we should do the combined effect of article 75 and article 181. That is what he did when a similar matter arose. Once the Committee has given us the Report on a Bill, then we are going through the provisions of article
106.
Mr Speaker, they are making me come back to give the stone to Hon Agalga. If they want to ratify the Memorandum, then, we should not have a Bill now; we should be doing a resolution on the Memorandum, even though I disagree with that position.

We could either domesticate by a ratification or by an act of Parliament and by an act of Parliament means a Bill, as he as introduced in this particular Bill.
Mr Kyei-Mensah-Bonsu 1:30 p.m.
Mr Speaker, the issue that the intervention of the Hon Ranking Member has generated really has to do with the chronology of the processes that are embarking on. The Hon Minority Leader drew our attention and indeed, the Hon Ranking Member did same earlier by drawing our attention to article 75. Article 75 is on the ratification of a treaty or convention by this House. The treaty must be ratified by this House and the ratification of any treaty is by one or two vehicles - by an act of Parliament or by a resolution. By convention and practice, we have elected to ratify treaties by resolution. We do not do so by an act of Parliament.
When we have ratified the treaty, out of it we would be required to domesticate it and that treaty is borne out by this Bill. After the ratification we then come to deal with the Bill unfortunately, because the Hon Minister for National Security came in and signalled that he must brief the President on something before the
commencement of Cabinet today, we jumped the gun and came to the Bill. What we ought to have done first, was to have dealt with the Motion listed as item numbered 12 and then subsequent to that we would have dealt with the Motion and then that would give birth to the Bill. So, it is not either or in respect of the ratification of the treaty. The treaty would be ratified by the Motion captured as item numbered 13 which should be preceded by the Motion listed as item numbered 12. That ought to have been the chronology.
Mr Speaker, with respect, we could suspend this and go back and do what is needful in Motions 12 and 13 which we could do within five minutes and then it would give birth to this. For now, we have not ratified the treaty and we cannot put something on nothing. We must ratify the treaty first and it would give birth to the Bill that we are dealing with. That should be the proper chronology.
Mr Second Deputy Speaker 1:30 p.m.
Hon Ranking Member, I believe you are all right with it?
Mr Agalga 1:30 p.m.
Mr Speaker, the Hon Majority Leader alluded to the fact that this House has a convention that when treaties have been executed we would first and foremost under article 75, pass the resolution to adopt or as
Mr Second Deputy Speaker 1:30 p.m.
Very well. We would continue with the debate.
Mr Kyei-Mensah-Bonsu 1:30 p.m.
Mr Speaker, we have to suspend that portion and come back to Motion listed as item numbered 12 and deal with it.
MOTIONS 1:30 p.m.

Chairman of the Committee (Mr Bryan Acheampong) 1:30 p.m.
Mr Speaker, I beg to move that this honourable House adopts the Report of the Joint Committee on Foreign
Affairs and Defence & Interior on the Memorandum of Understanding between the Government of the Republic of Ghana (represented by the Ministry of Foreign Affairs and Regional Integration) and the Economic Community of West African States (ECOWAS) Commission relating to the establishment of the National Early Warning and Response Mechanism Centre in Accra, Ghana.
Mr Speaker, in so doing I present your Committee's Report.
That this honourable House adopts the Report of the Joint Committee on Foreign Affairs and Defence & Interior on the Memorandum of Understanding between the Government of the Republic of Ghana (represented by the Ministry of Foreign Affairs and Regional Integration) and the Economic Community of West African States (ECOWAS) Commission relating to the establishment of the National Early Warning and Response Mechanism Centre in Accra, Ghana.
Mr James Agalga (NDC -- Builsa North) 1:30 p.m.
Mr Speaker, I beg to second the Motion and in doing so, I wish to state that the ECOWAS National Early Warning and Response Mechanism is very vital for our national and human security especially, giving the times we find ourselves in.
Mr Speaker, it is no secret at all that neighbouring countries have been ravaged by the terror threats. An example is Mali, Burkina Faso and in recent times, La Cote d'Ivoire. So, any treaty which seeks to get member states establish early warning mechanisms is definitely a step in the right direction. If there are early warning mechanisms in place, it simply means that data is easily collated and analysed same in a timeous way to allow for the sharing of information amongst member countries within the sub-region.
This Report indicates that the pilot has already been done with support from the U. S. A, so we are talking about the second phase of the implementation of the treaty which would see to the establishment of an early warning centre in this country. So, there is no question at all about the efficacy of what we seek to do in this House. I urge the House to support the Motion for the adoption of the resolution.
Mr Speaker, I thank you.
Mr Kwame Governs Agbodza (NDC -- Adaklu) 1:40 p.m.
Mr Speaker, I thank you for the opportunity to contribute to the Motion.

Mr Speaker, just to reiterate the point made by the Hon Ranking Member that we are all aware of the threats of terrorism in our neighbouring countries. So, we should take the necessary steps to create the necessary synergy in the member states so as to coordinate issues of security.

Mr Speaker, it would also give impetus to the attempt by ECOWAS and AU to give real meaning to what these things mean.

Mr Speaker, but if we go to page 5 of the Report, it talks about we getting funding from the German International Development Agency. If something as important as this, we are in ECOWAS and we are coming under threat of security, yet we are asking someone from Germany to come and support us, it does not tell me that the ECOWAS leaders view this as a priority. They should be able to fund this by themselves and not Germany. I find this to be very unacceptable.

Mr Speaker, then, we are also told that the funding of this would be under the Office of the President. I thought we were creating an independent organisation, so, why can the funding not be coming from something that the
Mr Speaker, my last comment on that is this 1:40 p.m.
I do appreciate the fact that terrorism as it has been happening in other countries can destabilise any country but I cannot help but to think that unemployment, youth unemployment particularly, and environmental degradation could kill all of us before the terrorists arrive in this country. So, while we take steps to prepare against terrorism coming down, we should also know the negative impact of unemployment and environmental degradation leading to our water bodies getting polluted and we cannot find good drinking water. It would be worse than a terrorist act.
Let us prepare adequately for those things as well, so, we do not put all our efforts investing in buying gunships when the real solution - As we have realised, America is leaving Afghanistan with all the bombs because the size of a bomb cannot give one security.
Mr Speaker, I support this but let us do it in an appropriate way. ECOWAS heads of states must fund this; this is not one of the things we
ask Germans or other people to fund. Fund this yourself to show that you take your own security seriously.
Mr Speaker, with these few words, I support the Motion.
Mr Second Deputy Speaker 1:40 p.m.
Very well, even though you veered from the topic.
Before I invite the Member for Mfantseman, please, those of you seated at where the signals - the signals are not giving us the indication that you would be able to speak from your tables. If you are desirous of speaking, then you would have to move from your table to another place. The technicians are working on them.
So, Hon Member for Mfantseman?
Mrs Ophelia Mensah Hayford (NPP-Mfantseman) 1:40 p.m.
Mr Speaker, I thank you for the opportunity to contribute to the Motion on the floor of the House for the ratification of this treaty on the establishment of an Early Warning Centre for the coordination of Early Warning and Responses.
Mr Speaker, I think this Motion has come at the right time considering what is going on at around the sub region. When we look at the Report of the Committee, the concept is geared towards information gathering
and sharing through open source and data techniques.
Mr Speaker, you would agree with me that intelligence gathering is key to the security of a nation and for Ghana to adopt to the establishment of this warning centre would go a long way to benefit us in curbing the terrorist situation around the sub region.
Mr Speaker, considering the importance of this centre, we would note in the Report that the centre would improve the early warning capacity of the country and the ECOWAS sub region. It would also augment information sharing among countries in the sub region. This would avert terrorism attacks, pre-empt serious organise crimes and also prevent trans-boundary crimes where one commits a crime in one country and then goes into the other country to hide from justice.
Mr Speaker, the Centre would complement the efforts of existing security intelligence to ensure that the country is able to deal with any impending security threat within the sub region.
Mr Speaker, when we look at the Report, the constitution of the board would be the responsibility of experts from the security sectors and other
stakeholders including Ministers of Environment, Communication, Health and Defence. This would be a board rich in experience to curb security issues.
Mr Speaker, I would not waste much time and I would not say much. In conclusion, I would want to support the adoption of the Report and urge all to adopt for us to establish the centre for the early warning and responses.
Mr Second Deputy Speaker 1:40 p.m.
Very well, let me invite the Hon Member for Wa West.
Mr Peter Lanchene Toobu (NDC -- Wa West) 1:40 p.m.
Mr Speaker, I thank you very much for the opportunity. I rise to support the Motion for the establishment of the Early Warning and Response Mechanism Centre in Accra. I think the contributors have already made a lot of contributions but I would want to say, as a matter of fact, that when we are talking about early warning systems and mechanisms, they are basic and fundamental requirements for any State that is serious in the fight against violent extremism and terrorism. Ghana is sitting in the middle terror and the fact that we have been safe over the years does not mean that the threat is not imminent.
Mr Second Deputy Speaker 1:40 p.m.
Hon Members, let me come to the leadership.
Mr Haruna Iddrisu (NDC-- Tamale South) 1:40 p.m.
Mr Speaker, I beg to speak in favour of the Motion but I disagree and I would want the record to reflect same so that we do not need to adopt a memorandum of understanding to ratify, and walk back and come through with an Act of Parliament to respond to this. I would just want the records to capture it. Everybody could hold his view as to how he understands article 75 of the Constitution.
Mr Second Deputy Speaker 1:40 p.m.
But, Hon Majority Leader, I think we have gone past that.
Minority Leader (Mr Haruna Iddrisu) 1:50 p.m.
Mr Speaker, I beg to second the Motion but I disagree that you do not need to adopt a Memorandum of Understanding (MoU) to ratify and walk back and come through an Act of Parliament to respond to this. I just want the records to capture it. You want to come through a Memorandum of Understanding (MoU) and after it, you come through a Motion when article 75 of the 1992 Constitution says you can come either through a Bill for an
Act of Parliament or a resolution to ratify.
Mr Speaker, however, I support it and understandably, it was adopted in July 2014. We remain committed to it. We are told that the US Government financed and established the national centres for coordination and response for five pilot countries; Burkina Faso, La Cote d'Ivoire, Guinea Bissau, Mali and Liberia. Next time, we expect the Committee to report to us what the state of implementation of this early warning centres in those other countries are just to guide us so that we will better improve on what we are about to do.
What is the essence of a pilot? It is to test. Mr Speaker, I am referring to page 2 of your Committee's Report which states,
‘with funding support from the US Government, establish five pilot countries from 2015 to
2019'.
Mr Speaker, so it means that those countries have established what we are now about to do. I am saying that next time the Committee should tell us since the establishment of these centres in those countries, how have they performed? Then to what Hon Agbodza referred to, we see that the next phase is Ghana, Benin, Senegal,
Niger, Cape Verde and our funding will largely come from the European Union (EU) led by the German Agency for Cooperation (GIZ) under the African Peace and Security Architecture (APSA) project.
Mr Speaker, I fully support it but when we come to page 6 - Legal Implications of the MoU. It reads:
“On the possible legal implications of the Agreement, the Committee was informed that the Agreement would be interpreted in accordance with international law.”
Mr Speaker, after having ratified it, we are domesticating it and so, we are not just going to subject it to the interpretation of international law and that is why we are saying that we are coming through a Motion to pass a Bill into an Act which will be interpreted in accordance with Ghanaian law and not international law.
So, when he says, ‘legal implication', I would like to quote from page 6 of the Committee's Report which states as follows:
“On the possible legal implications of the Agreement, the Committee was informed that the Agreement will be interpreted in accordance with international law.”
Mr Second Deputy Speaker 1:50 p.m.
Very well.
May we have the Majority Leadership?
Mr Frank Annoh-Dompreh (NPP -- Nsawam-Adoagyiri) 1:50 p.m.
Mr Speaker, I beg to speak in support of the Motion and to say that looking across the globe, such interventions have become more relevant than
before. So, we are spot-on as a country considering this intervention.
Let me also observe that this intervention goes beyond security concerns. There are other pronounced environment and climate interface to this and so, it is not limited to only security warnings and it is important we appreciate this.
Mr Speaker, again, once it is a Treaty, we cannot make amendments to it, and thankfully, we have the opportunity to look at the proposed Bill which is where we can make the necessary interventions as being observed by the Hon Minority Leader.
Mr Speaker, I heard my Hon Colleague talk about why the Germans and the US are supporting. If we look at page 5 of the Report, it clearly identifies the financial obligations to be borne by the Government.
So, it is not as though Government is shirking its responsibility, and the same applies to Government bearing huge financial implications in the case of the AfCFTA. We can see it spelt there. The support being given by the Germans and the US government comes in to complement what Government is doing as a core support to build the centre. Let us not gloss over this substantial support from Government as it is a proactive
attempt and intervention being adopted in the sub-region. We have to commend ourselves we sub- regional countries and then when we get to the Bill, we can look at all the interventions we could add to ensure its completion and make it a whole.
Mr Speaker, I support the decision and think it is long overdue and so, let us give it our blessings to get it completed.
Mr Second Deputy Speaker 1:50 p.m.
Very well.
Question put and Motion agreed to.
Resolved Accordingly.
RESOLUTIONS 1:50 p.m.

Mr James Agalga 1:50 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Mr Afenyo-Markin 1:50 p.m.
Mr Speaker, we may proceed to item numbered 10.
Mr Second Deputy Speaker 1:50 p.m.
Hon Members, let us move to page 7, item numbered 10 - Motion, by the Chairman of the Committee.
MOTIONS 1:50 p.m.

Chairman of the Committee on Foreign Affairs (Mr Bryan Acheampong) 2 p.m.
Mr Speaker, I beg to move, that this honourable House
adopts the Report of the Committee on Foreign Affairs on the Memorandum of Understanding between the Government of the Republic of Ghana (represented by the Ministry of Foreign Affairs and Regional Integration) and the Government of the United Arab Emirates on Mutual Exemption of Entry Visa Requirements in respect of Diplomatic, Service/Special and Ordinary Passport Holders.

Mr Speaker, in so doing, I beg to present the Committee's Report.

1. Introduction

The Memorandum of Under- standing between the Government of the United Arab Emirates (UAE) and the Government of the Republic of Ghana on Mutual Exemption of Entry Visa Requirements was presented to the House on 26// May 2021 by the Hon. Minister for Foreign Affairs and Regional Integration, Ms Shirley Ayorkor Botcthway.

The Rt. Hon. Speaker referred the Agreement to the Committee on Foreign Affairs for consideration and report in accordance with Order 140(4) and 183 of the Standing Orders of the House.

The Committee met on Wednesday, 30 June 2021 and deliberated on the Agreements. In attendance was the Hon. Deputy Minister for Foreign Affairs and Regional Integration, Mr Kwaku Ampratwum-Sarpong and some Officers of the Ministry. The Committee is grateful for the inputs of the Hon. Deputy Minister and the Team during the deliberations.

2. Reference Documents

The following documents guided the Committee during its deliberations and in preparing this Report:

i. The 1992 Constitution;

ii. The Standing Orders of Parliament;

3. The Agreement

The Memorandum of Under- standing on Mutual Exemption of Entry Requirements between the Republic of Ghana and the United Arab Emirates (UAE) was executed on 18th November 2019 for holders of diplomatic, service and special passports to stay in the territory of either Party for a period not exceeding ninety (90) days.

The two parties further agreed that this visa waiver agreement should

constitute a comprehensive framework on visa regimes for both countries. Consequently, provisions to cover diplomatic, service, and ordinary passports for Ghanaian nationals and diplomatic, special, service, and ordinary passports for the nationals of the UAE were included in the Agreement.

4. Key Provisions of the Agreement: Key provisions of the Agreement include:

a. Holders of diplomatic or special passports or other official passports are allowed to enter and stay up to ninety (90) days from the date of entry without a visa;

b. Nationals holding ordinary and service passports from the UAE shall be granted visa on arrival upon payment of visa fee and to stay in its territory for a maximum period of 90 days;

c. Concerning Ghanaians ordinary passports, visa issuance procedures shall be facilitated via UAE Embassy in Accra upon payment of visa fee or via the Electronic Website of the competent authority;

d. Accredited diplomatic and consular staff of both countries are expected to comply with the necessary procedures for accreditation upon arrival in the host country;

e. Nationals of a Party holding valid passports may not work, engage in any form of profession or study in the territory of the other Party unless they obtain permission in accordance with the relevant laws and regulations applicable in the host country;

f. Either Party may suspend the application of the MOU wholly or partially for reasons of national security, public order, or public health. Any such suspension shall be communicated immediately to the other Party through diplomatic channels, provided that the suspension does not affect the rights of citizens who have already entered into the territory of the other Party;

g. The MOU makes provision for the following: disputes settlement, amendment, and procedure for the entry into

force of the Agreement. The MOU will remain in force for an indefinite period unless either Party notifies the other of its intention to terminate through diplomatic channels.

The above provisions notwith- standing, each Party reserves the right to refuse entry or stay in its territory by persons considered undesirable or persona non grata.

The date of entry into force of the Agreement is to be determined by Ghana and the UAE upon ratification by Parliament and the completion of all internal processes. The UAE has notified the Ministry of completing all its internal constitutional processes for the entry into force of the Agreement.

5. Observations

5.1 Justification of the Waiver

The Committee was informed that Visa Waiver arrangements are common features of diplomatic practice among nations intended to facilitate the movement of diplomats and government officials between States for official purposes. This Agreement must be ratified for the completion of the required legal and administrative processes for the implementation of the Agreement on a reciprocal basis. Until their

ratification, Diplomats and Officials travelling for government business abroad would still be required to obtain the requisite visas for their travels to the UAE, thereby defeating the purpose for the negotiations that culminated in the conclusion of the Agreement.

The arrangement is mutually beneficial and dispenses with the time and efforts associated with obtaining entry visas for Government business abroad. Overall, the Agreement is a regular feature of diplomatic relations, demonstrative of mutual trust and cooperation.

5.2 Financial Impact

The Committee noted that visa fees represent one of the sources of Internally Generated Funds (IGF) of the Ministry and therefore sought clarification on the impact of the implementation of the Agreement on the revenues of the Ministry. The Committee was informed that visas for official purposes are already granted on gratis, and therefore, there would be no direct revenue loss associated with the implementation of the Agreements. However, nationals from the UAE holding ordinary and service passports shall still be required to pay the necessary fees to be issued a visa on arrival upon entry

into Ghana, leading to no loss in revenue to Government.

5.3 Legal implication of the Agreements

On the possible legal implication of the Agreements, the Committee was informed that the Agreement, in the strict sense, does not create rights and obligations under international law. It is founded upon the mutual understanding and goodwill of the State Parties. Accordingly, disputes arising out of their interpretation or implementation would be resolved through diplomatic channels.

5.4 Lack of Reciprocity in Procedure relating to Ordinary Passport Holders

The Committee observed that with respect to the mentioned Agreement, the principle of reciprocity did not wholly apply. The Committee noted a lack of reciprocity in the treatment of Ghanaian nationals holding ordinary passports under Sections 1 (b) and 2 (b) of Article 1 of the Agreement. While nationals holding ordinary and service passports from the UAE are granted visas on arrival upon the payment of visa fee, and to stay in its territory for a maximum period of 90 days, Ghanaians holding ordinary passports would be required to apply for their visas in advance through the
Chairman of the Committee on Foreign Affairs (Mr Bryan Acheampong) 2 p.m.


UAE Embassy in Accra upon payment of visa fee, or via the Electronic Website of the competent authority.

The Committee requested the Ministry to further engage their counterpart from the UAE on the matter in order to ensure that the nationals holding ordinary and special passports from both countries are treated equally.

The Deputy Minister explained that the Agreement in its present form captures the current procedures and practices in respect of visa application for holders of ordinary passports seeking entry into both countries. According to him, the Agreement was generally concluded with sufficient trust and credibility of the systems in place for the issuance and administration of passports and that the arrangement is mutually beneficial to the Parties. He however stated that a formalisation of the visa application procedures and processes under the Agreement should be mutually beneficial to both countries and should not seek to disadvantage any of the parties.

The Ministry assured the Committee that it would engage their counterpart from the UAE on the matter and resolve the anomaly through the usual diplomatic channels as provided under Articles l0 and l l of the Agreement.

6. Conclusion and Recommendations

The Committee having considered the Agreements and satisfied with the terms, recommends that the Agreement be approved by Resolution pursuant to article 75(2)(b) of the Constitution.

Respectfully submitted.
Mr Second Deputy Speaker 2 p.m.
Any seconder?
Mr Kwame G. Agbodza (NDC -- Adaklu) 2 p.m.
Mr Speaker, I beg to second the Motion and to make a few comments.
Mr Speaker, I think this is a good agreement, except to say that the reasons given by my good Hon Friend for having the agreement looks a bit lopsided; where the UAE nationals can come here - does that mean that we do not have any issues with their nationals when they come here? Mr Speaker, this cannot be right because we probably have to manage it better. I can agree that if we open the floodgates, people who ought not to be living in the country may live and create problems for themselves and our country.
Mr Speaker, these agreements would facilitate the free movement of those who need to leave the country,
especially those who do business and others. Everyone knows that Dubai and others have partly become a centre of the world, especially when one is going to the eastern part of the world, so it is a good situation.
The Hon Chairman said that when the situation improves, the agreement could be reviewed but he did not say a particular thing that would improve. Is it the economic situation or when people stop living and do create problems for themselves?
Mr Speaker, I think this is in a good stead and I wish this could be extended to other countries who easily get visas to our country but we find it difficult to do same. It simply does not make sense to me when sometimes an Hon Member of Parliament would have to queue at the Embassies of certain countries. I ask myself what business an Hon Member of Parliament has to overstay in another country? However, in their countries, when they go to the Ghana Embassies, we do not treat their Diplomats in that manner, so I want the Committee to look into this as well.
Mr Speaker, though it is not 100 per cent in our favour, it is a good step forward and we can improve on it in the future. So, I urge Hon Colleagues to support this agreement.
Mr Speaker, thank you very much for the opportunity.
Question proposed.
Mr Patrick Y. Boamah (NPP -- Okaikwei Central) 2 p.m.
Mr Speaker, thank you very much for the opportunity to speak to the Motion on the Floor.
It is an opportune time for Ghana to take advantage of this mutual arrangement between the two countries. Mr Speaker, trade between Ghana and UAE was estimated around US$899 million in 2019 according to the United Nations Country Database that I have in front of me. I have also taken a look at some items that we export to the UAE which include pearls, precious stones, coins, inorganic chemicals, fish, wood, articles of wood, charcoal, cocoa and cocoa preparation.
With all these benefits, we need our nationals to move to that jurisdiction unimpaired, especially during this era where trade has become very difficult because of the COVID-19 pandemic. Going through Embassies and procuring visas though one has just under 90 days to stay in the country, requires such interventions. I believe it is a step in the right direction, especially when the previous Parliament granted certain waivers to
Mr First Deputy Speaker 2 p.m.
I would now move to Leadership.
Hon Ahmed Ibrahim?
Mr Ahmed Ibrahim (NDC -- Banda) 2:10 p.m.
Mr Speaker, I beg to support the Motion, and in doing so, I would want to make some few comments.
Mr Speaker, this is one of the best agreements before us. As representatives of the people, knowing the kind of jobs our people do - I mean the people we represent. If there is a move to enter into such agreements by waiving entry visas to make it visa on arrival, it is a move in the right direction. This is one of the best destinations where Ghanaian businessmen and women go to embark on their business. We know,
if there are countries to learn from, this is one of the best countries we can learn from.
Mr Speaker, we know the contribution of tourism to the economic development of Ghana. Same applies to the UAE. We have certain things in common, and therefore, if we want to go into such agreement, it is a move in the right direction.
However, I expected this to come either through the Ministry of the Interior. Mr Speaker, by the law of this country, entry visas lies within the jurisdiction of the Hon Minister for the Interior. An Act was passed in this House where the Ghana Immigration Service shall have the responsibility for the issuance of entry visas in Ghana. Mr Speaker, we passed this law in 2015 or 2016. It has not been amended. Mr Speaker, issuance of visa is a security issue. If you read this, we said “dispute settlement out of other things…” these are security issues. This is where this Memorandum can be truncated.
Mr Speaker, who is in charge of security issues, dispute settlements and all those investigations? Mr Speaker, when we pass laws, we must respect them and they must work. I wonder why when we give this function to the Hon Ministers for the Interior to perform, the Hon Ministers for
Foreign Affairs and Regional Integration always do not want to give this function to the Ministers for the Interior.
Mr Second Deputy Speaker 2:10 p.m.
Hon Member, address the Chair.
Mr Ahmed Ibrahim 2:10 p.m.
Mr Speaker, my Hon Colleague has just corrected me by giving me a signal - it is because of those security issues that early warning signals - that is why this House was informed that issuance of visas, giving entry permits for people to enter this country and monitoring them was within the jurisdiction of the Hon Ministers for the Interior. I remember the kind of resistance that we received at the time from the Committee on Foreign Affairs and the then Minister for Foreign Affairs and Regional Integration.
Mr Speaker, examples were cited. If you go to the United States, it is Defence and Interior. It is done globally so, we wanted to do same. It is on that note that I am re-echoing the point that once the House accepted and passed a law that issuance of entry visas should be within the jurisdiction of the Hon Minister for the Interior, let us empower our security and the Ministries of the Interior and Defence and give them that role to perform.
Mr Speaker, the Committee on Foreign Affairs and the Minister for Foreign Affairs and Regional Integration have done well. Our businessmen and tourists who would want to go to UAE are now given this opportunity.
With these few words, I thank you for the opportunity.
Mr Alexander Kwamena Afenyo-Markin (NPP -- Effutu) 2:10 p.m.
Mr Speaker, my Hon Colleagues have made useful contributions on the matter before us. I have nothing useful to add save that I rely on all those submissions as though they were mine.
Question put and Motion agreed to.
Resolved Accordingly.
Mr Afenyo-Markin 2:10 p.m.
Mr Speaker, we are the masters of our rules, but we need your leave. Mr Speaker, with your leave, the Hon Minister for National Security will move the Resolution for the Hon Minister for Foreign Affairs and Regional Integration.
Mr Ahmed Ibrahim 2:10 p.m.
Mr Speaker, I guess we have just started doing the right thing. The Minister for National Security is moving the Resolution even though the Motion falls within the mandate of the Hon Minister for the Interior. I believe we are on the right path?
Mr Second Deputy Speaker 2:10 p.m.
Hon Minister, you may move the Resolution.
RESOLUTIONS 2:10 p.m.

Mr Samuel Okudzeto Ablakwa 2:10 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Mr Afenyo-Markin 2:10 p.m.
Mr Speaker, we may proceed to Order Paper Addendum 2 -- Presentation of Papers. We shall take item numbered 1(a)(i) to (iv).
Mr Second Deputy Speaker 2:10 p.m.
Hon Members, we will go to Order Paper Addendum 2 and take the item numbered 1 - Presentation of Papers.
Item numbered 1(a), by the Chairman of the Committee.
PAPERS 2:20 p.m.

Mr Afenyo-Markin 2:20 p.m.
Mr Speaker, item numbered 22 on the original Order Paper.
Mr Second Deputy Speaker 2:20 p.m.
Hon Members, item numbered 22, page 11, Motion by the Minister for National Security.
Mr Kyei-Mensah-Bonsu 2:20 p.m.
Mr Speaker, I believe we suspended the
consideration of the Motion listed as 22 and went back to do what was considered needful at the time but the Hon Minister had already moved that Motion. So in order not to go back to repeat the same thing, let us deem what the Minister said as applying to what ought to be done now.
So, we lift it from its location and bring it here in the order of arrangement and the Chairman of the Committee who moved the Motion -- his own contribution should also be deemed as being part of where we are now so that he also does not have to repeat what he said. In like manner, the contributions of the Ranking Member would also have to be adopted with the relevant modification in his case so that we just situate it where it is and then we can have other contributors - maybe, a couple of them and then we can move on and come quickly to the relevant parts.
Mr A. Ibrahim 2:20 p.m.
Mr Speaker, I think it is the right thing to do because we do not want to be repeating ourselves. So we are just moving it to its right position.
Mr Second Deputy Speaker 2:20 p.m.
Hon Majority Leader, let me come to you for direction.
Mr Kyei-Mensah-Bonsu 2:20 p.m.
Mr Speaker, if there are contributors to that in respect of Motion 22 - after the Chairman's support and the Ranking Members, if there are any contributors - I see Hon Avoka wants to make a contribution. So he could make his contribution. Given what I am hearing, first that the Ministers may have to attend Cabinet Meeting and I understand that my Hon Colleagues on the Other side also want to have a Caucus meeting. So, we can do this quickly and then because the amendments are few, run through them quickly and then we can recline.
Thank you, Mr Speaker.
BILLS - SECOND READING 2:20 p.m.

Mr Cletus A. Avoka (NDC -- Zebilla) 2:30 p.m.
Mr Speaker, I beg to support the Motion moved by the Hon Minister for National Security and the Report of the Committee presented by the Chairman on behalf of the Joint Committee in this matter.
Mr Speaker, I think that it is even long overdue with regard to the
establishment of a National Centre for the Coordination of Early Warning and Response in the sub-region or in Ghana today. I say it is long overdue having regard to the vulnerability of the Sahelian countries where many of the countries in the Sahelian region are becoming failed states because of terrorist and jihadist activities. Ghana is comparatively safer as of now but we are being threatened by extension of these terrorist activities to the country and therefore having a centre to perform a double role in terms of maintaining peace and security in the country is very critical.
Mr Speaker, it is important, and I am very happy that the Hon Minister for National Security is still in the Chamber and so we want to make a few observations for his consideration.

It is important that this Centre is playing a double role: first, it is intelligence gathering to find out what is brewing in term of security in some of the countries in West Africa and particularly in this country. When information is gathered about a security threat, then there is the need to respond to it. So, it is not enough to get to know the challenges that confronts us, but it is important that we adopt a mechanism to respond to the security challenges that we are
Mr Second Deputy Speaker 2:30 p.m.
Hon senior Member, please be snappy. We have already gone past this debate.
Mr Avoka 2:30 p.m.
Mr Speaker, if you look at the governing body of the Centre, it is made up of the Hon Ministers of National Security, Defence, the Interior, Foreign Affairs and Regional Integration, Finance, Health et cetera. I know how busy these sector Ministers are. By the provisions of the Bill, they are supposed to meet monthly. My worry is whether these Ministers will have the time and space to be able to go to the Centre to have the meeting every month.
Unfortunately, at the Committee level, we failed to provide that if the Minister is unable to attend, his Deputy or somebody of a certain level of position in the Ministry can attend on behalf of the Minister. If we do not make that provision at that stage, when it comes to the amendment stage, we will find that they will have the meetings and about three, four or five Ministers have not attended and nobody has come from their Ministries to attend and go back to
brief the Minister for action to be taken. I think that it is important that we do that.
Mr Speaker, security matters cut across partisan lines. When we appoint staff, we should have this at the back of our minds and appoint people who are technically-minded, competent and who are patriotic rather than people with partisan interest and at the end of the day, who are not capable of managing the task that would be assigned to them and would be loyal to a political party and not to the Government or the country. It is important that in the composition of the staff of this Centre, we cut across partisan lines.
On that note, I support the Motion and I pray that Hon Members adopt the Motion.
Mr Second Deputy Speaker 2:30 p.m.
Very well, thank you.
Hon Majority Leader, may you give indication?
Mr Kyei-Mensah-Bonsu 2:30 p.m.
Mr Speaker, maybe, you would allow for - I have seen the Deputy Minority Whip on his feet. We should just listen to him and one other, and close the debate on that. Then we would go to the other matters.
Mr Ahmed Ibrahim 2:30 p.m.
Mr Speaker, I will be very snappy.
Mr Second Deputy Speaker 2:30 p.m.
We have already gone past it. Are you going to speak on the security issue?
Mr Ahmed Ibrahim 2:30 p.m.
Mr Speaker, I did not speak on that. I spoke on issues of visas.
Mr Speaker, this is a good Bill. It is about the establishment of the Early Warning Centre. There has been mention of local authorities, including the security gathering information. I have also seen that the Governing Board has eliminated the Ministers responsible for the local authorities: That is the Minister for Local Government, Decentralisation and Rural Development.
Just this week, people were drawn from the local authorities to meet in Kumasi to discuss this Bill on how they will help to gather intelligence and how they would pick the early warning signs. How does someone go to somebody's house and deals with the children without the consent of their father?
Mr Speaker, when the Bill gets to the Consideration Stage, we must make an amendment to ensure that the Minister for Local Government, Decentralisation and Rural
Mr Second Deputy Speaker 2:30 p.m.
Yes, Hon Majority Leader? -- [Pause]
Mr Kyei-Mensah-Bonsu 2:40 p.m.
Mr Speaker, we have a revised standard version of the white-bearded Hon Deputy Leader, and he is submitting an application to us to suspend Sitting and come back after one hour to deal with this. What it means is that we could come at quarter to 4.00 p.m. to deal with that.
Mr Speaker, I thank you.
Mr Second Deputy Speaker 2:40 p.m.
Hon Members, the House is hereby suspended for one hour. So, we are coming back at quarter to 4.00 p.m.

4.33 p.m. -- [Sitting resumed].
Mr Second Deputy Speaker 2:40 p.m.
Hon Members, you are welcome from the suspension. Let me go to the Hon Majority Chief Whip for indication.
Mr Frank Annoh-Dompreh 2:40 p.m.
Mr Speaker, we would take the item numbered 10 on page 10 of today's Order Paper. We will also seek your leave to take all the other Motions numbered 11, 12, 13, 14, 16, 17, 18, by the Chairman of the Committee.
Mr James Klutse Avedzi 2:40 p.m.
Mr Speaker, the Reports of the Motions
that the Hon Chief Whip talked about were laid in the Order Paper Addendum 2 before the House was suspended. As we speak, Hon Members do not even have copies. The copies are now being shared. How can we take the Report?
Mr Speaker, there are four Motions from the Public Accounts Committee on the Order Paper. We do not show interest in the Public Accounts Committee Reports. Why do we not take them while Hon Members read the Report of the other Motion? Always, we want to put the Public Accounts Committee Report at the back burner. Why? That is why the public lambasts us all the time.
Mr Second Deputy Speaker 2:40 p.m.
Hon Deputy Minority Leader, obviously, we will deal with your Report. Your concerns are well noted. We will, that notwithstanding, go ahead with the Motion.
Clerks-at-the-Table, have you distributed some of the copies of the Report?
Mr Avedzi 2:40 p.m.
Mr Speaker, I said they are now sharing the Reports. Mr Speaker, if you want us to move it, we would not be part of it.
Mr Second Deputy Speaker 2:40 p.m.
Hon Members, let us do the Report of the Public Accounts Committee. We plead with Hon Members to go through the Reports of the Joint Committee on Mines and Energy and Finance so that after we have dealt with Hon Avedzi's Report, we would come back to it. Is that right?
Hon Avedzi, are you all right with it. We would want to deal with your Report then we would urge Hon Members to go through the Reports of the Joint Committee on Mines and Energy and Finance. Afterwards, we would go back to it. I hope you are all right with that?
Mr Avedzi 2:40 p.m.
Mr Speaker, by the time we finish with my four Reports - [Interruption]. I have four Motions. By the time we finish, Hon Members would have read the Reports of the Joint Committee on Mines and Energy and Finance well. So, I agree to that.
Mr Second Deputy Speaker 2:40 p.m.
Hon Avedzi, I assure you, we will deal with your Reports. Let us start with this. We can deal with one or two and go back to the Reports of the Joint Committee on Mines and Energy and Finance, and still go back to yours. Do not worry. So long as I am here, I will deal with your Report. Is that all right by you?
Mr Second Deputy Speaker 2:40 p.m.
Hon Members, let us go to page 10 of the main Order Paper, and take item numbered 18 by the Hon Chairman.
Mr Avedzi 2:40 p.m.
Thank you, Mr Speaker, for agreeing to take my Motion. I appreciate that a lot.
MOTIONS 2:40 p.m.

Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.
Mr Speaker, I beg to move, that this honourable House adopts the Report of the Public Accounts Committee on the Report of the Auditor-General on the Public Accounts of Ghana (Public Boards, Corporations and Other Statutory Institutions) for the year ended 31st December, 2017.
Mr Speaker, in so doing, I present your Committee's Report.
1.0 Introduction
The Reports of the Auditor-General on the Public Accounts of Ghana - Public Boards, Corporations and other Statutory Institutions for the year ended 31st December 2017 was laid in Parliament in accordance with article 187(2) of the 1992 Constitution of the Republic of Ghana.
Pursuant to order 165 (2) of the Standing Orders of the Parliament of Ghana, the Report was referred to the Public Accounts Committee (PAC) for consideration and report.
2.0 Procedure
To examine the report, the Committee met with sector Ministers and heads of Public Boards, Corporations and Statutory Institutions cited by the Auditor- General for irregularities to appear before it as witnesses to respond to issues raised in the report. In all, the committee met with Sector Ministers and officials from forty-one (41) Public Boards, Corporations and Statutory Institutions.
On appearing before the committee, the witnesses subscribed to the oath of a witness and answered questions relating to the issues raised in the Auditor-General's Report.
The Committee's Report covers the underlisted Public Boards, Corporations and Statutory Institutions whose queries were outstanding at the time of the Committee's settings:
1. Petroleum Commission;
2. Ghana National Petroleum Corporation;
3. National Electrification Scheme;
4. Northern Electricity Distribu- tion Company Limited
(NEDCO);
5. Ghana Cocoa Board;
6. Venture Capital Trust Fund;
7. Bank of Ghana;
8. Ghana Investment Fund for Electronic Communication
(GIFEC);
9. Ghana Education Trust Fund
(GETFUND);
10.Cocoa Marketing Company (Ghana) Limited;
11.Public Procurement Authority;
12. Ghana Institute of Journalism;
13. Ghana Academy of Arts and Sciences;
14. National Council for Tertiary Education;
15. University of Ghana;
16. University of Mines and Technology (UMAT);
17. University of Cape Coast;
18. Songhor Salt Project;
19. GIHOC Distilleries Company Limited;
20.Export Trade, Agricultural and Industrial Development Fund (EDAIF);
21. Ghana Free Zones Board;
22. (CSIR)-Science and Technology Policy Research Institute;
23. Animal Research Institute
(CSIR);
24.Forestry Research Institute
(CSIR);
25.CSIR-Oil Palm Research Institute (OPRI);
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


procuring goods and services without recourse to the procurement committees of the various Institutions, splitting procurements into lots and procuring above entity's threshold, in contravention of the provisions of the Public Procurement Act.

In this regard, the Auditor-General recommended that the management of the various Institutions should transact procurement dealings strictly in accordance with the provisions of the Public Procurement Act of 2003 (Act

663).

6.1.5 Tax Irregularities -

GH¢6,394,113

The Tax irregularities related to failure to pay statutory deductions on due dates, non-deduction of tax due and non- adherence to the provisions in the tax laws. They also relate to transaction of business with non VAT registered persons.

The Auditor-General recommended that the Finance Officers should strictly adhere to tax laws to ensure that all tax revenues are promptly collected and paid to the responsible revenue agencies.

6.1.6 Stores Irregularities -

GH¢8,946,359

These irregularities include non- documentation of store items and unaccounted fuel, resulting from the absence of store ledgers, lack of awareness of officers assigned to store duties, inadequate supervision, use of deficient and non- reconciliation of fuel purchases at dumps and management's failure to ensure maintenance of log books.

To avert the recurrence of the situation, the Auditor-General recommended to management of institutions concerned to strengthen controls over store items, improve supervision and the procurement of store ledgers for effective record keeping. He also recommended strict adherence to the store regulations and the Financial Administration Regulations.

6.1.7 Contracts Irregularities-

GH¢16,250,686

Contract irregularities identified by the Auditor-General during the period relates to overpayment of contract sum, absence of the signing of contract agreements, failure to comply with tendering procedures, delay in construction, ineffective control over contracts and the absence of transparency in the

disbursement of funds, non-recovery of mobilisation and irregular additions to existing contracts.

He therefore urged management of the institutions concerned to strengthen controls over contracts and comply with tendering procedures. He also recommend that officers responsible for the overpayment of contract sums be surcharged with the difference.

6.2. Summary of Financial Irregularities for the Period Ended 31st December, 2017

In general, the audit revealed about GH 12,002,880,339 worth of irregularities in the Public Boards and Corporations. The irregularities occurred under seven (7) different headings; Outstanding Debtors/ Loans Receivable Charges (98.42%), Cash Irregularities

(1.24%), Payroll Irregularities (0.02%), Procurement Irregularities (0.05%), Tax Irregularities (0.05%), Stores Irregularities (0.07%), and Contract Irregularities (0.14%).

In spite of the irregularities recorded, the Auditor-General was satisfied that, most of the financial Statements submitted for validation represent fair financial information in accordance with statutory provision and most of the agencies prepared their financial statements to be in line with the generally accepted accounting principles and their financial statement complied with the Ghana Accounting Standards and relevant legislations. With the exception of Government Technical Training Center which did not prepare financial statement and the National Media Commission whose financial statements were referred back for correction, all the financial statements examined presented a true and fair view of the financial position and performance of the organisations.

Table 2: Summary of audit irregularities
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


7.0 Committee Observations

7.1 Ministry of Energy

7.1.1 Petroleum Commission, Ghana Reporting Requirements not included in the Consultants Contract

The Auditor-General identified that the Petroleum Commission engaged seven consultants to monitor staff of the Commission without provision in the job description of the consultants for periodic reporting contrary to best business practices.

During the Committee sitting, the Petroleum Commission presented documents to support the claim that the contract with the seven consultants have been amended to include the submission of periodic

reports in line with the recommendation of the Auditor- General. The Commission also indicated that, all the consultants have been phased out leaving only one on site.

Non Compliance of directive on transfer of IGF -- GH¢1,776,576.92

The audit disclosed that the Commission made transfers totalling GH¢1,776,576.92 into the Ministry of Petroleum's Project Account at the Agricultural Development Bank (ADB) instead of through a dedicated account at the Bank of Ghana (BoG) or the Ghana Commercial Bank (GCB) as directed by the MoF guidelines on ceding 15% of the Departments retained Internally Generated Fund collection to their sector Ministries. The audit recommended to Management to

ensure that all payments are made in accordance with Policy directives and guidelines.

Management explained that in addition to the two dedicated accounts, the Ministry of Finance also provided information on a third account at ADB into which funds could be transferred. The Commission simply complied with the information and transferred funds into the designated account at ADB. The Committee upon advice from the audit Service confirmed that MoF provided information on the said account into which the Funds were transferred.

Non Existence of Composite Risk Register

A review of the risk management process of the Commission disclosed that, only Health, Safety, Social and Environment (HSSE) and the Information Technology Departments documented their risk management processes. Other departments have not formalised their risk management processes. The Commission also failed to maintain a composite Risk Register or logs to proactively identify assess and effectively manage all the Commission's risk exposures. The auditor-General urged Management to properly identify, assess, manage and

document all the Commission's risk exposures.

The Committee noted that in compliance with the recommendation of the Auditor-General. The Commission developed a composite risk management manual to guide all operational areas of the Commission.

Failure to update Procurement Plan

The audit identified that the Procurement Officer of the Commission did not prepare and submit a quarterly update on the commissions procurement plan in contravention of Section 21(3) of the Public Procurement Act of 2003 (Act 663). The Auditor-General recommended to Management to strictly adhere to the provisions in the PPA. The Committee noted that, a follow up verification conducted by the Audit Service revealed that, the Commission is in compliance with Section 21(3) of the PPA. Documentary evidence to that effect was made available to the Committee.

Failure to approve the Transport Policy

The audit disclosed that the management of the Commission failed to present Transport Policy Manual which was developed in 2013 by the
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


transport unit to the Board for approval contrary to best industry practices. The continuous use of unapproved Transport Policy may lead to abuse and misuse of the vehicles. This could also impede the effective performance of the Transport Officer and reduce Management's demand of accountability from him. The auditors advised Management to review the Policy and submit it to the Board for approval for effective management and monitoring of the Commission's vehicles.

Management has since complied with the recommendation of the Auditor-General.

Inadequate Staffing at the Commission

A review of the human resources requirement of the Commission revealed inadequacies in staffing position at the Commission. The situation caused the Human Resource Officer to double up as the Transport Officer; in the absence of the Internal Auditor, there was no one to discharge his work. The Trainee Accountant who prepares the payment vouchers also plays the role of a Cashier and Storekeeper. The situation could result in errors and break down of the internal control systems.

The audit recommended that Management should plan and recruit more staff in order to augment its staff strength. The Committee noted that management has since complied with the recommendation of the auditor- general and recruited the full complement of staff required for the effective running of the Commission.

Ghana National Petroleum Corporation's Loss from BOST Transactions - GH¢68,852,760

The audit established that GNPC in collaboration with BOST imported petroleum products for National Strategic Stocks Programme. The transaction involving the importation of seven (7) cargoes between 2014 and 2015 turned out to be a loss making venture and the reconciliation with BOST to agree and finalise the actual losses has been difficult. The auditors urged management to expedite reconciliation efforts to determine the actual amount of the loss.

GNPC explained to the Committee that, in compliance with the recommendations of the Auditor- General, the reconciliation has been done and the total loss position in the transaction has been determined. Consequently, government is expected to reimburse GNPC with the sum of US$21,773,757.76 as its

share of the loss incurred through the transaction. The Committee urged the Ministry of Finance to reimburse GNPC for the loss incurred through the transactions.

Recoverability of receivables from Government of Ghana and its related agencies -

GH¢778,565,761

The audit revealed that Government of Ghana and its related parties owed the Corporation an amount of GH¢778,565,761 as at 31 December 2015. Currently, there is no evidence of a repayment plan. Management was advised to intensify efforts in either collecting these overdue balances or negotiate a convenient repayment plan with the Government.

The Committee noted that the amount remained unrecovered. The Committee noted that the failure of government to pay the amount is adversely affecting the cashflow position of the Corporation. The settlement of the amount will allow GNPC to meet some key obligations. GNPC was hopeful that the amount will be recovered when the cash water fall is fully operational. The Committee recommends to the Ministry of Finance to ensure that the indebtedness to GNPC is settled under the cash waterfall programme.

Long Outstanding Payable and Receivable Balances

The audit discovered that there was no movement on the account balances of significant account payables and receivables of the Corporation some as far back as 1992. There is the risk of the accounts payable and receivable balances being materially overstated. Management explained that they could not reconcile the balances with some of the departments. Some of the payables has been outstanding since 1992. Management expressed its intention to write off some of the outstanding debts. The Committee urged management to take the necessary steps to clean its books on the balances so that the accounts are not overstated.

Recoverability of advance to

GBC (US$1,248,000)

The audit noted that a payment of US$1,248,000 made on behalf of Ghana Broadcasting Corporation (GBC) to the Confederation of African Football (CAF) in January 2015 was not included in the approved budget. Again, an amount of US$948,000 included in the US$1,248,000 and indicated as an advance to GBC has not been recovered. The auditors urged
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


management to ensure payments are made out of approved budgets and take steps to recover the funds advanced as soon as practicable.

The Committee noted that the amount advanced to GBC remains unrecovered. Management expressed the difficulty involved in receiving the payment. The Board has subsequently approved the amount as sponsorship for the GBC.

Absence of Title Deeds

The audit discovered that the Corporation did not have title deeds for a number of landed properties including Petroleum House (GNPC Headquarters), GNPC Club house at Tema Community 3, GNPC Nursery Block at Community 3, EX 8 Residence at Community 3, Bungalows No. A2 & A3, Plots No. 35/12 & 13 at Redco, Madina and Tema Light Industrial Area respectively. The auditors advised management to take immediate steps to obtain title deeds for the Corporation's properties to avoid possible ownership litigations in future.

GNPC informed the Committee that steps are underway to obtain title deeds for all landed properties of the corporation in compliance with the recommendation of the auditor- General.

National Electrification Scheme

Delays in remitting Levies Collected to the National Electrification Fund -

GH¢24,986,762

A review of the 2015 account of the National Electrification Scheme revealed that, a total amount of GH¢24,986,762 stood as receivables due to delays in remitting levies collected to the National Electrification Fund. The auditors recommended that Management intensify its efforts at retrieving protracted debts through the involvement of the Sector Minister.

Northern Electricity Distribution Company Limited (NEDCO)

Problems Associated with Oracle Software

The audit of NEDCO revealed that the Area Office uses Oracle Software to manage its inventory. This is a perpetual inventory system which could provide only the total units and quantities received into store without being able to capture items issued out of the store. The Consultant for the ORACLE Software must be contacted with the issue for them to come out with a solution such that the manual intervention will be eliminated. The Committee noted that following

the audit observation, the contractor was called in and the problems have been rectified.

7.2 Ministry of Finance and Economic Planning and Ghana Cocoa Board.

Recovery of Damaged Swaraj Tractor

The audit revealed that Ghana Cocoa Board purchased a Swaraj tractor with registration number GT 7862 Z from Rana Motors in June 2008, which developed a fault within six (6) months and was sent back to the supplier but had not been replaced or repaired after 5 years. The auditors advised management as a matter of urgency, to pursue Rana Motors for replacement in accordance with the warranty agreement.

The Committee noted that following the audit recommendation, management engaged the suppliers and the tractor has since been replaced in compliance with the recommendation of the Auditor- General.

Trade debtors overdue

A review of the financial assets revealed that, COCOBOD does not have formal documented policies that

provide guidance on assessing overdue debts of local customers contrary to the International Financial Reporting Standards (IFRS). Additionally, there was no evidence of formal plans or guidelines to provide guidance on the frequency and basis of determining impairment allowances required for overdue debts. The auditor-General urged management to put rigorous system and processes in place to provide guidance on the assessment of financial assets to ensure these assets are disclosed at their fair and/or recoverable amounts.

The Committee noted that the Cocoa Board has instituted measures to improve debt collection.

Bank Balances excluded from financial statement

The audit revealed that the National Investment Bank (NIB) created an intermediary account (Special Call Account) without notifying COCOBOD for its inclusion in the accounting records. It was also noted that the balances of two bank accounts which had become dormant were also not recorded in the Cocoa Research Institute of Ghana's (CRIG's) financial records. The exclusion of these account balances could mean that bank balances in the financial statement may be misstated.
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


The auditor-General recommended that management must adhere to laid down procedures in relation to account closure and ensure all accounts balances are reconciled at the end of each month.

The Committee noted that management has taken remedial actions and updated its financial records to include the balances in the Special account. Additionally, the dormant account has been closed.

Deteriorating inventory of motorbikes

The audit revealed that 84 motorbikes purchased to be sold to operational staff under a loan scheme through which cost of the motorbikes are to be recovered from beneficiaries remained unsold and had been parked and their conditions continue to deteriorate. The auditors recom- mended to management to dispose of the 84 motorbikes to prevent further damages.

Management explained to the Committee that the motorbikes were rejected by the targeted beneficiaries because it did not meet their specifications. The Committee noted

that management has since disposed the 84 motorbikes in compliance with the recommendations of the Auditor- General.

Venture Capital Trust Fund

Wrongful payment for property situated at North Ridge Worth

US$839,134

The audit revealed that the Venture Capital Trust Fund paid the sum of US$839,134 to Nana Kwame Adusei and Dr. Prince Blankson, represen- tatives of Bethany Church, in relation to a property situated at North Ridge being procured without a power of attorney from the trustees of the Church authorising the two individuals to collect monies on their behalf. The audit recommended to management to ensure that they recover the sum of US$839,134 from Nana Kwame Adusei and Dr. Prince Blankson, failing which management would be surcharged in accordance with Section 18(1b) of the Audit Service Act of 2000 (Act 584).

Management explained that the matter was reported to EOCO for recovery. The Committee noted that an amount of US$190,000 paid to Nana Edusei remains unrecovered. Again Dr. Prince Blankson however refunded US$610,000 leaving a

balance of US$4,134.00 unre- covered.

The Committee expressed dissatisfaction at efforts been made to recover the outstanding amount of US$194,134 from the two persons. The Committee recommends to the Fund to vigorously pursue recovery of the amount.

Additionally, the Committee urges the Auditor-General to exercise his power of surcharge in accordance with article 187 (7) (b) of the Constitution and Section 18(1b) of the Audit Service Act of 2000 (Act 584) and retrieve the amount from the officers whose negligence resulted in the wrongful payment.

Wrongful Payment of Gratuity to Board of Trustees - GH¢114,360

The audit revealed that management of the Venture Capital Trust Fund paid gratuity amounting to GH¢114,360 to six (6) Board of Trustees members without approval from the Finance Minister in contravention of the Venture Capital Trust Fund Act of 2004, (Act 680). The Auditor-General recommended to management of the Fund to retrieve the sum of GH¢114,360 paid to the Board of Trustees.

The Committee noted that an amount of GH¢15,872 paid to Mr. Daniel A.K Mensah has been refunded leaving a balance of GH¢98,488.00 unrecovered. The unrecovered balance is in the name of the following ex trustees:

No Name of Trustee Amount Outstanding (GH¢)

1 Mr. J.H.O Acheampong (Deceased) -- 35,000.00

2 Mr. Laud Baidoo -- 15,872.00

3 Mr. Richard Lassey -- 15,872.00

4 Mrs. Susan Okeene -- 15,872.00

5 Mr. Daniel Duku -- 15,872.00

Total -- 98,488.00
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


The Committee noted that, management failed to pursue recovery of the unlawful payment to the five former trustees. The Committee recommends to the Attorney-General to pursue recovery of the sum of GH¢98,488.00 from the five individuals or their next of kin together with interest.

Over payment of engagement for business valuation services—

GH¢86,625

The audit revealed that the Fund engaged a consultant, MSR to estimate the fair value of the 45 companies within its portfolio as at 31 December, 2015 at a unit cost of GH¢5,775 which summed up to GH¢259,875. However, a review of the valuation reports showed that the actual number of companies valued were 30 totalling GH¢173,250. However, an amount of GH¢259,875 was paid to MSR based on the initial estimate, resulting in an overpayment of GH¢86,625 to the consultant. This resulted in the loss of money to the Fund. The auditors urged management to retrieve the excess payment of GH¢86,625 from MSR.

Management however, insisted that the payment was for the evaluation of

44 companies to which the reports are available for verification. The Committee urged the Auditors to inspect the report and reconcile available reports with payments.

Granting of loans without sufficient information on borrower's location-

GH¢914,654

The audit revealed that the Fund granted loans to 79 companies and individuals without documentation on the location and registered offices of the borrowers. The situation would make it difficult for the fund to monitor and evaluate the performance of the borrowers which may result in bad debt. The audit recommended to management to update the files of the affected borrowers and ensure that the total amount of GH¢914,654 debts are collected.

Management admitted the difficulties encountered in updating the profiles of borrowers. Additionally, many of the beneficiaries failed to pay back the loans and it is also difficult to track them. The Committee blamed the situation on insufficient information on borrowers prior to the extension of credit. The Committee recommends to the Fund to pursue recovery and also restructure its credit operations to improve recovery.

Bank of Ghana Government borrowing in Excess of the limits Imposed by the Bank of Ghana

The audit revealed that Contrary to Section 16 of the Bank of Ghana (Amendment) Act of 2016 (Act 918), we observed that the Government net credit for the period under review was GH¢12,295,100,000 which implied that the Government had borrowed in excess of 737.78 per cent of the threshold of GH¢1,467,582,600. The auditors recommended to management to immediately comply with the provisions of the Act.

The governor of the Bank of Ghana explained to the Committee that, Central Bank funding to government exceeded 5 per cent ceiling before the effective date of the Act. Additionally, section 16 of Act 918 is not clear as to whether the existing stock should be factored into the determination of the 5% cap. The Committee noted that the ambiguity in the determination of the 5% limit makes it difficult to determine the exact financing in each financial year. The Committee recommends to the Bank of Ghana and the Ministry of Finance to ring fence the existing stock of debt and agree on a programme to bring it down to the regulatory limit of 5 per cent over time. Additionally, the Bank of Ghana Act must be amended to

bring clarity on the determination of the 5 per cent financing limit.

Ghana Investment Fund for Electronic Communications ( G I F E C ) N o n - F u n c t i o n a l Payphones

Per the terms of the Warranty agreement, Clause 3(iii) between GIFEC and Ghana Telecommunications Company Limited, suppliers of Vodafone payphone provides that, The purchaser shall promptly in any event not later than 14 days of becoming aware of any defect notify the supplier in writing of any claims arising under this warranty and the supplier shall readily remedy those defects at no extra cost to GIFEC in all beneficiary institutions within the warranty period. The audit team visited ten (10) beneficiary Senior High Schools.

A sample of 10 beneficiary Senior High Schools under the Vodafone payphone revealed that 15 out of the 37 Vodafone payphones and 11 MTN payphones were not operational. The auditors attributed this to the failure of management to enforce their rights under the warranty agreement provided under Clause 3(iii) of the Agreement between GIFEC and the Ghana
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


Telecommunications Company Limited. The auditors recommended to Management of the Fund to enforce the warranty Clause in the Agreement. Management explained to the Committee that, the responsibility for the repair of payphones rely solely on the phone operators. They explained that, the payphone have become obsolete due to the proliferation of mobile phones across the country. The Service providers therefore do not see the deployment and maintenance of existing payphones as a profitable venture.

Non Functioning Desktop Computers (Faulty Hard Disk Drives)

The Auditor-General noted during the audit that every batch of desktop computers supplied by GIFEC had defects with the hard drive. Particularly, the John Evans Atta-Mills SHS had 18 defective desktop computers out of the 30 delivered. The auditors recommended to Management of the Fund to enforce the warranty clause provision to ensure that defective computers are replaced by the suppliers.

The Committee noted that, in compliance with the audit recommendations, GIFEC invoked

the warranty clause in the suppliers Agreement and the supplier made to either replace or fix all the defective computers.

Ghana Education Trust Fund

(GETFUND)

Non Tagging of Fixed Assets Worth GH¢474,156

The auditors noted during physical verification of fixed Assets of the Secretariat that additional assets acquired amounting to GH¢474,156 during the year were not embossed. They recommended that manage- ment, as a matter of urgency, ensure that all fixed assets purchased are embossed.

The Committee noted that, the fix assets have since been embossed in compliance with the recommendation of the Auditor-General.

Cocoa Marketing Company (GHANA) Limited

Reconciliation of Ghana Inter- national Bank's Long outstanding items on Account No. 01155119

A review of the bank reconciliation statements revealed that a number of transactions totalling €54,290.73 had not been credited since 30 September 2015. Also, an amount of €27,827.79

was wrongly debited to the Ghana International Bank (GIB) Account Number 01155119. The auditors recommended that, Management should investigate these transactions in collaboration with the banks to correct the anomalies.

The Committee noted that management has taken action by notifying the Bank to correct the anomaly.

Ex Staff Debtors' Balances -

GH¢280,332.04

The audit revealed that a list of ex- staff debtor balances amounting to GH¢280,332.04, which dated as far back as 2002, had no corresponding names but remains in the books of the company. The auditors urged management to find the defaulting ex- staff and retrieve the total amount involved failing which officers responsible shall be surcharged with the amount.

Staff Imprest unrecovered -

GH¢378,154.07

The audit established that contrary to Regulation 288 (2) of the Financial Administration Regulations (FAR) of 2004, an amount of GH¢378,154.07 disbursed to twenty-one (21) staff as accountable imprest dating from 2013

to 2015 still remained un-retired. The auditors therefore recommended that Management should take full responsibility for the recovery of the GH¢378,154.07 failing which officers whose negligence or misconduct led to this loss shall be surcharged.

Management explained that activities for which the imprest were granted were not completed at the time of the audit. Following the audit recommendations and the completion of the various activities by the officers involve, the entire amount of GH¢378,154.07 has been retired.

Public Procurement Authority

Withholding Taxes Not Remitted-

GH¢48,589

The audit disclosed that contrary to Section 117(1) of the Income Tax Act of 2015, (Act 896) the Authority withheld taxes amounting to GH¢48,589 but failed to remit it within the stipulated period. The Auditor- General recommended that all the outstanding withholding taxes must be remitted to GRA.

The Committee noted that, all the taxes amounting to GH¢48,589 were remitted to GRA in compliance with the recommendation of the Auditor- General. The Committee however noted that, the Commissioner did not
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


compute the interest for delay payment. The Committee recommends that, the Commissioner- General must comply with the law by computing penalty on delayed payments failure of which tax officers who failed to compute the penalty for delay payment must be held liable for the payment of the penalties on any delayed taxes.

Staff Debtors -- GH¢32,452

The auditors observed that the Authority granted newly employed staff short term loans totalling GH¢32,452 as at 31st December 2016 for which no payment has been made. They urged the Authority to have a policy concerning repayment of loans and salary advances and should liaise with the Controller and Accountant General's Department for the necessary deduction to be made at source without further delay.

The Committee noted that the amount were granted to newly recruited officers pending the processing of their salaries. The amounts involved has since been recovered from the officers involved. The authority explained that, in compliance with the recommendation of the Auditor-General. Management has developed a new policy to guide the granting of loans to staff members.

7.3 Ministry of Education

Ghana Institute of Journalism (GIJ) Payment in Excess of Certificate -- GH¢13,500.00

The audit revealed that, an Interim Certificate number 2 dated 21 March 2013 amounting to GH¢682,127.15 was over paid by GH¢13,500.00 due to Management's failure to exercise due diligence. The auditors recommended that Management should inform the project consultant and ensure the amount is retrieved from the contractor immediately or management shall be surcharged with the amount.

The Management of GIJ explained to the Committee that, the amount was deducted from the contractor's subsequent certificates that he raised on the project. The entire amount has therefore been refunded through an offset arrangement. The Committee urged officials to be circumspect in financial dealings to avoid the recurrence of such an event.

Variation of Contract without Approved Variation Order --

GH¢529,621.37

The audit identified that additional works valued at GH¢529,621.37, which exceeded 15 per cent of the contract sum, was executed without

approval by the appropriate Tender Review Board, contrary to Section 87 of the Public Procurement Act of 2003 (Act 663) and the variation clause in the contract agreement. The auditors recommended that the additional work exceeding 15 per cent of the contact cost should be referred to the Tender Review Board for review and approval.

The Committee noted that management submitted the contract variation work to the Tender Review Board for retrospect approval in compliance with the recommen- dations of the Auditor-General.

Inconsistency between Attendance Sheet and Lecture Claim Sheet

The audit found that due to the absence of attendance sheets to support payment of Lecturer's claims of GH¢987,591.51 during 2014/ 2015, the auditors were unable to establish the authenticity of the payment. They therefore recommended that the attendance sheet forming the basis for the preparation of the claims should be provided for examination failure which the Authorising and Paying Officers shall be surcharged with the total amount involved.

Management has since presented the attendance sheet to the auditors for verification.

Failure to Withhold Rent Tax -

GH¢3,456.00

The audit disclosed that management failed to withhold a rent tax of GH¢3,456.00 from an amount of GH¢43,200.00 paid to a Landlord. The Auditor-General recommended that the Landlord should be informed about the existence of the law and 8% of the rent amount recovered and paid to the Commissioner, Domestic Tax Revenue Division (DTRD) of Ghana Revenue Authority (GRA).

The Committee noted that, management has since deducted the rent from subsequent rent payments to the Landlord in compliance with the recommendation of the Auditor- General.

Recovery of Loans Granted Staff

The audit revealed that Nineteen staff (19) of the Institute, who owed salary advances amounting to GH¢37,082.77 for previous years, refunded only GH¢1,242.30 or 3.3 per cent during the year leaving an amount of GH¢35,840.47 unrecovered. The audit recom- mended to management to take measures to recover all over due salary advances from staff.
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


The Committee noted that management has since recovered all the outstanding loans from staff.

Ghana Academy of Arts And Sciences

Ten Sponsored Employees not Bonded

The audit revealed that the Ghana Academy of Arts and Sciences sponsored ten officers of the Academy for various programmes in the country with a total amount of GH¢60,550.04 from the 2014/2015 GETFund Sponsorship under Staff Development Fund. Management however, failed to ensure that they were bonded to serve the Academy after completion. The auditors recommended that Management should ensure strict compliance with the regulation by bonding the staff under GETFund sponsorship.

The Committee noted that Management has since bonded all staff under sponsorship in compliance with the recommendation of the Auditor-General.

Items Paid for not Supplied -

GH¢6,000.00

The audit revealed that Pagelinks Ltd who was awarded a contract to

print three different publications valued at GH¢20,700.00 and paid under a GETFund Project, failed to supply 1000 copies of one of the books titled (Academy Red Book) costing GH¢6,000.00. The audit recommended that Manage- ment should ensure that the books are supplied, failing which the authorising and paying officers would be surcharged with the amount of

GH¢6,000.00.

Management explained that the contract was paid for directly by the GETFund making the enforcement of performance difficult. However, following the audit observations, the supplier has since supplied the addition 1,000 copies of the book in compliance with the recommendation of the Auditor-General.

Absence of Internal Audit Unit and Audit Report Implementation Unit.

The audit revealed that the Academy has not established an Internal Audit Unit to ensure effective and efficient internal control systems contrary to Section 16(1) of the Internal Audit Agency Act of 2005, (Act 658). Additionally, management also failed to establish an Audit Report Implementation Committee (ARIC) contravention of Section 30 of the Audit Act of 2000, (Act 584). The

Auditor-General recommended to management to set up an Internal Audit Unit and also establish a functional Audit Committee.

The Committee noted that in compliance with the audit recommendations the Academy established and inaugurated a functioning Audit Committee and also established an Internal Audit Unit.

Fuel Not Accounted For -

GH¢30,467.00

Fuel purchases made by the Academy in 2014 and 2015 amounting to GH¢30,467.00 were not recorded in the vehicle and generator log books to account for them. The Auditor-General recommended to Management to ensure that the drivers account for the usage of fuel or refund the money involved. Also, Management should ensure that the drivers are given adequate training on the maintenance of the vehicle and generator log books.

The Committee noted that management failed to account for the usage of the fuel. The Committee therefore recommends that the drivers and transport officers should refund the sum of GH¢30,467.00 being the unaccounted fuel.

Auditorium Store Items not recorded -- GH¢24,059.80

The audit established that contrary to Stores Regulations, 1984, various purchases amounting to GH¢24,059.80 were not receipted on Store Receipt Voucher (SRV) and recorded in Store ledgers. The auditors recommended that the items should be accounted for, failing which the Purchasing Officer whose inaction caused the anomaly would be surcharged.

Management explained that the items were duly delivered but were not receipted on Store Receipt Voucher. Following the audit observations, the SRV was updated to reflect the receipt of the items.

University of Ghana

Non Deduction of Taxes on Staff Allowances -- GH¢4,272,382

The audit disclosed that contrary to Section 4 of the Income Tax Act of 2015 (Act 896), management failed to subject allowances such as vehicle maintenance, fuel, off-campus and electricity paid as part of staff employment income amounting to GH¢4,272,382 to tax. The audit recommended that management should ensure that taxes are withheld at the appropriate rate on total taxable emoluments of staff.
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


The Committee noted that management has since included the allowances into the determination of the total emolument of staff for the purposes of determining the tax liabilities of staff in compliance with the recommendations of the Auditor- General.

Control deficiencies over cash and bank balances

The audit disclosed that the Accountant failed to prepare bank reconciliation statements for seven (7) different bank accounts in contravention of Section 51 Sub- Section 6 of the Public Financial Management Act of 2016 (Act 921). Consequently a total amount of GH¢500,000 cancelled cheques, were not cancelled in the IT System.

Also, duplicate transactions totalling GH¢7,979,606, which should have been corrected, still showed as uncredited lodgements on the 31 December 2016 bank reconciliation statements. The Auditor-General attributed the lapse to lack of supervision on the work of the Head of Accounts and recommended that, Management implements a robust process that reviews bank transactions that can identify all discrepancies and resolve them.

Management admitted that the situation was as a result of insufficient supervision on the work of the schedule officer. The University has since ensured regular reconciliation of its bank statements.

Misapplication of Internally Generated Funds (IGF) --

GH¢10,957,079

The audit disclosed that the University of Ghana without approval contracted salary loans to finance the payment of staff salaries which resulted in the payments of GH¢10,957,079 interest paid from I.G.F of the University in contravention of Section 5 (a) and (c) of the Retention of Funds Act of 2007, (Act 735), The auditors recommended to management to discuss the impact of the late release of emolument subvention with the Ministry of Education and seek workable solution to the problem.

Management explained that the University was compelled to go for the facility in order to meet the payment of emoluments to staff as a result of delays in the release of funds from the Ministry of Finance for the compensation of staff. The Committee urged the Ministry of Finance to ensure regular release of compensation allocations to the Universities to forestall the excessive expenditure on interest payments.

University of Mines and Technology (UMAT)

Unretired Imprest - GH¢18,777.50

The audit disclosed that contrary to Regulation 288(1) of Financial Administration Regulations, 2004, (L.I.1802), the Auditor-General noted that out of a total of GH¢18,800 imprest granted by the University of Mines and Technology, only GH¢10,222.50 had been accounted for leaving a balance of GH¢8,577.50 to be retired by the former Registrar, Mr E. K. Bedai for the registration of lands and buildings acquired by the University.

Also, there were no official receipts covering the reported GH¢10,222.50. The Auditor-General recommended that Mr E.K. Bedai should properly account for the total amount of GH¢8,577.50, failure of which he shall be surcharged.

The Committee noted that, the registrar failed to account for an amount of GH¢8,577.50 imprest granted him. The Committee recommends that the registrar should refund the unaccounted amount of GH¢8,577.50 to chest.

Payment for Unsupported Claims

-- GH¢6,177.87

The audit disclosed that UMAT included an amount of GH¢6,177.87 as price fluctuations in Certificate Number 2 for payment to Arch-Team 4, a consultant engaged for the construction of residential accommodation under GetFund but there were no documentary evidence supporting the payment by way of detailing the computation. The auditors recommended that the Consultant Arch-Team 4 and the Contractor refund the GH¢6,177.87 to the GETFund Secretariat or be surcharged.

The Committee noted that notwithstanding the audit recommendations, the amount remains unrecovered. The Committee recommends that the works engineer and the Finance Officer should be held responsible to refund the sum of GH¢6,177.87 to GETFund for failure to pre audit the certificate before recommending payment.

Delayed Lodgements --

GH¢26,245

Contrary to Regulation 15(1) of the Financial Administration Regulations, 2004 (L.I. 1802), the audit disclosed that cash collections were delayed for between 7 and 157 days before
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


payment to Bank. The auditor- General attributed the anomaly to poor supervision of the work of the accountant by Management. The auditors advised management to ensure that total collections are promptly lodged.

The Committee noted that, following the audit discovery, the Account officer responsible for the delayed payments was sanctioned and his schedule changed. Management assured the Committee that measures have been instituted to ensure prompt payment of all cash collections into bank.

University of Cape Coast

Real Time Update on Sandwich Fees

The audit disclosed that the University does not have a real time information on fees paid by sandwich students unlike other students of the University. The auditors urged management to move the sandwich students onto the main payment platform.

Management explained that sandwich students have now been migrated onto the students payment platform to avert the risk of recalcitrant students presenting forged

pay-in slips as evidence of payment in compliance with the recommendation of the Auditor-General.

Bank Reconciliation Statement --

GH¢10,963.90

The Auditor-General identified during the audit that the bank reconciliation statement of ADB Bank had four (4) uncredited cheques and two (2) wrong debits totalling GH¢10,005.90 and GH¢738 respectively. These have been outstanding from as far back as 2011 and 2012 in contravention of Regulation 2(g) of the FAR, 2004. The situation persisted despite several written notices by the University to the bank. The Auditor-General recommended to management to ensure that the Bank corrects the errors.

Management informed the Committee that, the Bank failed to correct the errors despite several written notices to the Bank. In protest to the irresponsiveness of the Bank, the University has stopped operating the account. The anomaly however persists and has not been rectified by the Bank.

No Fund Manager for SSNIT Second Tier (GH¢35,265.32)

The audit disclosed that Contrary to Section 1 of the National Pensions Act of 2008 (Act 766), Management

of the University is yet to engage a fund manager to manage the second- tier pension of employees amounting to GH¢35,265.32. Management was urged to speed up efforts to engage a fund manager to manage the second- tier contributions of the employees immediately.

Following the audit observation, management has engaged Pen Trust Tier -2 MTOPS to manage the tier two pension contributions of staff.

Uncredited cheques

The Auditor-General noted that the Ghana Baptist University College (GBUC) deposited US$6,000.00 into the GCB Forex Dollar Account of the University of Cape Coast (UCC) on the 13th April, 2016 in payment of an affiliation fees. This amount is still standing as an uncredited cheque in the bank reconciliation statement of UCC though GBUC confirms the payment by a charge of the amount on their bank statement which they made available to UCC. The auditors recommended that the management of UCC must investigate the transfer and get its account credited.

The Committee noted that, the amount remains uncredited to the account of UCC. The Committee

recommends to management to as a matter of urgency investigate the matter failure which the Auditor- General must exercise his power of surcharge on the Head of Finance of the University.

Assets not included in the Asset Register Worth GH¢2,176,725.33

The audit disclosed that 4 vehicles valued at GH¢1,445,138 and two generators value at GH¢731,587.33 acquired by the University were not included in the asset Register of the University in contravention of Regulation 2 (n) of FAR, 2004. The anomaly was as a result of management's failure to exercise control over the recording of assets in the assets register. The Auditor- General recommends to management to update the assets register immediately to include the assets.

The Committee noted that management has updated the register to take account of the four (4) vehicles and the two generators.

Fixed Assets not embossed

During a physical verification of assets purchased in 2016, the auditors noted that a number of asset procured at a total cost of GH¢2,317,319.99 were not embossed with identification
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


marks in contravention of Section 21 of the Financial and Stores Regulations of the University. The Auditors recommended to manage- ment to ensure that all the items are embossed to reduce the risk of theft.

The Committee noted that management has since complied with the recommendation of the Auditors and embossed all the items.

Ownership of Motor Vehicles

DVLA regulation requires that whenever the ownership of a vehicle changes, the new owner must take steps to effect change of ownership within fourteen (14) days. Contrary to this provision, the audit established that twenty-eight (28) vehicles purchased for College of Distance Education by the University as far back as 2006 have the ownership title still in the name of the vendors. This situation occurred because Management does not have an effective monitoring system in place to ensure that transfer of ownership of vehicles purchased is effected promptly. The auditors advised Management to ensure that, ownership of these vehicles are transferred to the University. Management should also institute an effective monitoring system to ensure

that titles to all assets acquired are promptly transferred to the University.

The Committee noted that, management has taken steps to register all the vehicles in the name of the University in compliance with the recommendations of the Auditor- General.

Contract Modifications not approved -- GH¢8,073,111

The audit observed that the University of Cape Coast made modifications, variations, extension to four contracts exceeding 10 per cent of the original value of the contract but failed to refer the contract to the Tender Review Board for Approval in contravention of Section 87 (1) of the Public Procurement Act of 2003 (Act 663). The auditor-General recommended that modifications to contract sums, be it variations, additional works or fluctuations which exceeded the limits set by Section 87 (1) of the Public Procurement Act of 2003 (Act 663) should be approved by the appropriate Tender Review Board.

The Committee noted that the failure on the part of management to ensure that the above provision is adhered to may lead to fraudulent overstatement of original contract sum. The Committee recommends

that the officer(s) involved should be sanctioned for violating Section 87 of the Public procurement Act.

7.4 Ministry of Trade and Industry

Songhor Salt Project Penalty for Late Payment of Statutory Deductions -- GH¢61,628.20

The audit observed that as a result of liquidity challenge Sanghor Salt Project delayed in statutory payment of PAYE, employee SSF and withholding taxes amounting to GH¢93,876.72 resulting in a total penalty payments of GH¢61,628.20. The auditors recommended to management to ensure that statutory payments are made on due dates to avoid penalty payments.

Management further reiterated the liquidity challenges facing the operation of the company. The Committee is pleased to note that management has since desisted from accumulating statutory arrears to avoid the payment of penalties.

Ecobank Forex Account Balance

-- GH¢2,218.40

The audit identified that an amount of GH¢2,218.40 in the Ecobank Forex Account has been standing in the books of the company since 2010.

The auditors recommended to management to provide the bank statement for audit verification and if possible consider closing the account and the amount transferred to an active account.

The Committee was informed that the account remain dormant since 2010, however, in compliance with the recommendations of the Auditor- General, management had closed the account and the balance of GH¢2,218.40 transferred to the company's cedi account at Ecobank.

Lack of Protective Working Gear

The audit disclosed that staff of the company working with heavy electrical and mechanical equipment are not provided with protective working gears thereby compromising the safety and health of the employees. The auditors recommended to management to provide the needed safety equipment to the employees.

Management informed the Committee that, the company was in financial distress at the time and all workers were willing to sacrifice to turn the fortunes of the company. They assured the Committee that the health and safety of their employees is of paramount importance to the company. As a result, the requisite safety equipment have been provided
Chairman of the Committee (Mr James Klutse Avedzi) 2:40 p.m.


to all employees in compliance with the recommendations of the Auditor- General.

Legal Status of Songhor Salt Project

The audit disclosed that the ability of the Project to manage its operations has been adversely affected because of the problem with its legal status that has persisted, several years after its creation. There is no any evidence of registration or incorporation from the Registrar- General's Department even though PNDC Law 287 vested interest in the project to the state. The corporate governance structures are also not sufficient. The Project has no Board but being managed by a management committee. The Auditor-General recommended that the relevant authorities should resolve the issue.

The Deputy Minister for Trade and Industry in acknowledging the challenge informed the Committee that the absence of legal backing has over the years affected the ability of the company to attract investment. It has also affected the project's relationship with its banking partners. He assured the Committee that efforts are underway to resolve issues about the legal status of the company. Progress however is been delayed by

the ability to secure funds to compensate the original owners of the company. He assured that Government is in the process of agreeing on compensation payment to the original owners to allow it engage investors on the project. He indicated that, the viability of the project is not in doubt and many investors have expressed interest in the project.

The Committee recommends that the Minister of Trade and Industry should engage the Ministry of Finance to expedite action on compensation payment to the original owners to pave way for the regularisation of the legal status of Songhor.

Unregistered Land Purchased

The audit established that Songhor Salt Project has not acquired Land title for five (5) plots of land purchased at Sege township in 2012 at a cost of GH¢25,950 for the construction of staff quarters. The auditors recommended that efforts should be made to obtain title to the land.

The Committee noted that in compliance with the audit recommendations, management commenced processes to secure title for the five plots of Land. The process is ongoing and the Company is awaiting final title deed from the Lands Commission.
GIHOC DISTILLERIES 2:40 p.m.

COMPANY LIMITED 2:40 p.m.

EXIM BANK 2:40 p.m.

GHANA FREE ZONES BOARD 2:40 p.m.

G-PAK LIMITED 2:40 p.m.

Mr Kofi Okyere-Agyekum (NPP -- Fanteakwa South) 4:43 p.m.
Mr Speaker, I beg to second the Motion.
Mr Speaker, I noticed that there have been substantial increases in the value of infractions. Infractions such as outstanding debts and loans recoverable, cash irregularities among others which increased from GH¢718 million in 2016, to about GH¢12 billion in 2017 was mainly not as a result of increased in the number of infractions but the value of the infractions. I would want it to be noted that the values of the infractions increased substantially but the incidence of the infractions did not necessary connote the value.
Mr Speaker, I also noticed that there were substantial increases in infractions such as cash irregularities and other irregularities. However, I urge the House to support the Motion and adopt the Report.
Mr Second Deputy Speaker 4:43 p.m.
Hon Members, the Motion has been moved and seconded. I would invite two members from each Side including leadership.
Dr Clement A. Apaak (NDC -- Builsa South) 4:43 p.m.
Mr Speaker, I beg to contribute to the Motion and in
rose
Mr Second Deputy Speaker 4:43 p.m.
Hon Member, please, hold on.
Yes, Hon Majority Leader?
Mr Kyei-Mensah-Bonsu 4:43 p.m.
Mr Speaker, my Hon Colleague is addressing a very salient issue but he seems to be mixing up the facts or perhaps, not describing the situation properly. I think he means the “bonded warehouse'' and not just the concept of warehouse.
Dr Apaak 4:43 p.m.
Mr Speaker, that is rightly so. I do appreciate the intervention by the Hon Majority Leader. It is indeed, “bonded warehouses''.
Mr Speaker, the concept as I indicated earlier, is to allow for goods
imported into the country whose owners are not immediately able to pay the requisite duties and taxes. These bonded warehouses are usually in the custody of the Ghana Revenue Authorities specifically, the Customs and it is supposed to be the case that an officer is assigned and no one is allowed entry to take goods out of a bonded warehouse without the presence of a customs officer. Usually, multiple keys are given to the key stakeholders but time again, we come across reports where owners of these goods have had access to these bonded warehouses taking goods out and dispose them off without the knowledge of “custom officers''. This is very baffling and it continues to be one of the ways through which the nation loses colossal amounts of money.
In the case of the Report, two companies together denied the nation in excess of GH¢103 million. These were bonded warehouses where custom officers were assigned. How could that be possible? I emphasise this because as I speak, there are indications that these practices still continue. For how long would we allow public officials who are supposed to be in charge to help us mobilise the needed revenue to renege on their primary responsibilities to the detriment of the State? Indeed, we ought to look at very severe
sanctions because I cannot be convinced that the said officers would have had no knowledge of what transpired.
Mr Speaker, the PAC usually does its work as we have done and make recommendations, but where and to what extent would we give effect to these recommendations? The tendency to look down on the
PAC -- 4:43 p.m.

rose
Mr Second Deputy Speaker 4:43 p.m.
Hon Member, hold on once again.
Yes, Hon Ranking Member?
Mr Okyere-Agyekum 4:43 p.m.
Mr Speaker, my Hon Colleague is making a mistake. The Report we moved is the report on Public Boards, Corporations and Other Statutory Institutions meanwhile, he is making comments from the Report on Ministries, Departments and Other Agencies. So, I just want to correct him.
Mr Second Deputy Speaker 4:43 p.m.
Hon Member, I am told you are commenting on something else.
Dr Apaak 4:43 p.m.
Mr Speaker, very well. I would stand that down then.
Ms Darkoa Newman (NPP -- Okaikwei South) 4:53 p.m.
Mr Speaker, I beg to support the Motion.

Mr Speaker, based on the Report, I would agree that there were certain irregularities and challenges that some of these Boards and corporations faced. Some of these irregularities that the Auditor-General made note of during the sittings were payroll irregularities.

Mr Speaker, these irregularities came about due to some lapses. We would see that from the Report, management refused to undertake due diligence that led to payroll irregularities.

Secondly, Mr Speaker, it was seen from the Report that the officers also failed to review payment vouchers and that also led to these irregularities that we see here.

Mr Speaker, thirdly, I would say that the management of these corporations did not stop the banks from making payments to workers who were no longer entitled to these payments.

Mr Speaker, in all these irregularities that we realised during the sittings, one important thing was
Ms Darkoa Newman (NPP -- Okaikwei South) 4:53 p.m.


that these corporations agreed to adhere to the rules and regulations and so recommendations made asking them to direct the banks to pay back were adhered to.

Mr Speaker, the auditors present confirmed that these irregularities had been taken note of and the respective corporations and public boards had taken the necessary steps to correct these irregularities.

Mr Speaker, furthermore, when we go to page 7 of the Report, looking at the Petroleum Commission, we also realised a few challenges that the Commission had. We looked at inadequate staffing at the Commission and we realised that the Human Resource Manager also doubled as a Transport Manager. All these corporations were given recommendations based on their challenges and as of now, from the recommendations, we know that they were able to recruit more staff in order to curb all these problems.

Mr Speaker, we would agree that there were irregularities and challenges, but I am adding my voice that we adopt this Report because all these recommendations have been taken into account and the problems have been rectified.

Mr Speaker, as I sit, I would pray to the House that we adopt this Report by the Public Accounts Committee on the Auditor-General's Report on the public accounts of Ghana, Public Boards, Corporations and other Statutory Institutions for year ended 31st December, 2017.
Mr Kofi Iddie Adams (NDC- Buem) 4:53 p.m.
Mr Speaker, I thank you for the opportunity to contribute to this very important Report that your Public Accounts Committee has presented to this House for adoption especially in relation to the Public Boards, Corporations and other Statutory Institutions for the year ended 31st December, 2017.
Mr Speaker, in doing so, the Committee identified a number of issues that one would observe have been repeated over the period. The values of funds that have been lost to the State as a result of repetition of such offences keep increasing and really staggering.
Mr Speaker, I refer you to page 30 of the Report and you would observe that Ghana AIDS Commission alone expended about GH¢482,000.00 more without receipt. So, how possible could one
clearly account for funds that have been vested in his or her hands if one does not provide the appropriate receipts for utilisation of such funds.
Mr Speaker, it is therefore very important that the Audit Reports as presented to us and your Public Accounts Committee working on and submitting same to this House should not just be adopted and made to gather dust. They must be properly and appropriately implemented so that we would not see the repetition of some of these offences happening year after year, and in every other year and every Report that one picks, one finds same.
Mr Speaker, you would also realise that from page 19, just non- deduction of taxes of allowances from University of Ghana alone is more than GH¢4 million. This can go a long way to support other departments within the educational sector. It is really important for institutions and organisations that are so affected to show improvement. I say so because the House is behind in looking at some of the Reports as submitted by the Auditor-General. When you pick the subsequent years, you would see repetition of the same offences as identified in the 2017 Report. As somebody would put it, “have we come or have we gone”? It is
important that Reports such as these are taken a bit more seriously.
Mr Speaker, this House is supposed to play that supervisory role over the Executive in how funds, especially, are utilised. Your Public Accounts Committee, while others are checking in the course of the expenditure, checks after the expenditure have been done. So, it is like a stamp on whether what has been done has been done rightly and reports after reports show that we are not improving and the House must be seriously concerned. We should not just adopt the Report but we must see to the implementation of the Report.
Mr Speaker, in an answer by the Attorney-General and Minister for Justice when the Ministry of Justice appeared before the Public Accounts Committee, they gave the necessary assurance and I believe that it is important this House followed up to see to it that with the support of the House, the Attorney-General will see to the implementation of the Audit Reports as submitted to us, worked on by the Public Accounts Committee and brought to this House for adoption.
Mr Speaker, you can also find on page 26 of the Report facilities extended to beneficiaries as loans. More than GH¢93 million funds that was given as loans to beneficiaries.
Mr Second Deputy Speaker 4:53 p.m.
Very well, Hon Members, I would put the Question.
Question put and Motion agreed to.
Resolved Accordingly.
Mr Second Deputy Speaker 4:53 p.m.
Hon Minority Leader, we would take one of your Reports, then we go back to the Committee on Mines and Energy and then come back to the rest.
Motion numbered 19, Hon Member, go ahead.
MOTIONS 5:03 p.m.

Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.
Mr Speaker, I beg to move that this honourable House adopts the Report of the Public Accounts Committee on the Report of the Auditor-General on the Public Accounts of Ghana, Ministries, Departments and Other Agencies (MDAs) for the Financial Year Ended 31st December, 2017.
In so doing, I beg to present your Committee's Report.
1.0 Introduction
The Report of the Auditor-General on the Public Accounts of Ghana - Ministries, Departments and Other Agencies (MDAs) for the financial year ended 31st December 2017 was presented to the House in accordance
with article 187 of the 1992 Constitution of the Republic of Ghana.
The Report was referred to the Public Accounts Committee (PAC) for examination and report pursuant to Order 165(2) of the Standing Orders of the Parliament of Ghana.
2.0 Procedure
To examine the Report, the Committee held public hearings on the reports and was assisted in its work by the various Ministers, Deputy Ministers and officials of the respective MDAs who supervised the various institutions that were audited.
All witnesses who appeared before the Committee subscribed to the Oath of a Witness and answered questions relating to the issues/queries raised by the Auditor-General in his report and on issues of general public interest.
3.0. Acknowledgement
The Committee expresses its appreciation to the Ministers, Deputy Ministers and officials from the Ministries and the Audit Service for their assistance to the Committee.
The Committee also extends its profound gratitude to Ghana Broadcasting Corporation, (GBC -
TV) and other media houses for the live telecast of the Committees' sittings.
4.0 Reference Documents
The Committee referred to the following documents during its deliberations:
a. The 1992 Constitution of the Republic of Ghana.
b. The Standing Orders of the Parliament of Ghana.
c. The Financial Administration Regulation, 2004 (L.I.
1802).
d. The Audit Service Act, 2000 (Act 584).
e. The Public Procurement Act 2003 (Act 663).
f. The Internal Audit Agency Act, 2003 (Act 658).
g. The Public Financial Management Act, 2016 (Act
921).
h. National Health Insurance Regulation.
i. The Value Added Tax Act, 2013 (Act 890).
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


j. The Income Tax Act, 2015 (Act 896).

k. The Stores Regulation, 1984.

5.0 Purpose of the Audit

The Auditor-General conducted an audit on the Public Accounts of Ghana (Ministries, Departments and Agencies (MDAs) for the year ended 31st December, 2017 in accordance with section 13 of the Audit Service Act, 2000 (Act 584);

The purpose of the audit was for the Auditor-General to ascertain whether all MDAs maintained proper records and books, whether accounts were properly kept and all public moneys due were fully accounted for. The audit also sought to determine if the rules and procedures applicable were sufficient to ensure an effective check on the

assessment, collection and proper allocation of revenues and whether moneys were expended for the purposes for which they were appropriated and the expenditures made as authorised.

6.0 Summary of Audit Findings

The significant findings of the Auditor-General in his Report bordered on Tax irregularities, Cash irregularities, Stores/Procurement Irregularities, Payroll irregularities and Outstanding Loans/Advances . The overall impact of the irregularities amounted to GH¢892,396,375.19. The Committee noted that the irregularities declined significantly from GH¢2,165,642,375.14 in the 2016 report to GH¢892,396,375.19 recorded in the 2017 representing 59 per cent decline in irregularities. The detail analysis of the 2016 and 2017 irregularities are presented in Table 1 below:

Causes of the Various Irregularities and Recommendations by the Auditor General

6.1 Tax Irregularities

The Tax irregularities were traced mainly to the failure of Ghana Revenue Authority (GRA) to collect tax revenues due Government, failure to apply stipulated sanctions against tax defaulters as stipulated in Section 135 and 136 of the Income Tax Act (2015) Act 592 and failure of accountants to pay statutory deductions on due dates and non-deduction of tax due to non-adherence to the provisions in the tax laws.

The Auditor-General recom- mended that GRA should strengthen monitoring of officers and take steps to improve efficiency in tax

administration, collection and follow up on overdue taxes.

6.2 Cash Irregularities

Cash irregularities identified by the Auditor-General were mostly related to unapproved disbursements, unauthorised use of IGF, dishonoured cheques, revenues unaccounted for, unsupported payments, unpresented payment vouchers, unauthorised transfer of funds, uncredited payments, payment of public Funds into private bank accounts and misapplication of funds.

The Auditor-General attributed these irregularities to poor oversight, lack of control and the failure of Paying Officers to demand receipts for payments made. Failure of Accountants to properly file and keep records, managements' failure to ensure the security and safety of vital
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


documents and management's inertia in complying with procedures stipulated in the Public Financial Management Act.

To avert the recurrence of these irregularities, the Auditor-General urged the heads of MDAs to continue to strengthen their controls over the collection and disbursement of cash and other funds and also ensure strict adherence to the provisions of the PFMA, 2016, Act 921 and the FAR,

2004 (L.I. 1802).

6 . 3 S t o r e s / P r o c u r e m e n t Irregularities

Stores irregularities identified relates to value books procured but not in use as a result of the absence of effective collaboration between the Controller and Accountant General's Department (CAGD) and MDAs regarding the printing and management of value books. The irregularity is also due to lack of commitment on the part of entity heads to ensure compliance with established internal control measures, administrative rules and legislations governing the procurement process. The Auditor-General recommended the strengthening of supervision and

monitoring by heads of MDAs as well as ensuring strict compliance with the provisions of the Public Procurement (Amendment ) Act 2016, (Act 914) and other rules governing public procurement. He also called for effective collaboration between the Controller and Accountant-General and entity heads in the procurement of value books.

6.4 Payroll Irregularities

Payroll lapses were largely attributed to the payment of unearned salaries to separated staff as a result of delays in deleting their names from the payroll and the delays by banks in transferring unclaimed pensions and salaries to government chest. The Auditor-General recommended an improved collaboration between finance and Human Resource units within MDAs in their responsibility of payroll management and the recovery of unearned salaries paid to unauthorised personnel.

6.5 Outstanding Loans/Advances

These irregularities represent trade debtors, staff debtors and outstanding loans on tractor and equipment supplied to some 19 farmers but remain unpaid. The

Auditor-General recommended the institution of stringent measures including legal action to recover the outstanding debts.

6.6 Rent Irregularities - Total rent irregularities was GH¢195,360.26.

Total rent irregularities amounted to GH¢195,360.26 were due to failure of entity heads to collect rent due from staff. The Auditor-General recommended to entity heads to ensure prompt collection of rent from officers occupying government bungalows.

7.0 Committee's Observations and Recommendations

The Committee noted that most of the institutions had complied with the recommendations of the Auditor- General in respect of the irregularities cited against them. The Committee observed that, out of a total irregularities of GH¢892,396,375.19 recorded in the 2017 audit report, irregularities amounting to GH¢540,520,571.78 representing 60.57 per cent of irregularities had been resolved leaving an amount of GH¢351,875,803.41or 39.43 per cent unresolved. The detail analysis of the status of the 2017 irregularities are presented in Table 2 below:

Table 2: Status of 2017 Irregularities

The unresolved irregularities relate to the following Ministries, Departments and Agencies:

8.0 Ministry of Finance

8.1Prestea Sankofa Ltd royalties debt

The audit disclosed that mineral royalties payable to Government by
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


Prestea Sankofa Ltd. amounting to GH¢11,578,688.69 since 2012/2013 remained uncollected by GRA contrary to section 25 of the Minerals and Mining (Amendment Act) 2015, Act 900. The Auditor-General urged the Commissioner-General to ensure the recovery of all outstanding royalties without any further delay.

The Committee noted that, notwithstanding the audit observation, the amount remained uncollected by GRA. The Authority explained that the Prestea Sankofa mine seized operations since 2016 due to technical challenges and the debt is part of Institutional debt for which the Ministry of Finance is been engaged to agree on modalities for settlement. On the present state of royalty payment, the Ministry of Finance explained that, all mineral royalties are paid directly into the Mineral Income Investment Fund which is monitored by the GRA to ensure that the right royalties are paid.

The Committee urged the Commissioner-General and the Minister to expedite action on the engagements and bring finality to the issue. The Ministry must also report to the Committee by the end of 2021 indicating whether the debt is recoverable or should be written off.

8.2 Oranto Stone Energy indebtedness to the State --

US$3,530,410.47

The audit revealed that Oranto Stone Energy was billed surface rental of US$67,438.36 since February, 2013 but they failed to pay. In 2016, the Ghana Revenue Authority in accordance with the Petroleum Revenue Management Act, 2011, Act 815 calculated the applicable penalties for the default period which also amounted to US$3,462,972.11 bringing the total indebtedness to US$3,530,410.47. The Auditor- General advised GRA to use the appropriate means to track the company and collect the outstanding amount for the State.

The Committee noted that the amount remains uncollected. Officials from GRA explained that, the company relinquished their block in 2015 and all efforts to track the directors of the company yielded no result. The Authority is presently engaging the Federal Inland Revenue Service (FIRS) of Nigeria to assist in locating the directors of the Company who are all Nigerians.

The Committee is dissatisfied with the arrangements in which oil blocks are granted to international firms without requesting for a performance bond. The Committee recommends

to the Ministry of Energy, Ministry of Finance and the Registrar-General's Department to collaborate to ensure that, foreign firms without local participation are required to provide some form of guarantee or bond that the State can fall on in case they default in their obligations to the State.

Bonded Warehouses -- Accra Collection

8.3 Accumulated duty on over stayed vehicle -- GH¢20,175.00

Physical stock taking at Fairllop International Warehouse disclosed that one unit MG 550 saloon c a r with chassis number LSJW2699XB5013890 valued at US$16,140.04 overstayed its validity in the warehouse for a period of 5 years in contravention of Section 88 of the Customs Act 2015 (Act 891), resulting in an accumulated duty of

GH¢20,175.00. The Auditor-General urged GRA to ensure the collection of the duty of GH¢20,175.00 from Fairllop International.

The Committee noted that in compliance with the audit recommendation, GRA reassessed the duty payable by the company using the prevailing US Dollar to cedi Exchange rate and arrived at a duty payable of GHS32, 220.88 which has since been paid by Faillop International.

8.4 Goods taken from warehouse without payment of duty --

GH¢103,876,668.25

The audit disclosed that two companies moved assorted items from the Bonded Warehouses without the payment of respective duties and taxes amounting to GH¢103,876,668.25 in contravention of Section 83 of the Customs Act, 2015 (Act 891) as detailed below:

Table 3: Goods taken from Bonded warehouse without Payment
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


The Auditor-General identified that weak control in the management of the bonded warehouses by the resident customs officers resulted in this infraction. He therefore recommended that the unpaid duty of GH¢103,876,668.25 is recovered together with its associated penalties by the Commissioner-General. He also recommended that the resident customs officers are sanctioned to serve as deterrent to others.

The Committee noted that the unpaid taxes together with the interest component remains unrecovered. Officials from GRA explained to the Committee that, the two companies have been placed under receivership and all attempts to get the receiver to pay the taxes were unsuccessful. GRA is not certain whether the funds could be recovered. All efforts to identify the directors of the firm also remains unsuccessful.

The Committee also noted that, the two supervising officers have been sanctioned in accordance with the recommendation of the Auditor- General. The supervising officer in charge of Market Direct Limited, Mrs Charlotte K. Quartey has been dismissed while Ms Gladys Nunekpeku, the officer in charge of Venees Food Products has been demoted.

The Committee further noted that, GRA has taken a number of initiatives including the deployment of technology to prevent future reccurrence of such an illegality. The Committee is however dissatisfied with the attempt to locate the directors of the two companies who took out the goods illegally. The Committee recommends to GRA to intensify its efforts to locate the directors of the two companies and also take steps to blacklist them. Additionally, responsible officers and directors of the company should be identified and charged with tax evasion.

Tema Oil Refinery (TOR)

8.5 Failure to impose penalty on late payments -- GH¢1,751,9966.16

The audit disclosed that contrary to Customs Internal Standards Organisation Procedure No. 100, twenty-two (22) Oil Marketing Companies (OMCs) delayed in the payment of Excise duty on Petroleum products amounting to GH¢912,793.17 for the year 2016; however, the Commissioner of Customs however did not impose a penalty and interest on GH¢460,869.14 on the 22 defaulted OMCs.

Similarly, Reima Gas and Lone Star Gas which owed the State a total amount of GH¢726,665.18 in taxes

as at 1st January 2017 were authorised by the Assistant Commissioner, Takoradi Customs Division to lift extra gas valued at GH¢564,431.84 from the Anokyi Quantum Terminal bringing their total indebtedness to GH¢1,291,097.02. The Auditor- General recommended the recovery of the amount of GH¢1,751,966.16 from the defaulting OMC's failing which the Commissioner or his staff may be surcharged.

The Committee noted that an amount of GH¢ 459,916.01 has been collected out of a total duties and penalties of GH¢460,869.14 leaving a balance of GH¢953.13. The outstanding balance stands in the name of Oando which folded up in 2017. Additionally, the debt of GH¢1,291,097.02 in the name of Reima Gas and Lone Star Gas has been fully recovered. The Authority has since introduced cash and carry as well as Bank guarantees to forestall recurrence of such an event.

Ghana Revenue Authority - Domestic and Tax Revenue Division (DT/RD)

8.6 Failure to charge Penalty on late transfer of Petroleum Revenue -- GH¢10,288,100

The audit disclosed that three (3) Commercial Banks delayed in the

transfer of petroleum revenue amounting GH¢4,061,641,996.243 into the Consolidated Fund for periods ranging between 3 and 243 days thereby accruing delayed penalty of GH¢10,288,132.53 as at 29 December 2016, but GRA failed to apply the sanctions for the delayed transfers. The Auditor-General attributed the delays to management's inability to perform regular reconciliation together with weak monitoring and supervision of the Banks by GRA.

The Auditor-General recom- mended that GRA should intensify its monitoring on the Collection Banks to ensure prompt transfer of revenues to the Consolidated Fund. He also urged the Commissioner-General to ensure that the appropriate penalties are paid by the banks to serve as a deterrent.

The GRA provided documentation to the Committee which indicates that, there was a government directive that permits the banks to lodge all tax revenues into a transit account held at Ghana Commercial Bank and Ecobank Ghana Limited. The actions of the Banks were in accordance with this directive. The Committee noted that, GRA however failed to provide information on the directive to the auditors hence the query. The Committee urged GRA to take the
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


audit process seriously and ensure that the necessary documentations are provided to the auditors on the field to clear all audit observations raised in the management letter issued by the officials of the Audit Service.

8.7 Outstanding income taxes --

GH¢350,061,386.00, US$11,969,631.79

and (GBP) £36, 967.06

A review of 5,377 selected tax files from 15 Domestic Tax Revenue Offices in the Greater Accra Region showed that 2,597 Companies, Business Entities and individuals owed an amount of GH¢350,061,386.60, US$11,969,631.79 and (GBP) £36,967.06 in corporate income taxes for the 2016 year of assessment in contravention of Section 41 of the Income Tax Act, 2015 (Act 896) . The Auditor-General recommended to GRA to strengthen its enforcement role and collect all the outstanding tax revenues.

The Committee noted that, in compliance with the recommenda- tions of the Auditor-General, GRA initiated steps and recovered all the tax liabilities denominated in US$ and British Pounds. The Committee was informed that, following a reconciliation with the Ghana

Audit Service, the outstanding liabilities in Ghana cedis was revised from GH¢350,061,386.60 to GH¢114,525,386.18. The entire amount however remains unpaid. Out of this amount, GH¢104,817,707.50 stand in the name of Ghana Grid Company Limited and another GH¢2,792,595.50 relates to Prestea Sankofa. Officials from GRA explained to the Committee that, the amounts in the name of GRIDCo and Prestea Sankofa are part of institutional debts that the Ministry of Finance is finding the most suitable way of dealing with them. GRA has instituted a number of measures including third party notices, garnishment and notice of charge over assets to recover the remaining GH¢6,915,083.18 which stands in the name of a number of companies. The Committee recommends to the Authority to expedite action in its effort to recover the outstanding taxes.

8.8 Unpaid tax -- GH¢55,990,110 and US$237,901

The audit discovered that Contrary to Section 117 of the Income Tax Act 2015,(Act 896), 1,479 employers including 52 Directors did not remit Pay As You Earn (PAYE) deductions of GH¢55,990,110.72 and US$237,901.75 to the Commissioner-General for the 2016

year of assessment. The Auditor- General urged management to recover all outstanding PAYE together with appropriate penalties and pay same to the Commissioner-General.

The Committee noted that the USD outstanding liabilities amounting to US$237,901.75 has been fully recovered with interest. Additionally, an amount of GH¢42,692,075.06 plus interest of GH¢11,067,998.41

representing 75.25 per cent of the cedi component of the outstanding liabilities has also been recovered leaving an amount of GH¢13,298,035.66 which remains uncollected. Out of the unre- covered amount, GH¢3,388,920.77 represents overstatement by the auditors and GH¢24,249.56 relates to closed businesses. The remaining GH¢9,884,865.33 represent unpaid PAYE relating to the following institutions:

Tema Oil Refinery GH¢9,158,193.22

1. Special Steel Ltd. -- GH¢169,458.35

2. Sae Powerlines Ltd -- GH¢89,511.75

The Committee was informed that Special Steel and Sae Powerline have suspended their operations. The Authority has initiated processes to identify the directors of the two companies for further enforcement action. In the case of TOR, several demand notices have been sent to them to pay the taxes but to no avail.

The Committee recommends to the Commissioner-General to pursue the directors and responsible account officers of the defaulting companies to retrieve the taxes.

8.9 Outstanding withholding tax

-- GH¢5,327,454

Examination of tax files showed that 306 companies failed to pay withholding taxes on services totaling GH¢5,327,454.57 in contravention of Section 116 of the Income Tax Act, 2015 (Act 896). The Auditor- General recommended to GRA to ensure that withholding taxes on services are collected to minimise the risk of tax evasion.

The Committee noted that following the audit observation, GRA has
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


recovered an amount of GH¢3,777,933.24 with a balance of GH¢1,549,521.33. The outstanding balance includes an overstatement of GH¢296,320.39,

dormant file of GH¢2,371.68 and closed businesses of GH¢2,030.79 leaving an actual unrecovered balance of GH¢1,248,798.47. The unrecovered balance stands in the names of:

1. Tema Oil Refinery -- GH¢565,159.78

2. Special Steels Ltd -- GH¢51,272.96

3. Other companies -- GH¢632,365.73

Total -- GH¢1,248,798.47

The Committee noted that, GRA is enforcing various measures available to it to recover the outstanding taxes. The Committee urges the Commissioner-General to vigorously pursue recovery and also charge penalties on the outstanding amounts as stipulated in law.

8.10 VAT debtors -- GH¢3,183,300

The audit disclosed that 69 registered VAT traders who filed their returns at the various tax offices owed a total of GH¢3,183,279.61.00 as at 31 December, 2016 in contravention of Section 55 of the VAT Act of 2013 (Act 870). The Auditor-General urged the Commissioner-General to take the necessary steps to recover all the outstanding taxes and also intensify tax education campaigns and constantly follow up on defaulters.

The Committee noted that an amount of GH¢3,070,292.85 has been recovered leaving a balance of GH¢112,986.16. Officials of GRA informed the Committee that, the outstanding balance has been referred to the legal Department of the Authority for further enforcement actions.

The Committee urges the Legal Department to expedite action on all tax defaulters referred to it.

8.11 Outstanding rent tax --

GH¢3,946,000

A review of rent files during the audit revealed that a total 451 Landlords owe the GRA an outstanding debt of GH¢3,946,046.89 as at 31 December, 2016 contrary to the provision in Regulation 16 of the

Internal Revenue Regulation, 2001. The auditors recommended that GRA should pursue recovery of tax arrears. They further urged GRA to work in collaboration of the District Assemblies to build adequate database on properties in the MMDAs for the purpose of determining and collection of rent income tax.

As at Committee sitting the sum of GH¢1,735,805.84 has been recovered leaving GH¢2,210,241.05 outstanding.

Officials from GRA explained to the Committee that many of the properties involved have been converted from rented premises to owner occupied properties making it very difficult to collect the outstanding taxes. They assured the Committee that enforcement actions are been undertaken to retrieve the outstanding liabilities. They were hopeful that, the deployment of Geo-spatial application will assist in retrieving the outstanding liabilities and help to identify properties accurately for the purposes of taxation.

The Commit tee urges management of GRA to retrieve all the outstanding liabilities and report same to the Auditor-General for verification.

8.12 Outstanding dishonored cheques -- GH¢1,122,900

A review of the Returned Cheques Register at 11 tax offices in Greater Accra and Western Regions showed that 115 cheques with a total face value of GH¢1,122,938.15 issued by tax payers in settlement of their tax liabilities were dishonoured by their respective banks. The audit noted that though these cheques had been dishonoured for a long time, no sanction had been instituted by GRA to ensure the recovery of the revenue as well as serving as deterrent to others in contravention to Section 139 of the Income Tax Act of 2015 (Act

896).

The Auditor-General attributed the occurrence to weak control mechanism for the follow- up of returned cheques. He urged the Commissioner-General to pursue the recovery of the taxes and impose penalties against the defaulting Companies. He also urged Management to strengthen their oversight on revenue collection and sanction regime to minimise the receipts of dud cheques.

The Committee noted that following the audit observation, an amount of GH¢732,872.71 has been recovered leaving an outstanding amount of GH¢390,065.44 which relates to Prestea Sankofa which has suspended its operations. The
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


Committee further noted that, the liability was incurred by Prestea Sankofa prior to the suspension of its operations. The Committee recommends to the Commissioner- General to pursue the recovery of all taxes owed the State by Prestea Sankofa prior to the suspension of its operations.

Medium Tax Office (MTO) -- Takoradi

8.13 Failure to impose penalty on under-assessment of tax

The audit revealed that Takoradi Medium Tax Office failed to imposed 30 per cent penalty amounting to GH¢474, 292.19 on persons whose estimate and revised estimate of

chargeable income for a year of assessment which was less than ninety per cent of the person's actual chargeable income assessed for that year in contravention of the Income Tax Act of 2015 (Act 896). The Auditor-General recommended to management to recover the penalty of GH¢474,292.19 or in default, should be held liable for the payment of the said amount.

The Committee noted that an amount of GH¢407,050.31 has been recovered leaving a GH¢67,241.88 outstanding. Officials of GRA informed the Committee that the outstanding amount relates to two foreign contractors who had worked on the Aboadze Thermal Plant and has since left the country following the completion of their contracts. The amount relates to:

Controller and Accountant Generals Department (CAGD)

8.14 Wasteful expenditure on Value Books -- GH¢39,347,890

The audit established that CAGD printed 10,555,000 assorted value books with face value of GH¢17,779,500 at the request of four MDAs between November 2000 and October 2009 but the value books remained in the stores of the CAGD. Similarly, 29 different value books numbering 14,353,580 booklets wi th f ace va lue GH¢21,568,386.00 which were also printed by CAGD on behalf of six other MDAs were abandoned as far back as 2010. The Auditor- General blamed the situation on lack of effective collaboration between the office of the CAGD and MDAs and urged for an improved collaboration to avert future recurrence.

At the Committee meeting, it was established that, the values quoted represent the potential revenue that could be realised if the value books were used. Additionally, the value

books were not used due to the deployment of technology that allows for direct bank payment for services rendered by some MDAs, currency redenomination, and change in security features amongst others. The Committee recom- mends to the CAGD to dispose the stock of obsolete value books.

8.15 Outstanding debts

Examination of records of supply of value books to MDAs showed that seven Institutions defaulted in the settlement of their debts totaling GH¢2,135,529.90 as at November 2017. The Auditor-General blamed the situation of outstanding debt on weak debt collection mechanism at the CAGD and urged Management to strengthen its debt collection mechanism and ensure recovery of the outstanding amount of

GH¢2,135,529.90.

The Committee noted that an amount of GH¢475,661 has been recovered leaving a balance of GH¢1,659,868.90 outstanding. The payment relate to the following institutions:

1. S.M. Powertech -- GH¢49,230.10

2. Woolim Plant Engineering and Construction Ltd. -- GH¢18,011.78

Total -- GH¢67,241.88

The Committee while attributing the situation to laxity in enforcing the tax law by officials of GRA is also hopeful that the current arrangement where directors are made to deposit bonds will end the practice of foreign companies exiting the shores of the country without settling their

liabilities to the State. The Committee urges the Commissioner- General to pursue recovery from the two foreign firms failure of which the officers whose laxity resulted in the loss should be made to pay the outstanding amount of

GH¢67,241.88.
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


Table 4: Outstanding Debts

The Committee noted that CAGD has agreed on a payment plan with the institutions involved to recover the outstanding debt. The Committee urged the Controller to desist from extending credit to MDAs that failed to pay for value books supplied to them.

8.16 Unearned Salaries --

GH¢37,591.76

The audit disclosed that eight officers who separated from the Ministry between November 2016 and October 2017 were paid unearned salaries totaling

GH¢37,592.06 contrary to Regulation 297 of the Financial Administration Regulations, 2004. The Auditor-General urged manage- ment to recover the unearned salaries failure of which they will be surcharged.

The Committee noted that in compliance with the recommendation of the Auditor-General an amount of GH¢27,818.20 being unearned salaries paid to five (5) officers has been recovered leaving a balance of GH¢9,773.56 unrecovered. The unrecovered balance stands in the names of the following

Officials informed the Committee that, the case of Mr Albert Wuor is pending because he has been interdicted and the institution intends to use his provident fund to defray the unearned salary once a final determination is made on his relationship with the institution. Permission has also been sought to use Mr Daquah's provident fund to settle his indebtedness.

The Committee urged management to expedite action on the determination of the status of Mr Wuor and the use of Mr Danquah's provident fund to ensure full recovery of the unearned salaries.

Pensions

8.17 Unearned Salaries --

GH¢107,754

The Auditor-General noted during verification of Pension and Gratuity files that four officers who retired from the Public Service continued to receive salaries in contravention of Regulation 297 of Financial Administration Regulation, 2004 (L.I. 1802) which resulted in unearned salaries totaling GH¢107,754 . He blamed the anomaly on the failure of the management of the various organisations to ensure prompt deletion of names of the retired staff from the government payroll and

recommended to the management of the four organisations to recover the unearned salaries from the retired officers' failure of which they would be surcharged.

The Committee noted that the Ministry had recovered an amount of GH¢75,244.95 in the name of Ama Abuakwa Gaisie leaving an amount of GH¢32,509.58 in the name of James Addo Nkansah unrecovered. A review of the payslips revealed that the amount was not paid to the officer; there is therefore no need for a refund.

9.0 Ministry of Health

9.1 NHIA Indebtedness to health Institutions -- GH¢9,302,800

The audit revealed that NHIA owed 18 health institutions an amount of GH¢9,302,830.37 in respect of services rendered to patients between the periods January 2016 to December 2017 in violation of Regulation 38 of the National Health Insurance Regulation, 2004.

Officials from NHIS informed the Committee that the Scheme has so far settled its indebtedness or liabilities to service providers up to December, 2020. The Scheme is presently processing claims for the first quarter of 2021. Management of the Scheme

1. Mr Wuor Albert O. -- GH¢1,924.12

2. Mr Maxwell Asante Danquah -- GH¢7,849.44
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


refuted suggestion that the Scheme is practising selective claim payment and attributed delays in claim processing to late submission of claims and fraudulent claims.

The Committee noted that delays in claims payment is adversely affecting the smooth running of health institutions across the country thereby affecting health service delivery to the poor and vulnerable. The Committee recommends to NHIS to review its claim payment procedures and also ensure upfront payment of 30 per cent of the value of all claims submitted by service providers pending claims verification and final payment.

9.2 Unrecovered Advances-

GH¢222,167.16

The audit revealed that nine (9) Health Institutions failed to recover an amount of GH¢222,167.16 granted to 28 officers since May, 2011 in contravention of Regulation 110 of the Financial Administration Regulation,

2004.

The Committee noted that in compliance with the recommendation of the Auditor-General, an amount of GH¢121,522 had been recovered by five (5) Institutions leaving a balance of GH¢100,645.16 unrecovered. The unrecovered balance stands in the names of the following institutions:

The Committee recommends to the Ministry of Health to ensure total recovery of all the outstanding advances within six weeks of this report failure for which management of the Institutions involved should be surcharged by the Auditor-General in accordance with article 187 (7)(b) of the 1992 Constitution and the Audit Service Act. In the case of Mr Richard Ayalingo, the Committee urged the Ghana Police Service to
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.
Table 5: Unrecovered Advances
The Committee noted that, Mr Ayalingo of Ga Central Municipal Health Directorate has refused to refund the sum of GH¢79,371.16 granted to him as advance since
January, 2016. The Committee takes note of efforts of management to recover the amount from Mr Ayalingo by lodging a report to the security services.
expedite action on their investigations to ensure recovery of the amount.
Korle-Bu Teaching Hospital
9.3 Bad Debt -- GH¢195,357.46
An audit examination of the debtor's ledgers of four sub-BMCs revealed an uncollected liability of GH ¢195,357.46 from paupers and absconders contrary to Regulation 17 of the Financial Administration Regulation. The four sub-BMC are as follows:
b. Surgical -- GH¢170,692.16
c. Polyclinic -- GH¢210.00
d. Medical -- GH¢7,745.30
e. National centre for Cardio -- GH¢16,710
Total -- GH¢195,357.46
The Auditor-General recom- mended to the MBCs to liaise with the Department of Social Welfare to identify sustainable means of supporting paupers.
The Committee noted that an amount of GH¢156,862.14 had been recovered leaving a balance of GH¢38,495.32 unrecovered. The Committee also noted that the Ministry of Health has requested for approval from the Ministry of Finance
to write off the outstanding debt since it has become difficult to recover the remainder from the absconders.
The Committee noted that, management failed to comply with the recommendation of the Auditor- General to liaise with the department of Social welfare to identify sustainable means of handling indebtedness of paupers. Additionally, management also failed to put in place appropriate measures to deter patients

from leaving the hospital without settling their bills. The Committee recommends to the BMCs to comply with the recommendations of the Auditor-General.

9.4 Irregular Payment of Funeral Expenses -- GH¢28,000.00

The audit revealed that one Mr Christopher Bayere an Executive Secretary of the Health Training Institution Secretariat unlawfully appropriated and paid himself the sum of GH¢28,000 from the IGF accounts of the Secretariat towards his sisters funeral in contravention of Regulation 39 of the FAR, 2004 which requires heads of departments to ensure that funds are utilised in the most efficient manner to meet value for money and for the purpose for which the funds are allocated. The Auditor-General urged Mr Christopher Bayere to refund the amount of GH¢28,000 wrongfully paid himself.

The Committee noted that Management of the Secretariat took a decision to use the amount to finance the travelling expenses of other management and staff of the Secretariat to attend the funeral of the late sister of Mr Bayere. It was explained that, the amount was expended on air ticket, accommo-

dation, transportation expenses and feeding of staff who participated in the funeral. The Committee noted that, the funds were not directly given to Mr Bayere as contained in the Auditor- General's report.

The Committee noted further that, the practice of supporting staff to attend the funeral of a deceased staff member or a deceased family member of serving officers is widely practiced in all Public Service Institutions. There is however no written policy to regulate the practice thereby exposing it to abuse. The expenditure incurred by the Secretariat in this regard is in line with precedence and practice in the Public Service.

The Committee recommends to the Ministry of Health to develop the necessary policy to guide expenditure on the funeral of a deceased staff or deceased relative of serving staff to avoid abuse.

9.5 Payment Vouchers Not Pre sente d f or Audi t --

GH¢1,155,301.62

The audit revealed that management of three (3) institutions failed to present 59 payment vouchers totalling GH¢1,155,301.62 for audit in

violation of Regulation 1(1) of the Financial Administration Regulations, 2004 (L/I. 1804). The Auditor- General recommended to manage- ment of the institutions involved to present the PVs for audit verification failure by which the paying officers shall be surcharged by the Auditor- General.

The Committee noted that seven (7) payment vouchers in the name of Korle-Bu Teaching Hospital, with face value of GH¢511,520.33 were presented for audit verification leaving 51 PVs with face value of GH¢ 643,781.29 in the name of the three (3) institutions unpresented. The unpresented PVs stand in the names of the following institutions:

Table 6: Outstanding Unpresented PVs

Name of Institution No of PVs Outstanding Face Value (GH¢)

Nursing & Midwifery Training College - Tepa 48 616,882.54

Korle-Bu Teaching Hospital 1 20,276.00

Government Hospital - Owe 3 6,622.75

Total 52 643,781.29

Management informed the Committee that an accounts officer at the Nursing and Midwifery Training College, Tepa had absconded after failing to account for the sum of

GH¢616,882.54.

The Committee recommends to management of the Nursing &Midwifery Training College - Tepa, Government Hospital - Owe and the Korle-Bu Teaching Hospital to ensure that the Accountants who superintend the payments should recover all

outstanding PVs and submit documents to the Audit Service for verification. Failure to submit the documents within two weeks of this report, the Committee recommends to the Auditor-General to disallow the item of expenditure and surcharge Management, staff and paying officers at post at the time of the infraction with the sum of GH¢616,882.54, GH¢20,276 and GH¢6,622.75 respectively in accordance with article 187 (7) (b) of the 1992 Constitution and the Audit Service Act.
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


9.6 Unretired Imprest --

GH¢ 53,870.32

An examination of the records at five health institutions revealed that 13 officers failed to retire their imprests amounting to GH¢53,870.00 in contravention of Regulation 288 of the

FAR, 2004 (L.I. 1802).

The Auditor-General recommended that the imprests should be recovered from the officers.

The Committee noted that an amount of GH¢11,000.00 had been recovered leaving a balance of GH¢42,870.32 unrecovered. The unrecovered balance is in the name of the following institutions:

Table 7: Unrecovered Imprest

The Committee demands that Management should ensure the recovery of all outstanding amounts from the officers, failure for which the amount should be charged to the personal advances account of the officers involved.

9.7 Unearned Salaries --

GH¢587,321.77

The audit disclosed that 51 separated staff of 16 health institu-

tions were paid unearned salaries amounting to GH¢587,321.77 in contravention of Regulation 297 of the FAR, 2004. The Auditor-General attributed the anomaly to weak system of validation by management before payment of salaries and urged management to recover the amount from the affected officers.

The Committee noted that an amount of GH¢13,411.04 paid to

three (3) officers at the Korle-Bu Teaching Hospital has been recovered in compliance with the recommendation of the Auditor- General. The Examination of the payslip of Brigit Abakah of Korle-

Bu Teaching Hospital revealed that she did not receive any salary after separation from the hospital.

The remaining fifteen Health Institutions did not make any recovery as at the time of the public hearing; they include the following:

Name of Institution  Amounts Due GH¢

1. La General Hospital -- 9,762.32

2. Accra Psychiatric Hospital -- 13,110.26

3. Ridge Hospital -- 26,473.49

4. Ghana Health Service -- 32,255.80

5. Municipal Health Abokobi -- 17,874.16

6. Ga South Municipal Hospital -- 27,595.65

7. Bekwai Municipal Hospital -- 15,365.66

8. ST Micheal Hospital -- 25,078.96

9. District Health Directorate Efiduasi -- 5,518.58

10 Municipal Heal Ejisu -- 43,840.25

11. Effie NKwanta Regional Hospital -- 44,083.05

12 Walewale District Hospital -- 5,404.00

13. District Health Admin Kade -- 746.34

14. Sandema Hospital -- 288,807.70

15. Pusiga Health Centre -- 2,019.26

Total -- 557,935.48
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


The Committee recommends that management of the various Hospitals should recover all outstanding unearned salaries from the beneficiaries.

9.8 Unrecovered bond amount --

GH¢177,000

A review of three health institutions namely Korle-Bu Teaching Hospital, St. Michael Hospital-Pramso, and Ministry of Health, Headquarters, revealed that beneficiaries of scholarship failed to serve their required bond periods after they completed their respective courses. The Auditor- General recommended that the Ministry should encourage the beneficiaries to stay on and serve their respective Institutions. Where they fail to serve, all investments made in the officers must be recovered.

The Committee noted that one (1) officer -- Miss Elizabeth Kansu who benefited from the sum of GH¢27,167.88 has since returned to post in compliance with her bond conditions. Dr Kwabena Eduafo Becham who benefited from scholarship worth GH¢129,440.12 has also refunded the entire amount to the Ministry. Miss Mina Ampah Boabeng on the other hand benefited from sponsorship worth GH¢53,270 but failed to return after her studies.

She has since refunded GH¢8,878 of the sponsorship value leaving a balance of GH¢44,392 outstanding. The Committee recommends to the Ministry of Health to formally inform her present place of work of her failure to honour her bond conditions to the State. Additionally, State institutions should be used to track Ms Mina Ampah Boabeng to recover the outstanding amount.

9.9 Unrecovered staff advances

-- GH¢15,894.00

The audit discovered that due to weak system for monitoring the recovery of advances, out of a total advance of GH¢30,486.00 granted to six members of staff only GH¢14,592.00 had been recovered leaving a difference of GH¢15,894.00 in contravention of Regulation 110 of the FAR, 2004. The auditors urged Management to strengthen their oversight over the management of loans and take the necessary steps to ensure full recovery of the outstanding amount.

The Committee noted that in compliance with the recommendation of the Auditor-General, Management had recovered the sum of GH¢22,360.00 leaving a balance of GH¢8,126 outstanding. The outstanding balance relates to advances granted to the underlisted officers:

Table 8: Outstanding Advances
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.
stop providing services to defaulting clients.
Achimota Hospital
9.11. Non Payment of Rent --
GH¢ 39,971.24
The Auditor-General noted that 11 members of staff who were allocated bungalows/flats failed to pay rent totalling GH¢39,971.24 for a period ranging between one and forty- eight months in contravention of Regulation
17 of the FAR, 2004. The auditors were of the view that dereliction of duty by the Heads of the Hospital and Finance accounted for this anomaly and requested the respective tenants to refund the outstanding rent of GH¢39,971.24 failing which they would be surcharged.
The Committee noted that an amount of GH¢21,489.98 had been recovered leaving a balance of GH¢18,481.26 unrecovered. The unrecovered balance relates to the following three (3) officers:
Table 9: Outstanding Rent - Achimota Hospital
The Committee recommends to the Management of the Hospital to use all available means including an embargo on the salaries of the recalcitrant officers to recover the amount of GH¢18,481.26 from the three officers failure which the Auditor-General should surcharge the Head of Accounts in accordance with article 187(7) of the 1992 Constitution.
10.0 Ministry of Education
10.1 Cash not Accounted for --
GH¢42,936
The audit disclosed that accountants of four institutions failed to account for cash in hand amounting to GH¢42,936 in contravention of Regulation 39 of the
Financial Administration Regulations, 2004, (L/I. 1804). The Auditor- General urged management to ensure full accountability of the cash.
The Committee noted that an amount of GH¢30,736 had been
refunded in compliance with the recommendation of the Auditor- General leaving a balance of GH¢12,200 unaccounted for. The unaccounted balance relates to the following
1. Mr Daniel Koranteng (Deceased), GES, Agona Nkwanta -- GH¢ 8,200
2. Mr Salifu Awuni, GES, Sene East -- GH¢ 4,000
Total -- GH¢12,200
The Committee noted that the Ministry has sanctioned the officers involved for the various malpractices. The Committee urges the various institutions to recover the outstanding amount of GH¢ 4,000 from Mr Salifu Awuni and in the case of Mr Daniel Koranteng, the Ministry should pursue his next of kin to recover the amount of GH¢8,200.
10.2 Unsupported Payments --
GH¢432,798.88
The audit revealed that accoun- tants of 16 District education offices paid an amount of GH¢432,798.88 on 78 payment vouchers without appropriate documents to authenticate the payments in contravention of Regulation 39, of the Financial Administration Regulations,
2004.
During the public sitting, the Committee observed that except GES, GNAT -Wa and Social Welfare Girls Vocation Training Centre - Cape Coast who failed to appear, all other agencies had brought their payment vouchers, to the meeting. The Committee noted however that the vouchers had not been verified by the Audit Service.
The Committee recommends that all the departments should re-submit the vouchers for verification and clearance by Audit Service in order not to have the queries repeated in the next Auditor -General's Report. In the case of GES, GNAT-Wa and Social Welfare Girls Vocation Training Centre - Cape Coast, the accounts officers should be surcharged by the Auditor-General in accordance with Article 187(7) of the Constitution and the Audit Service Act.

10.3 Unearned Salaries --

GH¢215,977.95

The audit disclosed that 43 separated staff of the Ministry of Education were paid a total unearned salary of GH¢215,977.95 contrary to Regulation 297 of the Financial Administrations Regulations, 2004. The auditors urged Management to

ensure the beneficiaries refund the amounts paid them.

The Committee noted that an amount of GH¢32,906.11 has been recovered in compliance with the recommendation of the Auditor- General leaving a balance of GH¢183,071.84 unrecovered. The unrecovered balance is in the name of the following institutions:

recommendations, a three Member Committee was set up to investigate the missing maize shellers and so far four (4) suspected staff had been arranged before the court since 2019. To avert future occurrence, the Department has instituted a number of measures including the introduction of customised waybill, regular stock taking and improved security at the stores.

The Committee recommends to the Ministry of Food and Agriculture to interdict the security officer and any officer complicit in the theft pending the determination of the case in the courts.

11.2 Indebtedness of Tractor/ Equipment Beneficiaries

The audit noted that the Ministry of Food and Agriculture collaborated with the Agricultural Engineering Services to procure agricultural machinery and equipment for sale to groups and individuals with purchase agreements that beneficiaries would make down-payment and spread the balance within six months period.

An audit review of the loan account revealed that 19 beneficiaries owe a total of GH¢1,614,650.00 to the Ministry. List attached as Apendix

1. The Auditor-General urged Management to strengthen debt control and ensure effective recovery of debts while at the same time recover the outstanding amount of

GH¢1,614,650.00

The Deputy Minister of Food and Agriculture informed the Committee that beneficiaries of the facility did not turn up after the first instalment and the Ministry had made calls upon them but to no avail. They informed the Committee that the Ministry had put in place measures to stall such discrepancies. This includes giving priority to applicants from institutions and organisation to eliminate the risk of defaulters.

The Committee noted that an amount of GH¢163,650 had been recovered leaving a balance of GH¢1,451,000 unrecovered. The Minister informed the Committee that, they intend to issue ultimatum to all defaulters and publish their names in the dailies. Additionally, the Ministry has also blacklisted the defaulters and will institute legal actions to recover the amounts.

The Committee urges the Ministry to expedite action on the recovery efforts to ensure the amounts are fully recovered as early as possible. Additionally, to avert future defaults,

Table 10: Outstanding Unearned Salaries

11.0 Ministry of Food and Agriculture

11.1 Missing Maize Sheller

The audit observed that the Ministry of Food and Agriculture had procured maize shellers in 2016 for sale to farmers, it came to light during a stock taking audit of the Ministry of Food and Agriculture that 28 of the maize shellers valued at 112,000.00

could not be accounted for contrary to Stores Regulation 1202 and 1911, 1984. The Auditor-General recommended to management to expedite investigations and sanction the culprits.

The Committee noted that the 28 equipment remain unaccounted for. Officials of the Agricultural Mechanisation Centre of the Ministry of Agriculture informed the Committee that based on audit
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


the Committee recommends to the Ministry of Food and Agriculture to give priority to institutional and corporative groups in the sale of agricultural equipment in the future. The Committee also noted some inconsistencies in the allocation policy of the Ministry. While some are given the equipment on credit, others are made to pay in full or in part to enable them acquire the equipment.

The Committee recommends to the Ministry to rationalise the allocation policy and ensure an even terms for all beneficiaries to reduce the level of default. All beneficiaries must also be made to commit a percentage of the cost of the tractors as down payment before the equipment are released to them. The Ministry must also ensure that persons benefiting from the equipment on credit provide some form of guarantee as surety against default.

12.0 Ministry of Fisheries and Aquaculture Develoment

(MOFAD)

12.1 Unearned Salaries--

GH¢31,480

The Audit established that the Ministry of Fisheries violated Regulation 297 of the FAR Regulation 2004, by paying Mr Philip Attakpah

unearned salary of 31,480 after the expiration of his contract with the Ministry in 2017.

The Committee was informed that following the audit observation, Mr Attakpa refunded an amount of 5,000 and issued six months post-dated cheques ending 30th August 2018 for an agreed monthly payment of

GH¢1,000.00.

Officials of the Fisheries Ministry indicated that Mr Philip Attakpah has so far paid an amount of seventeen thousand (GH¢17,000.00) with an outstanding balance of GH¢13,403.10 yet to be recovered from him.

The Committee was informed that, Mr Philip Attakpa was engaged on contract by FAO as the National Project Co-ordinator for the FAO/ GoG Co-operative Project. At the end of the project, FAO extended the project for additional 9 months and engaged Mr Attakpa to continue on his role as the Project Coordinator. The appointment was expected to be confirmed by the Ministry of Fisheries with a formal contract. However, six months into the project, the Ministry declined to sign a formal contract with Mr Attakapa at which point he had already worked for six months for which he was paid. The Ministry and the Committee are of the view that,

Mr Attakpa worked for the period for which he was paid.

The Committee recommends to the Ministry to sign a contract with Mr Attakpa retrospective from the period his contract was extended by FAO and pay him all his entitlements and refund the GH¢17,000.00 he has paid back to the Ministry as unearned salary to him.

13.0 Ministry of the Interior

National Police Training School

13.1 Use of Cash in Settlement of Huge Transactions

The audit disclosed that, contrary to Regulation 48 of Financial Administration Regulations 2004, the Ghana Police Training School purchased food items with individual transactions ranging between GH¢54,212.00 and GH¢360,755.00 and made cash payment totaling GH¢2,792,103.00. The Auditor- General urged Management to comply with the Financial Administration Regulations to minimise the risk of abuse.

The Committee noted that the decision of Management to opt for cash payments exposes the

expenditure of the school to abuse. Due to the cash transactions, it may be difficult for auditors to track the expenses and ensure that suppliers are actually paid for items supplied. The Police Administration assured the Committee that the practice has stopped in compliance with the recommendations of the Auditor- General. Additionally, to bring sanity to procurement at the School, a list of suppliers has been provided to the school.

The Committee noted that until the audit observations, the Police Training School does not have a list of suppliers to guide its procurement. The Committee noted that the practice of cash payment is a breach of financial discipline and recommends to the Police Administration to sanction the officers involved in accordance with Regulation 8(1) of the Financial Administration Regulations.

14.0 Ministry of Lands and Natural Resources

Lands Commission, WA

14.1 Unearned Salary --

GH¢9,020

Contrary to Regulation 297 of the Financial Administration Regulations, 2004 (L.I. 1802), the audit disclosed
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


that Mr Toxla Joshua Y, a former Technical Officer of the Commission vacated post on the 13th of October 2016, but continued to be paid salary to March 2017 resulting in unearned salary of GH¢9,022.98. The Auditor-General recommended that Mr Joshua Toxla should refund the amount of

GH¢9,022.98.

The Committee noted that, in compliance with the recommendations of the Auditor-General, Mr Joshua Toxla refunded an amount of GH¢2,234.31 leaving a balance of GH¢6,785.69 unrecovered. The Committee recommends to Management to pursue Mr Toxla for the recovery of the outstanding balance of GH¢6,785.69.

15.0 Ministry of Employment and Labour Relations (MELR)

15.1 Unsupported Payment Vouchers

-- GH¢4,914,923.21

The Auditor-General observed that, twenty-four payment vouchers

totaling GH¢4,914,923.21 being payment of allowances/honorarium for various programmes and activities were not supported with relevant documents to authenticate the payments. Management was urged to provide documents to enable auditors authenticate the transaction, failing which they would be surcharged.

The Committee noted that in the absence of the payment vouchers with their supporting documents, the auditors would not be able to authenticate the transactions to ensure that the expenditures were in accordance with law and in the interest of the Republic. The Committee further noted that 21 PVs valued at GH¢4,854,178.21 were subsequently submitted for verification in compliance with the audit recommendations leaving three PVs with face value of GH¢60,745 unpresented. The unpresented PVs relates to the following expenditure items:

YEA/79/11/16 Legal retainer fees paid on monthly basis GH3,000 (overdue indebtedness) -- 36,000.00

Total -- 60,745.00

Table 11: Outstanding PVs

PV No. Details Amount (GH¢)

YEA/55/4/16 Air ticket for Board Members -- 7,500.00

YEA/5/3/16 Sitting allowance-Board Members meeting -- 17,000.00

In the absence of the relevant documents to authenticate the payments, the Committee recommends to the Auditor-General to disallow the expenditure in exercise of his power of surcharge in accordance with article 187(7)(b) of the 1992 Constitution and the Audit Service Act.

15.2 Unearned salaries --

GH¢68,470

The audit disclosed that, contrary to Regulation 297 of the Financial Administration Regulation 2004, six permanent staff who retired from active service and five others who vacated post continued to receive their monthly salaries. Consequently, the officers were paid a total unearned salary of GH¢68,468.73. The Auditor-General urged Management to ensure that the beneficiaries refund the unearned salaries of GH¢68,468.73 into the Consolidated Fund failing which they would be surcharged.

The Committee noted that, all the amount remains unrecovered contrary to the recommendation of the

Auditor-General. The Committee urged Management to pursue recovery of the unearned salaries from the beneficiary officers.

16.0 Ministry of Gender, Children And Social Protection (MoGCSP)

The Ministry of Gender, Children and Social Protection failed to honour the invitation of the Committee to assist in resolving the issues raised by the Auditor-General against the Ministry and its Agencies. The status reports on the following audit queries were also not available to the Committee for scrutiny:

1. Unauthorised Investment in Dalex Finance and Cal Bank of GH¢16,000,000 by the School Feeding Programme

2. Failure to pay withholding tax to GRA - GH¢9,461,880 contrary to the provision of Income Tax Act, 2015 (Act 896) by the School Feeding Programme.

3. Unretired imprest -- GH¢79,500 contrary to
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


Regulation 282 of the Financial Administration Regulation, 2004 by the School Feeding Programme.

4. Payment of unearned salaries -- GH¢4,950 contrary to Regulations 297 and 298 of the Financial Administration Regulations, 2004 (L.I. 1802) by the Sekondi Social Welfare Department.

5. Unpresented payment vouchers - GH¢8,800 by the Sekondi Social Welfare Department contrary to Regulation 1 of the Financial Administration Regulations,

2004.

6. Unearned salary - GH¢6,000 contrary to Regulation 297 of the Financial Administration Regulation 2004 by Social Welfare Department Head Office.

The Committee therefore is unable to express opinion on the state of implementation of the recommen- dation of the Auditor-General as regards to the Ministry of Gender, Children and Social Protection.

The Committee recommends that Parliament should not approve the 2022 budget of the Ministry of Gender, Children and Social Protection until the Ministry provides evidence of implementation of the recommendations of the Auditor- General.

17.0 Ministry of Chieftaincy and Religious Affairs

Regional House of Chiefs, Cape Coast

17.1 Unsupported Payments --

GH¢142,916.80

Examination of transactions revealed that 96 payment vouchers with a total face value of GH¢142,916.80 were not supported with official receipts and statements of expenditure in contravention of Regulation 39 of the FAR, 2004. The auditors urged Management to support the payments with the relevant documentation, for our review failure of which they would be surcharged

The Committee noted at its sittings that 35 PVs with face value of GH¢39,855.80 has been supported with the relevant documents whilst 61 PVs with face value of GH¢103,061 remain unsupported. The Committee recommends to the Auditor-General to disallow the expenditure in exercise

of his power of surcharge in accordance with article 187(7)(b) of the 1992 Constitution and the Audit Service Act.

18.0 Ministry of Information

Information Services Department -Sunyani

18.1 Unearned salaries --

GH¢16,366.07

The audit noted that Management failed to ensure the immediate stoppage of salaries of two officers resulting in the payment of unearned salaries of GH¢16,366.07 to them in contravention of Regulation 298 of the FAR of 2004. The Auditor-General urged Management to stop the payment of unearned salaries to the two officers and ensure its recovery failing which they would be surcharged.

The Committee noted that the unearned salary amounting GH¢6,844.34 paid to Ms Agyeiwa Augusta has been recovered in compliance with the recommendation of the Auditor-General. The outstanding amount of GH¢9,521.73 paid to Mr Kwame Dente remains unrecovered. Management explained to the Committee that Mr Kwame Dente has passed on and efforts to

trace his next of kin failed. The Committee recommends to the Ministry to take steps to write off the outstanding amount in the name of Mr Dente.

19.0 Judicial Service

District Court - Offinso

19.1 Revenue not accounted for

-- GH¢6,430.00

The audit disclosed that contrary to Regulation 24(1 and 3) of the Financial Administration Regulations, 2004 the Registrar of the Ofinso District Court, Mr Abdallah Yahaya Yeddor between July and December 2015 understated the court deposits cash book entries by GH¢4,620.00. Similarly, between January 2016 and April 2017 the officer collected a total revenue of GH¢22,998.50 but paid GH¢21,188.50 into the Judicial Service bank account leaving a difference of GH¢1,810.00. The Auditor-General urged Management to account for the revenue failing which they would be surcharged for recovery.

The Committee noted that the entire amount of GH¢6,430.00 remains unrecovered contrary to the recommendation of the Auditor- General. The Committee noted that
Chairman of the Committee on Public Accounts (Mr James Klutse Avedzi) 5:03 p.m.


Mr Abdalla Yahaya Yeddor was not at post at the time of the audit to enable him respond to the audit observations. Management of the Judicial Service informed the Committee that, Mr Yeddor was dismissed from the Service following adverse findings by a disciplinary committee set up by the Chief Justice.

The Committee expressed concerns over the failure of Management to refer the audit findings to Mr Yeddor even if he was no more at the employment of the Judicial Service. The failure of Management to get a response from Mr Yeddor is as a result of dereliction of duty by the responsible management staff and lack of interest in the audit process. The Committee therefore recom- mended that the Management staff on duty at the time of the audit should be jointly held liable to refund the sum of GH¢6,430.00 being the total revenue unaccounted for by Mr Yeddor.

20.0 Office of Government Machinery - Council of State

20.1 Unrecovered advances --

GH¢29,000

The audit revealed that Management failed to recover advances amounting to GH¢29,000.00 granted to three officers between

February 2015 and October 2015 contrary to Regulation 104 of the Financial Administration Regulations, 2004. The Auditor-General recommended to management to recover the outstanding amount of GH¢29,000.00 from the three officers.

The Committee noted that in compliance with the recommendation of the Auditor-General, management has recovered the sum of GH¢24,200 from the officers leaving an amount of GH¢4,800 unrecovered. The unrecovered balance is in the name of Mr Benjamin A. Abango. The Committee was informed that measures have been put in place to recover the outstanding balance from Mr Abango. The Committee noted that Mr Abango has commenced payment of the outstanding advance which stood at GH¢8,000.00 at the time of the audit. The Committee urged Management to ensure Mr Abango is committed to a payment plan to ensure timely recovery of the outstanding amount of GH¢4,800.

21.0 Conclusion

The Committee observed that most of the queries raised by the Auditor- General were resolved and the recommendations fully implemented.

The Committee however bemoan the practice of submission of documents for verification at Public Accounts Sittings and recommends to the Auditor-General to stop posthumous verification of payment vouchers that were either not available or authenticated at the time of the audit.

The Committee also recommends to the Auditor-General to ensure the implementation of recommendations of the Committee on the unresolved issues in its subsequent audits and report back to the House.

To this end the Committee recommends to the House to adopt it's Report on the Reports of the Auditor-General on the Public Accounts of Ghana (Ministries, Departments and Other Agencies (MDAs)) for the year ended 31st December 2017.

Respectfully submitted.
Mr Kofi Okyere-Agyekum (Ranking Member) (NPP -- Fanteakwa South) 5:03 p.m.
Mr Speaker, I beg to second the Motion that this honourable House adopts the Report of the Public Accounts Committee on the Report of the Auditor-General on the Public Accounts of Ghana, Ministries, Departments and Other
Agencies (MDAs) for the Financial Year Ended 31st December, 2017.
I would like to comment on two observations of the Report. On page 6, paragraph, 8.2, a company by name Oramfo State Energy was given exploration and mining rights and they failed to pay surface rent of US$67,438 in the year 2013.
Mr Speaker, the amount rose to US$3,462,972 in the year 2016. As at the time of meeting officials from the Ministry of Finance, this amount has still not been collected.
We recommend that arrangements should be made so that the directors of this company are found and charged with the amounts. It is also recommended that the Ministries of Energy, Finance and the Auditor- General demand for insurance bonds and other bonds to make sure that non- Ghanaian owned companies are given certain facilities and when they default in payment, we can be compensated for it.
Mr Speaker, again, on paragraph 8.4, we noted that some companies that were given warehouse bonded facilities managed to get goods out of the bonded facilities without paying the necessary taxes and duties amounting to GH¢103,876,666. The companies are Market Direct Limited, the
Mr Kofi Okyere-Agyekum (Ranking Member) (NPP -- Fanteakwa South) 5:03 p.m.


resident officer and the resident Customs officer who was in-charge was Mrs Charlotte K. Quartey.

Another company by name Veneer Foods Limited and the officer in- charge was Gladys Nunekpeku. The Committee was not satisfied that Mrs Charlotte K. Quartey under whose watch we lost GH¢102 million had only been dismissed. As for Mrs Gladys Nunekpeku who also caused the state GH¢879,000 she has only been demoted.

Mr Speaker, I recommend that measures should be taken by the Commsisioner-General for the recovery of the amounts.
Mr Second Deputy Speaker 5:03 p.m.
As usual, I will invite two from each Side, including Leadership. So, Hon Member for Adaklu?
Question proposed.
Mr Kwame Governs Agbodza (NDC -- Adaklu) 5:13 p.m.
Mr Speaker, thank you for the opportunity to make a few comments about the Report.
My general comments on this is from reading article 187(5) and (6) of the Constitution, Parliament is duly asked to do what we are doing and we have always done it. However, if
you read the above article and you ask yourself; ‘so, the Auditor-General looks through the books, finds things and reports to Parliament. The Committee of Parliament debates it and then what? An Hon Member said that we would see the same thing being done by the PAC Report from the day we enter Parliament till we leave. Things have been the same and so, why are we not seeing a reduction in infractions and so on?
Mr Speaker, this is simply because the 1992 Constitution itself does not tell any public official that there is any punitive measure from Parliament. It is as if this is the end of it; the House adopts the Report by putting the Question and that is the end of it and it continues into the following year.
If we read many of the Auditor- General's Reports, it appears that there is a big problem in this country that we have not recognised including this House. The average person who takes a decision in terms of spending government money whether with regard to contract and so on, does not understand what a contract is. So, a six-unit classroom block is being built and if you are lucky to have your District Assembly have the full compliments of the procurement, and when certificates are raised, they do not even know whether they match actual work done on site versus what
has been paid. So, auditors turn up, see differences, records it and brings it to this House but we do not get any headway.
Mr Speaker, as an Hon Member of Parliament, we could even approve school fees for someone and your understanding is that your District Finance Officer and District Chief Executive will do the right thing by paying the beneficiary directly to the school by writing a cheque to the school.

The understanding is that whoever takes that cheque and pays a particular school would bring a receipt so that an accountant or officer in charge would retire that payment from the Government coffers, but they do not bring it and the auditors say that they do not see any receipt backing the payment that was made so they record. Mr Speaker, next time, the same person would approach an Hon Member of Parliament to ask for financial support and he is granted the support again.

Mr Speaker, I think that we need to educate ourselves especially those who take decisions on these things. Some of the examples that have been cited here are sad. Somebody has a

vehicle in a warehouse for five years but the question is that did the person who imported the car actually need the car? If the car was imported because it was needed then how come it has been kept in a bonded warehouse for five years? This simply says that the car was not needed so the Government should sell that car quickly, free the bonded warehouse and take the tax because we need the tax to develop the country.

Mr Speaker, without going into the details, my simple call is that the punitive measures outlined in the Constitution and with regard to what Parliament can do, article 187(5) and (6) ties the hands of Parliament. I remember that the Hon Chairman almost got carried away by recommending someone to be arrested and it was in the news. Mr Speaker, this is because he would be frustrated since they spend hours to interrogate people but at the end of the day, the people feel that they would be left off after two hours and they would repeat the same things.

Mr Speaker, probably we should review that part of the Constitution if we want this to work so that people would know that if a Committee of Parliament finds them guilty, it would not end there because there could be a recommendation for them to be taken to court. Mr Speaker, how
Mr Second Deputy Speaker 5:13 p.m.
Hon Member for Manyhia North?
Mr Akwasi Konadu (NPP -- Manhyia North) 5:13 p.m.
Mr Speaker, thank you for the opportunity to contribute to the Motion on the Floor.
Mr Speaker, I would dwell on page 3 paragraph 6.1 of the Report which refers to tax irregularities to the tune of GH¢655,591,736. A country that has a gap between its revenue
generation and expenditure would require that some of these tax revenues be well accounted for. Inasmuch as we want to widen the tax net and have more people rolled on to pay taxes yet from the few who pay taxes, we have such a huge amount unaccounted for properly. This means that we need to put in more efforts and the Ghana Revenue Authority ought to do more for us to be able to fill the gap between expenditure and revenue situation.
Also, I would refer to paragraph 8.9 on page 11 which also talks about outstanding withholding tax. Mr Speaker, withholding tax is to make sure that people do not evade taxes and these are deducted at source for services and goods that are purchased. Mr Speaker, it means these funds are with the people who deduct and they must be able to pay far in advance to the revenue authorities for the State to have custody of these funds for projects and capital expenditure projects. If these funds are kept and not paid into Government coffers then it means they are still with individuals who do not have to keep these moneys, therefore, the proper sanctions must be applied.
However, according to the Auditor- General some of these infractions meant that these institutions have regularised these irregularities. What
is of worry is the posthumous verification of payment vouchers because auditing serves to verify previous activities as at the time that it is required. Although these activities may have been regularised, it may have been done over and above the stipulated time and which in one way or the other would not reflect the true situation as they happened. So, we would urge that based on the Auditor- General's report and recommendations, these institutions would go by that.
Mr Speaker, with these few words, I would urge the House to adopt the Motion.
Mr Second Deputy Speaker 5:13 p.m.
Hon Member for Bole-Bamboi?
Hon Member, be snappy.
Mr Yusif Sulemana (NDC -- Bole-Bamboi) 5:13 p.m.
Mr Speaker, thank you for the opportunity to support the Motion on the Floor.
Mr Speaker, I would make reference to a very important issue that cuts across all the agencies and it has to do with payment irregularities. In other words, payment of unearned salaries to staff. Mr Speaker, this runs through the Report be it National Health Insurance Authority or the
Ministry of Finance. Mr Speaker, it is a common phenomenon with many of the Agencies that when staff vacate post, it takes a very long period to stop their salaries and this has led to the issue of irregularities when it comes to payroll management. An amount of GH¢1,776,893 has been paid to staff who have not worked and the problem is that there is lack of coordination between the Finance Department and the Human Resource Department of these agencies.
When the Human Resource Department takes a decision that a particular staff is no longer at post, they are supposed to write to the Finance Department of that same agency who in turn have to ensure that the salary for the person is stopped. Many a time, they do not write and even when they write to the Finance Department, it takes a very long time to get the banks to stop the payments. There is also the problem of the banks not yielding to instructions from the Agencies.
There is evidence where the Finance Department wrote to the bank to stop or block salaries that were already paid into a particular account, but the bank did not do that and that is why these moneys were paid. Mr Speaker, the auditors recommended that these moneys should be recovered and we are happy to note that some of the people
Mr Yusif Sulemana (NDC -- Bole-Bamboi) 5:23 p.m.
have refunded the money, but others are still being chased to refund theirs.
Mr Speaker, I would make reference to another very important issue which is captured under page 8 and it has to do with outstanding taxes. Most organisations fail to pay their taxes and the auditors have reported this. I must admit that some efforts have been made to recover those taxes. However, we were not happy at the Committee level because of the delay in recovering these moneys and even when the taxes are recovered, they only take the absolute figures. We do not charge interest on these outstanding taxes that have been recovered.

Mr Speaker, generally, we realised that in some instances, we are doing better if you compare this particular Report against the previous ones. That for us gives us some hope. We only recommend that the Auditor-General ensures that the recommendations that are made are well implemented even before they come back to us.

Many a time, during our deliberations, they come with support documents to now support claims or issues that were raised. We would have thought that once you get these

documents, they will do the necessary things, write to us even before theCommittee sitting starts.

Mr Speaker, with these few words, I would want to call on the House to adopt this Report.
Mr Frank Annoh-Dompreh (NPP -- Nsawam-Adoagyiri) 5:23 p.m.
Mr Speaker, I beg to speak in support of the Motion, and to be a note of commending the entire Committee members and the leadership for a good job done. I am particularly impressed that within a fleeting period, they have put together a very good Report.
Mr Speaker, not to belabour the point, apart from this functionality being constitutional imperative, it is important for us to recognise and observe that any commentaries that appear to undermine the relevance of this exercise should not be supported in any way.
Mr Speaker, if you look at page 5 of the Committee's Report, it provides in detail the recoveries that were effected in previous years in terms of irregularities. It has been said that 60 per cent of irregularities were recovered. In my view, this is something we need to pride ourselves with. We are aware of the existence of Audit Implementation Committees
of all these setups and government establishments and they are mandated and required to implement recommendations from Parliament at the end of the exercise.
I get the drift as I listened to my good Friend, the Hon Agbodza. Probably, what we should focus on is to strengthen the Audit Implementation Committees of these State institutions and setups because after the exercise, they go through the ritual and come out with very good recommendations; when they are not implemented eventually, it would not have impactful influence on the setup. This is where we should pay attention to.
There is also a concern about the arrears and delay. We may look at what we can do under the circumstance to improve upon the situation. If anybody believes that there is shortfall in the constitutional provision, then of course, it is something we can show concern about and begin to tease out these concerns and find a way to deal with them. But we have to commend the Committee for a good job done and encourage them to do more of these. I am particularly impressed, and I urge them to do that.
Mr Speaker, I rise to speak totally in support of the Motion and urge Hon Members to support the adoption of this all-important Report.
Question put and Motion agreed to.
Mr Second Deputy Speaker 5:23 p.m.
Hon Members, let us move to the Motion captured as item numbered
20.
Mr Avedzi 5:23 p.m.
Thank you, Mr Speaker. You would live long.
MOTIONS 5:23 p.m.

Chairman of the Committee (Mr James K. Avedzi) 5:23 p.m.
Mr Speaker, I beg to move, that this honourable House adopts the Report of the Public Accounts Committee on the Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the year ended 31st December, 2017.

Mr Speaker, I present the Committee's Report.

1.0 Introduction

The Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the year ended 31st December, 2017 was laid in Parliament in accordance with article 184 (3) of the 1992 Constitution of Ghana.

The Report was referred to the Public Accounts Committee for examination and report pursuant to article 184 (3) of the 1992 Constitution and Standing Order 165 of the Standing Orders of Parliament.

To examine the report, the Committee was assisted by the Governor of the Bank of Ghana, Dr Ernest Addison and officials from Audit Service and the Bank of Ghana.

The Committee expresses its profound gratitude to the Governor and the officials for the assistance.

2.0 References

The Committee referred to the following relevant documents:-

1. The 1992 Constitution of the Republic of Ghana.

2. The Standing Orders of Parliament of Ghana.

3. The Bank of Ghana Act, 2002 (Act 612).

4. The Foreign Exchange Act, 2006 Act 723.

5. The Minerals and Mining Law, PNDC Law 152.

6. The Report of the Auditor- General on the Statement of Foreign Exchange Receipts and Payments of the Bank of Ghana for the year ended 31st December, 2016.

3.0 Background

The Bank of Ghana is obliged under article 184 (2) of the 1992 Constitution to submit to the Auditor- General for audit on half-yearly basis a Statement of its Foreign Exchange Receipts and Payments. Under article 184(3) of the 1992 Constitution, the Auditor-General is also enjoined to audit these Statements and submit his report to Parliament. Pursuant to the above constitutional obligations, the Auditor-General conducted an audit on the Foreign Exchange Receipts and Payments of the Bank of Ghana for the year ended 31st December, 2017 and submitted his report to the House. The Report was referred to

the Public Accounts Committee for examination. The Committee having perused the report of the Auditor- General hereby submits this Report to the House.

4.0 Audit Objective

The objective of the audit was to obtain reasonable assurance that the statement of foreign exchange receipts and payments are free from material misstatements and omissions.

5.0 Foreign Exchange Receipts and Payments for 2017

The main sources of foreign exchange receipts and payments for the Bank of Ghana for the year ended 31st December, 2017 are as follow:

5.1 Source of Foreign Exchange Receipts

These are receipts in foreign currency, surrendered to the Bank of Ghana for cedis. The main sources of foreign exchange receipts or inflows to Bank of Ghana during the audit period were captured under the following classification:

1. Cocoa receipts.

2. Gold receipts.

3. Manganese receipts.

4. Capital receipts in the form of loans and grants.

5. Invisible receipts derived from the sale of travelers' cheques, interests, commissions, investments on treasury bills, interest on Bank International Settlement (BIS), investment interest and forex purchases.

These receipts comprise export receipt surrendered to the Bank of Ghana for cedis, equivalent Loans and other capital receipts surrendered by Government to the Bank of Ghana for cedi equivalent, Interest and Commission earned on foreign investment accounts, treasury operations and foreign currency purchases.

5.2 Payments

The foreign exchange payment of the Bank of Ghana during the period consist of payments in foreign currency by Bank of Ghana in exchange for its cedi equivalent. The payment during the audit period were classified under the following broad categories:

1. Invisible import payments.

2. Capital payments involve loan repayments to bilateral and multilateral institutions.
Chairman of the Committee (Mr James K. Avedzi) 5:23 p.m.


3. Forex Sales (Oil and Non- Oil) consist of oil, non-oil as well as other visible import payments.

4. Other Imports.

6.0 Objectives of this Report

The objectives of this report is to present to the House an overview of the Foreign Exchange Receipts and Payments of the Bank of Ghana for the year ended 31st December 2017 as well as the comments of your Committee on the findings and recommendations of the Auditor- General and the overall foreign exchange position of the country for the year ended 2017.

6.0 Overview of Foreign Exchange Receipts and Payments

This paragraph presents a general overview of the contribution of the

various items to the foreign exchange receipts and payments for the year ended 31st December,

2017.

7.0 Foreign Exchange Receipts

The total foreign exchange receipts surrendered to BoG for the year ended 31st December, 2017 amounted to US$10,825.07 million compared to US$6,712.15 million for the corresponding period of 2016. This represents an increase of US$4,112.92 million or 61.27 per cent.

The main components of the foreign exchange receipts are Cocoa, Gold, Manganese, Capital Receipts and Invisible Receipts.

Table 1 gives the breakdown of foreign exchange receipts for the year ended 31st December, 2017 as compared to 2016 receipts.

Table 1: Foreign Exchange Receipts for the year ended 31st December, 2017
Chairman of the Committee (Mr James K. Avedzi) 5:23 p.m.
7.1. Details of Foreign Exchange Receipts
7.1 Cocoa Receipts for the year ended 31st December, 2017
During the period under review foreign exchange inflows from cocoa were from three main sources namely;
i. COCOBOD's trade finance facility draw down surrendered to BoG;
ii. Export proceeds from cocoa products; and
iii. Other cocoa beans exports proceeds not designated for settlement of trade finance facility surrendered to BoG.
As at 31st December, 2017, total Foreign Exchange receipts surrendered to BoG, from COCOBOD from Cocoa receipts amounted to US$1,749,747,853.16 compared to US$2,574,861,753.19 for the corresponding period in 2016 representing a decrease of US$825,113,906.03 or 32.04%. Details of foreign exchange receipts from cocoa for the year ended 31st December, 2017 is as follows:
Table 2: Foreign exchange receipts from Cocoa for the year ended 31st December, 2017

7.2 Total Tonnage Exported

For the year under review, a total of 699,864 tonnes of cocoa beans and 234,369 tonnes of cocoa products were exported compared to 621,501

tonnes of cocoa beans and 181,569 tonnes of cocoa product for the corresponding period of 2016. Table 3 provides detailed analysis of the tonnage of cocoa beans exported in 2017 compared to same period in

2016.

Table 3: Comparative Analysis of Cocoa Exports

From the Table, overall Cocoa exports in tonnes increased by 78,363 tons and 52,800 tonnes in respect of Cocoa beans and cocoa products respectively.

However, the foreign exchange receipt decreased by US$825,113,906.03. This is attributed to a marginal decrease in the world price of cocoa during the period.

7.3 Oil Revenue Receipt

Oil revenue receipts allocated to the ABFA surrendered to the BoG for the year ended 31st December, 2017 amounted to US$84,828,478.64.

The actual amount purchased by BoG for the period is US$81,305,356.0. This amount is reported as part of forex purchases under Invisible Receipts.

7.4 Capital Receipts

Total Capital Receipts in the form of loans and grants for 2017 amounted to US$4,729,736,623.20. This amount is an increase of US$1,943,885,583.47 or 69.78 per cent over the 2016 amount of US$2,785,851,039.73. Table 4 provides the breakdown of the various sources of Capital Receipts for 2017 as compared to 2016:

Table 4: Analysis of Capital Receipts for 2017 as compared to 2016

The increase in Capital receipts for 2017 as compared with the corresponding period in 2016, is attributed to increase in BIS Bridging Facility, sales and buy-back arrangement for CAL Bank (CAL)/ Fidelity Bank Ghana (FGB)/ Barclays Bank Ghana (BBG), Sale and buy- back arrangement for Continental

Bank Ghana (CBG), Citibank Facility, IMF Income and Dividend and Ghana International Bank, London.

7.5 Invisible Receipts

Total invisible receipts for 2017 amounted to US$4,345,581,622.62
Chairman of the Committee (Mr James K. Avedzi) 5:23 p.m.


compared with US$1,117,388,204.94 recorded for the corresponding period of 2016 registering an increase of US$3,228,193,417.68 or 288.9 per cent. The significant increase in

invincible receipts was attributed to a rise in forex purchases and other Interests and Commissions. Table 5 below shows the composition of Invisible Receipts for the 2017 financial year compared to the corresponding period in 2016.

Table 5: Analysis of invisible receipt for 2017 and 2016

8.0 Foreign Exchange Payments

The total foreign exchange payments made by BoG for the year ended 31st December, 2017 amounted to US$9,125,618,861.59 compared to US$6,476,245,583.33 for the corresponding period of 2016. This resulted in an increase in foreign exchange payments of

US$2,649,373,278.26 or 40.91 per cent. Foreign exchange payments for the period is made up of visible imports, capital payments, and invisible payments. Visible imports are made up of Oil, Non-Oil and other imports. Table 6 shows the summary of payments made during the period compared to 2016.

Table 6: Analysis of Foreign exchange payments for 2017 compared to

2016
Chairman of the Committee (Mr James K. Avedzi) 5:23 p.m.
9.0 Details of Foreign Exchange Payments
9.1 Visible Import Payments
Visible imports consist of oil, non- oil as well as other imports. Visible import payments for 2017 amounted
to US$2,188,475,857.92 compared to US$1,850,750,205.63 recorded for the corresponding period in 2016 representing an increase of US$337,725,652.29 or 18.25 per cent. The breakdown of Visible Import payment for 2017 compared to 2016 is shown on Table 7 below.
Table 7: Visible Import payment for 2017 and 2016
The 84.76 per cent decline in forex outflows for crude oil was due to the fall in forex sales to Commercial banks to finance the purchase of crude oil as a result of the implementation of
the deregulation policy which allowed Oil Marketing Companies (OMCs) to finance their own oil purchases. The increase in Non-oil was also attributed to the increase in foreign exchange

sales to dealer commercial banks to finance import needs of their customers.

9.2 Capital Payments

Capital Payments include loan repayment to bilateral and multilateral institutions during the period amounted to US$5,950,075,798.55. This represented an increase of US$1,746,701,834.20 or 41.55 per cent over the 2016 amount of US$4,203,373,964.35. The sharp increase in capital payments was as a result of a rise in miscellaneous capital payment of BIS Bridging Facility, AFRIEXIM SWAP Deals and SG SWAP Deal during the period.

9.3 Invisible Payments

Invisible payment relate to payment made in respect of Manpower and Training, Management, progress payment to contractors and technical fees, Embassy transfers, Contractual payments, Capital subscriptions and Sundry expenses.

Invisible Payment for 2017 totaled US$987,067,205.12 compared to US$422,121,413 recorded in the same period of 2016, representing an increase of US$262,117,205.12 or 36.15 per cent. Details of Invincible payments for the year ended 31st December 2017 and 2016 are presented in Table 8 below.

Table 8 : Invisible payments for the 2017 compared to 2016

10.0 Net Position of Foreign Exchange Receipts And Payments

During the period under review, BoG recorded a net surplus of US$1,699,447,242.39 compared to US$235,902,384.30 reported for the same period in 2016. This represents an improvement of US$1,463,544,858.09 or 620.40 per cent. The increment is due to increase in capital and invincible receipts as well as a fall in the payment for oil and other imports.

11.0 Movement in Foreign Reserve Asset

Bank of Ghana's foreign reserve asset consisted of Gold, holding of special drawing rights, correspondent

bank balances, foreign notes and coins balances, investment and fix deposits, investments in Ghana International Bank (London) and investment in AFRIEXIM Bank. The reserve position of BoG as at 31 st December, 2017 totaled US$7,555,644,025.87 compared to US$6,155,753,144.94 for the corresponding period of 2016 recording an increase of US$1,399,890,880.93 or 22.74 per cent

The increase in foreign reserve resulted mainly from increases in fixed deposits, correspondence Bank Balance, Sovereign Funds, Reserve in SDR and investment in GIB London. Details of BoG reserve asset as at 31st December, 2017 and 2016 are provided in Table 9.
Chairman of the Committee (Mr James K. Avedzi) 5:23 p.m.
Table 9: BOG Reserve Asset Position as at 31st December 2017 and
2016

12.0 Findings and Recommendations

The Committee after a careful scrutiny of the report made the following observations:

12.1 Weak Internal Controls

The Committee noted that due to weak internal control and supervision of staff, some of the foreign exchange receipts were either understated or overstated. The Committee noted that, Bank of Ghana reported a receipt of Japanese Grant US$11,031,300 instead of US$1,103,130. An overstatement of US$9,928,170.00. Additionally, Cocoa receipts were also overstated by US$1,205,462.50 as a result of multiple entries. The overstatements affected the overall foreign exchange position of BoG during the period.

The Governor attributed the overstatement to human error and disputed the assertion that the overstatement was as a result of weak internal controls. He explained that the Bank reviews its internal control quarterly under the supervision of the Board. The Committee however agree with the Auditor-General that the lapses were as a result of weak internal controls. This explains why the errors were not detected and corrected before the audit.
Mr Kofi Okyere-Agyekum (Ranking Member) (NPP -- Fanteakwa South) 5:33 p.m.
Mr Speaker, I beg to second the Motion for the House to adopt the Report of the Public Accounts Committee on the Report of the Auditor-General on the Statement of Foreign Exchange Receipts and Payments of the Bank

of Ghana for the year ended 31st December, 2017.
Mr Speaker, in seconding the Motion, I wish to make a few observations 5:33 p.m.
in paragraph 12.1 on page 13, the Committee noted that there was a misstatement of US$9,928,170 from the Japanese grant. An amount of US$1,000,130 was overstated by US$9,928,170.
Again, Mr Speaker, the Committee noted that cocoa receipts were also overstated by U$1,000,205,462.50. We therefore recommend that the Bank of Ghana should strengthen internal controls and supervision so that these mis-statements would not occur again.
Thank you, Mr Speaker.
Question proposed.
Mr Amidu I. Chinnia (NPP -- Sissala East) 5:33 p.m.
Mr Speaker, thank you for the opportunity to contribute to the Motion ably moved by the Chairman of the Committee and seconded by the Hon Ranking Member.
Mr Speaker, in seconding the Motion, I would want to make reference to paragraph 10 of page 12 of the Report, under “Net Position of
Foreign Exchange Receipts and Payments” - Mr Speaker, the Report as was considered properly indicated that the period under review, Bank of Ghana recorded a net surplus of GH¢1,699,447,242.39 compared to GH¢235,902,384.30. This represents an improvement of GH¢1,463,544,858.09 which represents 620.40 per cent increase. The net surplus increase of the year ending 31st December, 2017 relating to 2016 clearly indicates that Bank of Ghana did a good job and so has taken the country forward and in the right direction.
Mr Speaker, notwithstanding this massive improvement in terms of net surplus, the Committee realised that the Bank of Ghana had some weak internal controls and that resulted in some understatement and overstate- ment that affected the figures but the Governor of the Bank of Ghana attributed the overstatement that occurred in the Report to human error. I am confident that considering the net surplus that was recorded and once the Governor and the Bank have taken notice of these weak internal controls, I am sure that going forward, there would be much improvement.
Mr Speaker, with these few words, I want to support that the House adopts this Report as the true Report of the Bank of Ghana.
Mr Rockson-Nelson K. E. Dafeamekpor (NDC -- South Dayi) 5:43 p.m.
Mr Speaker, I thank you for the opportunity to speak in support of the Motion on the Floor.
Mr Speaker, in doing so, the Committee in the course of our work noted -- particularly on page 16 of the Report, paragraph 12, sub- paragraph 7 that even though gold receipts are supposed to be captured, they were omitted. Indeed, the officials from the Bank of Ghana informed the Committee that the receipts were not accounted for because as part of the banking sector reforms, there was a policy shift that allows the major mining firms to surrender their foreign exchange receipts to their dealer commercial banks.
Mr Speaker, it is rather because of the reforms that the gold receipts should have been captured. So for the Bank to claim that because of the banking reforms, they had directed the mining companies to dispose that to the commercial dealers and therefore did not captured it was a problem. So the Committee recommended that going forward, they have to do that.
Again, the Committee as part of the key recommendation also advised the Bank to strengthen its reporting systems so that the discrepancies that
were uncovered could be checked internally.
Mr Speaker, on the whole, I think the Report reflects the situation of the year under reference.
So, with these words, I support the Motion on the Floor.
Thank you, Mr Speaker.
Question put and Motion agreed to.
Resolved Accordingly.

Auditor-General's Report on the Public Accounts of Ghana (Consolidated Fund), 2018
Chairman of the Committee (Mr James K.Avedzi) 5:43 p.m.
Mr Speaker, I beg to move that this honourable House adopts the Report of the Public Accounts Committee on the Report of the Auditor-General on the Public Accounts of Ghana (Consolidated Fund) for the year ended 31st December 2018.
Mr Speaker, in so doing, I present the Report of the Committee
1.0 Introduction
The Report of the Auditor-General on the Public Accounts of Ghana
Chairman of the Committee (Mr James K.Avedzi) 5:43 p.m.


(Consolidated Fund) for the year ended 31st December, 2018 was presented to Parliament on Tuesday, 23rd July, 2019 in accordance with article 187(2) and (5) of the 1992 Constitution of the Republic of Ghana and section 23(1) of the Audit Service Act, 2000 (Act 584).

Pursuant to Order 165(2) of the Standing Orders of the Parliament of Ghana, the Rt Hon Speaker referred the Report to the Public Accounts Committee for examination and report.

2.0 Procedure The Committee met and examined

the Report with the Hon Deputy Minister for Finance, Mrs Abena Osei-Asare, and the Controller and Accountant-General. Also present at the Committee's sittings were officials from the under-listed institutions:

1. Ministry of Finance.

2. Controller and Accountant General's Department.

The Assistant Auditor-General, Mr Christian Adjin Doku and a technical team from the Audit Service were also present at the Committee's sittings to assist in the considerations of the Reports.

The witnesses who appeared before the Committee subscribed to the Oath of a Witness and answered questions relating to the issues/queries raised by the Auditor-General in his Report and on issues of general public interest.

3.0 Acknowledgement

The Committee is grateful to all officials who were present at the Committee's sittings to assist in its deliberations. The Committee also expresses its appreciation to the Assistant Auditor-General and his technical team for their immense assistance to the Committee during the examination of the Report.

4.0 Reference Document

The Committee referred to the following documents during its

Deliberations:

i. The 1992 Constitution of the Republic of Ghana.

ii. The Standing Orders of the Parliament of Ghana.

iii. The Financial Administration Regulation, 2004 (L.I.

1802).

iv. The Audit Service Act, 2000 (Act 584).

v. The Public Procurement Act, 2003 (Act 663)

vi. The Internal Audit Agency Act, 2000

vii.The Public Financial Management Act, 2016 (Act

921)

5.0 Background

Section 81 (1) of the Public Financial Management Act 2016 (Act 921) provides that the Controller and Accountant-General shall within three months after the end of each financial year prepare and submit the following consolidated accounts including the accounts specified in the Schedule; to the Minister and the Auditor-General: the Consolidated Annual accounts of Government, including the Accounts of the Contingency Fund and Accounts of the Petroleum Funds.

In accordance with this provision, the Controller and Accountant- General submitted the Public Accounts of Ghana (Consolidated Fund) for the year ended 31st December, 2018 to the Auditor- General for audit.

Section 15 of the Audit Service Act, 2000 (Act 584) also requires that the Auditor-General on receipt of the

Public Accounts must examine and certify whether in his opinion, the statements present fairly, the financial information on the Public Accounts of Ghana and whether the statements were prepared in accordance with accounting policies of Government and the Generally Accepted Accounting Principles.

In the performance of the above functions, the Auditor-General observed some inaccuracies and included his findings in his report for the consideration of the House. The Report also contains his opinion on the financial statements.

6.0 Purpose and Objective of the Audit

The purpose of the audit was for the Auditor-General to examine the Public Accounts of Ghana and to express an opinion on whether the statements accurately present a true and fair view of the financial information on the Government of Ghana for the year ended 31st December 2018, whether the records are consistent with statements of the preceding year, and whether the Public Accounts of Ghana so presented are in accordance with accounting guidelines and procedures of the Government of Ghana, as well
Chairman of the Committee (Mr James K.Avedzi) 5:43 p.m.


as the generally accepted international accounting practices or Principles.

7.0 Scope of the Audit

The audit covered transactions and events in the 2018 financial year, taking into consideration all relevant provisions of the 1992 Constitution and other appropriate enactments, guidelines on statutory funds such as the Public Financial Management Act (PFMA), 2016 (Act 921) and the enabling enactments on statutory funds and other regulations.

Furthermore, the Audit assessment focused on the processes followed by the Controller and Accountant General's Department in capturing transactions and events in the preparation of the Public Accounts of Ghana (Consolidated Fund). It also covered the review of application controls and data integrity of the GIFMIS system.

8.0 Summary of the Financial Statements on the Consolidated fund for the Year Ended 31st December 2018

8.1 Summary of Revenue and Expenditure (Budget out-turn)

During the 2018 financial year, Government of Ghana's total revenue

generated was GH¢39,937 million against its projected budget to generate revenue to the amount of GH¢48, 805 million a shortfall of 8,868 million, or 22 per cent in shortfall. Nevertheless the revenue performance in 2018 was an improvement of 30 per cent over the 2017 revenue outcomes.

Total estimates for expenditure for the year ended 2018 was budgeted as GH¢58,974 million. There was however an Actual expenditure out- turn of GH¢69,496 million an increase expenditure of 117.84 per cent of the budgeted provision. (Ref: Report on consolidated fund, 2018, page 7 to 9 of Statements of Revenue and expenditure).

8.2 Revenue performance

Notably the sources of revenue were from Direct taxes, Indirect Taxes, Grants and Non-Tax Revenue. Total receipts amounted to GH¢39,936,980,445.00 million as against an estimate of GH¢48,805,208,415 resulting in a shortfall of 8,868 million or 22 per cent shortfall of expected revenue in

2018.

Table 1 Summary of Revenue- 2018
Chairman of the Committee (Mr James K.Avedzi) 5:43 p.m.
Total revenue receipts for the year 2018 was GH¢39,937 million given a negative variance of GH¢8,868 million or 22 per cent less than projected revenue of GH¢48,805 million. It is significant to state that the revenue performance in 2018 was however an improvement of 30 per cent over the 2017 revenue outcomes.
8.3 Expenditure
Actual expenditure for the year ended 31st December, 2018 amounted to GH¢69,497 million. This excluded provision for doubtful debts which were provided for in 2017 amounting to GH¢389,489,435 as detailed in Table 2.
Table 2 2018 Budgeted Expenditure versus. Actual Expenditur8.)

Table 3 Statutory Payments

Commercial bank accounts which are all maintained as part of the Consolidated Fund. Total Cash balance at year end 31st December 2018 was GH¢7,983,232,998 against GH¢6,490,635,632 for 2017 (See page 36 note 26 of Notes of Accounts).

Advances or current receivables are short term advances which are payable within a year which include; Special Advances made to government employees, such as vehicles advances, Special advances, salary advances, and advances to MDAs for the operation of revolving funds otherwise known as Departmental revolving fund, staff

advance and other receivables. These advances amounted to GH¢1, 463575,826 at the end of the year 2018 against GH¢871,974,542 in 2017. (See page 37 note 27 of Notes of Accounts)

Non-current Receivables or Loans (Receivables) are long term receivables from Government institutions, such as Statutory Boards and Corporations, Companies and other foreign governments/ agencies, Non Project Type (NPT) companies and miscellaneous. The total non-current receivables or loan balance as at 31st December, 2018 stood at GH¢11,997,117,639 as against a total loan receivable of GH¢2,202,959,404 for the year ended 31st December,

2017.

8.4 Balance Sheet

8.4.1 Assets

Assets are made up of the following:

Cash balances: from Treasury main accounts, MDA Sub-CF Accounts, Regional Sub-CF account, MMDA Sub-CF, Non-tax Revenue Accounts, Tax revenue Accounts, Special Accounts and Domestic

Equity Investments include;

Trust funds amounting to -- GH¢7, 172,654

International Agencies, amounting to -- GH¢4,983,761

Companies and Public Corporations -- GH¢9,562,418,795 amounting to and

Decentralised investment -- GH¢20,461,888

During the year under review Assets and Liabi l i t ies were summarised in the Tables that follows:

These are funds held in trust by Government which amounted to GH¢9,595,037,098 as at 3 1 s t December 2018 against GH¢10,316,161,058 in 2017.
Chairman of the Committee (Mr James K.Avedzi) 5:43 p.m.


Table 4 Summary of Assets in Balance sheet

8.4.2 Liabilities

Table 5 Summary of Current and Non-current Liabilities as in Balance sheet

Note: The Total domestic Loans of GH¢86,503,691,575 is made up of short term domestic loan amounting to GH¢8,230,132,669 and long term domestic loans amounting to GH¢78,273,558,906 for the year ended 31st December 2018. Similarly, the aggregate amount of GH¢66,413,143,176 domestic loans include current and non-current domestic loans as at year end 2017.

8.4.3 2018 Total Net Liability / Equity or Net Worth.

As at year end 31st December 2018, Government of Ghana total net Liabilities stood at GH¢ (125, 5234, 395,164) as against GH¢ (120,069,560,991) for the year ended 31st December, 2017.

9.0 Summary of Some of the Audit Findings

i. Discrepancies in Tax revenue Reported.

ii. Treasury Single Account and Cash Reported in the Public Financial Statement.

iii. Discrepancies in reporting GoG Equity investment.

iv. Inconsistencies in Foreign Transaction.

v. Inconsistencies in MDAs Expenditure and Expenditure reported in the Public Fund Accounts.

vi. Non-disclosure of guarantee loans and Contingent Liabilities in the Public Fund Accounts.

vii. Failure to ensure transfer into NHIF by SSNIT.

viii. Lack of Investment policy for Sinking Fund.

ix. Inaccurate disclosure of GoG equity Investment among others.

9.0 Observations and Recommendations

The committee after careful deliberations on the report with the relevant Institutions, noted that most of the issues raised in the report were resolved and cleared by auditors. Only two queries remained unresolved which the Committee observed and made recommendations as follows.

9.1 Inconsistencies in MDAs' expenditure and expenditure reported in the Public Fund Accounts

The Committee noted that Section 81 of the Public Financial
Chairman of the Committee (Mr James K.Avedzi) 5:43 p.m.


Management Act Act 921 of 2016 enjoins the CAG to prepare and submit to the Auditor General the Public Funds Accounts of Government of Ghana.

That notwithstanding, the Auditor- General reported that in its reconciliation of eleven (11) sampled audited MDAs Financial statements the Public Accounts revealed some inconsistencies in respect of compensation, goods and services, Social Benefits and other expenditures as reported against the sampled MDA reports.

In a response to the above, the Controller and Accountant General informed the Committee that they were working with MDAs to ensure adequate reporting. Further to this he explained that officials of MDAs are currently undergoing training in reconciliation of public accounts in accordance with accounting principles.

He stated that the Ministry of Finance is updating the Auditor- General as and when they concluded with all MDAs accounts.

Recommendation:

The Committee recommends to the Ministry of Finance to recruit professionals to handle such Accounts

in order that reconciliation will not suffer any discrepancies.

9.2 Payments of Salaries to Ghana Embassies in 2018

The audit revealed that a review of Employees Compensation received by the Ghana Mission abroad was in excess of US$ 27,304,081.51 and €19,376,245.51 of their actual requirements of $19,487,837.80 and €19,353,740.95 over the financial year. The disclosure of the compensation of employees was therefore overstated by GH¢230,559,894.50 in the Public Accounts for the year ended 31st December, 2018.

In response to the issue, the Controller and Accountant -General informed the Committee that they usually send remittance of subvention to the Missions abroad in accordance with their approved cash flow plans and in furtherance to PFM Act 2016(Act 921) Secton7(3).

He reiterated that the C&AG normally depend much on their returns on the request from Foreign Affairs as well as the Compensation Bill. He conceded that in most cases they have relied on only home based staff neglecting local staff.

He informed the Committee that his outfit has in a meeting with the Ministry

of Foreign Affairs and Regional Integration agreed for them to submit all compensation related for all diplomats and staff to the Controller and Accountant-General Department for reconciliation.

Recommendation:

The Committee recommends that all three institutions including the Ministry of Foreign Affairs and Regional Integration, the Finance Ministry and CAGD should meet and reconcile their figures and report back in subsequent reports of the Auditor- General.

Conclusion

Opinion of the Auditor-General

In the opinion of the Auditor- General, except for his observations captured in Paragraph 9.0 under summary of Audit Findings, the accounts present fairly, in all material respects, the financial position of the Government of Ghana as at 31st December 2018; and that the results of its operations for the year ended were in accordance with the stated accounting policies of the Government of Ghana.

The Committee therefore recommends to the House to adopt the Committee's recommendations on

the Report of the Auditor-General on the Public Accounts of Ghana (Consolidated Fund) for the year ended 31st December, 2018.

Respectfully submitted.
Mr Kofi Okyere-Agyekum 5:43 p.m.
Mr Speaker, thank you.
I beg to second the Motion. On page 9, paragraph 9.1, the Committee noted that there were inconsistencies in the accounts of the MDAs and the Consolidated Fund. The inconsistencies arose from probably, the delays in reconciliation of the accounts of Government and the MDAs. We therefore recommend that professionals are recruited, so that the reconciliations can be brought up and delays avoided.
Mr Second Deputy Speaker 5:43 p.m.
Very well, I would invite one from each Side, and that could be a Leader.
Question proposed.
Minority Leader (Mr Haruna Iddrisu) 5:43 p.m.
Mr Speaker, I thank you for the opportunity to contribute to the Motion. I would commend the Chairman and Hon Members of the PAC for the diligent scrutiny of what they have done over the period and appropriately reported back to Parliament.
Minority Leader (Mr Haruna Iddrisu) 5:53 p.m.


Mr Speaker, in doing so, I have a primary concern. I would draw your attention to article 187 (6) of the 1992 Constitution. With your permission, I beg to read:

“Parliament shall debate the report of the Auditor-General and appoint where necessary, in the public interest, a committee to deal with any matters arising from it.”

Mr Speaker, over the years, what has happened to this Committee? Have you formed it? Are we yet to form it? There are always matters arising from the Auditor-General's Report, which border on misappropriation, embezzlement, misapplication among others. We are told yearly that some amounts of moneys are lost. What the Ghanaian public expert of this Parliament is recovery of what has been looted or misappropriated. So, we should gather the courage and form a committee beyond the PAC, because they have done their work. I believe the time is now for Parliament to have a committee which will work to ensure recovery.

Two, persons who have infractions with the law. Whether it is the Public

Financial Management Act or the 1992 Constitution, this Committee would hold them responsible for those breaches. So, it is not enough for them to come and tell us that the balance sheet is alright, but they cannot account for payments to Ghana embassies abroad.

Mr Speaker, in this House, look at how much money we are paying to embassies abroad. The moneys amount to US$27 million. When one asks about how that amount came to be, we are told that it was spent on rent, yet, in many of those countries we are capable of acquiring properties as embassies with this ridiculously high amount of money. Their systems are not like that of Ghana, they have mortgages, so, all we need is to find a property, do a 10, 15 to 20 years mortgage with them, and what we are using to service it as interest or rent, can be used to own a property over a period of time.

Mr Speaker, I would also like to refer you to page 10 of your Committee's Report. In paragraph 9.2 we read, and it says: “The audit revealed that a review of employee's compensation received by the Ghana mission abroad was in excess of an amount of US$27 million.” So, this is about compensation, and that one is deserving of this amount. However, I am talking in respect of where they

occupy as offices. My Hon Friend, the Hon Member of Parliament (MP) for Asokwa is very familiar with the landscape of the United Kingdom (UK). Ghana has prime properties in London and yet we are struggling.

So, when we form a committee, the committee must go to London and do an assessment of our properties there and come and advise us on what we should do with it. We have properties in prime areas of London that can give us some other resources. So, with these comments, I support the Motion, and I think that as the Hon Leader of Government Business has repeatedly said, there must be a more strong collaborating relationship between Parliament and the office of the Auditor-General. The Auditor- General, as he has observed many times must work with Parliament.

Mr Speaker, I would like to speak on tax revenue and non-tax revenue. Next time, the Public Accounts Committee should be interested in reporting to this House the difference between total revenue, total non-tax revenue and tax revenue. This is because the confusion over computation of District Assemblies' Common Fund under article 252 of the 1992 Constitution borders on the use of those words or nomenclature.
Mr Second Deputy Speaker 5:53 p.m.
Yes, Hon Majority Leader, you may have the Floor if you would want to say something.
Majority Leader (Mr Osei Kyei- Mensah-Bonsu) 5:53 p.m.
Mr Speaker, I would not really depart from what my Hon Colleague, the Hon Minority Leader has said. I think that we should get it right. The 1992 Constitution or the provision that my Hon Colleague quoted, that is article 187 (6) provides:
“Parliament shall debate the report of the Auditor-General and appoint where necessary, in the public interest, a committee to deal with any matters arising from it.”
Mr Speaker, article 103 (1) provides 6:03 p.m.
“Parliament shall appoint standing committees and other

committees as may be necessary for the effective discharge of its functions.”

Mr Speaker, these committees are established as soon as Parliament is given birth to. So, our Standing Orders provide that the Committee on Selection, chaired by the Rt. Hon Speaker shall ensure that these committees; standing and select and other such relevant committees are formed at the very outset when Parliament is coronated. Therefore, when article 187 (6) comes to provide that Parliament shall debate the report of the Auditor-General and appoint where necessary, in the public interest, a committee to deal with any matters arising from it, the obvious intent is that this committee is, subsequent to the formation of the general committees. So, this then is a new committee and not the regular committees that have been established by Parliament at the very beginning.

Mr Speaker, when we go to article 184 (4) which deals with the foreign exchange dealings, there is a similar provision with same wording as obtains in article 187 (6). The provision is similar, and it says:

“Parliament shall debate the report of the Auditor-General, (in respect of the foreign

exchange dealings) and appoint, where necessary, in the public interest, a committee to deal with any matters arising from the report.” Are we talking about the same committee or different committees?

Mr Speaker, we should be clear in our minds what indeed is what we want or what is desired and required by Parliament to do. In respect of article 187 (6), we have run into some turbulence in the constitution of that committee since the days of the Hon Kan-Dapaah, who was the Chairman of the Public Accounts Committee.

Mr Speaker, the courts came with their own interpretation on who to appoint to serve and partner with Parliament in the formation of such a committee. I think that the time has come for us to really get beyond this hurdle to constitute such a committee. This is because almost every time that we come to consider the report of the Auditor-General, it becomes the end of it. We raise issues on the Floor, and that particular committee, all these years has never been formed. If we have to further dialogue with the Chief Justice on this, then let us do so and put that committee in place to save us this burden where every time that we have debated report of the Auditor- General, civil society and individuals outside condemn Parliament as if

Parliament is of no relevance. What should we do?

Mr Speaker I think that the leadership of the Public Accounts Committee should join the Leadership of this House to come to a determination on this matter once and for all, and then we would have to have some engagement with the Chief Justice and come to the constitution of this committee, so that in the event of any such matter cropping up, we would have to refer it to that committee.

Mr Speaker, the Hon Alban Bagbin, the current Rt Hon Speaker, was the Hon Majority Leader at the time when we raised this matter and said to ourselves that we should form this committee, but we never got beyond that. Then we had a small advisory committee to advise the House on the way forward, which then led us to engaging the Chief Justice on this, but that was the end.

Mr Speaker, we moved the Motion to form that special committee to engage the Chief Justice. It is still on the back burner, and that Parliament has been prorogued, and a new one came. In fact, three more Parliaments have come into being, and they have all been prorogued.

Mr Speaker, I strongly urge this Parliament to constitute this committee with the active collaboration of the Chief Justice so that whenever we come to debate the report, and it becomes necessary to make any referral to the Committee, subject to the direction of the Chair, such a referral could be made to that Committee.
Mr Second Deputy Speaker 6:03 p.m.
Thank you very much. I believe we are all singing the same song. We would look up to Leadership to take up this matter so that it would not come back always laying this particular type of Report and that would be the end.
Question put and Motion agreed to.
Resolved Accordingly.
Mr Second Deputy Speaker 6:03 p.m.
Hon Deputy Minority Leader, I hope you are now alright.
Hon Chief Whip, any indication?
Mr Annoh-Dompreh 6:03 p.m.
Mr Speaker, under the circumstance, as agreed earlier, we can now take the commemorative Statement relating to Founders' Day which has been admitted.
Mr Second Deputy Speaker 6:03 p.m.
Do you want us to take the
Mr Second Deputy Speaker 6:03 p.m.


commemorative Statement? I do not have a copy.
Mr Annoh-Dompreh 6:03 p.m.
Mr Speaker, I am sorry, it was the Hon First Deputy Speaker who had a copy. It was submitted by the Hon Dr Nyarko so, if you may indulge me.
Mr Second Deputy Speaker 6:03 p.m.
Please get me a copy. Hon Dr Nyarko, you can go ahead with your Statement.
STATEMENTS 6:03 p.m.

Dr Kingsley Nyarko (NPP -- Kwadaso) 6:03 p.m.
Mr Speaker, on 4th August 1947, the first political party—United Gold Coast Convention (UGCC) was formed at Saltpond in the Central Region. This political party was formed by patriots and nationalists, who by dint of hard work, sacrifice, dedicated service and commitment to the country, led the struggle that culminated in our independence on 6th March, 1957. These were individuals who felt they owed the country, and not the reverse, and sought to use every legitimate means to deliver the country and her people from oppression, despondency and servitude. Theirs
was a fight, not only for the present, but most importantly, for the future.
Mr Speaker, these selfless leaders had envisioned a future of hope, harmony and happiness; and to realise that they felt the need to harness the talents, skills and abilities of the people to benefit both the present and future generations. Mr Speaker, these leaders were our founders, foundation and future. Their struggles, toils and determination served as the foundation for the birth of the country on March 6, 1957, and the virtues they espoused— selflessness, sacrifice, patriotism were supposed to oil the foundation for a better future.
Mr Speaker, Nyarko (2017) observed that the independence of Ghana was not realised on a silver platter; as a matter of fact, it took years of struggle, pain, disappointment, betrayal, and even deaths before we were able to gain freedom from our colonial overlords—the British. The patriots who sacrificed their energy, resources, and lives deserve commendation, and must be celebrated.
Mr Speaker, this Statement is not being made to show the superiority of one individual over the other; neither is it being made to whittle down the contributions of any person
towards our freedom and the development of our motherland. Mr Speaker, this Statement is being made on this memorable day to enable us know our past heroes and how they contributed to our present state of development, and what we have to do differently to ensure a prosperous future. Ghana, our motherland, is a great land with beautiful people and extraordinary talents; it is a land of great opportunities, possibilities and resources. With our distinct diversities expressed in our ethnicities and cultures, we have the opportunity to overcome the impediments that have, over the years, derailed our efforts of enduring progress.
Mr Speaker, I am referring to poverty, diseases, hatred, selfishness, greed, corruption and other social vices. These are the obstructions that threaten our survival, and must be dealt with in unison to guarantee our socio-economic turnaround. Mr Speaker, our divisions are obvious, our differences are conspicuous, but what we need to acknowledge is that differences and diversities are needed for us to grow, to become better, and overcome our environment.
Mr Speaker, according to Nyarko (2017), during the era of colonial rule, our forefathers had differences, yet,
they came together to pursue a collective and worthy goal—the deliverance from colonial domination. Some had the vision, others pursued it, and others made it a possibility. We need to commend them all; they all deserve to be eked in gold in the annals of our history. Mr Speaker, the vision is not fully attained; we have to fully commit ourselves to it and ensure its achievement.
As our first President once said, “our independence is meaningless until it is linked up with the total liberation of Africa.” This is the vision we have to accomplish, but in accomplishing it, we must understand that we cannot do so when divided; we cannot realise it when we allow excessive partisanship to take over our consciences and our obligation to produce a better and fulfilling future for the present generation and posterity.
Mr Speaker, in every society, community or country, “there were people who stood in the gap between the present and the future; these are individuals who wanted to leave an enduring legacy for posterity. These are people who came to the conclusion that they have to live for the future; never valued their existence until it was linked to the liberation of their people.
Dr Kingsley Nyarko (NPP -- Kwadaso) 6:03 p.m.


We do not only live to eat and die, but to impact our world and leave a legacy for our generation and subsequent ones. Because the meaningfulness of our existence lies in the impact we make on society, we need to consciously reward patriotism and acts that encourage others to sacrifice their lives for the benefit of society” (Nyarko, 2017). That is why we need to embrace the Founders' Day and make it part of our collective existence.

Mr Speaker, 60 years before independence, in 1847, a pressure group - Aborigines Rights Protection Society (ARPS) - was formed with the objective of safeguarding the property of the indigenes. In 1911, when the colonial administration wanted to introduce the Forest Ordinance, they fought it until it was later passed in 1926. It was this same Society that stood behind the Big Six when they were arrested and detained. The leadership of the ARPS contributed to our attainment of independence.

Mr Speaker, we cannot overlook the critical role played by J. E. Casely Hayford, who formed the West African Conference in 1917, which later became the West African Congress in 1920. This was the first pressure group that clearly demanded

self-determination from the colonial administration. Their aim was to invite the West African colonies under the British to demand self-determination and no taxation without repre- sentation. Three of their most crucial demands were self-government which should be implemented in order to enable peoples of African descent to be part of the governance of their own country, the granting of elective franchise and the abolishing of the system of nomination to the Legislative Council because of its undemocratic nature (Ofosu-Appiah, 1974).

Mr Speaker, upon his return home in 1927 after obtaining his doctorate degree, J. B. Danquah, together with journalists such as Nnamdi Azikiwe, K. A. B. Jones Quartey, provided the enabling political atmosphere that raised national consciousness and awareness towards emancipation. Through their platforms, the indigenes were made aware of issues in the country, their despondency, and neglect to second-class citizens on the land of their birth. It must be stated unequivocally that it was through the toil and sacrifices of these nationalists that awakened the consciousness of the people to demand that a delegation of chiefs and the people be sent to protest at the colonial office in London over the Criminal Code (Amendment) Ordinance, popularly called the

Sedition Bill, and the Water Works Ordinance of 1934.

Mr Speaker, Dr J. B. Danquah was the leader of the delegation as the secretary, and demanded, in addition to the two demands indicated above, an increase in the number of Africans on the Legislative Council, the election of the Provincial Council members for the Eastern Province by the Whole Provincial Council, and non-chiefs becoming provincial members (Ofosu-Appiah, 1974).

Mr Speaker, in the 1940s, there was an unquenchable demand for freedom as the intelligentsia gave their all and made sure that the people participated in determining their own destiny. As a result, when upon a meeting between J. B. Danquah and Mr George Alfred Grant in Sekondi, the idea to establish a political party was non-negotiable. Mr Grant was not happy about the myriad of socio- economic issues at the time and said to Dr Danquah, “Danquah, the country is slipping down the hill, and what are you doing about it?” Dr J. B. Danquah replied, “I am in your hands, Sir.” Mr Speaker, this interaction paved the way for a meeting among Dr Danquah, Mr F. Awoonor-Williams, Mr R. S. Blay, and Mr Grant. It was at this meeting that led to the eventual formation of

the UGCC in Saltpond, on 4th August,

1947.

Mr Speaker, this day, in no doubt, was the defining moment towards the attainment of independence in the Gold Coast. At the inauguration, Mr Grant was elected the chairman for the occasion, and Dr J. B. Danquah delivered the inaugural address. The address was so potent and touching to the extent that it was able to create a national awareness, and craving for freedom. After the speech, which was greeted with deafening applause, Mrs. J. B. Eyeson mounted the podium and said, “Dr Danquah, we had in the past given enthusiastic support to the cause of the church. Today it is the cause of the nation. Women of the country are behind you.” (Ofosu-Appiah, 1974, p.52,

53).

Mr Speaker, it must also be stated without equivocation, that the advent of the UGCC provided the fertile ground for our freedom. In fact, it was the forerunner to our independence. Being the first political party in the country, the pure intentions and activities of the leadership contributed in making the attainment of independence possible. Mr Speaker, during this period, Dr Kwame Nkrumah was not in the country, but was recommended by Mr Ako Adjei to the Executive Committee of the
Dr Kingsley Nyarko (NPP -- Kwadaso) 6:03 p.m.


UGCC. He was later invited and became the secretary of the convention.

Mr Speaker, the leadership of the UGCC, as a result of their passion for freedom, paid Dr Kwame Nkrumah's travelling expenses, and he arrived in the country on 10th December, 1947. It must also be noted that, among the leadership of the convention, he was the only person who received monthly salary. Mr Speaker, for the other nationalists to use their own resources to bring Dr Kwame Nkrumah back home and pay his salary to help in the emancipation struggle, clearly shows their determination and commitment to our freedom. Mr, Speaker, Dr Kwame Nkrumah, in June 1949, left the UGCC, formed the Convention Peoples Party, which eventually led us to our independence on 6th March,

1957.

Mr Speaker, on this memorable day, permit me to salute all our gallant men and women who contributed in one way or the other towards our attainment of statehood. Let us all join hands to bless the memories of Yaa Asantewaa, Casely Hayford, Dr Joseph Boakye Danquah, Dr Kwame Nkrumah, Mr J. W. de Graft- Johnson, Mr John Mensah Sarbah, Mr Jacob Kwaw Wilson Sey, Mr

Baffour Osei Akoto, Mr Simon Diedong Dombo, Dr Kofi Abrefa Busia, Mr Edward Akufo-Addo, Mr Ako Adjei, Mr Obetsebi Lamptey, Mr William Ofori-Atta, Mr Robert Samuel Blay, Mr George Alfred Grant, Alhaji Yakubu Tali, Nii Kwabena Bonnie III and the many other men and women who through their selfless, dedicated and sacrificial service helped in founding Ghana. May God bless their respective souls and continue to give them a peaceful rest!!!

In conclusion, Mr Speaker, I admonish us all to reflect deeply on this day, and come to the realisation that our founders laid the foundation for a better future for Ghana—a future we must work assiduously to attain!!!

God bless Ghana!!!
Mr Second Deputy Speaker 6:13 p.m.
Hon Members, this is a commemorative Statement and I would invite two contributors from each Side including leadership.
Mr Amidu Issahaku Chinnia (NPP - Sissala East) 6:13 p.m.
Mr Speaker, Founders' Day is a very important day in the history of Ghana. The Gold Coast then was ruled by our colonial masters, and the struggle for political
and economic independence started with the Aborigines' Right Protection Society which was ably led by Mr John Mensah Sarbah, and this was formed on the 4th August, 1897. That was the beginning of the struggle for independence. The traditional leaders at that time came together to fight against land reforms that were being introduced by our colonial masters. Subsequent to this, they saw the need to fight for the independence of Ghana.
The UGCC was also subsequently formed on the 4th August as a political organisation which started the struggle for political independence. The actions of UGCC resulted eventually in the CPP being formed to attain independence for Ghana on the 6th March, 1957.
Mr Speaker, clearly, the contributions of those who started the struggle for political independence must always continue to be an inspiration for generations now and those unborn. It is important that on 4 th August of every year, we remember and celebrate those who started the struggle and eventually helped to attain independence. This has made it possible for Ghana to be an independent country with our national flag and national anthem, and
rule ourselves and bring so much development to our country so that future generations would be inspired to do more to contribute their quota to Ghana's development.
Mr Speaker, I thank the Hon Member who made the Statement in eulogising the founders and those who were part of the struggle for political independence which we all benefit from. So collectively, we must continue to support and fight for Ghana so that the political independence that we have would result in massive economic development that would bring relief to the people of Ghana.
Mr Speaker, I thank you for the opportunity to contribute.
Majority Leader (Mr Osei Kyei- Mensah-Bonsu) 6:23 p.m.
Mr Speaker, I also beg to associate myself with the Statement that seeks to eulogise the role of the founding fathers of what has now become known as ‘Ghana'.

Mr Speaker, I agree with the Hon Member who made the Statement that self-determination of the Gold Coast was not achieved on a silver platter but through the toil and sweat of nationalists who were convinced beyond every measure that Gold
Majority Leader (Mr Osei Kyei- Mensah-Bonsu) 6:23 p.m.


Coast had the human capital to be able to preside over its own affairs.

Mr Speaker, the Gold Coast prior to independence legally consisted of four distinct British dependencies; the Gold Coast Colony established by a letter of patent in 1886; the Crown Colony of Ashanti annexed by an Order in Council in 1901, the Protectorates of the Northern Territories acquired by an Order in Council in 1901 and the United Nations Trust Territory of British Togoland acquired in 1923 on a League of Nations mandate after the First World War.

Mr Speaker, the choice of the name Ghana is explained vividly by the statement that was made by Dr J. B. Danquah at the inauguration of the UGCC and I would want to quote the statement he made on that occasion:

“We have from all the corners come to Saltpond today for a specific purpose, for a decision. We have come to take a decision whether our country and people are any longer to tolerate a system of government under which our chairman nicely put it those who are in control of government are not

under the control of those who are government.”

He argued further that:

“We must have here and now if we are to be well governed a new kind of freedom; a Gold Coast freedom, a Gold Coast liberty.”
Mr Speaker, J.B. Danquah continued 6:23 p.m.
“Love of freedom from foreign control has always been in our blood. Eight hundred years ago, we struck against the attempt of the Arabs to impose a religious slavery upon us in Ghana. We left our houses in Ghana and came down here to build for ourselves a new home but there is one thing we brought with us from ancient Ghana. We brought with us our ancient love for freedom. Today, the safety of that freedom is threatened.”
So our duty is clear. Mr Speaker, he, by this was referring to the Burns Constitution.
“It has been continuously threatened for hundred years since 1884 and the time has come for a decision and remember when we were
attacked by the Arabs in Ghana, there was plenty of lands to escape into. There was no rain forest there and we came down south and to the gold and diamond bearing lands in the Gold Coast. We came here to settle here. Today, there is nowhere else for us to go. So, our duty is clear.”
Mr Speaker, that is from Dr J. B. Danquah. So, Dr J. B. Danquah concluded his speech by drawing a connection between the ancient Ghana and the Gold Coast and the fact that independent Gold Coast would be called Ghana. That was the day this was established.
Today, we have all manner of revisionists coming to suggest something to the contrary. Those people know that what they are saying is untenable. It does not exist anywhere. This is the very genesis of the name Ghana.
Mr Speaker, at the behest of Mr Ebenezer Ako Adjei, an invitation was extended to Dr Kwame Nkrumah in 1947 to serve as the General Secretary at the time when the Convention was in high demand by the people. Mr Ako Adjei had known Dr Kwame Nkrumah since January 1939, first as a student at Lincoln
College, Pennsylvania, and with whom he had worked in the African Students Association of America and Canada and West Africa National Secretariat in London. Dr Nkrumah's position was a full time one with salary of £25 per month, a car and an accommodation.
It is important to state that when Dr Kwame Nkrumah joined UGCC and became the General Secretary, he indeed added a cutting edge to the aspirations of the UGCC. That is why when Dr Nkrumah came and was being ushered into office, he said on December 28, 1947, and Mr Speaker, I quote:
“I am happy to be here with you at last. At the moment, I cannot say anything more than to affirm that if you and indeed the country, Gold Coast, need me, I am at your service.”
Mr Speaker, this is the genesis and the appointment of Dr Kwame Nkrumah which gave the organisation both the political and organisational momentum that was required at the time to push the aims and objectives of UGCC forward.
Mr Speaker, the aims and objectives of the UGCC and, indeed, of CPP were about similar and that is why Dr Nkrumah decided to opt out
PAPERS 6:23 p.m.

Mr Second Deputy Speaker 6:23 p.m.
I thank you very much. There is a last Statement.
Mr Kyei-Mensah-Bonsu 6:23 p.m.
Mr Speaker, I understand the person to make that Statement is not with us so we can take that one tomorrow, respectfully, while we deal with the Order Paper Addendum 3.
Mr Kyei-Mensah-Bonsu 6:33 p.m.
Mr Speaker, respectfully, I may seek your permission and indeed, the indulgence of the House to present the Paper listed as item numbered (a) (i) and (ii) on behalf of the Minister for Finance.

Mr Speaker, but if you would grant me, I would want to effect some corrections. The season is 2021/2022 and not 2020/2021; we did the latter last year and this is for 2021/2022.
Mr Second Deputy Speaker 6:33 p.m.
Which one? I do not get the correction you are making.
Mr Kyei-Mensah-Bonsu 6:33 p.m.
Mr Speaker, the correction is in respect of the penultimate line of Order Paper Addendum 3, item numbered (a)(i). 2020/2021 should read 2021/2022 crop season and the same will be repeated in (ii).
Mr Speaker, accordingly, I beg to present the Paper on behalf of the Hon Minister for Finance.
Mr Second Deputy Speaker 6:33 p.m.
Very well.
PAPERS 6:33 p.m.

Mr Second Deputy Speaker 6:33 p.m.
Item numbered (b) on the Order Paper Addendum 3.
By the Leader of the Delegation --
Report of Ghana's Represen- tatives to the ECOWAS Parliament on the ECOWAS Parliament's Delocalised Meeting of the Joint Committee on Political Affairs, Peace, Security and African Peer Review Mechanism (APRM), Legal Affairs and Human Rights, Telecommu-nications and Information Technology held in Winneba, Ghana, from 27th to 31st July, 2021.
Mr Second Deputy Speaker 6:33 p.m.
Item numbered (c)? Chairman of the Committee.
[Interruption] --
Mr Haruna Iddrisu 6:33 p.m.
Mr Speaker, with the item numbered (c), which is on the Report of the Ad hoc Committee to investigate the procurement of Sputnik-V, a while ago, I had to ask Hon Akandoh who is the Vice-Chairman of the Committee to relate to the Leader because he had brought to my attention that there were some disagreements as to what should finally be the contents of the Committee's Report. So, I would ask him to relate to the Hon Majority Leader so I would not want to believe that it is ready to be laid.
A while ago, I asked him to walk to the Hon Majority Leader because he drew my attention to it earlier and I had seen aspects of it. So, the Committee should meet and finalise it and we can do it tomorrow. It is not something we should insist to be done now.
Mr Speaker, if we can stand that down till tomorrow while we look at other Business. We need more time to thoroughly study some of the matters that have been brought before us and bring a closure on it tomorrow --
Mr Second Deputy Speaker 6:33 p.m.
Very well.
Hon Member, while we are reconciling, can we move to item numbered (d)?
By the Chairman of the Committee --
Report of the Finance Committee on the Request for waiver of Import Duty, GETFund Levy, NHIL, Import VAT, EXIM Levy, and Special Import Levy amounting to the Ghana cedi equivalent of twenty-seven million, one hundred and sixty- one thousand, seventy-six euros thirty-eight cents (€27,161,076.38) on materials and equipment required for the construction of the Tema, Nkoranza, and Dormaa Hospitals and the Rebuilding of the Central Medical Stores and ancillary facilities.
Mr Kyei-Mensah-Bonsu 6:33 p.m.
Mr Speaker, the Hon Vice Chairman of the Committee has drawn my attention to some areas that they may want to further consult and because of the shortness of the time, we could agree to the laying subject to the cleaning up. That will be done between the leaders of the Committee - I may even want to join them because the Hon Member has brought some to
me and I have also seen same. I believe that we should have a change in the rendition.
Mr Speaker, so, we could let the Hon Chairman of the Committee do the laying subject to amending the various issues that the Hon Member has raised.
Mr Haruna Iddrisu 6:33 p.m.
Mr Speaker, I take the Hon Majority Leader's word that he will join them but I prefer that he works with them. This is just two or three paragraphs to be rectified and it would be laid. If they want us to be here till whatever time, we will walk through the process but this is not the first time my attention has been drawn to it. We have tried for them to work together and so, now that he has added on, he should invite the Committee, clean things up and have a fine Report for laying tomorrow.
Mr Kyei-Mensah-Bonsu 6:33 p.m.
Mr Speaker, I do not disagree with what the Hon Minority Leader is saying. He brought one issue to me, I looked at it and I thought we could engineer the construction and he agreed. He brought a second one and again, I thought something ought to be done and the Hon Vice Chairman agreed. However, when he came back, a couple of others had also been brought, which I cannot work on now,
Mr Kyei-Mensah-Bonsu 6:33 p.m.


that was why I said, I could join them for us to amend those portions and then deem it as having been laid because of the time. But if we, maybe, have to finish before it is laid tomorrow, I do not have anything against it.
Mr Second Deputy Speaker 6:33 p.m.
Very well.
So, we step it down.
Hon Majority Leader, any directions?
Mr Kyei-Mensah-Bonsu 6:33 p.m.
Mr Speaker, just one other matter that I thought had to do with the work programme of GNPC. I am just looking at where it is situated.
Mr Second Deputy Speaker 6:33 p.m.
It is on the Order Paper Addendum 1? It is just a sheet.
Mr Kyei-Mensah-Bonsu 6:33 p.m.
Mr Speaker, Order Paper Addendum 1, item numbered (c). The Hon Chairman is here and so, if he could lay the Paper?
By the Chairman of the Committee --
Report of the Committee on Mines and Energy on the work
programme of the Ghana National Petroleum Corporation (GNPC) for the year 2021.
Mr Kyei-Mensah-Bonsu 6:43 p.m.
Mr Speaker, I believe we have done considerable work and I guess we can take an adjournment today. Mr Speaker, there are many things to do tomorrow so I would plead with us that -- the Hon Minority Leader just said that if we have to Sit until 1.00 a.m. on Saturday, they are prepared to Sit.
Mr Speaker, so I would plead with them, especially with the last Paper that was laid, which is in respect of the syndicated loan. The Finance Committee would have to work on it as early as possible tomorrow to submit a Report, and when we are through with that, then we can take an adjournment sine die tomorrow.
Mr Speaker, thank you very much and I thank Hon Colleagues as well.
Mr Haruna Iddrisu 6:43 p.m.
Mr Speaker, I second the Motion by the Hon Majority Leader for an adjournment, trusting that we would have time to thoroughly examine and go through the major Reports that have been submitted to us particularly, the Report from the Committee on
Mines and Energy which Hon Colleagues would need time to digest. It is on the GNPC acquisition of significant share in Deepwaters.
On the matter of COCOBOD, I believe the Finance Committee would do just as he has suggested. So, I second the Motion for adjournment.
Mr Afenyo-Markin 6:43 p.m.
Mr Speaker, for emphasis you are letting
ADJOURNMENT 6:43 p.m.

  • The House was adjourned at 6.46 p.m. till Friday, 6th August, 2021, at 10.00 a.m.