The Government of Ghana is set to pay 60% of the loan facility brought before Parliament for the purchases of vehicles for Members of the 8th Parliament and members of the Council of State.
According to the report 60% of the principal sum would be borne by government and all the interests that would be accrued on the loan, while Members of the 8th Parliament and Council of State Members would also pay the remaining 40% of the loan facility.
This was contained in a document issued and copied to the media.
Per the arrangement, the state will absorb 373,333.33 dollars representing 60% while an amount of $248,888.89 dollars representing 40% will be paid by Members of Parliament (MP).
Per the agreement, each of the 275 MPs and each of the 31-member Council of State will receive about $100,000 for the purchase of a vehicle.
The repayment of the facility by the beneficiaries, according to the agreement, shall be made from deduction at source by the Parliamentary Service of Ghana to the National Investment Bank.
The document indicates that while the $28 million facility has to be paid within a 45-month period, the $3.5 million loan facility is to be paid within 42 months.
On July 6, 2021, a Deputy Minister of Finance, Abena Osei Asare, on behalf of the sector Minister, tabled two different loan agreements in Parliament to that effect.
The document is currently before Parliament’s Finance Committee for consideration and report for the House approval.
The government is seeking Parliament’s approval to secure a $28 million loan facility from the National Investment Bank for the initiative, additional $3.5 million loan agreement with the National Investment Bank to purchase vehicles for the 31-member Council of State has been laid.
Apart from the repayments by MPs, each Council of State Member will pay $33,333.33 dollars representing 40% and the government will also bear the outstanding $50,000 dollars representing 60%.
The repayment by the beneficiaries and the Government of Ghana shall be made at the end of every month for the duration of the Agreement.
The repayment of the facility by the beneficiaries shall be made through their monthly entitlements.
The Finance Committee of Parliament, in the coming days, is expected to present their report as referred by the First Deputy Speaker of Parliament, Joseph Osei Owusu.