Finance committee fails to approve 120 million dollar loan

The Parliamentary Finance Committee on Wednesday failed to push a 120 million dollar loan motion for the lack of knowledge of the interest rate the loan would attract.

The agreement between the government of Ghana and the International Development Association (IDA) is to be used to finance the proposed Abidjan-Lagos Trade and Transport Facilitation Project.

The loan has a grace period of 10 years, repayment period of 25 years, maturity period 35 years, committee fee of 0.5 per cent and service charge of 0.75 per cent.

However, the interest rate for the loan was not indicated in the report.

Mr Albert Kan-Dapaah, member for Afigya-Sekyere West, questioned the report which according to him lacked certain vital information particularly issues on sustainability of the loan.

He said parliament in recent times had been accused of hastily pushing motions sometimes on doubtful grounds and called on the committee to give a report that could give parliament firm basis for approving or disapproving loans.

He said reports on such loans were not only discussed in parliament but were sometimes used by university students as study guide.

Mr Kweku Agyemang-Manu, member for Dormaa West, said the sustainability ability document could be attached to the report which the committee failed to do.

Mr Kwame Osei-Prempeh, member for Nsuta-Kwamang Beposo, said the report also lacked the interest rate at which the loan was being contracted and called on the committee to tell the House the exact rate of the loan.

Mr James Klutsey Avedzi, chairman of the committee said it was at zero per cent but that the report could not support his claim as nothing had been said on the rate of the loan.

He said again that the interest on the loan was 0.75 per cent which the report had as service charge.

Mr Doe Adjaho, First Deputy Speaker who presided over sitting, sought the view of Mr Seth Terkpeh, Deputy Minister for Finance and Economic Planning, on the matter but he too could not tell at what rate the loan was being contracted.

Ruling on the matter, Mr Adjaho said for the lack of clear view on what the interest rate of the loan was, the committee should revisit the issue before it was brought again before the House.

GNA