A $60 million World Bank loan contracted by the government as an on-lending facility for the Electricity Company of Ghana (ECG) to be paid in 17 years at an interest rate of 5.3 percent angered the Minority New Patriotic Party (NPP) in Parliament yesterday.
The Minority vehemently opposed the decision of government to give a waiver of $46 million in taxes on the operations of offshore mooring facilities in Tema to be given to a private operator to help boost refining at the Tema Oil Refinery (TOR).
NPP MP for New Juaben South, Dr Mark Assibey-Yeboah and a member of the Finance Committee, argued strongly that the deal should be scrapped because it was only intended to benefit some individuals at the expense of the State.
He said the Ghana Ports and Harbours Authority (GPHA) could have been asked to operate the mooring facility on behalf of TOR and taxes accruing from the operations paid to the State, adding that government has decided to award the contract to a private individual, who is also being given a tax rebate of $46 million.
“This is a complete robbery of the State and I cannot be part of this deal so I reject this,” he said.
The NPP MP for Old Tafo and ranking Member of Finance, Dr Anthony Akoto Osei, said government must shelve the deal and provide details of the private entity, who was going to be given the contract, stressing that “by approving this waiver, we would be treading on a dangerous ground.”
Minority leader Osei Kyei-Mensah-Bonsu said it did not make economic sense for the government to borrow and on-lend to the ECG, thus burdening it with more financial commitments after the same government left the company in huge financial distress.
He said the government should have rather paid the debts owed ECG which runs into hundreds of millions of Ghana cedis to enable the company to borrow on its own financial strength.
“I am not convinced about this on-lending facility which is going to burden the ECG,” the Minority leader said.
He urged the government to rather pay its debt owed ECG to make the company more viable and competitive.
A Deputy Finance Minister, Mona Quartey, said ECG would be in a position to pay the on-lent facility without any problems because of the intended private sector participation which would last for 25 years and make the company more viable and competitive.
By Thomas Fosu Jnr