New Twist In MPs Car Loan Saga
By Ernest Kofi Adu, Parliament House
The US$28 million loan facility to finance the purchase of vehicles for Members of the 8th Parliament has taken a new twist after the public outcry.
New information suggests MPs are not happy about the public opprobrium over the traditional transportation arrangement for them and will want the state to provide them vehicles for official duties.
The newly unearthed information coming from the corridors of the Finance Committee of Parliament points to a recommendation for the House to discontinue with the loan arrangement in order for MPs to be provided with state vehicles just like other Article 71 office holders.
“Accordingly, the Committee strongly recommends to Parliament the discontinuation of the current vehicle loan arrangement for MPs and Council of State Members. Members of Parliament and Members of the Council of State should have similar duty post vehicle arrangements as other Article 71 officeholders. And the Committee respectfully recommends that Parliament and the Parliamentary Service take the necessary steps to ensure that this happens.”
This decision, when approved by the House, will not take effect immediately, so as to give the government ample time to prepare for it, a source at the Finance Committee told DAILY GUIDE.
“The instant vehicle loan arrangement for MPs and Council of State Members before us today should therefore, be the last one the state is sponsoring” the yet-to-be laid report said.
On July 9, the Deputy Minister of Finance, Abena Osei-Asare, laid a medium term loan agreement on behalf of the Minister for Finance in which the National Investment Bank Limited is providing the US$28 million to finance the MPs’ vehicles.
The bank is also providing another US$3.5 million to finance the purchase of vehicles for Members of the 8th Council of State (2021-2024) as part of the medium-term loan agreement, and both facilities were referred to the Finance Committee for consideration and report.
The State is required to facilitate a car loan not exceeding the Cedi equivalent of US$80,000 for MPs, according to the Prof. Yaa Ntiamoa-Baidu Emolument Committee report, which said this is part of their service conditions.
Under the arrangement, the state has the responsibility to pay 60% of the cost of the vehicle and also take responsibility for the interest on the loan.