General News of 2013-03-14

Explain inconsistencies in 2013 budget statement; MP demands

Member of Parliament for Obuasi Obuasi West Constituency, Kwaku Kwarteng is demanding explanations for what he describes as irregularities in the 2013 Budget Statement. According to the New Patriotic Party MP, "there are serious irregularities in the 2013 Budget Statement which could border on financial misappropriation which requires immediate investigation.”

Mr. Kwarteng on Wednesday on the floor of Parliament questioned the Finance Minister on why the hedging proceeds was not being used to subsidize fuel prices?

“If the finance minister is now saying that inflows into the hedge fund was zero; then the question is if all we do is pass on the cost onto consumers and then we go and hedge and all we get is just sufficient to pay off the premium, then what is the point…? Why is the budget statement in paragraph 139 and 140 saying ‘the hedge program has been extremely successful and that in 2013 we will continue?”

“So if we are not getting proceeds from the hedge fund from which we can litigate the effects of rising crude oil prices then what is the point?”

Meanwhile the Chairman of the Finance Committee in Parliament, James Avedzi in response to Mr. Kwarteng said the Minister of Finance is by law REQUIRED that in submitting the budget for the year forfeit as part the report on the petroleum revenue received and included in that report.

“When you are submitting the report for 2012, the 2011 Auditor-General report must be part of it. So the report that the minister submitted to parliament, page 13 says that at the time of finalizing this report the audit service was still auditing the 2011 financial statement of the petroleum revenue fund.”

Mr. Avedzi stated that “the audited financial statement of the petroleum health fund, the petroleum holding fund will therefore be presented to parliament as soon as it becomes available.”