General News of 2014-08-13

Minority’s concerns over $300M loan “contradictory” - James Klutse

The Chairman of the Parliamentary Committee on Finance, James Klutse has described concerns raised by the Minority over the 300 million dollar VTB loan as contradictory and inaccurate.

Government’s decision to secure a 300 million facility from the VTB Bank Capital of Russia to enhance Ghana’s participation in International Peace Support duties has been opposed by the Minority in Parliament who believe the loan facility will not benefit Ghana.

But speaking on Eyewitness News on Citi FM, Mr. Klutse downplayed concerns raised by the Minority saying “most of the issued raised were fallacies”.

He explained that the government was compelled to secure such an expensive loan facility since military activities are more costly than the other activities government is involved in.

Mr Klutse, in that regard, advised the Minority to desist from comparing the loan facility with the other ones.

“Let us not look at it and try to compare this facility with the normal facility that we get as a country. This is a facility that is being collected for a military activity,”

“And what happens most of the time, banks, and institutions are not willing to fund military projects so it is clear that if you are comparing this facility with the normal project that we usually get, you will be missing the point,” he said.

He also dismissed claims by the Minority that the Speaker of Parliament was persuaded by their arguments to further consultations regarding the loan, adding that the terms and conditions of the loan facility were not even laid before Parliament in the first place.