House concludes debate on Development Credit Agreement

Accra (Greater Accra) 2nd July ?99

Parliament has concluded the debate on the motion for the adoption of the Report of the Finance Committee and recommended the approval of the Development Credit Agreement.

The agreement is between Ghana and the International Development Association (IDA) for an amount of 180 million dollars to finance the Economic Reform Support Operations (ERSO 2).

All the 51 members of the Majority side present voted in favour of the motion, while their 22 Minority counterparts voted against it.

The Minority indicated that even though they see nothing wrong with the agreement, the Ministry of Finance has failed to furnish them with "basic, vital, fundamental and adequate information" to enable them make informed, intelligent and meaningful contributions to the debate.

In his contribution to the debate, Dr Kofi Konadu Apraku, Minority Spokesman on Finance voiced out the opinion of the Minority when he said: "We are demanding clear guidelines upon which we can make informed decisions, and so we are not going to be part of this debate."

"Our obligation is only to the good people of this country, who we represent. We want to analyse critically everything that comes to us, and so we cannot be rushed into approving the loan because it is coming from the Ministry of Finance," he declared.

Mr Albert Kan-Dapaah, Minority Spokesman on Mines and Energy, said it is the conviction of the Minority that loans contracted will help consolidate the macro-economic gains so far achieved by the government under the Economic Recovery Programme (ERP).

He stated that the Committee on Finance itself, after noticing the lack of information, urged the various sector ministries to find time to brief their respective Parliamentary Select committees on reforms going on in their ministries.

Mr Kan-Dapaah said the Minority wondered why the committee should this time round turn back and urge the House to approve the loan.

"How can we approve a loan with doubts in our minds?" he queried, adding that that will amount to rubber-stamping.

Mr Kan-Dapaah described the loan conditionalities as "outrageous" citing government's decision to allow private licensing cocoa companies to export 30 per cent of the produce.

In his view, the Minority Spokesman on Mines and Energy stated that COCOBOD is better placed to do the exporting.

Mr Yaw Osafo-Maafo, NPP-Akim Oda, shared the views of his colleagues and said the Minority is opposing the loan "because it has problems".

For instance, he said, the condition that makes reference to government's diversification of the external marketing of Cocoa is a matter of great worry to the Minority, adding, "anything that affects the Cocoa Industry should be taken seriously."

Members from the Majority side, including Mr Edward Doe Adjaho, Majority Chief Whip, Mr Modestus Yawo Ahiable, MP for Ketu North, Mr Simon Anyoa Abingya, Deputy Minister of Mines and Energy and MP for Bolgatanga, and Mr Kosi Kedem, MP for Hohoe South, gave their blessings to the motion and asked that the loan be approved.

Mr Victor Selormey, Deputy Minister of Finance, assured the House that the loan is intended to bridge the gap within this year's budget, thus helping to implement it fully.

He pointed out that one positive side of the loan is that it will not require any counterpart funding from government.

Mr Selormey stated that since the loan's conditionalities are meant to deepen the gains so far chalked under the ERP, "we will be cutting our nose to spite our face" if we vote against it.