Minority withdraws support for resolution on loan

Accra (Greater Accra ) 9th July '99 - The Minority in Parliament on Thursday withdrew support for a resolution to approve a 180 million-dollar loan agreement between the government and the International Development Association (IDA).

They explained that their action was based on the fact that the House has not been sufficiently apprised of all the facts relating to the loan, according to a press statement issued on Thursday. The Minority Group said while they are in principle not against Parliament granting approval of loans contracted by government, it is their view that such approval should be backed by relevant documents in respect of policies on which the loans are based.

"Since ...the Ministry of Finance woefully failed to provide all the facts and such necessary information, the Minority Group did not find its way clear in lending support to the resolution approving the loan agreement...."

The loan is to be used for the implementation of the Finance and Economic Reform Support Operations (ERSO II) project.

"This particular loan," the statement said, "imposes significant conditionalities on the country, including the divesting of the Ghana

Commercial Bank (GCB), Electricity Company of Ghana (ECG), and the country's shares in external marketing of cocoa, among other things.

" No clear guidelines for such divestitures have been given to Parliament by the Ministry of Finance despite repeated appeals", the statement said.

In spite of the Minority's concerns articulated on the floor of the House by its Leader, Mr J.H. Mensah, when debate on the loan agreement opened last week, Parliament adopted a report from the Finance Committee recommending the approval of the loan.

As a constitutional demand, Parliament is required to approve any loan agreement by a resolution.