NDC Blocks Additional Loan For Prez Palace

THE MAIN opposition, the National Democratic Congress' resistance to the building of a presidential complex reared its ugly head again, last Friday, when it opposed an additional loan facility meant for the project.

Minority Leader Alban S. K. Bagbin suggested that a motion on the facility should be stepped down to allow the sector minister to brief the House on the status of the project and the amount of money involved.

"It is not right to borrow money to build a presidential palace. We need to know the full cost of the project and be clear in our minds, whether as a country, we need to have such a facility for the country," he stressed.

Even though most of the Members of Parliament (MPs), including some NDC members, supported the loan agreement facility for the financing of major projects approved under the supplementary budget, the leadership of the Minority was, however, not happy with the aspect meant for the presidential complex, currently under construction at the Flagstaff House.

Some of the projects that will be financed from the loans include the National Identification System ($10M), the Ghana Airways Limited ($5M) - to help in its liquidation, Ghana Navy ($4M) - for the rehabilitation of the Sekondi Naval Shipyard and another $22M for the rehabilitation of both the Ohene Djan and Baba Yara stadia for the CAN 2008 tournament.


The $22M loan facility, which is to be sourced from one of the local banks and which forms part of a $61 million loan agreement between the government of Ghana and some local banks, was meant for the rehabilitation of the chanceries, UN peacekeeping operations and the construction works at the Flag Staff House.


Opposing the motion for the adoption of the report of the Finance Committee on the loan agreement, the NDC-MP for Tamale South, Haruna Iddirssu, said he did not understand why another loan agreement should be approved for the government to finance the presidential complex when the previous $30 million had not yet been accounted for. He maintained that not until government submitted detailed lists of the expenditure of the loan and a full cost of the project, Parliament should not approve any more loans for the presidential complex.

According to him, both MPs and the good people of Ghana needed to know the cost involved in the project. That, he explained, would enable them to know how much more was needed for the project.

Again, he was of the view that the high borrowing from the local sector might deprive the private sector of the needed capital for expansion. Even though the Deputy Minister for Finance and Economic Planning, Dr. Anthony Akoto Osei, had earlier explained to the House that most of the information being sought by the Members had already been provided to the Committee, and would be made available to Members, Mr. Bagbin maintained that it would not be prudent for Parliament to approve the agreements without proper scrutiny, and insisted that the motion be deferred until a later date.


The Speaker, Ebenezer Begyina Sekyi-Hughes, had no other option than to acquiesce to his request and consequently stepped down the motion until tomorrow, when all the relevant documents and information would have been made available to all Members of Parliament.