Withdraw $24m tax waiver request for Akufo-Addo’s in-law – NDC MPs to Finance Minister

The Minority Caucus has sent a note to the Minister of Finance, Ken Ofori-Atta, demanding that he immediately withdraws a tax waiver request for an amount of US$23,983,033.43) for a private business entity allegedly owned by one of President Nana Addo Dankwa Akufo-Addo’s in-laws or face their wrath.

According to the National Democratic Congress (NDC) Members of Parliament (MPs), the tax waiver request does not conform to the protocols that demand for government’s intervention in that regard, stressing that the request in its form is abuse of power and also amounts to nepotism and favouritism by the government.

In their view, never in the history of the country has such a tax waiver request been made for a wholly Ghanaian private firm where the government or State has no interest in the project that entity will execute or undertake.

On Tuesday, January 28, 2020, the Minister of Finance presented a Paper to Parliament requesting for waiver of Import Duties, Import VAT, Import NHIL Levy, Import GETFund Levy, Domestic VAT, Domestic NHIL and Domestic GETFund mounting to the Ghana Cedi equivalent of Twenty Three Million, Nine Hundred and Eighty-Three Thousand, Thirty-Three United States Dollars and Forty-Three Cents (US$23,983,033.43) on materials, plant, machinery and equipment to be procured by Platinum Properties Limited for the Pullman Accra Airport City Hotel and Serviced Apartments.

The tax waiver request, according to inside sources, has already received Cabinet approval.

However, the MP for North Dayi, Hon. Rockson-Nelson Dafeamekpor, who is leading the crusade on behalf of the Minority Caucus, in interview with journalists on the sidelines of Thursday’s parliamentary sitting, said the move by the Minister of Finance, gives undue advantage to Platinum Properties Limited over its competitors in the Airport City enclave.

“The concerns of the Minority in this matter is the quantum of the money involved. It is extremely unacceptable that we are being asked to waive a tax of almost US$24million which is the equivalent of GH?136,000million in favour of a purely private owned company with no state interest in this company. Now, what therefore is the benefit of the Republic of Ghana, particularly, when the location of the said hotel which is at the Airport City enclave contain other private properties which have been constructed by other citizens and other private companies who didn’t enjoy tax waiver? So, already you are placing this competitor at an advantage. Now we grant tax waivers – the protocols in respect of tax waivers are always in respect of bilateral agreements to which we are seeking for facilities and the facilities are supposed to be used to undertake structural development and or for purposes of social interventions for which some materials or other things would have to be imported and as a result of which the negotiations will factor into it that if taxes were not be waived, then the cost of the facility will be much higher to the state. That is how the calculations are done so that when taxes are waived, the cost of the facility in terms of interest payables are at an appreciable or at an acceptable level for the Republic of Ghana to execute”, he noted.

He added “Our checks at the Registrar Department reveal that the company is owned by the brother in-law of the President who is married to the First Lady’s younger sister and that is revealing because no other Ghanaian entity has been extended such a facility unless of course, there is supposed to be a development – a project to be undertaken by the State in a Public-Private Partnership arrangement where some of the tax waivers a few Ghanaian companies who are participating in this PPP arrangement are benefiting”.

He said per content of the Memo to Parliament, there is no opinion from GRA in terms in respect of the request for the tax waiver. Further to that there is no justification for the said request, making them wonder why the government would want to initiate such a move.

“There is a letter from the Executive Secretary of the President directed at the GIPC to first permit GIPC to grant this company a Special Purpose Vehicle status as a special investment entity in the country. It is on this basis that the Presidency is asking the Finance Minister to seek Parliamentary approval for the waiver of this amount of money.

He said the Minority will do whatever in their capacity to resist such a request from the Minister of Finance, urging the medial also to start scrutinizing the action of the government.

“Now we are going to resist it as a minority because the basis for this request is not sound, it doesn’t make public sense – what the government is telling the Republic is that we should forego this money. The Republic shouldn’t go after US$24million. We should waive this money for a private person who is a brother in-law to the President and we think that it raises serious questions of cooperate governance in this matter”, he noted.