We've not accessed US$75 million loan from any bank - GRA claps back at Adongo

The Ghana Revenue Authority (GRA) has squashed claims made by the Member of Parliament for Bolgatanga Central Constituency, Isaac Adongo, that it was acquiring a loan of US$75 million without parliamentary approval.

In a statement sighted by GhanaWeb Business, the revenue arm of government stated categorically that it has not accessed US$75 million loan from any bank.

GRA further said it had the intention of securing a loan facility to embark on a major capital expenditure project in 2022 but rescinded the decision after writing to the Ministry of Finance.

“We wish to categorically state that the Ghana Revenue Authority has not accessed any US$75 million loan from any bank as indicated by the Honourable Member of Parliament for Bolgatanga Central,” part of the release read.

What Isaac Adongo said;

Speaking to the media on November 30, 2023, Isaac Adongo expressed dismay over what he termed as the unauthorized borrowing of an amount of $75 million by the revenue agency, labelling it as illegal and a breach of parliamentary procedures.

According to him, the Ghana Revenue Authority, responsible for funding the government through the revenues it generates, is permitted to retain up to 3% of the collected revenue each year.

However, this retention must undergo parliamentary approval, with the figure not exceeding 3%.

The funds are typically included in what is known as "other government obligations" as part of the regular parliamentary approval process.

“So as long as Ghana Revenue Authority collects revenue, it has no business taking money from anywhere. But we noticed when the annual Public Debt Management report was reported for 2022, I noticed that Ghana Revenue Authority borrowed $75 million. That is illegal,” he said.

Adongo highlighted his concerns when the annual Public Debt Management report for 2022 revealed that the Ghana Revenue Authority had borrowed $75 million, a move he deemed illegal and outside the appropriation process.

He emphasized the seriousness of this offense, emphasizing that the funds were not presented to Parliament or the Finance Committee, a clear violation of established procedures.

"That is outside appropriation. And the fact that they held it away from Parliament and the Finance Committee is a very serious offense. And I want to serve one in that when they are coming, we don't want to ambush them,” he added.

Read GRA's press statement below;

For Immediate Release

ALLEGED RED FLAG RAISED OVER US$75 MILLION GRA LOAN

The Management of the Ghana Revenue Authority (GRA) has sighted news articles and a recording of a media interview granted by the Ranking Member of the Finance Committee of Parliament and the Member of Parliament (MP) for Bolgatanga Central Constituency, Honourable Isaac Adongo, which is circulating on some online media platforms.

Hon. Adongo has called on Parliament to investigate GRA for acquiring a loan of US$75 million, which he described as illegal. He also indicated that it was wrong for GRA to access such funds without Parliamentary approval.

The Management of GRA wants to clarify that in 2022, the Authority had the intention of securing a loan facility to embark on a major capital expenditure project and therefore wrote to the Ministry of Finance to seek a “no objection” from the Minister. Upon receipt of the “no objection” from the Ministry of Finance, the Board and Management of GRA discussed the issue further and decided not to access the loan facility anymore. It was for this reason, that GRA did not proceed to Parliament on the issue.

We wish to categorically state that the Ghana Revenue Authority has not accessed any US$75 million loan from any bank as indicated by the Honourable Member of Parliament for Bolgatanga Central.

–End–

SIGNED

NANA BIRAGO OWUSU-ANSAH

CHIEF REVENUE OFFICER

COMMUNICATION AND PUBLIC AFFAIRS DEPARTMENT

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