Minority protest on Speaker's ruling in Parliament

Parliament receives Auditor General's 1997 report

Accra (Greater Accra), 9^th February 2000

The Minority in Parliament on Tuesday showed their anger and disappointment about the decision of the First Deputy Speaker Mr. Kenneth Dzirasah not take a head count during voting by remaining in their seat while he was leaving the House.

It is a normal practice of the House that members stand up when the Speaker is coming or leaving the chamber of the legislature during sitting.

The Minority failed to secure a ruling for a head count on the adoption of an amendment motion on the Special Committee's Report on Problems Facing Tertiary Education.

The group wanted a head count so that they could disassociate themselves from the adoption of the amendment that was decided by a voice count.

Mr. George Buadi, Mr F. W. K Aheto, Mr J.E. Afful, NDC members for Amenfi West, Ashaiman and Abura-Asebu-Kwamankese respectively, sponsored the amendment Motion.

It replaced portions of the report that "makes it mandatory for (the) government to fund non-living expenses of tertiary students with clauses that will make its payment subject to the availability of resources.

Mr. Dzirasah ruled that since there was no doubt in his ear that the voices count was faulted, he would allow it to pass.

Nana Akufo Addo, the Minority Spokesman on Legal and Constitutional Matters, had drawn the Speaker's attention to a challenge posed by Mr. S. K. Boafo, the Minority Chief Whip to the inaccuracy of the voice count.

According to the member, Article 113 of the Standing Orders of the House gives Mr. Boafo the right to seek a head counts.

Mr. Dzirasah contended the said article is subject to his discretionary powers and that if he allowed a head count, it would be an abuse of the process of the House.

The Minority stated that since the committee that drafted the report, took a bi-partisan approach, the House would be doing a great harm to its reputation if it alters any part of it.

Nana Akufo Addo said the report ceases to be a bi-partisan one if it goes without the support of the Minority.

He insisted that the amendment motion was unnecessary since it would send the wrong signals to the population.

The ranking member said he does not see any error in the report that "calls for such an amendment because it has addressed the issue of 'availability of funds' by stating, "funding of non-living expenses should be factored into the budgetary projections of the Ministry of Education".

He stated that the exclusion of the portion would disarm the student body at the negotiating table and "that is not the business of the House"

He said "Parliament is to be a facilitator and an honest broker," that should give the parties the needed inputs to negotiate.

Dr Mohamed Ibn Chambas, a Deputy Minister of Education in charge of tertiary education, said the portion should be scrapped because "it injects ambiguity into the funding issue, which has always been the bone of contention between (the) government and the student body".

He said the National Forum on Education made a non-partisan recommendation that "falls in line with the amendment".

His contention was that since the report made it clear that all its recommendations should be reconciled with that of the forum, the amendment should be upheld.

The Deputy Minister, who said he was arguing for the sake of clarity and simplicity on the issue of funding alone, said in spite of the fact that the report made very bitter, yet good and constructive observations about the Ministry, it has accepted it wholly.

Mr Freddie Blay, Second Deputy Speaker, said 'progressivity' to him "means the upgrading of tuition and facilities at the various campuses and not the government sharing the cost of education with the students".

He said it is regrettable that education, which is the only tool for achieving harmony in the society, is being given such a treatment.

" It is sad for some of us, who have climbed that ladder to throw it away because we think we are safe without it."

GRi../

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Accra (Greater Accra), 9^th February 2000

The total cash assets of the Consolidated Fund recorded an overdrawn balance of 204.7 billion cedis in 1997 compared with a negative balance of 44.5 billion cedis in 1996, according to the Auditor-General's report laid before Parliament on Tuesday.

The report, which covers the Consolidated Fund for the period ending 31st December 1997, said the cash balance represents the balances on all the bank accounts maintained as part of the Consolidated Fund.

It also includes foreign cash balances translated into cedis at the prevailing rates applicable during the year under review.

The Auditor-General's findings showed a departmental revolving fund of 31.6 million cedis standing in the name of the Institute of Accountancy Training, even though there was no loan recovery policy at the school to enable the authorities to retrieve the amounts from the past students.

The report, therefore, recommended that the school authorities should contact the employers of the past students to effect the necessary recovery to make the fund operative to benefit other students.

On loans, the report said that credit facilities granted out of the Consolidated Fund rose from 746.1 billion cedis in 1996 to 1,239.4 billion cedis in 1997, an increase of 493.3 billion cedis or 66.1 per cent.

The increase, the report said, was mainly due to additional loans granted to some institutions including the Public Servants' Housing Loan Scheme (two billion), Tamale Municipal Assembly Frandesco (WA) Ltd. 12.5 billion cedis, Pentrexx 3.5 billion cedis and PANAFEST Secretariat 300 million cedis.

The report showed that divestiture proceeds of 134.2 billion cedes, which should have been treated as other receipts, were included in the total revenue for the year.

In its summary of findings, the report said reconciliation of expenditure figures provided in the public accounts with figures obtained from the accounts of 13 randomly selected organisations, disclosed disparities due to non-compliance with the Financial Administration Regulations by the Controller and Accountant-General's Department.

The report said loans amounting to 83.2 billion cedis granted to various organisations had remained dormant for the past 10 years.

The Consolidated Fund did not also disclose any information on the operation of fuel sales by the Controller and Accountant-General's Department, contrary to the Financial Administration Decree of 1979.

It noted that 102.3 billion cedis was released as revenue to the District Assemblies instead of 93.7 billion cedis stated in the Public Accounts by the Controller and Accountant-General, showing a difference of 8.6 billion cedis.

The report put the total expenditure for the period under review to 2,663.6 billion cedis as compared to the 1996 figure of 2,192.3 billion cedis, thus recording an increase of 471.3 billion cedis or 21.5 per cent.

On item basis, it said public debt interest amounting to 828.1 billion cedis (579.2 billion cedis in 1996) constituted the major expenditure accounting for 31 per cent of the total expenditure.

This was followed by personal emoluments, which totalled 792.9 billion cedis (612.7 billion cedis in 1996) or 29.8 per cent of the overall expenditure.

According to the report, development expenditure for the period involving 228.3 billion cedis (283.6 billion cedis in 1996) accounted for 8.6 per cent of total expenditure, while 195.5 billion cedis (210.9 billion cedis in 1996) was paid out as subvention to self-accounting and autonomous institutions.

Similarly, 65.4 billion cedis was spent under arrears clearance and environmental fund, which was a new item of expenditure introduced during the year.

On outstanding issues in previous reports, the Auditor-General said the pension payroll has not been reviewed to allow for easy verification and validation of pension payments, adding that irregularities identified in previous reports, therefore, continued to exist.

Among its recommendations, the report urged the Controller and Accountant-General to classify divestiture proceeds to reflect existing statutory requirement.

It should also comply with the Financial Administration Regulations to ensure that reliable and accurate figures are used in the preparation of the annual financial statements (Consolidated Fund Statement).

The report called on revenue collecting agencies to improve revenue collection mechanisms to boost revenue.

Two papers, Forest Plantation Development Fund Bill and Securities Industry (Amendment) Bill, were also laid before the House.

The Forestry Plantation Development Fund Bill seeks to create a fund from the timber export levy established under the Trees and Timber (Amendment) Act, 1994 (Act 493) to provide financial support for the development of a sustainable forest resource base to satisfy future demand for industrial timber.

The Securities Industry (Amendment) Bill is to amend the Securities Industry Law, 1993 (PNDCL 333) to provide exclusively for the regulation of unit trust and mutual fund, among other objectives.

GRi../

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