Parliament condemns BOG operations on Midland loan
Parliament endorses Oppong-Fosu's nomination
Forest Plantation Development Fund Bill
reaches second reading
Accra (Greater Accra) 27 July 2000
The Minority in Parliament on Tuesday serve notice on the Vice President, Professor John Evans Atta Mills, who is the chairman of the government economic management team, to appear before the House to brief it on the economic crisis facing the nation.
Dr Kofi Konadu Apraku, the Minority Spokesman on Finance, in briefing the press after serving the notice said the Vice President should tell the House how the rise in the Value Added Tax and government's increased borrowing were influencing the economy.
He said that the government had indicated that there should be a bi-partisan approach to the economic crisis the country is facing, however, there is nothing on the side of the government so far to indicate that it has involved Parliament and other groups in addressing the economic issue.
"The appearance of the Vice President would indicate whether the government want a bi-partisan approach or it wanted to do it all alone," he added.
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Accra (Greater Accra) 27 July 2000
Parliament on Tuesday condemned Bank of Ghana on its operation of a 10 million pounds Midland Bank short-term credit facility it administered in 1993/94 of which nine beneficiaries still owed more than five million pounds.
It recommends that disciplinary action be taken against the officials, who failed to administer the credit facility in accordance with normal banking practices and the rule and regulations of the Bank.
Under the principal agreement, the lenders agreed to make available to BOG, a short-term credit of 10 million pounds to enable Ghanaian Entrepreneurs import goods and services from the United Kingdom (UK) to boost local production and exportation.
The facility was extended to 32 applicants, who were to complete repayment in 180 days from the date of bill of lading but 23 of the recipients repaid their loans.
This was contained in a report of the Public Accounts Committee on the Auditor-General's Report on the statement of foreign exchange receipts and payments of the Bank of Ghana for second half year which ended on December 31, 1996.
Mr J. H. Mensah, Chairman of the committee in presenting the report said the action of the bank led "to substantial loss of government revenue."
The committee recommended that the bank and the Serious Fraud Office should continue to pursue the recovery of the standing amount and to consider freezing the assets, including bank accounts of the companies that have defaulted and to monitor closely their operations to recovery the amount.
Seconding the motion, Mr Kwadwo Baah-Wiredu (NPP-Asante Akim North) and vice-chairman of the committee said the sad thing was that BOG did not make provision in the subsidiary agreement for interest to be charged on outstanding loan in case of default.
If that had been done the defaulters would have been paying the current cedi equivalent and interest rate on the loan, he said.
Mr Samba Zumakpeh, (NDC-Nadowli South), said government is being blamed for not assisting the private sector as the engine of growth and yet when businessmen are given credit facilities they abuse them.
He said the House owes it a duty to bring such transactions to the fore to ensure that the taxpayer's money is secured and benefits the country.
Sqd Ldr Clend M. K. Sowu, (NDC-Anlo) associating himself with the earlier speakers, said it was sad that managers of loan schemes should allow people to take loans "left and right" without following procedures.
Mr Mensah, in winding up, said even though the facility was a short-term credit to hard-pressed businessmen, who did not even have collateral yet it was necessary for the BOG to insists on "making an in depth study of the viability of the projects".
He said the government could consider the option of negotiating for the re-scheduling of due loans.
Mr Mensah reiterated his call on the House to amend the standing orders of Parliament and pass a legislation that can make it enforce a judicious use of public funds.
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Parliament endorses Oppong-Fosu's
nomination
Accra (Greater Accra) 27 July 2000
Parliament on Wednesday approved by consensus the nomination of Mr. Akwasi Oppong-Fosu as Deputy Minister of Local Government and Rural Development.
The House Appointments Committee, in its report on the nomination, noted with satisfaction the excellent academic qualifications attained by Mr. Oppong-Fosu.
The Committee was also impressed by the nominee's vast experience in the area of Local Government administration.
In recommending the approval of the nomination, the Committee said it relied on the curriculum vitae and service record of Mr. Oppong-Fosu.
Mr. Oppong-Fosu's work experience, the report said, includes service in the position of District Chief Executive for almost 18 years, making him the longest serving DCE in the country.
The Committee said it did not receive any adverse report, petition or objections in respect of the nominee after several announcements in the media, inviting submissions for information from the public and this facilitated its work.
The report said that during the public hearing of the nomination of Mr. Oppong-Fosu, a member of the Committee, however, challenged the authenticity of information provided in the nominee's curriculum vitae in respect of an award of a Bachelor of Science degree in Chemistry with Zoology from the University of Ghana, in 1982.
The Committee Member, therefore, demanded a copy of the certificate from the nominee.
The report said the issue was, however, resolved to the satisfaction of the member on the production of the certificate by Mr. Oppong-Fosu.
The Committee was hopeful that the Deputy Minister-designate would bring his vast experience to bear on the management and policy direction of the sector ministry to enhance the decentralisation programme.
Mr. Oppong-Fosu, 42, who is married with three children, has sat for the Diploma in Public Administration and is awaiting results while he is currently pursuing a Masters of Science Degree in Public Policy and Management.
He has attended a number of seminars and conferences and occasionally delivered papers on decentralisation and local government in 16 countries in Africa, Europe and the United States.
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Forest Plantation Development Fund Bill
reaches second reading
Accra (Greater Accra) 27 July 2000
Parliament on Wednesday took the Forest Plantation Development Fund Bill, which seeks to provide the necessary financial and technical assistance to private commercial growers to invest in plantation forestry, through its second reading.
Mr. Nayon Bilijo, a deputy Minister of Lands and Forestry, in a motion for the bill to be read a second time, said the creation of the Fund would enable the country to attract long-term finances from local and international sources for commercial timber production and check environmental degradation.
The Fund was also identified as a feature of the Natural Resources Management Programme of which the World Bank has already provided support for the establishment of a Forest Plantation Development Centre at Akyawkrom, near Ejisu, in the Ashanti Region.
The Bill seeks to provide for the initial capital to establish the Fund to be derived from the timber export levy and from other sources, including grants, loans and deposits.
Mr. Bilijo, intimating that the Fund was for the private sector, said the "government wishes to demonstrate that it has no business in business and that the private sector must be the engine of growth".
Alhaji Collins Dauda, Chairman of the Lands and Forestry Committee, in a report, said "the country's forest is in a state of depletion".
To arrest this situation, encouragement should be given to the private sector to embark on a sustained programme of afforestation and reforestation.
He noted that this would assist in the rehabilitation of degraded forest lands and increase production of timber to satisfy future industrial demand". He said "the critical situation warrants urgent attention".
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