The Member of Parliament (MP) for Yapei-Kusawgu Constituency of the Savannah Region, Hon John Abdulai Jinapor has said that the Akuffo-Addo led Government has certainly run out of ideas and hiding behind the COVID-19 pandemic to deplete Ghana’s reserves including Petroleum Funds.
Hon John Abudulai Jinapor who is a member of Parliaments Finance and Energy Committees in a statement copied to Bole Nkilgi Fm said the Minister of Finance on Thursday 28th May, 2020 presented a statement to Parliament confirming the decision by the Bank of Ghana to lend about GH¢10 billion to the Government of Ghana for 10 years with a 2 year moratorium and as if if that is not enough, the said amount of GH¢5.5 Billion has been advanced without approval from Parliarment; a clear violation of article 181 of the 1992 constitution.
“For the avoidance of doubt, Section 30, sub-section 7 of the Bank of Ghana Act, 2002 (Act 612) as amended by Act 918 in 2016 states explicitly that; total loans, advances, treasury bills and securities shall not at any time exceed 5% of the total revenue of the previous fiscal year; the Yapei-Kusawgu MP said.
He further stated;”From the 2019 Fiscal Data as reported by the Ministry of Finance, the total revenue was approximately GH¢52.9 Billion, therefore 5% of this will amount to GH¢2.6 Billion and not Ghc10 Billion.
The Yapei-Kusawgu MP said is therefore illegal and a clear violation of the Bank of Ghana Act and Public Financial Management Act for the BoG to purport to lend GH¢10 Billion to the Government.
“As if that is not enough, the said amount of GH¢5.5 Billion has been advanced without approval from Parliarment; a clear violation of article 181 of the 1992 constitution”; he bemoaned
“The critical question to ask is; on what legal basis is BoG advancing such a huge loan to be repaid over a period of 10 years” the MP queried.