Even before the auto loan deal for Members of Parliament is finalized, it has been revealed that the Ministry of Finance has already presented a similar loan arrangement with the National Investment Bank Limited, NIB, for the purchase of cars for Council of State members before Parliament.
It is believed that the recipients of the $3.5 million loan arrangement are required to return 40% of the principal amount of the loan, while the Ghanaian government would pay 60%.
The government is required to absorb any rate disparities resulting from changes in the cedi to dollar exchange rate as a consequence of the beneficiaries making monthly payments in Ghana cedis under the terms of this agreement.
“The beneficiaries would return the facility via a deduction at source from the Parliamentary Service of Ghana to the NIB. The repayment of the facility by the Ghanaian government would be made directly to NIB, according to the papers.
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The terms of this loan arrangement were revealed only days after the Finance Minister presented Parliament with a $28 million loan agreement for the purchase of cars for Ghana’s lawmakers.
The total interest on this loan agreement is projected to be $533,020.83, with an average monthly payment of $12,690.97.
Each of the 275 MPs is anticipated to earn over $100,000 for the purchase of a car based on the amount.
The House Finance Committee is scheduled to review the loan arrangement and provide a report to the House.
This deal has enraged several Ghanaians, who have turned to social media to voice their dissatisfaction.
There have been instances when MPs have defaulted on vehicle loans.
The Microfinance and Small Loans Centre (MASLOC) was hot on the trail of certain Members of Parliament who had borrowed money to buy their cars but had failed to repay it many years later.
According to reports, letters were sent to the MPS requesting that they honor their commitments, but they did not respond.
Source: CITINEWSROOM
