The contentious loan agreements of $28 million and 3.5 million dollars for Members of Parliament and Council of State members to purchase official cars have been authorized by Parliament.
In addition, the House has authorized a 13.3 million dollar tax exemption for the importation of cars for members of the House of Commons and the Council of State.
Members of the House largely agreed with the Finance Committee’s suggestion that the loan arrangement for the purchase of vehicles for MPs and Members of the Council of State be terminated during the over-an-hour discussion on the resolution.
Members of Parliament advocated for a system in which MPs, like other Article 71 officeholders, are given duty post cars.
Kwaku Kwarteng, Chairman of the Finance Committee, made the motion on the floor, which was supported by Dr. Cassiel Ato Forson, Ranking Member of the Committee.
Despite the fact that they are only paying 40% of the loan arranged via the National Investment Bank for the purchase of the vehicles, Members of Parliament and the Council of State have been granted a 13.1 million dollar waiver.
The government will cover the remaining 60% of the debt, including interest, in a deal that has been widely panned by the public.
The members of the Council of State will get $3.5 million, while the 275 MPs will receive $28 million, with each MP receiving $100,000.
‘Don’t give MPs, Council of state members car loans’
The Finance Committee had previously suggested to the House that the government stop facilitating loans for MPs and members of the Council of State to buy vehicles for official purposes.
In the midst of the country’s economic difficulties, there has been a massive popular reaction against the loans.
The Committee, on the other hand, wants the new arrangement to go into effect as soon as possible, which means that MPs and members of the Council of State may continue to profit from the existing loan deal proposed by the Finance Ministry.
It encouraged Parliament and the Parliamentary Service to take the appropriate measures to eliminate the provision.
“As a result, the Committee strongly advises Parliament to terminate the existing car loan arrangement for Members of Parliament and Council of State Members. Members of Parliament and members of the Council of State should have access to the same duty post vehicle as other Article 71 officeholders. And the Committee respectfully advises Parliament and the Parliamentary Service to take the necessary measures to achieve this.”
“As a result, the immediate car loan agreement before us today for MPs and Council of State Members should be the last one the state sponsors,” it added.
The Committee’s proposal comes after North Tongu MP Samuel Okudzeto Ablakwa and Okaikwei Central MP Patrick Boamah submitted a resolution in Parliament urging Parliament to reject the $28 million credit facility.
Source: ATLFMNEWSROOM
