Gov't says no approval for MPs Car Loans - Ohene

President John Agyekum Kufuor and his Cabinet say they do not approve of the 20,000 dollar car loans for each Member of Parliament (MPs).

"With reference to the current furore in the media about car loans for MPs, the government wishes to state that the President and the Cabinet have not taken such decision", a statement from the office of the Government Spokesperson, Ms. Elizabeth Ohene said.

The President held talks with the Speaker of Parliament on Wednesday after a public outcry against reports that each member of the legislature was to receive a 20,000-dollar loan from the consolidated fund for the purchase of vehicles

The Government said within the context of the country's economic situation, it cannot afford the interest-free four million dollar loan to members of the legislature but will help source loans for them to purchase their own vehicles.

It was agreed at the meeting that the Parliamentary Leadership prioritise the transportation needs of MPs whilst the government works with Parliament to find appropriate means to resolve the urgent ones.

"Whilst acknowledging the serious shortage of vehicles in the public sector, it should be stated that the President has identified as his first priority, the procurement of vehicles for the Police to enable them to discharge their duties."

It said government has in the past few months been working on finding the most cost effective solution to procuring the vehicles for the Police, adding that "It is his (the President) firm belief that when the Police are equipped with the vehicles they require to perform their duties, everybody's security would be better ensured".

Meanwhile, to Members of Parliament (MPs) from both the Majority and Minority sides have defended the 20,000 dollars car loans for MPs saying it was reasonable and justified.

As one of the three arms of government and in view of the huge constituency obligations of MPs, they deserve a reliable means of transport just like those of the Executive and the Judiciary, they said.

The New Patriotic Party’s Kyei-Mensah-Bonsu, the Majority Chief Whip and Mr Moses Asaga, National Democratic Congress (NDC) MP for Nabdam, were speaking in separate telephone interviews on "Sky FM" a radio station in Sunyani on Wednesday.

Mr Kyei-Mensah-Bonsu said it was unfair for the public to criticise MPs when they did not raise a finger "when similar offers are regularly extended to doctors and judges.

"The other two arms of government, the Executive and the Judiciary even enjoy free use of cars without the burden of paying for fuel and maintenance cost but we are going to pay back every penny of the loans so why the outcry?"

Mr Kyei-Mensah-Bonsu said Parliament requested for a higher amount but had to settle on 20,000 dollars because of the economic difficulties facing the country. "We are not being insensitive. Parliament is a very important national institution for the entrenchment of democracy and rule of law and granting members 20,000 dollars loans to enhance their work should not be deemed too much".

The Majority Chief Whip appealed to the public to stop politicising the issue and said that although the cars were to be supplied next year, deductions of 1.2 million cedis were already being made from the salaries of MPs.

Mr Asaga said the loan is genuine since MPs need reliable means of transport to visit their constituencies regularly and to move around in Accra to source for projects. "About 70 per cent of our constituencies are rural and we need good cars if we are to visit them regularly."

Mr Asaga said he uses an NDC vehicle or hitchhike before he could visit his constituency because as a Minister in the previous government he was denied the car loan granted MPs in 1996. "This time around, I think all ministers, who are MPs must be allowed to access the loans so that when they are no longer ministers, they will still have a means of reliable transport to tour their constituencies."

Mr Asaga said he had visited a lot of African Parliaments and his conclusions were that "Ghana's is the most deprived and MPs the least in terms of both resources and looked after".

He urged the media to help Parliament to be viable since it plays a very important role in the consolidation of democracy, which guarantees press freedom.

During the phone in segment, the majority of callers expressed concern about the granting of such "huge car loans" to the MPs in the face of the nation's Highly Indebted Poor Countries (HIPC) status.