Parliament defers agreement for $10 million for NHIS

Accra, July 19, GNA - The Speaker of Parliament on Thursday deferred until further notice the approval of the Finance Committee's Report on the Agreement between the government of the Republic of Ghana and the International Development Association (IDA).

The agreement was for an amount of 15 million dollars towards the financing of the Health Insurance Project.

The deferment by Mr Freddie Blay, Second Deputy Speaker, followed the Minority's opposition to the motion, arguing that the specific object of establishing a management system for the National Health Insurance Scheme has not been adequately accounted for under a previous budget that had been approved earlier by Parliament.

Mr Lee Ocran, NDC- Jomoro made the first move after the motion was laid by Nii Adu Daku Mante, Chairman of the Finance Committee. Mr Ocran said it was important for the House to examine critically what the National Health Insurance Council has done with the 102.8 billion cedis approved for the NHIS under the formula approved and what the money had been used for.

He noted that it was significant to note that the Scheme also had enough money to undertake projects of its own, "instead of seeking for extra funding when nothing is known of earlier funds approved for their use."

"Mr Speaker I therefore move that we stand down on this motion and look into how the monies were accounted for. We therefore should not be asked to approve more funds before then."

This brought Mr Sallas Mensah, Chairman of the Public Accounts to his feet saying, "We would not have approved this motion to be laid if we had been informed that there were discrepancies in funds allocated to the Scheme. Mr Speaker I support the motion that we stand this motion down until we address the inadequacies that have been brought forward by the honourable member. The point is relevant and we must look at it." Mr Joseph Henry Mensah, NPP-Sunyani said it was fair comment but called for the adoption of the motion to approve the loan since it is for a future date and later look at the discrepancy.

"We cannot be held back by this. We should approve this agreement and look at the issues in subsequent deliberations, Mr Speaker." But this was not countenanced by the Speaker who said there was merit in Mr. Ocran's point. He then asked Professor Gyan Barfour, Deputy Minister of Finance and Economic Planning to explain the situation. Prof Barfour said the fact that the Scheme was highly liquid with over trillions of cedis in its account did not mean that "we should not look ahead."

"Mr Speaker, I think that we should be looking ahead. The fact that we have some extra money today does not mean that we should fold our arms. We have to seek extra funding to make the Scheme more viable and sustainable."

When Alhaji Mohammed Muntaka, NDC-Asawase caught the Speaker's eye, he was not happy that even though the law prescribes that the funds should be allotted to the NHIS in the preceding month, this is not being done, " and as we speak 563 billion cedis is locked up in the Ministry of Finance and Economic Planning accounts.

"Today, money accruing to the NHIS for January to May has not been paid, yet the scheme has excess of 1.5 trillion cedis. It is therefore wrong for the Committee to be requesting us to approve extra funding to the Scheme to do something they can easily source money to do locally. Besides we do not know what the funds approved earlier are doing." Mr Blay then asked the leadership of the House to seek a durable solution to the difference and ensure that the process is well taught out.

Earlier, the House had approved a number of motions and resolutions including a 90 million dollar facility between Ghana and the IDA to support the implementation of the urban transport project. The House also approved a motion for 10 million dollars between Ghana and the IDA to finance the Small Towns Water Supply and Sanitation Project.

The motion on the Anti-Money Laundering Bill, which should have gone through the second reading, was deferred. 19 July 09