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General News of Wednesday, 25 July 2007

Source: GNA

Govt seeks $15 million more for Presidential Palace

... Debate Stalls In Parliament
Accra, July 25, GNA - Ghana's legislature on Wednesday revisited the loan agreement on the construction and rehabilitation of the Flag Staff House, which was to house the Presidency but lack of quorum stalled a final vote on the motion.

The motion is seeking an additional funding of 15 million dollars to be agreed upon by the Government of Ghana and the Stanbic Bank Ghana Limited, for the construction and rehabilitation of the Flag Staff House.

It was moved by Nii Adu Darku Mante, Chairman of the Finance Committee and seconded by Mr. Paul Collins Appiah-Ofori, NPP-Asikuma-Odoben-Brakwa who called for the support of members for the approval of the loan agreement.

Mr. Appiah-Ofori argued that if Dr Kwame Nkrumah, Ghana's first President had bowed to criticism not to take a loan, which was considered colossal in the 1960's to put up the State House the nation would be spending higher sums of money today to construct such an edifice.

However, Mr. Haruna Iddrisu, NDC-Tamale South vehemently opposed the motion arguing that nobody knew the actual cost of the contract sum for the project for which an additional funding was being sought.

"Nobody including the Minister of Presidential Affairs knows the actual cost of the project," he said and rejected the explanation by the Minister, Mr. Kwadwo Mpiani that the cost of the construction and rehabilitation could not be known until the project was completed.

Mr. Mpiani however, maintained that he had told the House when he appeared before it that the cost of the project at its initial stage was 36.9 million dollars but the total cost could only be known after completion.

Mr Iddrisu however, said the full cost of other construction projects like works on the Komfo Anokye Teaching Hospital in Kumasi, the Tamale Water Project and other markets had never been shrouded in secrecy.

When it became apparent that the House had to vote on the agreement, Mr Edward Doe Adjaho, Deputy Minority Leader invoked Standing Order 48(1) and (2) and reminded the House that a quorum was needed before a vote could be taken.

Mr. Adjaho said he had counted the number of members present and they were 70.

Total membership of the House is 230 but Standing Order 48(1) states: "The presence of at least one-third of all the members of Parliament besides the person presiding shall be necessary to constitute a quorum of the House."

The House consequently suspended proceedings for 10 minutes but there was still no quorum and therefore adjourned sitting for the following day.

The House had earlier approved a loan agreement of 15 million dollars between Ghana and the International Development Association to finance the National Health Insurance Scheme.

The project has three components, namely enabling environment for implementation, financial and operational management tool and financial and operational management training.

It has a grace period of 10 years and repayment period of 40 years, and would be used to strengthen policy adaptation and implementation capacity of the National Health Insurance Scheme; improve purchasing function of the scheme as well as the billing function by the service provider through moving the billing and claims process from paper base to an electronic base system.

The House also approved 123.44 million dollar loan agreement amongst the Bulk Oil Storage and Transport Company Limited (BOST), Citi Bank, NA and Export-Import Bank of the United State of America with Ghana as guarantor for the purchase and construction expand the storage capacity of BOST.

Despite the approval there was an earlier tussle mainly from the largest Minority National Democratic Congress (NDC) on the legal formality of the agreement and requested that all documents were completed before the agreement was approved. Mr Adjaho, Mr Afred Kwame Agbesi, NDC-Ashiaman and Mr Mahama Ayariga, NDC-Bawku Central suggested that all document should be completed and the House agreed to take the agreement as provisional. 25 July 07