Parliament set to approve $1.5 billion line of credit for STX Korea

The parliament of Ghana is set to approve a $1.5 billion line of credit for STX of Korea for the construction of 30,000 housing units. Parliament will also approve duty free access to every equipment and materials the Koreans bring into the country. Furthermore, the State will provide free and secured land in all the regional capitals for the Korean group.

This deal is quite surprising as it comes in the wake of serious credit crisis affecting the Ghanaian real estate industry. How could President Mills do this to foreigners when their Ghanaian real estate firms are so cash-strapped? Politicians are greedy. How could they be so cruel? With all the facilities being provided, the Koreans should be able to construct 4 times as many buildings, ie. 120,000, and not 30,000. If local firms are given this opportunity, they will produce much more houses.

When the STX Korean deal first came up in December 2009, the Ministry of Water Resources, Works and Housing explained that the Koreans were to invest $10 billion. Now we know that Ghana is to invest in the Korean company, which is said to be in debt.

This contract is seriously flawed and Parliament must reject it. Unfortunately, it appears some members of parliament are in league with Govt. Some of the honorable members Osei Kyei Mensah Bonsu, Akoto Osei, etc were in Seoul last February and feted by STX. I hope they will stand up and reject this agreement which was nearly approved last week.

The Government is giving the excuse that the President of Korea is coming to Ghana next month so the deal must be accelerated. The Ghana parliament must do the right thing. Akworkor Quaye