Go back and renegotiate $3bn Chinese loan - Akoto Osei

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Nii Akwei 10 years ago

The country is said to have paid some US$54million already as commitment fee when only US$600million of the US$3billion loan has been secured since the agreement was signed in 2011.

The country is said to have paid some US$54million already as commitment fee when only US$600million of the US$3billion loan has been secured since the agreement was signed in 2011.
YENKA NTI. 10 years ago

It is very true that truth is not easily understood. And so those who need it cannot accept it when it is free. Consequentially we buy untruth. Eventually untruth will cost us dearly. But by the time we realize it truth migh ...
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It is very true that truth is not easily understood. And so those who need it cannot accept it when it is free. Consequentially we buy untruth. Eventually untruth will cost us dearly. But by the time we realize it truth might have gain price, although it is still free.
bipuah,UWR 10 years ago

govt should listen and explore the possibility of renegotiation as said by Dr. Akoto

govt should listen and explore the possibility of renegotiation as said by Dr. Akoto
theAntedote 10 years ago

Why? I've already spent my kickback of 2.5 ML Ghana Cedis from the CDB. Just go get yours.

Why? I've already spent my kickback of 2.5 ML Ghana Cedis from the CDB. Just go get yours.
Big Joe --- Moscow /Kharkov 10 years ago

The chinese leaders aren't cheap as we imaginand any loans from eastern and arab world ( Japan excluded) are soo complicating . Mr. Akoto is ryt. Late Mills appendixed without Mahama's receiving be4 demise so Mahama will ...
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The chinese leaders aren't cheap as we imaginand any loans from eastern and arab world ( Japan excluded) are soo complicating . Mr. Akoto is ryt. Late Mills appendixed without Mahama's receiving be4 demise so Mahama will only dream and dream and pay unnecessary commitment bill at the expense of tax payers. Our leaders and policy makers have no heads ....this is the loss to Ghana.
Pinkus 10 years ago

Any attempt to re-negotiate this loan will only lead us to square one and perhaps a cancellation of the loan; like what happened in the STX deal. This is exactly what Akoto wants to happen, but apuuto! it will not happen.

...
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Any attempt to re-negotiate this loan will only lead us to square one and perhaps a cancellation of the loan; like what happened in the STX deal. This is exactly what Akoto wants to happen, but apuuto! it will not happen.

So my friend
Alex 10 years ago

What at all has this government got right in this country?

What at all has this government got right in this country?
Johnny USA 10 years ago

Loot at his face LOOTERS

Loot at his face LOOTERS
Fiifi 10 years ago

Can someone help me understand this, Have we started paying interest on this loan?

Can someone help me understand this, Have we started paying interest on this loan?
Nii Hansen 10 years ago

Where was Dr Akoto Osei when Ghana was negotiating the loan? You can simply go back and say let's renegotiate signed governmental agreement. Ghana and in particular African's heads of states should be careful with this CDB lo ...
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Where was Dr Akoto Osei when Ghana was negotiating the loan? You can simply go back and say let's renegotiate signed governmental agreement. Ghana and in particular African's heads of states should be careful with this CDB loans and not sing with their eyes close.
Yaw Ohemeng 10 years ago

I thought that you could have done a little research before condemning Akoto Osei. Where were you when the opposition raised several 'red flags' about this loan. Read below some account:

The New Patriotic Party (NPP) has r ...
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I thought that you could have done a little research before condemning Akoto Osei. Where were you when the opposition raised several 'red flags' about this loan. Read below some account:

The New Patriotic Party (NPP) has raised issue with the $3 billion Chinese facility recently approved by Parliament, claiming that the loan violates the Petroleum Revenue Management Act and agreements signed between Ghana and the International Monetary Fund (IMF) and the World Bank.

According to the party, the consequences of the violations were dire and disgraceful for the nation and urged the government to take a second look at the loan agreement to avoid embarrassing the country.

Addressing the press at the NPP Headquarters in Accra, the party’s Spokesman on Finance and Economic Planning, Dr Anthony Akoto Osei, in a 14-point statement, said the tenure of the tranche A of the loan was 15 years and said it provided for the collateralisation of the nation’s oil revenue for the $1.5 billion segment of the loan for a period of 15 years.

That, he explained, violated Section 18(7) of the Petroleum Revenue Management Act, 2011, which states, “The annual Budget Funding may be used as collateral for debts and other liabilities of Government for a period of not more than ten (10) years after the commencement of this Act.”

He added that ironically, the loan approved by Parliament was an obvious breach of a law passed by Parliament less than a year ago and that “Parliament should have cautioned government on this infringement”.

Another issue raised by the NPP was the government’s recent agreement with the IMF and the World Bank which precluded Ghana from borrowing more than an $800-million non-concessional loan.

It was the considered opinion of the party that the Chinese loan of $3 billion infringed on such an agreement between Ghana and the World Bank and the IMF.

Dr Akoto wondered why the government’s economic management team, which agreed with the IMF, either glossed over the agreement or did not realise that such a conditionality existed, a situation which could cause the nation some fine or other consequence.

He expressed shock at the fact that the government and Parliament could “goof”, because in the master agreement, the Chinese had asked the Ghana government to undertake critical studies to ensure that the loan agreement did not violate any local or international law.

On the total cost of the programme, he noted that a proper tallying of the cost of the projects to be financed by the loan amounted to $3.25 billion, contrary to the fact that the loan itself was $3 billion for the listed projects.

Additionally, he said the government was required to provide a 15 per cent counterpart funding, which translated into $450 million, bringing the total resource available to $3.45 billion.

Dr Akoto said from the permutation, there was going to be an excess funding of $200 million which was not accounted for anywhere in the loan documents.

“The Cabinet memo does not mention it and the majority side of the Finance Committee did not address itself to it in its haste to do the bidding of the Executive. So what will the $200 million be used for? Is it going to be a hidden booty?” he asked.

He stated that the Chinese requested that Ghana committed to sell them oil to offset the $3 billion loan, a deal which demanded that the Ghana National Petroleum Company must commit to sell oil to the Chinese off-takers.

“In all such a transaction, what commitment has been imposed on the Chinese?” he asked.

Dr Akoto accused the government of failing to undertake any proper feasibility, leading to its inability to provide any reasonable estimates, and cited an instance when it was stated in the contract that the coastal fishing harbours and landing sites project required between $150 million and $250 million, a gap of $100 million.

He said another example was the request for the Eastern Corridor Multi-Model Transportation Project which was projected to cost between $150 million and $500 million, giving a huge gap of $350 million.

Dr Osei said, it was clear that in computing the cost for all the 12 projects which amounted to the $3 billion, the government used the higher ceiling prices and wondered what would happen to the under-utilised component, assuming Ghana was able to execute the projects at the indicated floor prices.

He added that such a huge gap in the estimates could provide room for contractors to inflate the cost of the projects, since the government itself would not have done proper diligence.

The alternative, Dr Osei said, was for the government to save the oil revenue and use it to finance the projects and save the interest which would be paid to the Chinese bank.

Source: Daily Graphic
Wells 10 years ago

Japan also are willing to give loans.If the Chinese are unwilling to renegotiate go to Japan. Do due diligence and get some loan from them and pay the Chinese off. Trust me the Chinese will now find out that we are serious. A ...
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Japan also are willing to give loans.If the Chinese are unwilling to renegotiate go to Japan. Do due diligence and get some loan from them and pay the Chinese off. Trust me the Chinese will now find out that we are serious. And those who go for loans without due diligence should be shot or be released from government agencies permanently. Haba. What is wrong us. Why is love for a country not there at all, but only in football.
THE TRUTH 10 years ago

I SOMETIMES WONDER IF ANYBODY FROM THE NDC GOVERNMENT WENT TO CLASS ONE. DO THEY EVEN THINK AT ALL? IF WE ARE PAYING THEM 54MILLION HAVING JUST RECEIVED 600MILLION OUT OF THE 3BILLION WE ARE SUPPOSED TO RECEIVE IT MEANS BY TH ...
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I SOMETIMES WONDER IF ANYBODY FROM THE NDC GOVERNMENT WENT TO CLASS ONE. DO THEY EVEN THINK AT ALL? IF WE ARE PAYING THEM 54MILLION HAVING JUST RECEIVED 600MILLION OUT OF THE 3BILLION WE ARE SUPPOSED TO RECEIVE IT MEANS BY THE TIME WE RECEIVE ALL THE 3BILLION WE WOULD HAVE PAID THEM ALMOST ATHIRD OF THE AMOUNT AS INTEREST. DEAR GHANAIANS, THE CHINESE UNLIKE US, ARE VERY SMART PEOPLE. THEY KNOW THEY ARE DEALING WITH STUPID GHANAIANS WHO DO NOT WHAT ONO PLUS ONE IS, AND WHO DO NOT CARE ABOUT THEIR COUNTRY SO THEY WILL GO ON DOING THAT. THAT 3BILLION LOAN WILL NEVER COME BECAUSE THEY NOBODY IN GHANA CAN EVER CONFRONT THEM AND SAY LET US RENEGOTIATE OR CANCEL THAT LOAN. BY THE WAY WHO NEGOTIATED THAT LOAN AND WAS THERE ANY TIME LIMITS APPLIED DURING THE NEGOTIATION? NDC GOVERNMENT YIDE BI KEKE. FOOLISH NDC FOOLSOLDIERS CONTINUE TO VOTE FOR YOUR PARTY AND VERY SOON GHANA WILL BE THE PROPERTY OF CHINA.
THE TRUTH 10 years ago

I SOMETIMES WONDER IF ANYBODY FROM THE NDC GOVERNMENT WENT TO CLASS ONE. DO THEY EVEN THINK AT ALL? IF WE ARE PAYING THEM 54MILLION HAVING JUST RECEIVED 600MILLION OUT OF THE 3BILLION WE ARE SUPPOSED TO RECEIVE, IT MEANS BY T ...
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I SOMETIMES WONDER IF ANYBODY FROM THE NDC GOVERNMENT WENT TO CLASS ONE. DO THEY EVEN THINK AT ALL? IF WE ARE PAYING THEM 54MILLION HAVING JUST RECEIVED 600MILLION OUT OF THE 3BILLION WE ARE SUPPOSED TO RECEIVE, IT MEANS BY THE TIME WE RECEIVE ALL THE 3BILLION WE WOULD HAVE PAID THEM ALMOST A THIRD OF THE AMOUNT AS INTEREST. DEAR GHANAIANS, THE CHINESE UNLIKE US, ARE VERY SMART PEOPLE. THEY KNOW THEY ARE DEALING WITH STUPID GHANAIANS WHO DO NOT KNOW WHAT ONE PLUS ONE IS, AND WHO DO NOT CARE ABOUT THEIR COUNTRY SO THEY WILL GO ON DOING THAT. THAT 3BILLION LOAN WILL NEVER COME BECAUSE THEY KNOW NOBODY IN GHANA CAN EVER CONFRONT THEM AND SAY LET US RENEGOTIATE OR CANCEL THAT LOAN. BY THE WAY WHO NEGOTIATED THAT LOAN AND WAS THERE ANY TIME LIMITS APPLIED DURING THE NEGOTIATION? NDC GOVERNMENT YIDE BI KEKE. FOOLISH NDC FOOLSOLDIERS CONTINUE TO VOTE FOR YOUR PARTY AND VERY SOON GHANA WILL BE THE PROPERTY OF CHINA.
Vodoo Xebieso 10 years ago

We must listen to this man and do the needful.

We must listen to this man and do the needful.
abuzo 10 years ago

just take the money use it wisley and stop complaining

just take the money use it wisley and stop complaining
blackstar 10 years ago

This is killing Ghana the money is chop and we have to repay it. It's not far

This is killing Ghana the money is chop and we have to repay it. It's not far
zomabi 10 years ago

GHANA IS BEING PUNISHED FOR MISMANAGING ITS ECONOMY SINCE THE OVERTHROW OF NKRUMAH. NOW U DONT HAVE MONEY BUT U NEED DEVELOPMENT SO U GO BORROWING AND YOUR CREDITORS ARE SHORT-CHANGING U. WILL WE LEARN FROM THIS EXPERIENCE? I ...
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GHANA IS BEING PUNISHED FOR MISMANAGING ITS ECONOMY SINCE THE OVERTHROW OF NKRUMAH. NOW U DONT HAVE MONEY BUT U NEED DEVELOPMENT SO U GO BORROWING AND YOUR CREDITORS ARE SHORT-CHANGING U. WILL WE LEARN FROM THIS EXPERIENCE? I PERSONALLY DONT KNOW
BOB TEMA 10 years ago

THERE IT CAMES AGAIN THAT TANI MAHAMA DONT THINK,AND KNOWS WHAT HE IS DOING HE JUST WENT FOR THE LOAN TO SPEND IT BY HIMSELF AND HIS USELESS WIFES HE HAS LOST 3BN WHAT FOR .

THERE IT CAMES AGAIN THAT TANI MAHAMA DONT THINK,AND KNOWS WHAT HE IS DOING HE JUST WENT FOR THE LOAN TO SPEND IT BY HIMSELF AND HIS USELESS WIFES HE HAS LOST 3BN WHAT FOR .
RICHARD 10 years ago

u dont respect urself.inresponsible statement.if u have H E MAHAMA as ur family member would u behave this way.u are not thinking about developing urself to become someone better in ghana but insulting ur PRESIDENT.SHAMMMMMMM ...
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u dont respect urself.inresponsible statement.if u have H E MAHAMA as ur family member would u behave this way.u are not thinking about developing urself to become someone better in ghana but insulting ur PRESIDENT.SHAMMMMMMMME.
henny 10 years ago

Formal Finance Minister is 100% correct. If China gave a loan facility, and got all the contracts for ulilising such loans, then why must Ghana Govt pay additional COMMITTMENT FEES - upfront. This is highly questionable, the ...
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Formal Finance Minister is 100% correct. If China gave a loan facility, and got all the contracts for ulilising such loans, then why must Ghana Govt pay additional COMMITTMENT FEES - upfront. This is highly questionable, therefore investigation must take place to protect the Ghana Govt. The Chinese are doing their best to invade Africa, utilising schemes that appears very attractive , but not of the benefit of Africa
SHOOTER 10 years ago

Could Ghana please go back to the ballot box and vote out the NDC party in 2016. They lack the mental agility and the vision to govern. They are clueless, outrageously corrupt and damn right incapable of delivering on anythin ...
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Could Ghana please go back to the ballot box and vote out the NDC party in 2016. They lack the mental agility and the vision to govern. They are clueless, outrageously corrupt and damn right incapable of delivering on anything to promote growth and development. Renegotiate with the ballot box in 2016 and send these create, loot and share thieves packing, before they send the country into the irredeemable abyss.
RICHARD 10 years ago

shut up,when u were the deputy minister do advise the president or the ministry when u went in for loan and landed in kiosk?u think u know too much,n d c is not like money stealers n p p.if u see good things coming that will ...
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shut up,when u were the deputy minister do advise the president or the ministry when u went in for loan and landed in kiosk?u think u know too much,n d c is not like money stealers n p p.if u see good things coming that will block ur party frm coming into power,then u are complaining.
EZEKIEL 10 years ago

I WONDER MANY A TIME whether those who sign CONTRACTS in the name of Ghana REALLY UNDERSTAND what they sign!
This IS what a FORMER Min. of Finance has to say !!!!!!!!!! What a PITY!!!!

I WONDER MANY A TIME whether those who sign CONTRACTS in the name of Ghana REALLY UNDERSTAND what they sign!
This IS what a FORMER Min. of Finance has to say !!!!!!!!!! What a PITY!!!!
JH New York 10 years ago

"The negotiators(of the CDB loan)did the best they could at the time,and that the Country will have to honour its side of the bargain".
It seems like the Country's CDB negotiators are not aware that they signed an agreement ...
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"The negotiators(of the CDB loan)did the best they could at the time,and that the Country will have to honour its side of the bargain".
It seems like the Country's CDB negotiators are not aware that they signed an agreement that does not make sense,economically.
How could they agree to a Commitment fees without a guarantee of stipulated time to access the facility.
Again, how and why do CDB sign for a loan with unconditional commitments fees at a time when the project preparation is not ready.
It means that,as long as the Chinese hold on to the loan,the Country should continue to pay the commitment fees.
Does it make sense to be loaned 3 billion,
access only 600 million dollars, to pay a Commitment fees of 54 million dollars out of that and counting.
CDB team went to the negotiations table without any tactics and strategic considerations.That's how I see the whole transaction.
JH New York 10 years ago

CDB signed for a loan with unconditional.......

CDB signed for a loan with unconditional.......
JH New York 10 years ago

how and why do our (CDB)negotiators signed for a loan.......

Ghana (CDB)negotiators team went to the negotiations table without any tactics and
strategic considerations.

how and why do our (CDB)negotiators signed for a loan.......

Ghana (CDB)negotiators team went to the negotiations table without any tactics and
strategic considerations.
abuzo 10 years ago

JUST TAKE THE MONEY AND DO GOOD WITH IT AND REPAY YOUR OBLIGATION STOP CRYING

JUST TAKE THE MONEY AND DO GOOD WITH IT AND REPAY YOUR OBLIGATION STOP CRYING
john ansah 10 years ago

BUT NPP SAID THE MONEY WILL NEVER COME?

BUT NPP SAID THE MONEY WILL NEVER COME?
HAZOR 10 years ago

When did Akoto Osei becomes the spokeman for president Mahama Administration and advicer on renegotiation of loans?Who on earth could Akoto Osei advice extravagant government who could not be trusted to go and renegotiate US$ ...
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When did Akoto Osei becomes the spokeman for president Mahama Administration and advicer on renegotiation of loans?Who on earth could Akoto Osei advice extravagant government who could not be trusted to go and renegotiate US$3billion Chinese loan instead of calling for non-partisan inverstion into what when wrong and why is Ghana still using their oil callateral to pay for US$3billion and not stop.Why could we trust a government that waste GHC8.7billion without creating a job or propose a single project?Why should we trust a government that wasted GHc51.4billion($20billion)loan without any internal generation and donds included.Why should we trust a government that secured two diffenent loan of US$2.2billion to contruct eastern corridor rail and nothing has being done.If this administration can account for US$375million of oil money what is the point of telling the president to go for renegotiation of the loan?We need investigation and not renegotiation.
Kwabena Ansa 10 years ago

Mr. Deputy Minister of Finance, Kweku Ricketts-Hagan, if you think things would have been better for Ghana if we had negotiated the US$3BILLION China loan differently, then don't you think we have the right to re-negotiate th ...
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Mr. Deputy Minister of Finance, Kweku Ricketts-Hagan, if you think things would have been better for Ghana if we had negotiated the US$3BILLION China loan differently, then don't you think we have the right to re-negotiate the loan? After all China has already failed their end of the negotiation. The loan amount they were to give Ghana was US$3BILLION but they have so far giving Ghana only US$600Million and that can be construed as China's abrogation of the loan agreement
Unfortunately, you knowing what you know now, I think your anti-dote that "we (Ghana) should have to honor our side of the bargain" even though China has failed to honour their side of the bargain is simply stupid and irresponsible of such idea coming from you as a Deputy Minister.
You people including the President have lost your fucking mind.
Destiny E. 10 years ago

I warned, but they refused to listen !
It seems Ghana Government doesn't know the real nature of Chinese.
(1)They're "smart and parasite".
Because their land has no resources, they deal with African Countries with rich ...
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I warned, but they refused to listen !
It seems Ghana Government doesn't know the real nature of Chinese.
(1)They're "smart and parasite".
Because their land has no resources, they deal with African Countries with rich mineral resources. they provide a "Chick and request a Bull" !
That was the same practice the presented Ghana MP's with mobile phones to award a big contract !!
that's their trick !!!
(2)They hate anybody who fails to obey their instructions or regulations.
(3)Their "interest rate" is very high.
They granted that loan to the then (Mills administration), because they know they well get our resources (i.e Gold) so they sent their nationals there for it.
And when the Mahama administration failed to let them be,
(1) they've put Ghanaians in their blacklist. today, Ghana is in their HIGH RISK countries list.
Since the deportation of their Nationals, Ghanaians living in China have no peace whether with residence document or not with the explanation that Ghana is a "HIGH RISK" Country !
(2) They will take all ways and mean to haul Ghana bankrupt if immediate step is not taken.
This must set a lesson that, no-one nowhere will develop our country for us, or make any change. we must plan and develop our country ourselves !!

My second advice to the president is to cancel that Loan agreement immediately or else Ghana will continue to suffer in their hands..
A word to a wise is enough......
Mr. Bean 10 years ago

About 8 adults were playing football, 4 on each side, and one of them got the ball in the goal area of the other team, and was in a perfect position to cross the ball, for a perfect goal. He messed it up, and his playmate was ...
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About 8 adults were playing football, 4 on each side, and one of them got the ball in the goal area of the other team, and was in a perfect position to cross the ball, for a perfect goal. He messed it up, and his playmate was mad and asked him, "didn't you have the mind to cross it? Then he replied "my mind was in my pants"...lol.

Go back and renegotiate $3bn Chinese loan - Akoto Osei

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