Education Fund yields 319 billion cedis

Professor Christopher Ameyaw-Akumfi, Minister of Education announced that the main source of the Ghana Education Trust Fund (GETF) being 2.5 per cent of the Value Added Tax (VAT) yielded 319 billion cedis from December to May 31.

Briefing Parliament on the state of GETF, Prof Ameyaw-Akumfi said out of this amount 75 billion cedis has been deposited in the Fund's accounts while 442 million cedis accrued to the Fund through donations and individuals and corporate bodies are still in the accounts of the donors and are yet to be transferred to the Fund.

He said 30 billion cedis has been released to SSNIT to meet the first semester students' loan obligation for this academic year while one billion cedis was released for work on the chemistry block at the University of Ghana, Legon.

Prof Ameyaw-Akumfi said the inability to establish the Board of Trustees and arrive at a formula for disbursement, were some of the hi-cups to the operation of the Fund.

"A problem of interpretation arises as to whether the Board should submit the formula direct to Parliament or to do so through the Ministry of Education."

He appealed to the House to revisit the issue and remove any ambiguity in the interpretation of the law.

Mr Ameyaw-Akumfi said the delay in establishing the Board and the secretariat of the Fund due to the change in government contributed to the slow operation of the Board of Trustees.

"Indeed, the secretariat may be said to have become operational effective May 8, this year when its administrator assumed office. It is also to be noted that selection interviews for the appointment to the other key positions of the Fund were conducted on June 19 to 22 this year".

He urged Parliament to harmonise the VAT and GETF laws to enable the Fund to have a smooth operation.

Prof Ameyaw-Akumfi said a section of the GETF law stipulates that the VAT service should pay the revenue directly into the banks of the Fund while a portion of the VAT required that the money should be paid into the Consolidated Fund in accordance with financial regulations.

"It may be worthwhile to provide an exemption to enable the Commissioner to pay the portion of the VAT tax due to the Fund directly into the designated account of the Fund."

All members who contributed to the statement commended the Minister for giving the House a comprehensive report on the Fund and thereby erased any misconceptions and fears about the existence of the Fund.