Ghana Education Trust Fund yields dividend

Accra, July 16, GNA - Parliament on Wednesday approved the adoption of the formula proposed for the distribution of the proceeds of the Ghana Education Trust Fund for 2003.

So far, a total of 887 billion cedis were approved for disbursement to provide finance to supplement the provision of education at all levels since the establishment of the Fund in 2000.

In total, 497 billion cedis and 390 billion cedis were approved for disbursement in 2001 and 2002 when the first disbursement from the Fund was made in 2001 after Parliament had approved the proposed formula. Mr. Felix Owusu-Agyepong, Majority Leader said this when he presented the Report of the Committee of the Whole on the Formula for the distribution of the proceeds of the (GETFUND) on behalf of the Chairman, Mr Freddie Blay in Parliament on Wednesday.

An amount of 400 billion cedis is expected to accrue to the fund in 2003 fiscal year, representing an increase of 17.7 per cent over 2002 actual payments.

Section 8 (2) of Act 581 enjoins the Board of Trustees of the Fund to annually submit to the House for approval, a formula for the distribution of moneys into designated accounts.

The accounts covers tertiary, second cycle and basic education, investment and other related aspects of education such as distance education school and public libraries and special education. The Board is further enjoined to take into account the promotion of the study of mathematics, science and technology, the advancement of female education, reduction in the high level of illiteracy in historically disadvantaged areas and the promotion of computer, vocational and technical education and training.

The Board of Trustees also made provision of 56 per cent of the disbursable funds for the provision of infrastructure and academic facilities development and maintenance, an increase of about 30.39 per cent over last years'.

The Report said a further provision of 78.4 billion cedis has been allocated to the pre-tertiary sub-sector for the improvement and increase of infrastructure, especially in second cycle institutions where the situation is relatively paucity of funding.

The Committee said the administrator of the fund informed members that there was a programme for the construction of a two-storey dormitory block, each for 25 girls schools across the country and indicated that the first phase of construction of 15 started this year and the second phase of 10 would commence next year.

The Committee said it noted with satisfaction the increase in the vote for scholarships from 705 million to 20 billion this year and was of the opinion that the vote for contingency of 12.3 billion cedis was too high.

It further expressed the view that the proposed amount of 30 million for the constituency emergencies was inadequate and must be increased.

The Administrator of the Fund informed the Committee that the Board has agreed to reduce the contingency from 12.3 million to 9.3 million cedis, while it further increased the constituencies emergencies vote to 10 billion and this would enable the Board to allocate 50 billion cedis for each MP's identified project.

Mr Kosi Kedem, NDC-Hohoe South said since the House has come to an agreement on the formula for sharing of the fund, Section 4(2) of the Law should be followed to the letter so that money collected for the fund is paid within the specified time.

Mr Jacob Adusei-Sarkodie, NPP- Atwima Nwabiagya commended the Board for its efficient work of allocating funds for infrastructural development, since that has been the main problem hindering educational development.

He suggested that some of the fund should be used to put up more classrooms so that the shift system was stopped to prevent truancy by school pupils, while teacher training has to be improved with hostels constructed, especially in the rural areas.

Mr M.A. Seidu, NDC- Wa Central commended the Administrator for improving on the sharing of the formula, but suggested that less endowed and historically disadvantaged regions in the North as well as some rural communities needed to be supported with the Fund to develop.

He suggested the income generating activities and fund raising and support from the industrial sector and donors should be considered since the over-reliance on only VAT returns could not be sustained.

Mr Ofosu Asamoah, NPP- Kade said there was the need to inject some changes into the allocation of funds and not only support girls schools with dormitories when most schools do not have dormitories. Dr Kwabena Adjei, NDC- Biakoye regretted that needy but brilliant students have not been catered for, even though it was an issue since the establishment of the fund.

He said it was important that the fund had a focus and to link up with the district assemblies, Ghana Education Service, the Universities and other tertiary institutions for a better format.

Mrs Grace Coleman, NPP Effiduase-Asokore said it was about time to look at the distribution of resources to empower women and said opportunities should be made specifically to support women's development.

Mrs Ama Benyiwa-Doe, NDC- Gomoa West said the NDC government needs to be recommended for establishment of the fund that has ensured a lot of improvement of the educational sector.

Mr Dominic Fobih, Minister of Lands and Forestry said the development of second cycle schools should be looked at and improved, while pre-school should be given the necessary support under the fund to develop.

Mr Johnson Asiedu Nketiah, NDC- Wenchi West said since the GETFUND came as a result of agitation's and pressure from the National Union of Students, there was the need to continue to support and cushion it instead of diverting it into other functions that should be handled by the national budget.

He said government should look at other sources such as from the HIPC funds, the national budget or from donors to cater for school needs and not to over burden students with full recovery user fees. Mr Kwadwo Baah-Wiredu, Minister of Education, Youth and Sports said the recovery rate of students' loans has to be improved so that the Social Security and National Insurance Trust could spread its support to cover many students.