The Keta MP, Kwame Gakpey, says government absorbing 60% of the car loan being given to Members of the 8th Parliament places a burden on the MPs, contrary to popular opinion.

According to him, the government instead of absorbing part of the loan should have paid fully for the vehicles as well as absorbing the entire cost of maintenance, fueling, and drivers for the car.

He said, “It is rather a government placing a burden on MPs. It’s a burden on MPs. We are paying for maintenance, we’re paying for the driver, and we’re buying fuel.  So that is why I am saying I’m not interested in the car loan given to MPs. 

“We’re interested in government providing vehicles for MPs to use and pay for it, fuel it, pay for the drivers as well as pay for maintenance of the cars.”

The Deputy Finance Minister, Abena Osei Asare laid a paper on the floor of the house requesting approval of a $28 million loan facility from the National Investment Bank for the initiative.

Per the arrangement, the state will absorb $373,333.33 representing 60% while an amount of $248,888.89 representing 40% will be paid by MPs.

In documents sighted by Myjoyonline, the $28 million facility is expected to be paid within a 45-month period.  

Government will also absorb the full interest cost on the loan and a tax waiver will separately be given on the vehicle.

The announcement of the loan facility has faced sharp criticism from the general public who say the awarding of such a loan facility while the country is still facing a harsh economic reality is careless and plunder of the state’s coffers.

However, reacting to the public’s criticism of the loan facility, the MP said “they say lack of knowledge my people perish. Maybe they need education about the whole thing and then it’s a loan package for MPs it’s not free.”

Meanwhile, it is emerging that the recommendation for government to take up 60% of the loan is a recommendation from the Prof. Baidu Ntiamoah Committee's report that recommended emoluments for Article 71 officeholders.

The report says MPs should get loans not exceeding $80,000. The government would have to pay for not more than 60% of the loan and pay the interest on the loan.

The committee further recommended MPs be paid ¢28,000 plus accommodation allowance which will be 20% of their consolidated salary and other benefits.