Government will pay 60% of the loan facility tabled before Parliament for the purchases of vehicles for members of the 8th Parliament and members of the Council of State.

The State will bear 60% of the principal sum and all the interest that will accrue on the loan, while MPs and Council of State Members will also pay the remaining 40% of the loan facility.

This was contained in a document intercepted by Adom News.

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.

Per the agreement, if approved by Parliament each of the 275 MPs and each of the 31-member council of state members will receive about $100,000 for the purchase of a vehicle.

According to the agreement, the repayment of the facility by the beneficiaries shall be made from deduction at source by the Parliamentary Service of Ghana to the National Investment Bank.

The documents intercepted by Adom News as contained in the agreement indicate that, while the $28 million facility has to be paid within a 45-month period, the $3.5 million loan facility is to be paid within 42 months.

On July 6, 2021, a Deputy Minister of Finance, Abena Osei Asare on behalf of the sector Minister tabled two different loan agreements in Parliament to that effect.

The documents are currently before Parliament’s Finance Committee for consideration and report for the House approval.

The government is seeking Parliament’s approval to secure a $28 million loan facility from the National Investment Bank for the initiative, an additional $3.5 million loan agreement with the NIB to purchase vehicles for the 31-member council of state has been laid.

Apart from the repayments by MPs, each of the 31 Council of State Members will pay $33,333.33 representing 40% and the government will also bear the outstanding $50,000.00 representing 60%.

The repayment by the beneficiaries and the Government of Ghana shall be made at the end of every month for the duration of the Agreement.

The repayment of the facility by the beneficiaries shall be made through their monthly entitlements.

In the coming days, the Finance Committee of Parliament is expected to present their report as referred by the First Deputy Speaker of Parliament, Joseph Osei Owusu.