Government may be compelled to sell the state’s most-priced assets if it defaults in paying off debts to the Korean construction firm STX Engineering and Construction Limited. The $10-billion deal with the firm is expected to yield 200,000 housing units over the next five years. Government has set aside $1.5bn of that amount for the construction of 30,000 houses for the security agencies. The Minority in Parliament boycotted the approval of the deal, arguing it was not in the country’s interest. According to them, the country’s debt stock would increase if government does not scale down the loan to a manageable size. Although the deal has seen Parliamentary approval, the Minority would not relent in their pressure on government to heed to play along their persuasion. Minority Leader Osei-Kyei-Mensah Bonsu told journalists on Monday it is imperative that government exercises some caution in the deal. Mr Bonsu paraphrased what he said was Clause V of the STX deal that: “Government more ominously is being asked to unconditionally and irrevocably waive its sovereign immunity. What this means is that should there be a default, STX Engineering and Construction could be attaching our properties and investments all around the world. The combined effects of the words “unconditional” and “irrevocable” is that in the event of default government will not be given any room for any negotiation whatsoever. That is what it means.” “Initially, they had only written “irrevocable waiver of sovereign guarantee.” The re-stated and amended agreement now has introduced another [expression]: “unconditional and irrevocable waiver of our sovereign guarantee.” And they are telling Ghanaians that they have presented a better agreement to us. “It does mean that if anything goes wrong, the lender can auction Akosombo Dam, auction the seat of government, auction Parliament House, auction our four stadia, recently built,…all in a bid to offset the debt.” The NPP Minority group said it is not too late for government to change its decision on the STX deal. The Minority are proposing that government borrows “a few million Ghana cedis” locally to finish the Affordable Housing Project embarked upon by the Kufuor administration. Government could even allocate those houses to the security agencies, Mr Bonsu suggested. Meanwhile, Water Resources, Works and Housing Minister Alban Bagbin, who has been at the forefront of government’s push to clinch the deal, described the Minority’s concerns as “issues you should disregard.” According to him, government’s decision to enter the deal came after several consultations with experts and “development partners” who had considered the country’s economic potential ability to contract and pay off a $10-billion deal, against the backdrop of the country’s nascent oil find. Mr Bagbin debunked suggestions that the housing industry is too dangerous to invest in; he said the country is in a “crisis situation” and that the best way out is the current deal with the Korean company. Source: Myjoyonline.com/Ghana