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Refund Gh˘5m To The State! ...Bosomtwe MP Tells Finance, Communications Ministers   
 
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07-Nov-2016  
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The Member of Parliament for the Bosomtwe Constituency, Simon Osei-Mensah, has urged the Ministers of Finance and Communication to refund an “illegal loan of GH¢5,000,000.00 granted to Ghana Post Company Limited on January 24, 2012 into the Consolidated Fund with interest”.

According to Mr Simon Osei-Mensah, the loan was granted to Ghana Post Company Limited without parliamentary approval. This is in contravention of Article 181(3) of the 1992 Constitution of the country.

Article 181(3) of the Constitution states as follows, "No loan shall be raised by the Government on behalf of itself, any other public institution or authority, otherwise than by or under the authority of an Act of Parliament". Consequently, this is a serious breach of the fundamental Law of the Country. Hence, it is of paramount significance that the money is refunded into the consolidated fund without delay.

In a press statement issued, the NPP legislator says there are several issues surrounding the loan facility that make it questionable or appear fraudulent in nature.

“The loan was granted without Parliamentary approval. There were no properly documented terms and conditions for the loan. In addition, the loan was not disclosed in the 2012 financial statements to aid the establishment of an audit trail and this gives a very strong indication that the loan was being concealed. Non-disclosure of a loan with such material value is a serious smack on financial transparency and questions the integrity of those who granted the facility.

The non-recognition of the loan facility in the financial statements according to him, “increases the risk that the loan might not be repaid by the Ghana Post company Limited into the Consolidated Fund”.

He said it was not surprising that as at the end of June 2016 nothing had been paid by Ghana Post company Limited and “there are doubts if anything has been paid yet”.

Furthermore, promptings from both the Auditor General and Attorney General for the Ministry of Finance to seek retroactive parliamentary approval has fallen on death ears and they continue to contravene the constitution with impunity. Notwithstanding the additional advice by the Auditor General in its report on the Public Accounts of Ghana - Ministries, Departments and Other Agencies(MDAs) for the year ended 31 December, 2013, no action has still been taken to remedy the illegality. This brings into question the genuine basis for this loan facility.

According to information available to the MP, he said Cabinet at a meeting in October 2010 “approved an urgent release of GHc5,000,000.00 by the Ministry of Finance through the Ministry of Communication to Ghana post Company Limited to help salvage the company from its financial insolvency as a result of a Garnishee Absolute Order imposed on the company by the fast Track high Court in a suit filed against the company by Sky Consult. However, the actual service performed by Sky Consult to Ghana Post Company Limited is not known yet. Surprisingly, between October 2010 and January 24, 2012 the NDC government failed to submit the request to Parliament for approval and has since also refused to seek retroactive approval. What is actually associated with this loan that the NDC government doesn't want Ghanaians to know is a mystery to be uncovered”.   

“The Ministries of Finance and Communication must come out publicly with dispatch the terms and conditions of the loan facility, total recoveries as at the end of October 2016 and also refund any outstanding amount into the Consolidated Fund.

We need to put an end to such reckless and unconstitutional dissipation of the countries resources. The country is burdened with borrowings which has created unbearable national debt such that interest payment is even higher than the government's budget on capital expenditure. Such reckless dissipation of our resources must stop in the interest of the current and future generations. The people of Ghana deserve better”, he stated.
 
 
Source: New Crusading Guide
 
 

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