The opposition New Patriotic Party (NPP) says it will proceed to court to seek a declaration that Ghana National Petroleum Corporation(GNPC)�s plan to secure a $700m loan without parliamentary approval is illegal.
�I have advised our legal men to proceed to court because it is clear that somebody is breaking the law�, NPP MP on the Finance Committee of Parliament Dr. Mark Assibey told Joy News� Elton John Brobby
The MP pointed out that there are previous Supreme Court rulings which uphold the law that international transactions need parliamentary approval. GNPC has reportedly secured a $700 million loan from the Deutsche Bank and used the its share of oil revenue as collateral.
The state-owned company has explained it needs the money to make more investments in Ghana�s oil and gas infrastructure and cannot be living hand-to-mouth on government funds.
GNPC Chief Executive Officer Alex Mould has quoted Section 15 of 1983 PNDC law 64 which is the Ghana National Petroleum Corporation Act to support their decision not to seek parliamentary approval after the Minister of Finance had okayed the move.
But NPP MP Mark Asibey has dismissed GNPC�s reliance on the PNDC law as �bogus�. GNPC is making �ill-advised� decisions, he said.
As representatives of the Ghanaian people, the MP believes that it is the tax payers money that will ultimately be used to pay back the loan should the company default.
This possibility underlines the need for parliamentary approval, he argued. �Whose monies are going to be used to repay the loan?� Mark Asibey questioned.
Some NPP MPs like Obuasi MP Kwaku Kwarteng suspect that the loan is not really a GNPC initiative and that government is using the company to satisfy its thirst for more loans.
A position which the GNPC has explained as not true.
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