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The decision by the state owned Ghana National Petroleum Corporation (GNPC), led by Mr. Alex Mould, to borrow a whopping $700 from the European capital market, precisely Deutshe Bank of Germany, to support oil and gas infrastructure continues to raise eyebrows. GNPC has not sought for Parliamentary approval for the loan because the PNDCL 64 gives the corporation the right to secure such loans. But legal experts who spoke to The Chronicle think otherwise, insisting that the said PNDC law flies in the face of the constitution. The controversial loan, with five year tenure, has an interest rate of 4.43%. According to the Chief Executive Officer, Mr. Alex Mould, the loan will be used to support GNPC�s increasing oil and gas infrastructure investment and cash call requirements from its participating and commercial interests. �GNPC is in negotiations with the Offshore Cape Three Points (OCTP) partners to pay for the pipeline and receiving facility in the OCTP (Sankofa-GyeNyame field) gas development project to enable lower gas price to Ghanaian consumers. This investment would amount to US$493 million. This will save the country from paying 22% interest if the partners were to pay for that investment. �GNPC has an immediate requirement of US$105 million to pay, as part of natural gas price negotiated with the OCTP partners. The effect of these measures is to lower gas prices paid by Ghana to the OCTP partners and thus reduce electricity costs to Ghanaians. �The Corporation has a commitment to pay US$ 36 million, being 40% of the pipeline cost to connect the TEN Field gas to the Jubilee FPSO. This is necessary to send the TEN Field gas to the Ghana National Gas Company (Ghana Gas) for processing. �This will save the country from paying 15% interest if the partners were to pay for this investment,� Mr. Mould told Citi FM. The action of GNPC sounds good on paper, but the idea that the Cooperation does not need Parliamentary approval before signing for the loan has irritated the Minority in Parliament, especially the ranking member on Finance, Dr. Mac Assibey Yeboah. Dr. Yeboah, who insists the loan agreement must be brought to Parliament, grounded his argument in Article 181 of the 1992 Constitution, which deals with loans. It reads: (1) Parliament may, be a resolution supported by the votes of a majority of all the members of Parliament, authorise the Government to enter into an agreement for the granting of a loan out of any public fund or public account. (2) An agreement entered into under clause (1) of this article shall be laid before Parliament and shall not come into operation unless it is approved by a resolution of Parliament. (3) No loan shall be raised by the Government on behalf of itself or any other public institution or authority otherwise than by or under the authority of an Act of Parliament. (4) An Act of Parliament enacted in accordance with clause (3) of this article shall provide - (a) that the terms and conditions of a loan shall be laid before Parliament and shall not come into operation unless they have been approved by a resolution of Parliament; and (b) that any moneys received in respect of that loan shall be paid into the Consolidated Fund and form part of that Fund or into some other public fund of Ghana either existing or created for the purposes of the loan. (5) This article shall, with the necessary modifications by Parliament, apply to an international business or economic transaction to which the Government is a party as it applies to a loan. (6) For the purposes of this article, �loan� includes any moneys lent or given to or by the Government on condition of return or repayment, and any other form of borrowing or lending in respect of which - (a) moneys from the Consolidated Fund or any other public fund may be used for payment or repayment; or (b) moneys from any fund by whatever name called, established for the purposes of payment or repayment whether directly or indirectly, may be used for payment or repayment. (7) The Minister responsible for finance shall, at such times as Parliament may determine, present to Parliament any information concerning any discrepancies relating to - (a) the granting of loans, their repayment and servicing; (b) the payment into the Consolidated Fund or other public fund of moneys derived from loans raised on institutions outside Ghana. Dr. Assibey Yeboah is contending that per the provisions of the above article, it will be preposterous for GNPC to argue that it does not need Parliamentary approval for the foreign loan it is trying to secure. But Mr. Mould is still adamant in going to Parliament to seek approval for the loan, as spelt out in the Article 181. Mr. Mould told Joy FM yesterday that he sought the advice of government�s lawyer, who is also the Attorney General and Minister for Justice, Madam Henrietta Brew Appiah-Oppong, who gave him the go ahead to negotiate for the loan without going through Parliament. He contended that he was not afraid to go to Parliament if had been asked to do so by the Attorney General. Mr. Mould further argued that the Section 15 of the GNPC Law, 1983, Provisional National Defence Council Law (PNDCL) 64 gives him the right to negotiate for such loans provided the Minister for Finance has consented to it. The said PNDCL reads; Section 15 (1) Subject to the provisions of sub-section (2) of this section the Corporation may borrow sums required for the purpose of meeting any of its obligations or discharging any of its functions. (2) The power of the Corporation to borrow money shall be exercisable only on the recommendation of the Secretary and with the approval of the Secretary responsible for Finance as to the amount, source of the loan and the term and conditions under which the loan may be effected. (3) An approval given for the borrowing of any money under subsection (2) of this section may be either general or limited to a particular borrowing and may be with or without conditions. (4) The Secretary responsible for Finance may approve the guarantee on such conditions as he thinks fit of the repayment of principal and the payment of interest on any authorised borrowing made under this section. To Alex Mould, this law explicitly gives his administration the right to borrow the money without the much talk about Parliamentary approval. He contended that the loan had no burden on the government and that the GNPC is only using its share of oil revenue, as provided for by the Petroleum Revenue Management Act (PRMA), to secure the loan. Dr. Assibey Yeboah is, however, arguing that Article 181 of the Constitution has made nonsense of the PNDCL 64, being quoted by Mr. Mould, and that the 1992 Constitution is the Supreme Law of the land. When The Chronicle contacted Mr. Obiri Boahen, a former Minister of State at the Ministry of Interior to seek his legal opinion on the issue, he argued that the PNDL 64 is inconsistent and is in contravention with provisions of the 1992 constitution. He reminded those relying on the PNDCL 64 to take a lesson from the Woyome, Bulkan Energy and Isofoton cases, and note that anything at all could happen to them in future.