<<Print>>

MINISTRY OF INFORMATION PRESS STATEMENT For Immediate Release Government is demanding an immediate substantiation or a retraction and apology from the NPP�s Gabby Okyere Darko who said in an interview on Joy Fm on the evening of Thursday 25th August, 2011 that �some people who arranged it (the loan) will have access to $30 million when the $3billion loan is approved by Parliament.� Government said Mr. Gabby Okyere Darko should be willing to name those people and give all Ghanaians the evidence of his claims. In a statement issued from the Information Ministry and signed by Deputy Minister Mr. Samuel Okudzeto Ablakwa, government said such statements cannot be allowed to pass as yet another recklessly vicious attack from the New Patriotic Party. In the said interview, Mr Gabby Okyere Darko impugned corruption when he made the following remarks: �Why is this so called Master Facility Agreement before Parliament because it doesn�t automatically lead to the project being funded? It doesn�t. All it does, actually, is that immediately after it is approved by Parliament, some people who arranged it will have access to $30 million and a commitment fee of $3.5 million will be paid within 20 days and another 3.5 before the first subsidiary agreement will be approved and the funding released.� Mr. Okudzeto Ablakwa said for such a very important facility which is the single biggest loan the Republic of Ghana has ever entered, it is natural to expect enormous interest from the international community and for such unsubstantiated statements to be unchallenged will be very inimical to the image and fortunes of Ghana. He added that such unsubstantiated effusions have the tendency to scare investors and prevent reputable financial institutions like the China Development Bank (CDB) from doing business with Ghana in the future as they would prefer to stay out and keep their reputations intact instead of engaging with Ghana and have the likes of Gabby Okyere Darko throw mud at them. The statement stressed that as can be seen from the Master Facility Agreement before Parliament, government is dealing directly with CDB and that there are no middlemen or arrangers for which $30 million dollars will be paid them. Government reproduced Section 11 of the agreement which touches on Fees to buttress its point: 11. FEES 11.1 Up-front fee The Borrower shall pay to the Lender an up-front fee equal to zero point two five per cent (0.25%) of the Total Commitment of which: 11.1.1 half shall be paid on or before the day falling twenty (20) days after the Execution Date; and 11.1.2 half shall be paid as a condition precedent to the first Utilization under the first Subsidiary Agreement. 11.2 Commitment fee 11.2.1 The Borrower shall pay to the Lender a commitment fee of an amount equal to one percent (1%) per annum on the undrawn and uncancelled portion of the Total Commitment during the period beginning on the earlier of: (A) the date of satisfaction of the conditions precedent referred to in Clause 4.1 (Conditions precendent to the first Subsidiary Agreement); and (B) the date falling sixty (60) days after the Execution Date, and ending on the date of the final Utilisation under all the Subsidiary Agreements. 11.2.2 The Borrower shall pay the accrued commitment fee: (A) on the last day of each successive period of six months which ends during the Availability Period; (B) on the last day of the Availability Period; (C ) and, if cancelled in full, on the cancelled amount of the Total Commitment at the time the cancellation is effective. Mr. Okudzeto Ablakwa emphasized that President Mills will continue to abhor corruption and run an open, transparent and accountable government. He added that government will remain committed to the president�s vision under the Ghana Shared Growth and Development Agenda which is the basis for these strategic transformational investments government was seeking to make by such loan agreements. The statement concluded that the opportunity given to Mr. Okyere Darko to either substantiate or retract and apologise is without prejudice to any legal action that parties in the $3billion loan agreement may consider.