Parliament approves $31 million car loans for MPs

The deal, which has caused an uproar among the Ghanaian populace was unanimously approved by the house.

the House has also approved a tax waiver of 13.3 million dollars for the importation of the vehicles for the MPs and the Council of State members.

The Members of Parliament and Council of State have been given the 13.1 million dollars waiver despite the fact that they are paying only forty percent of the loan being facilitated through the National Investment Bank for the purchase of the cars.

The government will bear the other 60 percent of the loan with the accrued interest.

Last week, Finance Minister, Ken Ofori-Atta, tabled a loan agreement for $28 million to parliament for the purchase of 275 vehicles for members of the 8th Parliament.

The loan is expected to be sourced from the National Investment Bank (NIB).

The Minister also presented a similar request for a $3.5 million car loan for members of the 8th Council of State for them to purchase vehicles.

However some MPs have argued that given them car loans is unconstitutional and the state has to provide vehicles for them.

Speaker of Parliament, Alban Bagbin Pulse Ghana

The Member of Parliament for Ejisu, John Kumah is of the view that lawmakers should not be given loans to buy vehicles but the state should buy it for them through the consolidated fund.

“By what reason are you saying that instead of charging it on the consolidated fund, you are giving me a loan. Loans for what? Let’s treat MPs fairly… They don’t deserve loans, they deserve cars charged on the consolidated fund,” he said on Accra based Citi TV.

The Ejisu MP said the provisions in the constitution that spells out the emoluments of Article 71 officeholders has existed since 1992, and have indicated that all such entitlements must be provided from the consolidated fund, and so the practice by successive governments to give car loans to Members of Parliament and Council of State Members is illegal.

“It is illegal and unconstitutional and the fact that we have made mistakes in the past does not mean we should continue”.