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The state should fund cars for MPs; giving them loans unconstitutional - John Kumah

The Deputy Minister of Finance, John Kumah has said the practice of giving lawmakers loans to buy cars is unconstitutional.
John Kumah
John Kumah

He said the work of parliamentarians as specified by the constitution demands that the state should fund their access to transport.

The Member of Parliament for Ejisu 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”.

John Kumah said that he has submitted a memo on the subject and will not hesitate, together with other legislators who are opposed to the car loan purchase agreement, to take legal action to enforce the law.

“I have submitted a memo… We can go to court to enforce our rights, and I’m telling you, we will go to court if we have to,” he said.

He further added that other elected officials such as unit committee and assembly members as well as Council of State members must be treated fairly by being provided their entitlements and emoluments funded by the consolidated fund.

Speaker of Parliament, Alban Bagbin

Speaker of Parliament, Alban Bagbin

Government is seeking approval from Parliament to secure the loan facility from the National Investment Bank for the initiative.

It is reported that beneficiaries of the $3.5 million dollar agreement are expected to repay 40% of the principal amount of the loan, while the government of Ghana will pay 60%.

Per the document, the MPs will also take care of only 40 percent of the principal sum, while the government will bear 60% of the principal sum and all the interest that will accrue on the loan.

“The repayment of the facility by the beneficiaries shall be made from deduction at source by the Parliamentary Service of Ghana to the NIB. The repayment by the beneficiaries and the Government of Ghana shall be made at the end of every month for the duration of the agreement,” portions of the agreement read.

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