Parliament has approved the controversial $28 million loan agreement for Members of Parliament.
Also, $13.36 million has been approved as tax exemption for all MPs and the Council of State to purchase cars.
The Minister for Finance, Mr. Ken Ofori-Atta, presented a loan agreement for $28 million to Parliament for the purchase of vehicles for Ghana’s legislators.
Based on the amount, each of the 275 MPs is expected to receive $100,000 for the purchase of a vehicle.
The Finance Committee of the House is expected to consider the loan agreement and report to the House.
A similar loan agreement of $3.5 million was also laid before the House to enable Council of State members to also purchase cars.
In both cases, Parliament will bare sixty percent of the loan cost with the interest while the beneficiaries cater for just 40 percent.
But this did not resonate well with the majority of Ghanaians including some Members of Parliament who believe it is not appropriate for government to secure funds for MPs to buy official vehicles.
The Vice-Chairman of Parliament’s Finance Committee, and MP for Okaikwei Central, Patrick Boamah, has said if he had his way, he would have asked his colleagues to reject the latest car loan agreement.
According to him, the state should rather consider purchasing cars in a pool for MPs to use during their term in office and hand over to their successors when they leave Parliament.
“If I had my way, I would tell my colleagues to reject the facility for the simple reason that all the other arms of government, vehicles are procured for them without going through the process where the media is always on the back of MPs for contracting a loan.”
North Tongu MP, Samuel Okudzeto Ablakwa, has called for an end to the practice where government facilitates loans for MPs. He wants MPs to either go through that process themselves or that the state makes vehicles available for their use as it is done in the case of other public or civil servants.