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Documents seen by Citi News indicate that the government of Ghana will pay 60 percent of the loan facility deposited with Parliament for the purchase of vehicles for MPs and members of the Council of State.
The Ministry of Finance had tabled two different loan agreements in Parliament for this purpose.
If approved, each MP and member of the State Council will receive approximately $ 100,000 towards the purchase of a vehicle.
As far as MPs are concerned, the government is seeking approval to obtain a $ 28 million loan facility of the National Investment Bank for the initiative.
He further calls on parliament to ratify an additional $ 3.5 million loan agreement with the NIB to purchase vehicles for the 31-member state council.
Parts of the agreement document seen by Citi News indicate that while the $ 28 million facility is to be paid within 45 months, the $ 3.5 million loan facility is to be paid within 42 months.
According to the document, MPs and members of the Council of State will bear only 40% of the principal, while the government will bear 60% of the principal and any interest that accumulates on the loan.
“The repayment of the facility by the beneficiaries will be made by withholding tax by the Ghana Parliamentary Service to the NIB. Repayment by beneficiaries and the Government of Ghana will be made at the end of each month during the term of the agreement, ”parts of the agreement read.
Ghanaians are furious at the deal, as some claim the amount could be funneled into productive sectors or development projects for the benefit of citizens.
The government of Ghana continues to struggle to meet its revenue targets.
This has been made worse by the COVID-19 pandemic, which has caused the government to seek external financial support to supplement its internally generated funds.
With this in mind, Akufo-Addo’s government recently increased taxes on petroleum products and also introduced new ones with the aim of boosting revenues to run the country.
Some Ghanaians have already taken to social media to express their anger at the car loan deal.
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