Government will be absorbing 60% cost of the vehicles for Members of Parliament and council of state members , this is according to the emolument committee report which was approved by parliament,
The document states that each member of these bodies is to receive a loan of $100,000 for the purchase of a vehicle. A $3.5million separate facility from the same bank has also been laid for the purchase of vehicles by members of the council of state.
The loan agreement presented to parliament by the Finance Minister, Ken Ofori-Atta said, “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.”
Last week, Ghana’s Finance Minister, Ken Ofori-Atta submitted to parliament for approval a loan agreement of $28million pending consideration by the Finance committee. This is for the purchase of 275 vehicles for members of the 8th parliament
Meanwhile, some of these decisions have piqued the interest of pundits.
A united state based Ghanaian Professor, Stephen Kwaku Asare said, “Government gives the beneficiaries $27,500,000 and beneficiaries pay government $11,000,000 over 45 months. The difference of $16,500,000 plus the interest of $4,561,666 are non-taxable wealth transfer from government to the beneficiaries.”
He continues, “you cannot give someone $100,000 plus interest and ask that they give you $40,000 over 4 years and call that a loan. Plainly, you are giving the person a non-taxable gift of $60,000 plus interest structured to disguise its substance. Let us call a loan a loan and gift a gift.”
source: 3news.com
