Documents available to InsiderGH.com holds that the Government of Ghana will pay 60 percent of the loan facility the Minister for Finance tabled before Parliament for the procurement of vehicles for all the 275 Members of Parliament and members of the Council of State.

On July 7, InsiderGH.com filed a report which indicated that the Government of Ghana has secured a whooping $28 million [¢165.2 million] for the procurement of brand new V8 for all the 275 Members of Ghana’s Parliament.

The proposal was brought by Mr. Ken Ofori-Atta, the Minister for Finance, after the MPs approved $200 million additional funds from World Bank for the Akufo-Addo-led NPP government.

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The Government is further asking Parliament to ratify an additional $3.5 million loan agreement with the National Investment Bank to purchase vehicles for all the 31 members of the Council of State.

Portions of the document available to InsiderGH.com says that, while the $28 million facility has to be paid within a 45-month period, the $3.5 million loan facility is to be paid within 42 months.

Per the document, the MPs and the Council of State members will 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 loans.

Reacting to tthe development, Professor Stephen Kwaku Asare, popularly known as Kwaku Azar, a US based Ghanaian private legal practitioner and professor of accounting, believes the deal is a gift disguised as a loan.

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According to Prof. Kwaku Azar, it is accurate to refer to the transaction between the State and the Bank as a loan. Government borrows $28,000,000 and will pay the bank $32,561,666 over 45 months. The difference of $4,561,666 is interest. That is based on an interest rate of 8.5% as reported.

He went ahead to explain that the transaction between the State and the beneficiaries cannot in any meaningful way be described as a loan.

Below are reactions of some Ghanaians on Twitter;

Source: InsiderGH.com

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