Economy does not have capacity to absorb US$19bn facility- Minority

July 5, 2017
Source: Eugene Davis/thebftonline.com/Ghana
Economy does not have capacity to absorb US$19bn facility- Minority

The Minority in Parliament says the US$19bn Chinese loan from China represents an exploitation of the country’s resources.

Government had indicated that Ghana is seeking to leverage its natural resources, specifically bauxite, through its recent partnership with the Chinese government that saw the latter pledge to commit over 15 billion dollars to Ghana’s economy.

However, Minority Leader, Haruna Iddrisu, says the economy does not have the capacity to absorb the money and added that there was more than meet the eye as far as the Chinese funds is concern.

“Whether it is a loan or a joint venture, we are aware that Ghana’s engagement with China at the bilateral level, again knowledgeable Bawumia says we are equal with China, he knows that in terms of might and strength, Ghana and China are not necessarily co-equals within geopolitics and world politics.

But whiles we wait for the Galamsey US$19bn to come into the country, it is important that we remind the Vice President that the ignorant Minority is well aware that mineral resources are vested in the President for the people of Ghana. We are mindful that the engagement with China borders on the exploitation of mineral resources whether it is bauxite.”he told journalists at a press conference in Parliament.

He also added that, Parliament does not only review and approves loan agreements but economic transactions to which the state is a party are required as constitutional imperative to have Parliamentary scrutiny.

The Minority also contend that government’s intention to issue a 15 year bond to settle what it describes as outstanding debts in the energy sector is unacceptable, as it is completely at variance with the intended repayment time period of a maximum of five years.

“We wish to state emphatically and unequivocally that the NDC minority is vehemently opposed to this 15 year bond arrangement that appears to surreptitiously extend and impose the ESLA on Ghanaians for 15 years. Therefore, the NDC is serving notice that we oppose the measure and should the majority use its numbers to have its way, we shall review this decision, God willing, upon assumption of office on January 7,2021.”