Majority Leader, Alexander Afenyo-Markin says the Minority in Parliament has missed the point when it comes to the Strategic Mobilization Ghana Limited (SML) and the Ghana Revenue Authority (GRA) deal.
The Minority has, in the last few weeks, criticized the government for signing contracts on behalf of Ghanaians through executive instruments without prior approval from Parliament.
Following the Fourth Estate’s exposé, and the release of a KPMG audit report on the deal, groups including Civil Society Organizations and the Minority have called for the contract to be cancelled.
The Minority also holds the view that the contract should have gone through Parliamentary scrutiny and approval in accordance with section 33 of the Public Financial Management Act, Act 921, which states that, “A covered entity shall not enter into any agreement with a financial commitment that binds the Government for more than one financial year or that results in a contingent liability except where the financial commitment or the contingent liability (a) is with the prior written approval of the Minister, and (b) authorised by Parliament in accordance with article 181 of the Constitution.”
But the Majority at a press conference on Wednesday said the Minority has misunderstood the provisions of the PFM act.
According to the Majority Leader, Alexander Afenyo-Markin, government is only enjoined to seek parliamentary approval for contracts with international entities.
“The Minority have made reference to the provisions of section 33 of the PFM Act and Article 181 of the constitution without taking their time to abreast themselves with clause 5 under the article 181.
“Article 181(1) says; ‘Parliament may be a resolution, supported by the votes of a majority of all the Members of Parliament, authorise the Government to enter into an agreement for the granting of a loan out of any public fund or public account. But clause 5, however, states that ‘This article shall, with the necessary modifications by Parliament, apply to an international business or economic transaction to which the Government is a party as it applies to a loan.”
According to the Majority Leader, the deal between GRA and SML cannot be subjected to parliamentary approval because SML is a wholly-Ghanaian owned company.
He said the persistent demand by the Minority for government to pass every deal through Parliament only creates the impression that the legislature is a ‘busy-body’.
The posture of the Minority, he said, is threatening government’s relation with international business partners, and driving potential businesses away from Ghana.
He also described the development as a threat to the economy.
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