Prime News Ghana

GH¢2b GAT loan: Stop misleading Parliament, Public: Afenyo-Markin to Klutse Avedzi

By Justice Kofi Bimpeh
Alexander Afenyo-Markin

NPP MP for Efutu Constituency in the Central region, Alexander Afenyo-Markin has asked Deputy Minority Leader James Klutse Avedzi to desist from misleading Parliament and the Public on the GH¢2billion Ghana Amalgamated Trust (GAT) Limited loan.

According to Afenyo Markin, the claim by the Minority MP that GAT is unknown to Parliament and an illegal entity cannot be true, he further asked the MP to revisit the provisions of the constitution.

James Klutse Avedzi has indicated on Thursday, March 7 that they will reject the GH¢2billion loan meant to rescue some local banks under the Ghana Amalgamated Trust (GAT) Limited.

“We don’t know what is GAT. Ghana Amalgamated Trust Limited, is it a company? Established by who? Parliament knows nothing like that. So, why do you introduce a company that is alien to Parliament for Parliament to work for us to give a sovereign guarantee for that company to go and borrow?” he asked.

“Parliament cannot give approval for a company we don’t know anything about to go and borrow."

GAT is an arrangement of private pension funds to inject GH¢2 billion into supporting solvent and well-run indigenous banks, which were otherwise having difficulties meeting the Bank of Ghana’s new minimum capital requirement of GH¢400 million.

Read also: Minority will reject GH¢2b GAT loan-Klutse Avedzi

The banks are the merged Omni/Sahel Sahara Bank, Universal Merchant Bank, Prudential Bank, ADB and NIB. Parliament is expected to give GAT a sovereign guarantee in order to raise the GH¢2billion required to bailout the five banks.

Reacting to the comment of the Minority MP, Afenyo Markin said: "I disagree with the submission by my respected colleague that government needed to bring the incorporation of the company to parliament and before proceeding with same that is totally wrong, Parliament has the duty to approve loans and to the extent that at the time there no such loan being procured and government is at this stage coming to parliament to seek approval, yes it is within the mandate of government to incorporate companies that is within the law but if government intend to use public funds to undertake a project or to finance government programme that one clearly the constitution says it is the duty of parliament." Ghana News