Press Release
NPP
July 08, 2014
MINORITY CAUCUS' POSITION ON THE
GHANA GOVT'S US$156 MILLION IDA LOAN FOR SENIOR HIGH SCHOOL
PROJECT
Ladies and gentlemen, last week Wednesday, the New Patriotic
Party in Parliament voted against the US$156 million
International Development Association (IDA) loan that government
submitted for parliamentary approval.
The NPP will support any initiative or project that improves
secondary education and churns out quality products for further
education. Our record on the provision of fee-free quality
secondary education speaks for itself, and we are proud of that.
What we cannot be proud of is the unfortunate attempt by the
Mahama administration to use secondary education as an excuse to
misappropriate public funds. The NPP minority caucus opposed and
continues to oppose the said loan for the following reasons:
TOO MUCH BORROWING
1. Whilst we acknowledge that as a nation we may need to take
loans for very important programs and projects we must take
cognisance of the fact that the servicing of loans is very much
negatively impacting on the national treasury. As we speak today
the nation requires a colossal amount of about GH˘8.4billion to
service loans for the year 2014. That is why as a nation we
should be circumspect in the contracting of loans. Loans are not
grants or gifts. The nation will be required to pay and service
them before the repayment date is due. In this regard the nation
should have the best value for money for any loan contracted.
2. POOR VALUE FOR MONEY
In the 2014 Budget Statement, government budgeted for and got
approval to construct 50 senior high schools in 2014 at a unit
cost of GH˘4.4million. In this IDA project however, the same NDC
government is seeking to construct the same kind of senior
high schools at a unit cost of US$4.3million, the equivalent of
GH˘13.76million.
Ladies and gentlemen, this is the extent of the fraud we have on
our hands as a country. It is shameful, but the government and
its majority in Parliament are unable to explain this
irregularity. The belated explanation (obviously an
after-thought) that has come from a deputy minister for
education (Mr Okudzeto Ablakwa) is that the new schools will
come with teachers' flats. One hopes that the thrust of Okudzeto
Ablakwa’s justification is not that what is provided for in the
budget and for which the President went to cut a sod to
commission its construction does not have a teachers flat
component.
3. FRAUDULENT SCHOLARSHIP SCHEME
We are told, ladies and gentlemen, that US$15.6 million (the
equivalent of GH˘50 million) of the loan will be used to run a
scholarship scheme for some 10,400 senior high students for just
3 years. Over these three years, the money will cater for
pencils, notebooks, sandals, sanitary pads, etc of the
beneficiaries. It is strange to recollect that last Friday Mr.
Okudzeto Ablakwa stated on Peace FM that the scholarship scheme
will last between 2014 and 2019. That is patented untruth. The
scheme is for 3 years.
The question is, after the 3 years when the loan amount is
exhausted, what happens? After the 3 years, how will government
get the money to sustain this new expenditure? Already, the
Mahama administration is unable to provide for students who are
already on government scholarship. This initiative is completely
and disturbingly unsustainable. It is obvious that the real
motive of government is something else. Otherwise, how can a
government take a loan to run a 3-year scholarship programme for
only 10,400 senior high school students? The provision of the
200 new Senior High Schools is to provide opportunity to people
who otherwise would not have the opportunity. The scholarship
that is being designed is in respect of the facility to
construct the 23 new schools.
How is the nation going to provide for the students in the other
177 new schools? Thus far there is no indication that students
in the 177 other schools would benefit from a similar
scholarship scheme. In the event, what is the justification for
that.
4. PARALLEL SCHOLARSHIP SECRETARIAT
On this new scholarship scheme government has indicated to
create another scholarship secretariat, completely independent
of the Ghana National Scholarship Secretariat, to manage this
transient scholarship programme.
At the moment, the staff at the Scholarship Secretariat have
very little work to do because government cannot provide them
with funds to administer to students on state scholarship. But
we pay their salaries every month. Their salaries are part of
the wage bill on which the Mahama government has blamed all the
problems of this country. So, how can government justify the use
of a parallel scholarship secretariat to run this transient
scholarship programme for just 10,400 senior high students for a
period of 3 years?
There is no justification for this irresponsible misuse of
public funds. Government is pursuing this create, loot and share
agenda to put state resources into the pockets of their cronies
and party foot soldiers.
5. PROBLEMS AT THE BASIC LEVEL
We recall President Mahama telling this country that fee-free
senior high education was unreasonable unless the resource
problems at the basic school level were addressed. As we speak
today, teachers at many of our basic schools cannot get chalk to
teach pupils because government cannot provide the funds for it.
The capitation grant is in arrears for almost a year. The school
feeding grant is in arrears for more than a year in many
districts; the list is endless.
Yet, the hypocrisy of this administration has no difficulty
bypassing all these problems at the basic school level to cater
for school uniforms, sandals and sanitary pads for students in
senior high school.
6. GH˘51 MILLION FOR MONITORING AND EVALUATION
Ladies and gentlemen, perhaps the most shocking part of this
dubious project is the allocation of US$15.9 million, the
equivalent of GH˘51 million, to "research, monitoring and
evaluation". The deputy minister for education has hinted that
40% of this amount will go to "supervising consultants". Do we
not have outfits at the ministry of education that monitors and
supervises the provision of educational infrastructure? Is this
the way to build the capacity of our educational institutions?
Obviously no. It is all a dishonest strategy to create avenues
to siphon public funds. Pure and simple.
Clearly, this allocation for the so-called monitoring and
evaluation could have, even at the inflated figures by
government, built about 4 additional senior high schools. Again,
per their own figures for upgrading and expanding the capacity
of schools, this money could upgrade 132 existing secondary
schools or could expand the capacity of 50 additional senior
high schools.
Unfortunately, the US$15.9 million or GH˘51 million or ˘510
billion would not do any of these but is rather going into the
wrong private pockets.
THE ROLE OF THE WORLD BANK
It is not clear what kind of discussions have happened between
the Mahama administration and the World Bank the lender of this
facility. This is a loan to be repaid by Ghanaians. The World
Bank, of which Ghana is a member, has the responsibility to
ensure that loans that member countries contract are contracted
in accordance with good governance practices.
Is it reasonable to the World Bank that a government should take
a loan, even if at concessionary re-payment rate, to finance
recurrent expenditures such as the purchase of sandals, pencils
and sanitary pads for a very limited number of senior high
students over a limited period of 3 years?
Is the Bank satisfied with the sustainability consideration of
this project? Is it satisfied with the use of substantial
portions of the facility for setting up parallel institutions
for the purpose of this programme? We urge the World Bank to
re-look at this project and bring good governance considerations
to bear. This is important for the Bank's credibility.
IN CONCLUSION
This project, as it stands, is bad. We believe that an important
initiative to improve senior high education is being
contaminated by the greed and illegitimate interests of people
in government. For the sake of the national interest, this must
be stopped.
We thank you for your attention.
