A National Democratic Congress (NDC) Member of Parliament for Bolgatanga Central constituency and also a member of Parliament’s Finance Committee, Isaac Adongo, who made the claim on Eyewitness News on Wednesday, chastised government over the issue, claiming that the NPP demonized the NDC for introducing the levy tagging it as “nuisance” but instead of scrapping it they are rather leveraging it.

[contextly_sidebar id=”ZlOwdC8wUROUvDvSWz6zmJJo28WjFWEC”]“If you recall in 2015, we had introduced a bill to Parliament; that bill was informed by the restructuring that we had done in respect of the loans that the energy sector was owing. And the aim was to find a way by which the people of Ghana could contribute over a period of three to four years to enable us clear the debt. Now this resulted in us having to pass the energy levy bill which became an Act. And you do recall that at the time the NPP vehemently rejected the energy sector levy calling it several names like nuisance tax among others. They said it was as a result of that tax that electricity bills were now higher than rent.”

“But we hear from this government that they intend to raise a $2.4 billion bond over 15 years so that they will use this energy sector levy to pay for the 15 years. This is shocking,” he said.

When asked where he got his information from the MP said “this is public knowledge” adding that the Finance Ministry had advertised it in the media as well as on its website.

“Recently, the Ministry of Finance advertised transaction advisers to be shortlisted and contracted to engage in this transaction for government. This is public knowledge. If you go to the Ministry of Finance’s own website, it is there. And the transaction adviser is to help them to raise $2.5 billion over 15 years.”

I’m not aware of energy sector levy as collateral

But the Chairman of  the Mines and Energy Committee in Parliament, Emmanuel Akwasi Gyamfi, who could not confirm the development on Eyewitness News, said government instead intends to issue the bond to clear the energy sector debt which he said was about $2.4 billion.

“I cannot confirm that we are going to use the energy sector levy as collateral for this bond. I’ve not been involved in any of these negotiations…What I can confirm is that, government has intention of taking off that load of 2.4 billion dollars from the energy sector so that we can create a clean sheet for the effective running of the energy sector.”

When asked how government intends to do this, Akwasi Gyamfi said they intend to issue a bond to defray the debt.

Fidelity bank, Stanchart appointed Transaction Advisers for energy bond

Government on June 15, 2017, appointed Fidelity bank and Standard Chartered bank as lead managers for the issuance of the Energy Sector Levy Act (ESLA) bond.

The banks are expected to raise GHS10 billion.

A press statement issued by the Ministry of Finance and copied to Citi Business News, said “ESLA SPV is expected to issue bond(s) to the tune of about GH¢10 billion, being the total estimated legacy debt within the energy sector.”

“A portion of the bond proceeds shall also be used to refinance previously restructured debt due Banks that are currently being repaid with ESLA receivables, as well as the BDC debt due the Banks,” it added.

The proceeds will be used to repay the legacy debt of the energy sector SOEs, in line with the strategy as stated in paragraph 805 of the 2017 Budget Statement and Economic Policy of Government, to streamline the ESLA flows.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Gov’t scheming to leverage energy levy for $2.4bn bond – Minority appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the New Patriotic Party government has ostensibly hoodwinked Ghanaians by ignoring some major promises, and instead fulfilling insignificant ones.

[contextly_sidebar id=”mPQZlu60uDPyKkI3cn3v2i61Bbnuef7K”]The 2017 budget heralded the abolition and review of some 12 key taxes in the aviation, finance and real estate industries, aimed at providing a friendly environment for businesses in the country.

Most notably, taxes on head porters ‘Kayayei’, and duties on imported spare parts were abolished to the glee of stakeholders.

Vice President, Dr. Mahamudu Bawumia, defended the budget saying it gave Ghanaians, a new sense of hope, as the components of the budget indicated government’s commitment to realizing all the promises it made to Ghanaians during the 2016 election campaign period.

Insignificant taxes removed, reviewed 

But speaking on Citi TV’s Politicos to Citi News’ Umaru Sanda Amadu, Mr. Kwetey maintained that, government had run away from its promises to remove or review more impactful taxes, like the energy sector levy, or the reduction in corporate income tax as promised ahead of the 2016 elections.

“There is something called running away from the camel and taking care of the insects. What it means is that, if there are big things you need to deal with, you can run away from the big things and do away with the insignificant one in order to deceive the people,” he explained.

“If you add them [taxes reviewed or abolished] in terms of value, they don’t even amount to the reduction of corporate income tax from 25 to 20 percent, let alone anywhere near the energy sector levy.”

Mr. Kwetey reminded Ghanaians that, President Nana Akufo-Addo assured the Association of Ghana Industries (AGI) he was going to abolish the energy sector levy, and he told the country he was going to reduce corporate income tax from 25 to 20.

“These are clear and explicit statements that he made. You don’t come and look for a reduction of levies that when you put them together, amount to very little. That is like deceiving the country. He has come to treat a little wound in order to make you feel like they have done something about it. That is what you call subterfuge and that is why calling it 419 is appropriate”

–

By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post NPP’s ‘419 budget’ avoided significant promises – Fifi Kwetey appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the move is because the NDC is desperate to stay in power.

Nana Akufo-Addo made this claim when he spoke to students of the Sunyani Polytechnic on Friday.

“We’re hearing that very soon, they are going to reduce the petroleum levy. We, in the NPP, have been calling for a reduction in the levy to bring relief to the people, but the Mahama government said no. Once again, with the elections around the corner, he is likely to reduce the prices,” he said.

Fuel prices in Ghana at the pumps recently went up by between 22 percent and 27 percent, following the passage of the Energy Sector Levy by Parliament in December 2015.

Some petroleum watchers have complained about the increases which they say should be lower since crude prices in the international market have been reducing in recent times.

Akufo-Addo noted that “with defeat staring him in the face, Mahama will do or say anything to keep him in power. After 8 years at the Presidency, he’s not prepared to let go because of the benefits of the office to himself, his family and his close associates.”

–

By: Jeffrey Owuraku Sarpong/citifmonline.com/Ghana

The post ‘Desperate’ Mahama likely to reduce fuel prices soon – Nana Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.