Government has sharply debunked vile propaganda statements made by the minority New Patriotic Party (NPP) that the country will pay as much as $2.3 billion for the $3billion Chinese Development Bank (CDB) loan.
The minority in parliament raised concerns that the country will commit nearly $7billion worth of the country’s crude oil to the Chinese.
The Osei Kyei Mensah Bonsu-led minority claim this violates the Petroleum Revenue Management Bill and whacks of corruption.
In sharp rebuttal, a Deputy Finance Minister, Seth Terkper told Joy FM, a local based radio station that the minority got it all wrong. He added the claims by the minority are absolutely false.
Mr Terkpeh emphasized that: “Ghana’s oil is not being collateralized. The proceeds from the off-take will be paid into bank of Ghana just like any sale of crude oil and out of the proceeds that go into the Petroleum Holdings Account, the distribution will be made into the Stabilization Fund, Heritage [Fund] and [the] annual budget funding amount.”
The Deputy Minister further explained that the part of the proceeds that go into the Consolidated Fund will be the only resource that will be used in servicing the loan.
Mr Terkper also denied claims that government has set the price at which the Chinese will buy the country’s oil at 85 dollars, well below the prevailing market price. Dr. Matthew Opoku Prempeh, NPP Member of Parliament for Manhyia had earlier accused the President Mills administration of pegging the cost at an unreasonably low price compared to the prevailing crude oil price.
But, Mr Terkpeh denied that claim saying “The volatility in crude oil price makes it unrealistic to fix the price”.
He added that the “off-taker agreement calls for the use of average prices that will be adjusted periodically.”