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12.05.2004 General News

Minority Want Review Of "Saloon" Loan Deal

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The Minority NDC in Parliament says it will ask for a review of the controversial CNTCI loan agreement in the House after doubts emerged about the deal.

The Minority supported the loan deal when it went before the house but the now say the want the issues looked at after questions emerged about the prudence of the deal.

The MPs have signaled their intention to table a motion for the House's review of the controversial CNTCI loan agreement.

The Minority group decided at an emergency meeting the loan agreement must be reviewed because of the many concerns being expressed about inconsistencies and contradictions in the documents supporting the loan.

The Minority's Spokesman John Mahama says the motion for the review will be tabled when Parliament reconvenes.

Besides its decision to call for a review, Mr. Mahama says the NDC group will also advise against government's continues practice of unduly pressurizing Parliament to approve important business, which require serious scrutiny. He says unless government ceases that practice, it is likely to keep repeating the embarrassment situation that arose over the IFC loan and the embarrassing controversy that has engulfed the current 300 million dollar CNTCI loan.

The terms of the loan and the profile of the company providing it has led to comparisons with the infamous IFC loan as government comes under increasing pressure to back down again.

The Chinese New Techniques (CNT) Construction and Investments Limited, which is to provide Ghana with a 300 million dollar loan has been described as a mysterious entity.

The proposed loan agreement has been shrouded in controversy ever since the NDC kicked against it saying the terms were too good to be true. Some financial analysts have also cautioned government about such deals, which look so attractive.

It has emerged that the lending company, CNT has no registered office and operates from a hairdressing salon.

Independent enquiries confirmed by JoyFM contacts in the UK have revealed that the office address provided by the Chinese New Techniques Construction and Investments Limited belongs to a hairdressing salon - Wish hairdressers and Adrenalin Arts & Entertainment.

Even the postcode provided for the 150 Hammersmith Road has been found to belong to a London address. (238A Latymer Road, London.)