Minority Claims McDan’s GHC10.45M Loan A Reward From NPP

The Minority in Parliament believes the government’s approval of a credit facility of GHc10,459,500 from the Agricultural Development Bank (adb) for McDan Shipping Company was politically motivated.

Aside from alleging procurement infractions, the Minority also said the “selection of the beneficiary company in the award of this contract raises serious conflict of interest issues.”

Addressing the press in Accra on Tuesday, the Minority Leader, Haruna Iddrisu, said the governing New Patriotic Party was worryingly exhibiting “nepotism and blatant partisanship” in its affairs.

“Given the key role played by the current Finance Minister in the campaign and related activities of the NPP, the hasty unilateral approval of this loan in breach of laid down laws and procedures raises serious questions,” the Minority stated.

The Minority already feels the Finance Minister, Ken Ofori-Atta, usurped the authority and functions of the adb's Board of Directors to award the credit facility.

President Nana Akufo-Addo is yet to constitute the requisite governing board to oversee such transactions as best practice demands.

Per the Minority’s assessment, Mr. Iddrissu said no due diligence was even conducted by the management of the bank before the Finance Minister’s approval.

Thus, the Minority’s conclusion is that this credit facility is a reward to McDan for its service to the NPP when it was in opposition.

“It is clear that the decision to award this contract and loan to McDan in clear breach of due process was influenced by political considerations arising out of a desire to reward an entity that assisted the NPP in its activities while in opposition.”

“This adds to a growing list of conflict of interest situations in which the Finance Minister seems to be entangled- the USD 2.25 bond, as well as the appointment of close relatives and his business associates to key positions at the Finance Ministry, the Bank of Ghana and a number of other state institutions,” the Minority added.

The loan facility was granted McDan to enable it to undertake its business operations, and in particular, to execute a supply contract awarded by the Ghana Cocoa Board.