Gov’t urged to reject STX deal

Minority Leader, Osei-Kyei Mensah-Bonsu

According to the group, clause I of the agreement provides that government undertakes to purchase 45% of the proposed 200,000 housing units to be constructed under the housing project and would mean that the single transaction will amount to US$4.5 billion which is a very staggering amount and would be the largest ever single transaction in the annals of the nation’s history equivalent to 30% Ghana GDP.

They further contended that the single transaction centered mainly on one ministry in relation to housing which they claimed is only one limb of three limbs of the ministry comprising of water resources, work and housing which could increase the public debt GDP ratio from 60% to over 90%.

The group, led by the Minority Leader, Osei-Kyei Mensah-Bonsu, was briefing the media in parliament on Wednesday on why they think the controversial STX Korea Deal should not be endorsed by government.

They contended that the joint venture agreement entered into by the government and the company which they said was signed on December 9, 2009 contained many irregularities and does not provide value for money.

“Looking closely at all the agreement (grandmother, mother and baby we in the minority group are of the opinion that these agreements are not in the interest of the people of Ghana. All the risk bearing is placed on Ghana and STX Engineering and Construction is getting a free ride on the back of the people and government of Ghana”, the minority leader observed.

To buttress their claims, Hon. Mensah-Bonsu indicated that after five years grace period, government would require an amount of US$400 million to pay principal and interest on the loan for fifteen years.

He said the deal had serious implications for the nation in a context of the ability to pay the loan in the face of other pressing needs in other sectors like providing potable water, electricity, health facilities and education.

STORY: FROM ANTHONY KWESI COOMSON, PARLIAMENT