Parliament approves $28m car loan for MPs to purchase official vehicles

Parliament approves $28m car loan for MPs to purchase official vehicles

  • The $28 million loan facility has been approved by parliament to purchase cars for members
  • By this, each member of parliament would be receiving $100,000 to buy cars for their official duties
  • The government would however be paying 60 percent of the loan facility

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The loan facility of $28 million has been approved for members of parliament to purchase cars for their official duties.

According to a report filed by, the facility will see the state pay 60 percent of the cost of the vehicles for the parliamentarians whilst they pay up the rest of the 40 percent.

The move to secure a loan for the cars brought about a divided opinion among members of the house.

According to North Tongu MP Okudzeto Ablakwa, he together with some colleagues had made progress in getting parliament to reject the $28million car loan facility.

Read also

Finance Ministry tables proposal for MPs to get $13.3M tax waiver on imported cars

Some other colleague Mps, however, disagreed with the move, insisting they need the cars for their duties.

Parliament approves $28m car loan for MPs to purchase official vehicles
Parliament approves $28m car loan for MPs to purchase official vehicles Photo credit:
Source: UGC

On Thursday, July 15, 2021, members voted overwhelmingly to approve the loan facility after several setbacks

Nonetheless, this is going to be the last to be brought before the House as a recommendation by the Finance Committee to have such a move for each Parliament every four years discontinued was also approved.

Speaking on the floor of the House, Chairman of the Committee, Kwaku Agyemang Kwarteng, said MPs and Council of State members should have similar duty-post vehicle arrangements as other Article 71 officeholders, who purchase cars from their emoluments.

Payment of loan

Meanwhile, the Director of Public Affairs of Parliament, Kate Addo, has stated that Members of Parliament would pay back the car loan government is getting for them.

According to her, the backlash on Members of Parliament over the car loan agreement proposed for the purchase of vehicles for them is quite unnecessary.

Read also

MPs have made progress to reject $28m car loan - Ablakwa reveals

She reiterated that there is no need for all the criticism since the MPs will eventually pay back the loan.


The Minister for Finance, Ken Ofori-Atta, tabled a loan agreement of $28 million before Parliament.

This loan agreement is for the purchase of 275 vehicles for members of the 8th Parliament of the fourth republic.

In a report filed by Citinews, in the papers presented to Parliament, the loan will be sourced from the National Investment Bank, NIB.

The report further indicated that each member of parliament is expected to receive over $100,000 for the purchase of a vehicle.

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