Parliament has approved an $86 million loan agreement with an Israeli Discount Bank.

Minister for Defense, Dominic Nitiwul, said the loan is to replenish the stock of armored vehicles for the Ghana Armed Forces.

He said some of the vehicles of the military had not been replaced for over 10 years.

The approval of the agreement on Thursday [August 13, 2020] was not without a challenge as the Minority raised questions about the value for money considerations underpinning the agreement.

A Member of the Minority on the Finance Committee, Richard Acheampong said, “We have to take security matters seriously. Quality of product must be ensured. We must procure what can stand the test of time so that it is not like we are throwing out money, because, we are taking a loan facility for this purpose…It is a very expensive facility we are taking so whatever we are getting from it must stand the test of time.”

But the Minister of Defence, Dominic Nitiwul maintains that the necessary value for money checks are being conducted the appropriate state agencies including the Ministry of Finance.

“Value for money takes various forms. Public procurement will do its own value for money, Parliament will do value for money and the Ministry of Finance will do value for money before the contract is finally executed and concluded.”

“I can give members assurance that these are top-notch quality equipment that the Armed Forces have been looking forward to for a very long time. I am glad that members are very supportive of it,” the Minister said.

The loan facility was agreed between the Ghana government, represented the Finance Ministry and the Israel Discount Bank Limited.