Parliament yesterday summoned an emergency assembly of MPs to quickly debate the ratification of a US $ 24 million (US$ 24, 000, 000) credit agreement between Sierra Leone and the International Development Association (IDA) for economic development and poverty alleviation.
Deputy Minister of Finance and Economic Development, Momodu Kargbo presented the paper which proposed the financing the Fifth Governance Reform and Growth Programme aimed at supporting poverty reduction and offsetting increased cost to the budget on account of rising international fuel prices.
The objectives of the programme according to the Minister, includes to preserve and expand the fiscal space needed for poverty reduction by protecting poverty reduction spending priorities and reinforcing the link between resource allocation and the objectives of growth and poverty reduction.
He maintained that the agreement will lead to the improvement of institutional set-up for public sector reforms, strengthen domestic resource mobilization and management through reforms in tax administration, improved governance and increased transparency and to further perk up the opportunities for private sector development by ensuring increased provision of electricity to greater population.
The Minister went on to inform the House that the World Bank Executive Board approved the credit at its board meeting on 26th January 2012. He said the terms of the credit include repayment of the loan bi-annually on February 15 and August 15 over a period of forty years with ten years grace period, and that commitment charge rate set by the IDA Executive Directors is put at zero for the financial year 2012.
He indicated that it is likely the commitment charge would be applied given that it is expected that the credit will become effective and disbursed fully immediately after signing.
The bill was swiftly through parliamentary procedures. Speaker Abel Stronge was however concerned about the adoption or objection of the agreement without legal opinion on its merits and demerits. Deputy Minister Kargbo had earlier asked the House to give the two options due consideration before going ahead with the process in order for them to have clear understanding of the legal implications.
Hon. Elizabeth Lavalie of the opposition SLPP objected the adoption of the agreement and submitted that a legal opinion be sought on the terms of the agreement. APC Majority Leader, S.B.B. Dumbuya however objected the submission put forward by Ho. Lavalie stating that Legal opinion by the Attorney General and Minister of Justice can only be sought on such an agreement when it has received endorsement by the legislature. He therefore opined that it was in place for the legislature to ratify the agreement before legal experts make necessary inputs on it.
By Poindexter Sama
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