Kojo Oppong Nkrumah, Ranking Member on Parliament’s Economy and Development Committee, has warned private sector partners involved in the government’s fiscal electronic devices project. He stated that these partners currently lack parliamentary cover for their transactions. Parliament has not approved any specific company, contract amount, or implementation schedule for the project.
Mr. Nkrumah, the Member of Parliament for Ofoase Ayirebi, described the approval being sought by the government as a “blank cheque.” This means the government is asking for approval without providing essential details. The Minority caucus is not against the rollout of fiscal electronic devices. However, they object to Parliament being asked to approve a multi-year commitment without critical information.
This situation fits into a broader pattern of concerns about transparency in Ghana's public finance management. The government often seeks approvals for large projects without providing full financial and operational details. This practice can lead to questions about accountability and the efficient use of public funds. It also creates uncertainty for private businesses partnering with the state.
Speaking on JoyNews’ PM Express, Mr. Oppong Nkrumah explained that the project originated from the Taxation Fiscal Electronic Devices Act passed in 2018. This Act aimed to automate Value Added Tax (VAT) collection at points of sale. He emphasized that the government’s request for multi-year approval did not provide enough information for Parliament to make an informed decision. Specifically, details on project cost, duration of multi-year approval, contractor identity, and year-by-year fiscal impact were missing.
Mr. Nkrumah stated that approving the request without these details would give the government unrestricted authority over a major financial commitment. He warned that no government, regardless of political party, should receive such a “blank cheque.” The Minority supports the fiscal electronic devices initiative but cannot endorse a transaction without full disclosure. They are opposed to Parliament giving a blank cheque on a multi-year commitment.
The Minority has also raised concerns about other transactions brought before Parliament. These include taxation proposals affecting international commerce platforms. Mr. Nkrumah highlighted that taxing services like Netflix and Starlink could lead to double taxation. Users might already be paying taxes in other jurisdictions for these products and services. Taxing them again in Ghana would constitute double taxation, potentially harming consumers and businesses.
The former Information Minister also indicated that the Minority would use the Right to Information Act to request details of contracts and schedules. This move aims to compel the government to disclose information it has withheld from Parliament. He reiterated that private companies relying on the current approval process do so at their own risk. He stressed that they do not have parliamentary cover, and what has been given is merely a blank cheque.
The implications are significant for both government and private partners. Private companies engaging in this project without specific parliamentary approval face considerable financial and legal risks. Future governments or parliamentary bodies could challenge the validity of such contracts. This situation could also deter other private sector investments in public projects if transparency and approval processes remain unclear. Decision-makers in both government and the private sector will need to address these concerns to ensure project viability and investor confidence.