Parliament has approved an $86.1-million loan agreement between the government and the Israel Discount Bank Limited to finance the supply of armoured vehicles and ammunition for the Ghana Armed Forces (GAF).
The facility, made up of a $74.1-million buyer’s credit guarantee from the Israeli Foreign Trade Risks Insurance Corporation Ltd (ASHRA) and a $12-million commercial loan, will help equip the military to support internal security operations.
The vehicles will also be deployed for UN peacekeeping operations when required.
The agreements were presented to the House by the Minister of Monitoring and Evaluation, Dr Anthony Akoto Osei, on behalf of the Minister of Finance, on August 3, 2020 and the Speaker referred the requests to the Finance Committee for consideration and report.
Rationale
Presenting the report, the Chairman of the committee, Dr Mark Assibey-Yeboah, said the committee was informed that terrorism and land-border threats from neighbouring countries, particularly from the Sahel region, required that the GAF be retooled for any eventualities.
He said armoured vehicles played a vital role in the work of the Army, and that in recent times heavy armoured vehicles, particularly the 6X6 and 8x8 types, had been used by the Army for operations, as they were suitable for all terrains.
“Unfortunately, these vehicles are in short supply, thereby hampering smooth operations of the GAF,” he said.
He said currently the military was undertaking some peace exercises in the country, such as operations Gong-Gong, Calm Life and Ahodwo.
“The GAF, therefore, require this modern and sophisticated equipment to help them undertake such operations to maintain peace and security in the country,” he said, adding that the last time armoured vehicles were purchased for the GAF was over 10 years ago.
Transparency
Dr Assibey-Yeboah said the committee was informed that given the sensitive nature of military procurements, the acquisition of equipment was often done without much scrutiny, since the procurement of military equipment in many countries was not disclosed to the citizenry.
“However, in line with its policy of transparency, accountability and good governance, the government has made full disclosure of the entire procurement process,” he said.
According to him, the committee was informed that the Army had long promulgated the establishment of the 154 and 155 Armoured Regiments in Sunyani and Tamale, respectively, to expand its capability to deal with contemporary national threats.
Unfortunately, he said, the Army had not been able to establish the regiments due to the lack of the requisite logistics, including armoured vehicles and equipment.
Top-notch equipment
Contributing to the motion, the Minister of Defence, Mr Dominic Nitiwul, assured the House of value-for-money procurement and said the top-notch equipment that would be procured was what the GAF had been looking for for a long time.
He thanked the House for approving the two loan agreements.
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