Re: Account For "Missing" GHC207 Million Under 1d1f Initiative
Our attention has been drawn to a statement by the Ranking Member of the Select
Committee on Trade, Industry and Tourism of Parliament of Ghana, Hon. Emmanuel Armah
Kofi Buah (MP) on Friday, 17th December 2021 that the Ministry of Trade and Industry
could not fully account for the total amount of Ghs269 million allocated for
interest subsidy payment for loan facilities under the One District One Factory
(1D1F) Initiative.
The Ministry wishes to state categorically that, the said statement attributed to
the Ranking Member is not only misleading but totally inaccurate. The Ministry, upon
request by the Hon. Ranking Member submitted full information on the application of
the full amount of Ghs269 million allocated for interest subsidy payments for loan
facilities granted by Selected Participating Financial Institutions (PFIs) to
de-risk loans advanced to 1D1F companies.
For the avoidance of doubt, the following PFIs have received a total of
Ghs269,689,383.76 as interest subsidies in support of 1D1F companies between
2017 and 2021.
It is important to note that. the PFIs based on loan agreements signed between them
and 1D1F companies. apply the interest subsidies allocated to them to cover part of
the interest payment for loans granted to 1D1F companies. when interest payments are
due. Neither the Minister nor any representative or the Ministry is responsible for
disbursing interest subsidies directly to 1D1F companies.Based on reports submitted
to the Ministry, the PFIs have to date utilized an amount of Ghs62,281,484.29 to
cover interest subsidies from Government to support loans granted by the PFIs to
1D1F companies. The balance of Ghs207 million is in the custody of the PFIs pending
the maturity dates for interest payments for loans granted to IDIF companies in line
with their loan agreements.
The Ministry expected the Ranking Member to have put out the information also
available to him, that to date the PFls have collectively granted loans amounting to
Ghs2.69 billion to support 1D1F companies.
The Ministry wishes to use this opportunity to assure the private sector operators
interested in the 1D1F Initiative that, it will continue to provide support for
their projects working in collaboration with the PFls, to sustain and increase the
over 153,782 jobs created by 1D1F companies across the country.
