Bawku Central Member of Parliament (MP) Mahama Ayariga, has petitioned the World Bank and the International Monetary Fund (IMF), not to extend any support to the Ghana Financial Stability Fund (GFSF).
The Ministry of Finance and Economic Planning has announced plans to establish GFSF, with funding expected from the Government of Ghana and major donors including the World Bank and IMF.
But Mr Ayariga has said the Fund has not undergone parliamentary scrutiny or subsequent approval.
It is therefore unconstitutional, illegal and should not be endorsed by the Bretton Wood Institutions.
“I write to request the World Bank (WB) and the International Monetary Fund (IMF) country offices in Ghana not to lend your support to the unconstitutional and illegal attempt by the Minister of Finance and Economic Planning (Mr. Ken Ofori Atta) to establish a Ghana Financial Stability Fund (GFSF) using mere guidelines and putting it under the administration of an illegal and unconstitutional body known as Ghana Amalgamated Trust Plc (GAT) based on opaque and legislatively unauthorized management and disbursement mechanisms,” portions of the petition read.
The petition addressed to the World Bank and IMF offices in Ghana stated the establishment of the fund will have dire consequences on local banks.
“It is a scheme with the potential to deprive private indigenous bank owners of the ownership of their assets in these banks after his mismanagement of the financial sector has rendered these banks vulnerable. It has not been subjected to parliamentary oversight and scrutiny,” he added.
Mr. Ayariga who pis also a lawyer drew attention to a legal suit he initiated in the Supreme Court to challenge the legality of Finance Minister Ken Ofori Atta’s use of a private entity, Ghana Amalgamated Trust Plc (GAT), to manage the disbursement of public funds to banks.
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Below is the full petition: