Member of Parliament(MP) for Bawku South constituency, Mahama Ayariga, has filed a suit against the Finance Minister, Ken Ofori-Atta at the Supreme Court.
The suit is to challenge the legality of the establishment of the Ghana Financial Stability Fund (GFSF) which he said is in violation of the Constitution of Ghana.
The Ministry of Finance and Economic Planning announced plans to establish GFSF, with funding expected from the Government of Ghana and major donors including the World Bank and IMF.
However, Mr Ayariga has said the fund establishment was without parliamentary approval, hence the suit.
The lawmaker is therefore among other things, praying the Apex Court to enjoin the Ministry of Finance from implementing or utilizing the current “Operational Framework of the Ghana Financial Stability Fund (GFSF) for the administration, disbursement, withdrawal, or recovery of funds.”
Mr Ayariga’s reliefs include, “An order directing the Ministry of Finance to establish the Ghana Financial Stability Fund (GFSF) through an express Act of Parliament, outlining clear legal stipulations regarding its administration, mechanisms for disbursing funds, and procedures for fund recovery, in accordance with articles 93(2), 108, 175, 176, 178, and 179 of the Constitution of Ghana.
“An order enjoining the Ministry of Finance from implementing or utilizing the current “Operational Framework of the Ghana Financial Stability Fund (GFSF) for the administration, disbursement, withdrawal, or recovery of funds, as it is illegal and unconstitutional.”
The suit follows a petition to the World Bank and the International Monetary Fund (IMF), not to extend any support to the GFSF.
The petition stated the establishment of the fund will have dire consequences on local banks.
Mr. Ayariga who is also a lawyer drew attention to a legal suit he initiated at the Supreme Court to challenge the legality of Mr 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 writ: