Jonathan Amable, a private legal practitioner, has filed an application with the Supreme Court, seeking an immediate halt to the government’s issuance of Treasury Bills.
In his application, Mr. Amable argues that the government must obtain prior approval from Parliament before proceeding with the issuance of Treasury Bills. This argument was detailed in the application submitted to the Supreme Court Registry on November 11, 2024.
Motion for Interlocutory Injunction Overview
A Motion for Interlocutory Injunction has been filed to prevent the government and its agencies, such as the Finance Ministry and the Bank of Ghana, from borrowing through Treasury Bills.
Details of the Application
The application names Attorney General Godfred Yeboah Dame as the Defendant. Lawyers for the plaintiff informed JOYBUSINESS that the Attorney General’s office has been served. Consequently, they argue that any new Treasury Bill issuance scheduled for Friday, November 22, 2024, would be illegal without parliamentary approval.
Legal Arguments
The Motion for Interlocutory Injunction seeks to restrain the government from any borrowing or debt financing activities until a final ruling is made. This request is based on the affidavit and further orders that the court may issue.
The plaintiff contends that, under the Financial Administration Act and the Bank of Ghana Amendment Act, Parliament has established a statutory framework for state borrowing. According to the plaintiff, the current approach to Treasury Bill issuance bypasses this framework. The application emphasizes the need for parliamentary approval, given the long-term repayment obligations such borrowing creates for the state.
Implications
The government has planned to raise approximately 78 billion cedis through Treasury Bills for 2024, as outlined in the Treasury Bills Calendar. The impact of the injunction application on government finances remains uncertain. The Finance Ministry, for example, aims to raise 10.8 billion cedis in the last quarter of 2024 alone, with Treasury Bills serving as a significant revenue source.
