Adongo threatens lawsuit as BoG refuses request on GAT Plc’s source of funding

Bolgatanga Central MP, Isaac Adongo has written to Bank of Ghana governor through his lawyers for information on source of funding for Ghana Amalgamated Trust Plc (GAT) which provided liquidity support to some struggling banks.

The first request was declined by the Governor of the Central bank but lawyers for the Bolga Central lawmaker insist the BoG’s basis for the refusal is erroneous and of no legal merit.

“The basis of your decision to decline Our Clients request for Bank of Ghana’s Assessment Report on the source of funding of Ghana Amalgamated Trust in the acquisition of shares in the five local banks namely, Universal Merchant Bank, OmniBSIC Bank, National Investment Bank, Agricultural Development Bank, and Prudential Bank is erroneous and of no legal merit. Thus, your reliance on Section 13(1((b) of Act 989 to decline the above-requested information lacks a factual basis.

“Our Client maintains that the information requested falls within the scope of Section 13(2)(a)(b) of Act 989 because it is prudent for Parliament and the people of Ghana to know the factual basis for the recapitalization of the five banks namely, Universal Merchant Bank, OmniBSIC Bank, National Investment Bank, Agricultural Development Bank, and Prudential Bank.”

However, the lawyers are threatening to go to court if the BoG fails to process the information within 14-days.

“We shall be grateful to receive the requested information within 14 days of the receipt of this letter as provided for under the Right to Information Act, 2019 (Act 989). Our Client wishes to state that, should the Governor fail to take appropriate steps to remedy the breaches and comply with its statutory obligations to the Parliament of Ghana as required by law before the end of the third meeting of the second sitting of the 8th Parliament of Ghana, Our Client will not hesitate to take appropriate legal action to vindicate his right.”

Ghana Amalgamated Trust Plc (GAT) is a special purpose investment vehicle established by the Government of Ghana to support selected indigenous banks.

Incorporated under the Companies Act as a public limited liability company on December 17, 2018, GAT Plc was set up to raise funds to recapitalise selected indigenous Ghanaian banks that needed assistance to meet the new minimum capital requirements of the Bank of Ghana and to help transform these banks to become more competitive in the industry.