Adongo sues government over GHS2bn GAT

Opposition lawmaker Isaac Adongo has dragged the government of Ghana to court over the GHS2 billion Ghana Amalgamated Trust (GAT) meant to help some five struggling local banks.

The Bolgatanga MP sued the Attorney General, the Ghana Amalgamated Trust Limited and the National Trust Holding Company Limited as first, second and third defendants respectively.

He is praying the court for the following reliefs:

1. A declaration that the agreements and arrangements between the 2nd Defendant and each of the selected local banks whereby the 2nd Defendant purports to use borrowed funds to purchase the shares of each of the selected banks is illegal as it contravenes section 9(d) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930)

2. A declaration that the purported approval of the request of the Minister of Finance for the issuance of GHS2 billion sovereign guarantee to support the borrowing of funds in the debt market by the 2nd Defendant to enable the 2nd Defendant purchase shares in the selected local banks does not serve to cure the breach of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which is the governing statute of the banking sector.

3. A perpetual injunction against the Defendants jointly and severally, from proceeding in any manner, whatsoever, to execute or put into effect the investment agreements between the 2nd Defendant and each and all of the selected local banks

4. Costs including legal fees.