Finance Lawyer Jonathan Amable
Finance lawyer Jonathan Sitsofe Kofi Amable has raised concerns about the lack of parliamentary oversight in the government's domestic borrowing practices.
According to him, the current process, which involves issuing treasury bills, bonds, and other debt instruments through the Bank of Ghana without the necessary parliamentary consent, is detrimental to the growth of the capital market.
Mr. Amable points to Article 181 (3), (4), and (6) of Ghana's 1992 Constitution, which mandates parliamentary approval for all government borrowing terms before they can be implemented.
During an interview on Citi TV's The Point of View, he emphasized the need to adhere to these constitutional mandates and suggested that certain sections of the Public Financial Management Act and the Bank of Ghana Act contradict the constitution and should be annulled.
Mr. Amable believes that such oversight would not only comply with the constitution but also foster a more robust capital market by preventing the government from overshadowing the private sector.
The lawyer highlighted that excessive government borrowing without parliamentary checks can lead to higher interest rates, which in turn, makes it difficult for private companies to secure capital.
"What we’re doing is we’re seeking for the court to enforce Article 181 to require that lending to the government through the issuance of domestic debt securities. Be it treasury bills or bonds must be done subject to parliamentary approval of the terms and conditions of the transactions. Lending by the BoG to the government under the BoG Act is also done that way.
“The relevance of provisions of these Acts which fly in the face of the constitution of parliament should be struck down. These are the things we are seeking, and they are quite important because in my practice as a finance lawyer, we have realised that these things at the end of the day, especially when it comes to the capital market prevent it from being deepened and developed,” he said.
He suggested that if the government's borrowing rates were more controlled, it would allow for more competitive rates in the capital and money markets, thereby giving the private sector better access to the funds needed for growth and contributing to the country's economic development.
Mr. Amable sees this as a crucial step towards enhancing the capital market and supporting the private sector's role in economic progress.
ID/SARA
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