Finance Minister sued over establishment of Ghana Financial Stability Fund

The Member of Parliament for Bawku Central, Mahama Ayariga, has filed a suit against the Finance Minister, Ken Ofori-Atta, seeking to challenge the legality with regards to the establishment of the Ghana Financial Stability Fund (GFSF).

The lawmaker, in his suit argued that the Fund was set up without the proper parliamentary approval and therefore deems it as a violation of Ghana’s constitution.

Mahama Ayariga is also seeking an order that directs the Ministry of Finance to establish the Ghana Financial Stability Fund through an express Act of Parliament.

He is further praying the 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.”

The MPs 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.”

Meanwhile, the Bawku Central MP has on numerous occasions accused the Minister of Finance [Ken Ofori-Atta] for setting up the Ghana Financial Stability Fund (GFSF) without parliamentary approval.

The Fund was set up to help mitigate the impact of the government’s debt operation on the financial sector by providing solvency and liquidity support for the financial sector as needed.

According to the Ministry of Finance, an initial allocation of US$750 million, consisting of US$250 million loan facility from the World Bank/IDA and US$500 million from the Government of Ghana, has been earmarked for the solvency window of the GFSF.

MA

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