Lawyer Seeks Supreme Court Order to Halt Government Issuance of Treasury Bills

Private legal practitioner Jonathan Amable has filed an application with the Supreme Court seeking to halt the government from issuing Treasury Bills.

In his application, Amable argues that the government must obtain prior approval from Parliament before proceeding with the issuance of Treasury Bills.

This argument is outlined in documents submitted to the Supreme Court Registry on November 11, 2024.

The Motion for Interlocutory Injunction aims to prevent the government and its agencies, including the Finance Ministry and the Bank of Ghana, from borrowing through Treasury Bills.

Details of the Application

The Attorney General, Godfred Yeboah Dame, is named as the defendant in this case. Lawyers representing Amable have informed JOYBUSINESS that the Attorney General’s office has been served, indicating that any attempt by the government to issue new Treasury Bills on November 22, 2024, would be illegal.

Legal Arguments

The Motion for Interlocutory Injunction seeks to restrain the government from engaging in any borrowing or debt financing activities until the court has made a final determination on the matter.

The application cites grounds outlined in an accompanying affidavit and requests further orders as deemed appropriate by the court.

The plaintiff contends that, according to the Financial Administration Act and the Bank of Ghana Amendment Act, Parliament has established a legal framework for state borrowing.

The current approach taken by the government does not comply with this framework.

Amable’s application emphasizes the necessity for parliamentary approval, as borrowing creates repayment obligations for the state.

Implications

The government plans to raise approximately 78 billion cedis through Treasury Bills in 2024, as indicated in the Treasury Bills Calendar for that year. The potential impact of this application on the government’s finances remains uncertain.

For instance, the Finance Ministry aims to secure 10.8 billion cedis in the last quarter of this year. Funds generated from Treasury Bills have been a crucial revenue source for the government.