Member of Parliament for Bawku Central, Mahama Ayariga, has petitioned the World Bank and the International Monetary Fund (IMF) to desist from offering any assistance to the Ghana Financial Stability Fund (GFSF).

In his petition letter, Mr Ayariga noted that the Minister of Finance and Economic Planning, Mr. Ken Ofori Atta, seeks to establish a Ghana Financial Stability Fund (GFSF) using mere guidelines and putting it under the administration of an illegal and unconstitutional body known as Ghana Amalgamated Trust Plc (GAT) based on opaque and legislatively unauthorized management and disbursement mechanisms.

"It is a scheme with potential to deprive private indigenous bank owners the ownership of their assets in these banks after his mismanagement of the financial sector has rendered these banks vulnerable. And it has not been subjected to parliamentary oversight and scrutiny," he added.

The Bawku Central MP referred the intentional bodies to a publication by the Ministry of Finance and Economic Planning (MOFEP) dated 22nd August 2023 which is said to indicate that "Government of Ghana (GoG) has established a Ghana Financial Stability Fund (GFSF). The Fund is expected to be funded by Government of Ghana and the World Bank/IMF as its major donor."

In Mr Ayariga's view, the said document by the Finance Ministry will seek to off load an amount of about $750 million to Ghana Amalgamated Trust (GAT) Ltd to be the main agency responsible for disbursing such funds.

He also holds the position that the Ghana Financial Stability Fund (GFSF) lacks parliamentary approval and has a fraudulent structure.

He stated that the Minister of Finance in 2019 had an arrangement with GAT, which was sponsored by the Government of Ghana as a limited liability company under the Companies Act, 2016 (Act 992), as sponsors and with NTHC as trustee shareholder in GAT which arrangement allowed NTHC as trustee to hold shares in GAT on behalf of Government.

"We have contended in court that this is an unconstitutional scheme to transfer public funds to private ownership without the requisite parliamentary approval," he added.

On 3rd March 2022, the Bawku Central MP noted that an action at the Supreme Court of Ghana to challenge the legality of GAT and the fraudulent activities of GAT and its operations in the case of Mahama Ayariga v. Attorney General & Others (Suit No. J1/20/2022) and the issue is currently pending.

He therefore finds it strange that GAT and MoFEP, knowing well that the case is still pending in court will still want to "undertake an illegality this time on a very large scale."

Mr Ayariga indicated that the International Monetary Fund (IMF) and the World Bank will be acting in clear violation of the Constitution of Ghana of 1992 "if they lend their support to this arrangement or are in anyway party to it."

"Article 192 of the Constitution of the Republic of Ghana states categorically that a “public corporation shall not be established except by an Act of Parliament.” Article 179 recognizes the setting up of public corporations as commercial ventures. The current arrangement by which the Government of Ghana seeks to use NTHC Ltd to hold shares in GAT for a commercial venture offends the Constitutional requirement, which vests Government with the authority to only engage in a commercial venture through the medium of a public corporation enacted by an Act of Parliament," he added.

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