Private legal practitioner Jonathan Amable has submitted an application to the Supreme Court, requesting an immediate halt to the government’s issuance of Treasury Bills.

In his application, Mr. Amable contends that the government must first obtain approval from Parliament before proceeding with any Treasury Bill issuance.

The arguments supporting this position were detailed in the application filed at the Supreme Court Registry on November 11, 2024.

The Motion for Interlocutory Injunction aims to prevent the government and its entities, such as the Finance Ministry and the Bank of Ghana, from borrowing through Treasury Bills until parliamentary approval is secured.

Details of the application

The application lists Attorney General Godfred Yeboah Dame as the defendant.

Plaintiff’s lawyers informed JOYBUSINESS that the Attorney General’s office has been formally notified, making any government attempt to issue a new Treasury Bill on Friday, November 22, 2024, unlawful.

Legal Arguments

The Motion for Interlocutory Injunction is seeking to restrain government from undertaking any activity which constitutes borrowing or debt financing, until the final determination of the suit “ upon grounds contained in the accompanying the affidavit and for such further orders that will be determined by the court”.

The plaintiff further contended that Ghana’s Financial Administration Act and the Bank of Ghana Amendment Act establish a statutory framework authorizing state borrowing, which the government's current approach does not align with.

The application emphasized that parliamentary approval is essential, as these borrowings impose repayment obligations on the state.

Implications

Government is planning to raise about 78 billion cedis in new borrowings through Treasury Bills for 2024.

This was captured in the Treasury Bills Calendar for the 2024. It is not sure for now how the application could impact government’s finances.

The Finance Ministry is for instance hoping to raise 10.8 billion cedis in the last quarter of this year.

Funds raised through Treasury Bills have been a major source of revenue for government.