A groundbreaking application has been filed at the Supreme Court of Ghana to stop the government from issuing Treasury Bills.
The private legal practitioner Jonathan Amable, who filed the case on November 11, 2024, argues that the government can only issue treasury bills if approval has been obtained from parliament.
However, he claims in his application that the government is not complying with the requirement to seek parliamentary approval.
Lawyer Jonathan Amable is therefore praying that the court grants an immediate interlocutory injunction which will prevent government entities such as the Ministry of Finance and the Bank of Ghana from issuing further treasury bills until the final determination of the case.
Claims of the Plaintiff
The plaintiff contends that the government’s approach to issuing Treasury Bills without parliamentary approval breaches established legal protocols. According to Mr. Amable, Ghana’s Financial Administration Act and amendments to the Bank of Ghana Act clearly outline that borrowing by the state requires parliamentary oversight.
However, the plaintiff claims that the approach of the government in issuing debt instruments is not in accordance with the parliamentary framework.
The application emphasizes that these statutory frameworks are designed to protect the public interest by ensuring that any debt the state incurs—along with its future repayment obligations—receives the necessary legislative scrutiny.
The application names the Attorney General, Godfred Yeboah Dame, as the defendant in this case.
Reports indicated that the Attorney General’s office has been served with the suit, making any attempt by the government to issue a new round of Treasury Bills scheduled for Friday, November 22, 2024, potentially illegal if the injunction is upheld.
Possible Impact
If the Supreme Court grants the injunction, it could have far-reaching implications for the government’s fiscal policy. Following the recent debt restructuring which heavily affected the long-term instruments i.e. bonds, treasury bills have become critical instruments funding the government’s projects and programmes.
An immediate halt to this avenue of borrowing could result in very serious cash flow challenges for the government. This will put many projects, salaries of public sector workers, and other budgeted expenditures in jeopardy.
Moreover, the application if successful could shake market confidence, particularly among investors who have traditionally seen Ghana’s treasury market safe investment.
