Mahama Ayariga sues Finance Ministry over GFSF
The Ghana Financial Stability Fund (GFSF) was established by the Government of Ghana to provide solvency and liquidity support for the financial sector with an initial allocation of US$750m.
The Bawku Central Member of Parliament has invoked the original jurisdiction of the Supreme Court seeking a declaration on the establishment of the Ghana Financial Stability Fund(GFSF) by the Finance Ministry.
According to him, the establishment of the fund by the Ministry through an administrative fiat violates Articles 175, 176, and 179 of the 1992 Constitution and thus seeks the court to declare same as illegal and unconstitutional.
The Ghana Financial Stability Fund (GFSF) was established by the Government of Ghana to provide solvency and liquidity support for the financial sector with an initial allocation of US$750m, consisting of a US$250m loan facility from the World Bank/IDA and US$500m from the Government earmarked for its solvency window of the GFSF.
However, Mahama Ayariga believes that the mechanisms for administration and disbursal of the fund are opaque and unscrutinized and have no authorization by an Act of Parliament and thus are in clear violation of the Constitution.
Additionally, he is seeking a declaration that any support by the International Monetary Fund(IMF) and the World Bank in the establishment and operation of the fund without adherence to the constitutionally stipulated requirement amounts to a violation of the constitution.
Also, the MP, who is suing as a private citizen, wants the Supreme Court to declare the as not valid, the mechanisms for the operational framework of the fund for the withdrawal and recovery of funds due to its attempt to evade legal and constitutional scrutiny.
Furthermore, the plaintiff is seeking a declaration directed at the Ministry to establish the fund through an express Act of Parliament, outlining clear legal stipulations regarding its administration, mechanisms for disbursing, and procedures for recovery.
