Lawyer files Supreme Court motion to halt govt’s T-Bill issuance

Private legal practitioner Jonathan Amable has filed an application with the Supreme Court, seeking an immediate injunction to prevent the government from issuing Treasury Bills without prior parliamentary approval. Mr. Amable argues that the government must secure this approval before engaging in such debt-raising activities, a requirement he claims is grounded in Ghana’s financial statutes.

The application, submitted to the Supreme Court’s registry on November 11, 2024, names the Attorney General, Godfred Yeboah Dame, as the Defendant. It calls for an interlocutory injunction to halt the issuance of Treasury Bills by the government and its agents, including the Ministry of Finance and the Bank of Ghana, until the court reaches a final ruling on the matter.

Details of the legal challenge

Mr. Amable’s lawyers have confirmed to JOYBUSINESS that the Attorney General’s office has been served with the application. They assert that any attempt by the government to issue new Treasury Bills, including a planned issuance scheduled for November 22, 2024, would be illegal without parliamentary approval.

The plaintiff’s arguments center on Ghana’s Financial Administration Act and the Bank of Ghana Amendment Act, which, he contends, establish a statutory framework that requires the government to obtain parliamentary approval for borrowing activities. This safeguard, he argues, ensures that debt obligations imposed on the state are subjected to legislative oversight.

The motion’s broader implications

The injunction, if granted, could disrupt the government’s financing plans for the remainder of 2024. The government aims to raise approximately 78 billion cedis through Treasury Bills, according to the 2024 Treasury Bills Calendar, with 10.8 billion cedis targeted in the last quarter alone. Treasury Bill issuance has long served as a significant revenue source for the government, and any interruption could have serious implications for public finance management. As the court deliberates, the case raises important questions about the balance of power between the government’s need to secure funding and the role of parliamentary oversight in financial decisions that impact national debt obligations.