The Member of Parliament for Bawku Central, Mahama Ayariga, has criticized the Minister of Finance, Ken Ofori-Atta, for establishing the Ghana Financial Stability Fund (GFSF) without parliamentary approval.
He has also called on the World Bank and the International Monetary Fund (IMF) to withdraw their support for the fund, describing it as “unconstitutional and illegal.”
In a letter to the two institutions, Ayariga stated that the GFSF was established through “mere guidelines” and put under the administration of an “illegal and unconstitutional body known as Ghana Amalgamated Trust Plc (GAT).”
He also expressed concern about the “opaque and legislatively unauthorized management and disbursement mechanisms” of the fund.
Ayariga warned the World Bank and IMF that they would be violating the Ghanaian Constitution if they lend their support to the GFSF.
“I write to request the World Bank (WB) and the International Monetary Fund (IMF) country offices in Ghana not to lend your support to the unconstitutional and illegal attempt by the Minister of Finance and Economic Planning (Mr. Ken Ofori Atta) 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”.
“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 any way party to it.”
He bemoaned the blatant disregard for the justice system by the finance minister to go ahead with the arrangements, when the case is pending in court.
“On 3rd March 2022, as a member of the minority in Parliament, I brought 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). The issue is currently pending.
“It is therefore 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.”
“The Ghana Financial Stability Fund (GFSF) lacks parliamentary approval and has a fraudulent structure intended to deprive owners of local indigenous banks of their property rights. We believe GAT is a well-orchestrated scheme to acquire private banks which have been rendered vulnerable by the bad policies of the Finance Minister and who might desperately go for lifeline support from GAT,” Mahama Ayariga stated.
He argued that the mechanisms provided in the operational framework of GFSF are a move to evade constitutional scrutiny.
“The mechanisms provided for in the “Operational Framework of the Ghana Financial Stability Fund (GFSF)” is an unintelligent attempt to evade legal and constitutional scrutiny as mandated by our constitution”.
Article 175 of the Constitution provides for the establishment of public funds by an express Act of Parliament. Article 176 provides for funds received on behalf of the public to be paid into the Consolidated Fund or a fund established by or under the authority of an Act of Parliament. Article 178 then details the proper legal mechanisms for the withdrawal of money from public funds. The mechanisms provided for in the “Operational Framework of the Ghana Financial Stability Fund (GFSF)” is an unintelligent attempt to evade legal and constitutional scrutiny as mandated by our constitution.” he stated.
See excerpts of the letters below: