A private legal practitioner, Jonathan Amable, has filed an application at the Supreme Court seeking an immediate injunction to prevent the government from issuing Treasury Bills.
Mr. Amable contends that the government must obtain prior approval from Parliament before proceeding with any issuance of Treasury Bills.
This argument is detailed in the application submitted to the Supreme Court Registry on November 11, 2024.
The motion for an interlocutory injunction specifically aims to halt the government and its agencies, including the Ministry of Finance and the Bank of Ghana, from borrowing through the issuance of Treasury Bills.
The application names Attorney General Godfred Yeboah Dame as the defendant, arguing that any attempt by the government to issue new Treasury Bills on Friday, November 22, 2024, would be unlawful.
The Motion for Interlocutory Injunction seeks to prevent the government from engaging in any borrowing or debt financing activities until the suit is fully resolved.
This request is based on the grounds outlined in the accompanying affidavit, with additional reliefs to be determined by the court.
The plaintiff argues that under the Financial Administration Act and the Bank of Ghana Amendment Act, Parliament has established a statutory framework for state borrowing.
He contends that the government’s current approach to issuing Treasury Bills does not comply with this legal framework.
The application emphasises the necessity of obtaining prior parliamentary approval for such borrowings, given that they create significant repayment obligations for the state.
The government plans to raise approximately 78 billion cedis in new borrowings through Treasury Bills for 2024, as outlined in its Treasury Bills Calendar for the year.
How the recent legal application could affect the government’s financial strategy remains uncertain.
Notably, the Ministry of Finance aims to secure 10.8 billion cedis in the final quarter of this year alone.
Treasury Bills have long been a critical source of revenue for the government, making any potential disruption a significant concern for public financing.