The Member of Parliament(MP) for Bawku Central, Mahama Ayariga, has filed a legal suit against the Finance Minister, Ken Ofori-Atta, over the legality of the Ghana Financial Stability Fund (GFSF).
According to the MP, the GFSF is unconstitutional and illegal because it was not submitted for parliamentary approval.
In a letter to the institutions, he raised concerns about the potential consequences of establishing the fund without proper legislative oversight.
“It is a scheme with the potential to deprive private indigenous bank owners of the ownership of their assets in these banks after his mismanagement of the financial sector has rendered these banks vulnerable. And it has not been subjected to parliamentary oversight and scrutiny,” he said in the letter.
He is, therefore, seeking a court order directing the Ministry of Finance to establish the GFSF through an express Act of Parliament.
Mr Ayariga suggests that an Act should clearly outline legal provisions for fund administration, disbursement mechanisms, and recovery procedures, in accordance with constitutional provisions.
According to the court documents, he is also requesting the court to enjoin the Ministry of Finance from implementing or utilizing the current “Operational Framework of the Ghana Financial Stability Fund” which he argues lacks legal standing.