DDEP: MP petitions IMF, World Bank over establishment of ‘illegal’ GHS 15bn Financial Stability Fund
Member of Parliament (MP) for Bawku Central, Mahama Ayariga, has submitted a petition to the World Bank and the International Monetary Fund (IMF) contesting the establishment of the Ghana Financial Stability Fund (GFSF).
In a strongly-worded letter, Mr Ayariga vehemently asserted the unconstitutionality and illegality of the fund, calling upon the Bretton Wood Institutions to withhold their support.
At the heart of Mr Ayariga’s objection lies the contention that the GFSF has bypassed the vital parliamentary scrutiny and approval process, a grievance that he claims renders the fund fundamentally flawed.
His concerns extend further to the potential repercussions of launching such a financial vehicle without the requisite legislative oversight.
“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.”
“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,” Mr Ayariga noted in his letter to the World Bank and IMF.
The MP’s letter comes on the back of already announced plans by the Finance Ministry to establish the Ghana Financial Stability Fund, with financial contributions expected from the Government of Ghana and major donors, including the World Bank and IMF.
The GFSF has been set up by the Finance Ministry with the overarching goal of bolstering the financial sector’s capital reserves in the wake of the challenges stemming from the government’s domestic debt exchange programme (DDEP).
