Private legal practitioner, Jonathan Amable, has formally requested an expedited hearing from the Supreme Court regarding a constitutional injunction application filed against government that seeks to address concerns over alleged unconstitutional borrowing practices, which have sparked questions about fiscal governance and adherence to the 1992 constitution.<\/p>\n In a letter dated December 10, 2004 through his lawyers \u2013 Heward-Mills & Co Dantu Chambers \u2013 the plaintiff emphasised the matter\u2019s urgency, urging the Supreme Court Registrar to prioritise this case.<\/p>\n \u201cThe 14-day period (for notifying the Respondent) expired on 27 November 2004. We humbly request fixing the hearing date for the application and any other processes filed in the matter at the earliest available sitting on an urgent and expedited basis,\u201d the letter stated.<\/p>\n The interlocutory injunction application centres on government\u2019s borrowing activities, which the plaintiff contends violate Article 181(4) of the constitution. The article mandates that all terms and conditions of government borrowing must receive parliamentary approval.<\/p>\n According to the letter, \u201cThe Government has, by its failure to respond to the substantive matter\u2026 and its continued borrowing, evinced an intention to continue borrowing in breach of the mandatory terms of article 181(4)\u201d.<\/p>\n Mr. Amable detailed the economic and constitutional ramifications of government\u2019s borrowing activities, highlighting the ballooning public debt and potential for long-term economic harm.<\/p>\n \u201cThe continued borrowing operations of government are increasing the public debt of Ghana \u2013 details of whose payment may fall on the citizens of Ghana through an increase in the rate of existing taxes, introduction of new taxes and, ultimately, restructuring of the accrued debt,\u201d the letter noted.<\/p>\n Since the injunction application was filed, government has borrowed an aggregate of GH\u00a2208illion and reportedly intends to borrow further, the letter claimed. The firm argued that the lack of parliamentary approval renders these borrowings constitutionally questionable \u2013 raising concerns about their enforceability and potential economic fallout.<\/p>\n While the plaintiff has not sought an order to invalidate existing Treasury bills or securities issued without parliamentary approval, the letter emphasised broader implications for governance and public trust.<\/p>\n \u201cThe probability that Treasury bills \u2013 and any other debt securities \u2013 may be declared unconstitutional and unenforceable in any subsequent constitutional enforcement action creates an urgent need to protect the national interest,\u201d the letter stated.<\/p>\n The lawyers stressed that government\u2019s borrowing powers, while constitutionally granted, are not absolute. \u201cThe borrowing powers of a juristic person are conferred on it by its constitutive documents\u2026 and, where granted, a juristic person must exercise its borrowing powers strictly in accordance with the limitations in its constitutive document,\u201d the letter explained. Government\u2019s actions, they argued, contravene these principles and must be addressed immediately.<\/p>\n The lawyer \u2013 who specialises in corporate and public finance legal advisory services transactions \u2013 contends the issue is a matter public interest, while underscoring the judiciary\u2019s role in upholding constitutional mandates.<\/p>\n \u201cGovernment\u2019s failure to adhere to these limitations is a grave matter of public interest which must be rectified urgently through an expedited hearing of the injunction application,\u201d the letter asserted.<\/p>\n As of October 2024, Ghana\u2019s public debt stood at GH\u00a2761billion, a 5.8 percent decline from the GH\u00a2807.8billion recorded in September 2024, according to latest data from the Bank of Ghana.<\/p>\n This put the debt to GDP (Gross Domestic Product) at 74.6 percent.<\/p>\n In dollar terms, the total debt stock amounted to US$46.8billion during the review period; down from US$51billion in the previous month.<\/p>\n Despite the month-on-month decline, there was an increase of GH\u00a2175billion in public debt compared to the same period for 2023, with external debt accounting for GH\u00a2453.7billion (US$27.9billion) while domestic debt stood at GH\u00a2307.3billion.<\/p>\n Analysts are estimating that government will borrow approximately GH\u00a2200billion from the T-bill market in 2025 compared to the projection of GH\u00a2220billion for 2024. This corresponds to an average weekly uptake of GH\u00a23.9billion in 2025, down from GH\u00a24.2billion in 2024.<\/p>\n It is anticipated that with improved access to international funding and key macroeconomic indicators signalling sustained recovery, government will shift toward longer-term financing options.<\/p>\n However, they have warned that this transition will likely take place after the first quarter of 2025 as short-term funding demand is expected to remain high \u2013 due to Treasury refinancing needs and maturities from elevated borrowing levels in the second half of 2024.<\/p>\n Watch the latest edition of BizTech below:<\/b><\/p>\n![\"Private](\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/963\/96394526.295.jpg\" "\\"Private")
Private legal practitioner, Jonathan Amable<\/span><\/span><\/p>\n<\/div>\n