A private legal practitioner has filed an application at Ghana’s Supreme Court seeking to halt the government’s issuance of treasury bills, arguing that such borrowing requires prior parliamentary approval.

The motion for interlocutory injunction, filed by Jonathan Amable on November 11, names Attorney General Godfred Yeboah Dame as the defendant and aims to restrain government agencies, including the Finance Ministry and the Bank of Ghana, from borrowing through treasury bills, reports Joy News.

The plaintiff contends that under the Financial Administration Act and the Bank of Ghana Amendment Act, Parliament has established a statutory framework for state borrowing, and the government’s current approach does not align with this framework. 

“Borrowings create repayment obligations for the state, and it is imperative they receive parliamentary approval,” the application stated.

Lawyers for Amable argued that any attempt by the government to issue new treasury bills, such as the planned issuance on November 22, would be illegal.

The motion seeks to stop “any activity which constitutes borrowing or debt financing” until the court delivers a final ruling. It adds that government borrowing through treasury bills without parliamentary approval contravenes existing financial regulations.

The government’s 2024 borrowing plans include raising approximately GHS78bn ($4.8bn) through treasury bills, with GHS10.8bn ($672mn) expected in the final quarter of 2024 alone, according to the treasury bills calendar. Funds from treasury bills represent a significant revenue stream for the state.

The legal challenge could disrupt these plans, potentially impacting government finances. It remains unclear how the Supreme Court will rule or how swiftly the matter will be resolved.