Co-funding GFSF Is Unconstitutional – Ayariga to World Bank

The Member of Parliament for Bawku Central, Mahama Ayariga is trying to scare off the World Bank and the International Monetary Fund (IMF) in co-funding the government of Ghana’s Ghana Financial Stability Fund (GFSF).

In a petition to the World Bank, he cited a publication by the Finance Minister three months ago which announced the Government of Ghana and the World Bank as the Fund’s major donors, committing an amount of $750 million, including a $250 loan from the World Bank.

According to him, the government’s decision to establish the Fund under the Ghana Amalgamated Trust Plc (GAT) in the first place renders the Fund unconstitutional since it was not done with the approval of Parliament.

It affirmed, “The International Monetary Fund (IMF) and the World Bank will be acting in clear violation of the Constitution of Ghana of 1992 if they lend their support to this arrangement or are in any way party to it.”

It explained, “Article 175 of the Constitution provides for the establishment of public funds by an express Act of Parliament. Article 176 provides for funds received on behalf of the public to be paid into the Consolidated Fund or a fund established by or under the authority of an Act of Parliament. Article 178 then details the proper legal mechanisms for withdrawal of money from public funds. The mechanisms provided for in the “Operational Framework of the Ghana Financial Stability Fund (GFSF)” is an unintelligent attempt to evade legal and constitutional scrutiny as mandated by our constitution.”

He also indicated that the legality of the Ghana Amalgamated Trust Plc (GAT) under which the Fund is established is being challenged in court.

Read The Full Petition Here: letter to world bank