Bondholders must challenge Ofori-Atta’s power in court – Mahama Ayariga
Bondholders and individual pensioners included in the Domestic Debt Exchange program (DDEP) are expected to challenge the authority of Finance Minister Ken Ofori-Atta in court, said Bawku Tengah Member of Parliament Mahama Ayariga.
Mr. Ayariga said the Finance Minister does not have the power to decide on bonds unilaterally.
“He should challenge the authority of the Minister of Finance who wants to force him to trade bonds at a reduced coupon rate, he really does not have the constitutional power to do so,” Mahama Ayariga said on TV3’s Ghana Tonight show Thursday, February 16. .
He further said that he will table a motion in Parliament on Friday, February 17 to compel Mr. Ofori-Atta to submit the DDEP for parliamentary approval.
He said the Minister cannot run alone as there is no agency monitoring him.
“The matter must come to Parliament for a vote,” he said.
“The speaker has indicated that we want more opportunities to see this, we need it, in the form of a motion and he is ready to acknowledge the motion,” he said.
He stressed, “anything that exists must be approved or blessed by Parliament.”
He also said that the Finance Minister has no legal right to decide on domestic bonds.
“If they do not come to Parliament for approval, today I told them that they did something wrong, they must come to Parliament for approval of the domestic bond. Tomorrow I will present a motion in Parliament asking the Minister of Finance to send it to Parliament,” he said.
Mr. Ofori-Atta told Parliament that he had met pensioners who had picketed to protest entry into the DDEP three times.
He said he had explained the terms of the new bond
Briefing Parliament on Thursday, February 16, he said “the government is committed to the welfare of senior citizens and pensioners. The government will respect coupon payments and the principle of maturing.
He added, “I have met with them on three occasions when they explained the terms of the new bond. I then wrote a letter to the committee to let them know that all pensioners who did not participate in the bond offer were not exempted.
Earlier, Former Chief Justice Sophia Akuffo who was part of the pensioners picket said she was suspicious when Mr. Ofori-Atta listened to the concerns of others and responded to their letters on the domestic debt exchange program but did not respond to the pensioners who had written. told him to remove them from the program.
Ms Sophia Akuffo insisted that the Minister of Finance should exempt pensioners from the programme.
“A simple letter written by the association to the Minister of Finance liberating us from your program. In essence, I always like to distill things to the lowest common denominator, liberating us, we are pensioners. Until now, I saw a copy of that letter, dated January 7 .
“Until now, there is no record of recognition and only a few days the same letter written to the Minister has been responded to which he has excluded other groups. Why? When I can’t find out the reasons for doing it in a certain way, especially if it has been it is done for others, but it is not done for others, so I would suspect, I have grown to the age that I see,” he said. for journalists in Accra after joining pensioners again to picket the Ministry of Finance to protest its inclusion in the program on Tuesday, February 14.
The government has announced that it has reached 80 percent participation in the program.
“The Government’s Domestic Debt Exchange Program (DDEP) closed on Friday, February 10, 2023 with the participation of more than 80% of eligible bonds,” a statement issued by the Ministry of Finance on Tuesday, February 14.
“The government would like to thank the people of Ghana for their patience and support during this very difficult time.”
He said with the participation of voluntary bondholders after the closing of the Program on Friday, the country has come close to securing an additional credit facility (ECF) of $3 billion from the International Monetary Fund (IMF).
“The DDEP was implemented to help protect the economy and improve our capacity to effectively accommodate public debt.
“The alternative of not implementing the DDEP would be a serious disruption in the servicing of our national debt and exacerbate the current economic crisis.
“The government, therefore, is grateful for the overwhelming participation of all bondholders.
“Your support and contribution have brought your country closer to securing the IMF program.”
It asks individual bondholders, especially pensioners, who do not participate in the Program, to be sure that the payment of coupons and mature principals will be honored in accordance with the established rules.
By Laud Nartey|3news.com|Ghana
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