2024
CORAM
AI Generated Summary
The Supreme Court of Ghana reviewed a case challenging the legality of the establishment and funding of the Ghana Amalgamated Trust Plc (GAT) by the Government. The court examined whether GAT was validly incorporated as a public corporation and whether the GH₵800,000,000.00 provided by the Government constituted a loan requiring parliamentary approval. The Court also evaluated the Put Call Option Agreement in favor of GAT. The Court determined that GAT was validly established as a public corporation under article 295(1) and the Companies Act, and that the funding was not a loan but government expenditure approved under article 179. The Put Call Option Agreement was deemed an international business transaction, fully compliant with article 181(5) of the Constitution, dismissing the plaintiff's claims.
ASIEDU JSC:
[1]. Introduction/Reliefs:
My lords, by his writ, the plaintiff herein, suing in his capacity as a Ghanaian and a Member of Parliament for Bawku Central, invokes the original jurisdiction of this court for:
i. A declaration that upon a true and proper construction of the provisions of Articles 190(1)(b), (4) and 192 of the 1992 Constitution of the Republic of Ghana, any and every entity established for commercial purposes or as a commercial venture or in respect of which the Government of the Republic of Ghana is the sole beneficiary of its commercial fortunes, ought to be a public corporation within the meaning of articles 190(1)(b), (4), 192, 297 and 298 of the 1992 Constitution of the Republic of Ghana and must in accordance with the provisions of article 192 of the Constitution, be established by an Act of the Parliament of the Republic of Ghana.
ii. A declaration that the incorporation of the Ghana Amalgamated Trust PLC [third Defendant] in respect of which the Government of the Republic of Ghana is the sole beneficiary of its shares, held in trust for and on its behalf by the National Trust Holding Company (NTHC) [fourth defendant] is inconsistent with, and in contravention of the provisions of articles 190(1)(b), (4), 192, 297 and 298 of the 1992 Constitution of the Republic of Ghana and is accordingly, null, void and of no effect.
iii. A declaration that the GH₵800,000,000.00 made available to third Defendant, as its initial capitalization to enable third Defendant invest in certain banks in Ghana could only have been advanced to third Defendant [not being a statutory corporation established under and by virtue of article 192 of the 1992 Constitution], as a loan from public funds pursuant to the provisions of Article 181 clause (1) of the Constitution.
iv. A further declaration that upon a true and proper construction of the provisions of article 181 clauses (1) and (2) of the 1992 Constitution of the Republic of Ghana, every loan agreement Government intends to enter into must be preceded, as a mandatory first step, by an authorization given by the Parliament
of the Republic of Ghana to Government, to enable Government enter into such agreement.
v. A declaration also that upon a true and proper construction of the provisions of article 181 clauses (1) and (2) of the 1992 Constitution of the Republic of Ghana, any authorization given by the Parliament of the Republic of Ghana to the Government to enter into an agreement