The Centre for Public Interest Law (CEPIL) has filed a suit at the Supreme Court seeking a declaratory relief that the US$3 billion Chinese Loan approved by Parliament and assented to by the President is null and void.
CEPIL is arguing on the grounds that the CDB loan violates Articles 40 and 73 of the 1992 Constitution as well as the Petroleum Revenue Management Act 2011 (Act 815).
Article 40 of the 1992 Constitution of the Republic of Ghana reads: �In its dealings with other nations, the Government shall �
(a) Promote and protect the interests of Ghana�
Article 73 of the 1992 Constitution of the Republic of Ghana reads: �The Government of Ghana shall conduct its international affairs in consonance with the accepted principles of public international law and diplomacy in a manner consistent with the national interest of Ghana.�
Section 18 (7) of Act 815 states that: �The Annual Budget Funding Amount may be used as collateral for debts and other liabilities of Government for a period of not more than ten years after the commencement of the Act.�
CEPIL asserts that in the light of the foregoing, it was palpably wrong for both Parliament and the President to approve a commercial loan agreement between the Government of the Republic of Ghana and the China Development Bank Corporation in which �a minimum of 60 per cent of each of the Tranche A Facility and the Tranche B Facility shall be paid to PRC Contractors.� (Clause 3.1 of the Master Facility Agreement, MFA).
Furthermore, it is the case of CEPIL that Act 815 does not allow for the collateralization of oil for our debts for a period not exceeding 10 years and yet the collateral for the Tranche A loan facility under the MFA extends to a period of 15 years.
Moreover, CEPIL charges the President for breaching Articles 57 (3), 58 (3,4) and 108 when he introduced the MFA to Parliament in breach of the Constitution that he swore to protect and uphold at all times under the Articles aforementioned.
Finally, CEPIL seeks an order of perpetual injunction restraining the Parliament of the Republic of Ghana from considering and approving � (i) the Offtaker Agreement, (ii) the security document being the charge over Accounts Agreement, (iii) the Accounts Agreement, (iv) the form of Subsidiary Agreement and (v) the Five Party Agreement.
The case has been set for hearing at the Supreme Court on Wednesday, March 14 this year.
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