The Union of Industry Commerce and Finance (UNICOF) has filed a suit at the Supreme Court challenging the commencement of the Agricultural Development Bank’s (adb) Initial Public Offer (IPO).
UNICOF wants the court to stop the IPO, which it described as illegal.
This comes after it emerged in a Citi Business News investigation that the Member of Parliament for New Juaben South constituency, Dr. Mark Assibey-Yeboah had withdrawn his suit invoking the original jurisdiction of the Supreme Court to compel adb to seek parliamentary approval before it proceeds with the planned public offering.
UNICOF in its suit is seeking the following reliefs;
A declaration that the agreement signed by the 1st defendant ADB with two foreign companies namely Atlas Mara Limited and the Norwegian Investment fund for Developing Countries, for the sale and purchase of 25% and 15% respectively, of the issued shares of ADB without parliamentary approval is unconstitutional and in violation of Article 181 clause 1 of the 1992 constitution.
UNICOF is also seeking a declaration that the government has not got the sole mandate to authorize Adb to sell shares to the public and trade on the stock exchange saying that the general oversight duties of Parliament under article 108 of the 1992 constitution, Article 181 clause 1 of the 1992 constitution and section 19 of the Act 286 requires the concurrent approval of parliament.
They are also seeking that the approval and authorization given to ADB to trade on the Ghana Stock Exchange by the Securities and Exchange Commission without first confirming whether Parliament has approved the decision of cabinet permitting the bank to issue shares to the public undermines the constitutional mandate of parliament as enshrined in article 181 clause 1 of the 1992 constitution and section 19 of the Act 286 among others.
The suit says the first and second defendants being Agricultural Development Bank (ADB) and the Attorney General and the Minister of Justice respectively will on receipt of the suit, have to file or cause to be filed a statement of defendant’s action at the suit of UNICOF.
Citi Business News sources say the two defendants in the case were served yesterday.