Vice President of IMANI Ghana, Bright Simons, has revealed that three groups representing individual bondholders have commenced mobilisation to file legal suits against the government for including individual bondholders in the Debt Exchange Programme.
According to him, one of such groups is led by a former boss of the Securities and Exchange Commission (SEC).
The Finance Ministry had earlier cautioned individual holders of eligible bonds who refuse to take the Amended and Restated Exchange Memorandum under the Debt Exchange Programme provided by the State that they will find it difficult to obtain a judgement against the Government of Ghana.
Under a caption labelled “Enforcement of Civil Liabilities” in the 58 page Amended and Restated Exchange Memorandum to individual bondholders, Finance Minister, Ken Ofori-Atta emphasised that since Ghana is a sovereign state, any legal action taken by bondholders against the country would be difficult to materialise.
“The Republic of Ghana is a sovereign state. Consequently, it may be difficult for Eligible Holders of Eligible Bonds to obtain or realise awards against the Republic”.
“The Republic has submitted to the jurisdiction of the courts of Ghana and waived any immunity from the jurisdiction (including sovereign immunity) of such courts in connection with any action arising out of or based upon the Invitation to Exchange or any securities issued under the Invitation to Exchange brought by any holder of such securities,” it added.
But in a tweet, Mr. Simons said “it was anticipated that adding individual/retail investors to Ghana’s debt default will increase the risk of litigation. At least 3 groups representing individual bondholders have commenced mobilisation to file class action lawsuits. One group is led by a former SEC boss.”
“Here are the details of one such group, @OfoeEdmund. Obviously we can neither endorse specific groups or give legal advice”, he added.
The Finance Minister on December 5, 2022 announced a Domestic Debt Exchange programme to restructure the country's debt which had reached unsustainable levels.
It initially excluded individual bondholders, but after stiff opposition from labour which led to their exclusion, government included retail bondholders.
Latest Stories
-
GHS launches mobile app to counter misinformation about vaccines
6 mins -
Election 2024: Care Ghana warns EC of recruiting political actors as Returning Officers
14 mins -
Mohammed Kudus gets 5th Premier League assist as West Ham hold Liverpool
15 mins -
Religious support source of my success – Asantehene
21 mins -
Sierra Leone energy minister resigns over electricity crisis, as power returns to capital
29 mins -
EC accuses Bright Simons, IMANI Africa of peddling falsehood
58 mins -
GRA/SML contract: Akufo-Addo has whitewashed the KPMG report – Inusah Fuseini
1 hour -
USM Alger receive warm welcome at Oujda Airport ahead of game against RS Berkane
2 hours -
2023/24 Ghana Hockey League to kick-off this weekend
2 hours -
All payments received from our contract with GRA are performance-based, says SML
3 hours -
Marrakech 2024: Ghana’s Zinabu Issah wins gold in women’s discus throw
3 hours -
Our contract with GRA followed due process; ignore contrary reports – SML
3 hours -
SML is just Agyapa in suit and tie – Bright Simons
3 hours -
Domelevo condemns selection of KPMG to audit GRA/SML contract as illegal and unprofessional
3 hours -
SML/GRA contract: OSP should have released its report by now – Inusah Fuseini
4 hours