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A law to prohibit the payment of compound interest by the state in transactions entered into on her behalf by public officers has been passed by Parliament and assented to by President Akufo-Addo.

The law, the Contract (Amendment) Act 2023 (Act 1114) sponsored by the Attorney-General and Minister for Justice, Godfred Yeboah Dame was passed in Parliament in 2023 and presented to President Akufo-Addo on March 5, 2024, for assent.

According to the Attorney-General, the law seeks to curb the tendency on the part of public officers to enter into contracts with high rates of interest especially compound interest which has resulted in huge financial losses to the state.

This, Mr Dame said, was motivated by observations made in various actions in which he defended the state in numerous judgement debt cases involving substantial amounts.

Speaking on JoyNews’ The Pulse on March 27, the Deputy Attorney-General, Alfred Tuah Yeboah, explained the new law.

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Alfred Tuah Yeboah

Deputy Attorney General

President Akufo-Addo