The Union of Industry, Commerce and Finance Workers (UNICOF) has secured an injunction to stop Agricultural Development Bank (adb) from proceeding with the initial public offer it announced on July 3.

An Accra High court granted a 10-day interim injunction after an order was brought against the by the General Secretary of UNICOF, John Esiape.

“It is hereby ordered that the defendant (adb), agents, privies, assigns and contractors are restrained from proceeding with the initial public offer of its shares,” the court order stated.

With the injunction the court will now have to look into the actual matter UNICOF has filed. The union challenged the bank’s decision to push the IPO insisting the process has not been transparent.

This means adb cannot continue the sale of its shares and also its equity arrangements with Atlas Mara Ltd and Norwegian Development Fund for development fund who are seeking equity shares of 25% and 15% respectively. adb is to halt the sale and all other arrangements pending the determination of the suit.

The court granted the interim injunction on Friday July 10 and adb is expected to be served on Monday July 13.

This will be the second time adb’s IPO has been suspended.

A Member of Parliament Dr Mark Asibey Yeboah earlier went to the Supreme Court over the launch of the IPO but later withdrew the case.

What does UNICOF want?

1. A declaration that the agreement signed by the 1st defendant adv 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.

2. 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.

3. They are also seeking approval 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.

4. 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.