Case LawGhana
ELIKPLIM L. AGBEMAVA VRS ATTORNEY GENERAL (J1/05/2017) [2024] GHASC 23 (22 May 2024)
Supreme Court of Ghana
22 May 2024
Judgment
IN THE SUPERIOR COURT OF JUDICATURE
IN THE SUPREME COURT
ACCRA- A.D. 2024
CORAM: SACKEY TORKORNOO (MRS.) CJ (PRESIDING)
PWAMANG JSC
PROF. MENSA-BONSU (MRS.) JSC
ASIEDU JSC
GAEWU JSC
DARKO ASARE JSC
ADJEI-FRIMPONG JSC
WRIT
NO. J1/05/2017
22ND MAY, 2024
ELIKPLIM L. AGBEMAVA …………… PLAINTIFF
VRS
ATTORNEY GENERAL …………… DEFENDANT
JUDGMENT
DARKO ASARE JSC:
My Lords, the Plaintiff says that his motivation for bringing this case is to ensure that the
foundational values of our Constitution namely; probity, accountability and transparency
are not undermined by Parliament through the provisions of the Petroleum (Exploration
and Production) Act 2016 (Act 919). He contends that under Act 919, Parliament appears
to have waived its constitutional power under article 181 of supervisory control over all
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loans and international business or economic transactions entered into by the
Government of Ghana as explained by the Supreme Court in a long line of cases,
including, Attorney-General v Faroe Atlantic Co. Ltd. [2005-2006] SCGLR 271,
Attorney General v Balkan Energy [2012] 2 SCGLR 998 . This is how the eminent
Date Bah, JSC expressed in flowery language the value of article 181 in the case of
Attorney General v Balkan Energy (supra) at page 1033 of the Report:-
“The sunlight of Parliamentary scrutiny of major transactions entered
into by the Executive is likely to be a powerful spur to probity…..”
These important values of probity and accountability to our constitutional architecture are
not lost on us as we proceed to address the issues raised for our consideration by the
Plaintiff’s action.
Reliefs
The Plaintiff is a citizen of Ghana and a private legal practitioner by profession. On the
13th of December 2016 he filed the action herein against the Attorney General, the
Defendant herein, claiming the following reliefs:-
i) A declaration that on a true and proper interpretation of Article 181 of the 1992
Constitution of the Republic of Ghana, Parliament lacks the power to whittle
down the effect of the mandatory constitutional injunction that all loans
(without any distinction) must be laid before Parliament for approval before
they can come into force or become operational.
ii) A declaration that on a true and proper interpretation of Article 181 of the
Constitution, Section 10 sub-section 15 of the Petroleum (Exploration and
Production) Act 2016 (Act 919) in so far as it purports to exclude or exempt
loan agreements of certain financial values entered into by the state, for the
purpose of exploitation, development and production of crude oil and natural
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gas, from parliamentary approval and scrutiny is contrary to Article 181 of the
Constitution and therefore unconstitutional.
iii) A declaration that any loan agreement entered into by the State or any public
entity without Parliamentary approval by virtue of Section 10 sub-section 15 of
the Petroleum (Exploration and Production) Act 2016 (Act 919) for the purpose
of exploration, development and production of crude oil and natural gas is
unconstitutional, void and of no legal effect.
iv) Any other order or orders as this Honorable Court may deem fit."
Facts
By his Statement of Case accompanying his writ, the Plaintiff averred, that on the 21st
day of July 2016, Parliament considered the Petroleum (Exploration and Production) Bill,
2016 for passage into law. Following a number of proposed amendments, the Bill was
eventually passed into law on the 4th of August 2016 titled the Petroleum (Exploration
and Development) Act 2016, (Act 919). Contending that section 10(15) granted an
exemption to the Ghana National Petroleum Corporation (GNPC), the Ministry of Finance,
Petroleum Commission or any other organ of State from seeking Parliamentary approval
before raising loans up to an amount of USD$30m, and that this was contrary to Article
181(3) of the Constitution, the Plaintiff has mounted this action for, inter alia, the
impugned section 10(15) to be declared a nullity.
Jurisdiction
The suit seeks to invoke the original jurisdiction of this Court under the provisions of
Article 2(1) and 130(1) of the 1992 Constitution. That being the case, we, as a matter of
primacy, need to satisfy ourselves as to whether our jurisdiction has been properly
invoked. This is so because jurisdiction goes to the root of every court proceedings and
even when the Parties themselves do not raise any jurisdictional issue, the duty lies on
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the Court first and foremost to satisfy itself that it has been vested with appropriate
jurisdiction over the case.
The above principle of the law has been explained by Acquah JSC (as he then was) in the
case of Attorney General (No. 2) vs. Tsatsu Tsikata (No. 2) [2001-2002] SCGLR
620, at page 646 where after affirming the time honoured proposition of the law that
jurisdiction is so fundamental that its absence nullifies all ensuing proceedings, then went
on to express himself as follows:-
“It is therefore trite knowledge that the first duty of every judge in any
proceedings is to satisfy himself that he has jurisdiction in the matter
before him. For the issue of jurisdiction can be raised at any time, even
after judgment. Thus whether the parties raise the issue of jurisdiction
or not, the court is duty bound to consider it.”
It bears noting that the jurisdiction of the Supreme Court under Article 2(1) and 130(1)
of the 1992 Constitution has been described as a special one that can only be invoked in
cases where a real or genuine issue of interpretation or enforcement of a provision of the
Constitution properly arises.
The oft-quoted and lucid articulation of the governing principles in Republic v Special
Tribunal; Ex parte Akosah [1980] GLR 592 by Anin JA, has been accepted as the
locus classicus on the above point. At page 605 of the Report, Anin JA stated as follows:-
"From the foregoing dicta, we would conclude that an issue of
enforcement or interpretation of a provision of the Constitution under
article 118(1)(a) arises in any of the following eventualities:
(a) where the words of the provision are imprecise or unclear or
ambiguous. Put in another way, it arises if one party invites the
court to declare that the words of the article have a double-
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meaning or are obscure or else mean something different from or
more than what they say;
(b) where the rival meanings have been placed by the litigants on
the words of any provision of the Constitution;
(c) where there is a conflict in the meaning and effect of two or
more articles of the Constitution, and the question is raised as to
which provision should prevail;
(d) where on the face of the provisions, there is a conflict between
the operation of particular institutions set up under the
Constitution, and thereby raising problems of enforcement and of
interpretation.
On the other hand, there is no case of "enforcement or interpretation"
where the language of the article of the Constitution is clear, precise and
unambiguous. In such an eventuality, the aggrieved party may appeal
in the usual way to a higher court against what he may consider to be
an erroneous construction of those words; and he should certainly not
invoke the Supreme Court's original jurisdiction under article 118.
Again, where the submission made relates to no more that a proper
application of the provisions of the Constitution to the facts in issue, this
is a matter for the trial court to deal with; and no case for interpretation
arises."
The authorities make it clear that this special jurisdiction is not meant to be resorted to
or to be exercised in a case in which jurisdiction is also vested in a lower court. See:
Gbedemah vrs. Awoonor-Williams, (1969) 2 G&G 438 Tait, vrs Ghana Airways
Corporation (1970)2 G & G 527, Yiadom vrs Amaniampong (1981) GLR 3 SC,
Edusei vrs Attorney-General (1996-97) SCGLR 1.
We have read plaintiff’s relief (i) and we find it rather vague. In the relief the plaintiff
complains that Parliament by section 10(15) of Act 919 sought to “whittle down” the
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provision of article 181(3) of the Constitution. In our considered view however, this relief
does not conjure any cause of action under the Constitution that can be adjudicated by
the court. How is the court expected to determine whether there is a whittling down of
the provision, and by what degree? The plaintiff says he brings his action under article
2(1) of the Constitution and article 2(1) provides as follows;
A person who alleges that -
(a) an enactment or anything contained in or done under the authority of that or
any other enactment; or
(b) any act or omission of any person; is inconsistent with, or is in contravention
of a provision of this Constitution, may bring an action in the Supreme Court for a
declaration to that effect.
From the provision, our jurisdiction would be properly invoked if the plaintiff alleges that
section 10(15) of Act 919 is “inconsistent with or in contravention of” article 181(3) of
the Constitution. This the plaintiff has pleaded in his relief (ii) and we fail to see the need
for this pleading in relief (i). Lawyers trained in the law when preparing legal processes
must observe strictly the forensic language required to accurately convey their case or
that of their clients to the court to enable the court render a precise decision. Resorting
to loose and imprecise ordinary English in the face of a statutorily defined cause of action
would be unable to trigger the jurisdiction of the court, especially that of the Supreme
Court which is a special one.
Furthermore, there is no allegation in relief (i) of any breach or threatened breach of any
constitutional provision. It is a bare, arid relief which no more than merely refers to what
the Constitution generally provides for, without more. In the celebrated case of
Blackburn v Attorney General [1971] 2 ALL ER 1380, it was said per Stamp LJ at
page 1383 that it was no part of the Court’s function to make declarations in general
terms regarding the powers of Parliament, particularly where the circumstances in which
the court was asked to intervene were hypothetical.
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Adade JSC in the case of Bilson v. Attorney-General [1993-94] 1 GLR 104 at page
105, cautioned against parties coming to court to pray for sterile declarations in the
following words:-
"Take, for instance, the declaration sought under paragraph (b) of the
writ. The Plaintiff wants the court to declare that: '(i) all persons in
Ghana are equal before the law' and he himself says that that statement
is in Article 17(1) of the Constitution. I agree with him that Article 17(1)
says so. But does the Court have to declare that the article says so? In
any case where will such a declaration take the Plaintiff or anyone else?
Again, has any person impeded the plaintiff’s access to the law? In the
absence of an allegation to that effect, what is the point in merely
repeating the second limb of Article 23 in the form of a declaration?
The first of the Plaintiff’s relief (i) which merely seeks a confirmatory declaration on
certain provisions of the Constitution, is also so vague, desultory and indeterminate that
it can hardly form a valid foundation for invoking the special jurisdiction of this Court
under Article 2(1) of the Constitution. It is incompetent, gives rise to no cause of action,
and is hereby struck out. See also the views of Sophia Akufo in Sam v Attorney-
General [2000] SCGLR 102
Secondly, relief (iii) endorsed by the plaintiff on his writ fails to meet the test of
constitutional controversy that ought to invoke the jurisdiction of the court. The plaintiff’s
substantive relief concerns Act 919 which deals with special types of loans by the GNPC,
namely loans entered into for the exploration and production of petroleum resources of
the country, but plaintiff springs from that to pray for orders in respect of ALL LOANS by
ANY STATE OR PUBLIC ENTITY.
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Even if the court accepts the case argued by the plaintiff with regard to Act 919 and
GNPC, that can never be extrapolated to ALL LOANS by ANY STATE OR PUBLIC ENTITY.
To be clear, there is no correlation, casual or otherwise, between the plaintiff’s prayer for
a prohibition or restriction on a special loan being raised by GNPC, and the restriction he
seeks to impose against ALL LOANS being raised by ALL PUBLIC ENTITIES. Besides, by
referring to all loans by any state or public entity, relief (iii) is vague, ambiguous,
indeterminate and incapable of invoking the jurisdiction of the Court. Accordingly, relief
(iii) is equally struck off.
From the plaintiff’s writ and statement of case, it is only his relief (ii) that arouses the
jurisdiction of this court. There he is seeking a declaration that section 10(15) of Act 919
is inconsistent with article 181(3) of the Constitution, 1992 and that brings him squarely
within the ambit of article 2(1) of the Constitution. Accordingly, we shall examine the
arguments of the parties to determine whether plaintiff has made out a case for that
declaration he seeks.
Memorandum of Issues
The following joint issues were agreed upon by the Parties for determination.
i) Whether the Parliament of Ghana has the Power to exempt some state or public
loan agreements from the requirement of parliamentary approval under Article
181(3) and (4) of the 1992 Constitution?
ii) Whether Section 10 subsection 15 of the Petroleum (Exploration and
Production) Act, 2016 (Act 919) is contrary to Article 181 (3) and (4) of the
1992 Constitution and therefore unconstitutional?
iii) Whether the Ghana National Petroleum Corporation (G.N.P.C.) is a limited
liability company?
iv) Whether or not upon on a true and proper interpretation of section 10(15) of
the Petroleum (Exploration and Production) Act, 2016 (Act 919) all loans and
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borrowings by the Ghana National Petroleum Corporation require parliamentary
approval?
v) Whether any loan agreement entered into by the state or any other public
entity without Parliamentary approval under section 10(15) of the Petroleum
(Exploration and Production) Act, 2016 (Act 919) for the purpose of
exploration, development, and production of crude oil and natural gas is
unconstitutional?
Arguments by Parties
Both Parties filed their written briefs accompanying their respective claim and defence to
the action herein. Upon subsequent Orders by the Court, additional written briefs were
filed by the Parties, all of which we have fully considered and analysed.
Plaintiff’s Arguments
In his written brief in support of his case, the Plaintiff referred copiously to the provisions
of Article 181 of the Constitution and argued that the clauses which were germane to his
instant action were clauses (3) and (4), which provide that no loan shall be raised by
government on behalf of itself or any other public institution or authority otherwise than
by or under the authority of an act of parliament. Plaintiff then refers to the Petroleum
(Exploration and Production) Act, 2016 (Act 919) and argued that since that legislation
primarily concerns the activities of three key institutions apart from Government, namely,
the Petroleum Commission, the Ghana National Petroleum Corporation, and the Ministry
of Finance, any borrowing undertaken by any of these institutions by virtue of the
provisions of section 10 (15) of Act 919 has to require Parliamentary approval. This is so,
because according to the Plaintiff, Act 919 governs the management of the natural
resources of the State, and therefore neither Parliament nor the Attorney General or
GNPC can divorce any borrowing done under the Act from the interest of the State and
public interest. He therefore submitted that section 10 (15) of Act 919 fails to comply
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with clauses 3 and 4 of Article 181 since it purports to exempt loans below USD$30m
raised by the GNPC from prior Parliamentary approval. Plaintiff further contended that
Act 191 falls foul of the provisions of Article 181(4) of the Constitution, to the extent that
it failed to make provision for monies received from loans raised under Act 919 to be paid
into the Consolidated Fund. By failing therefore to comply with the provisions of Article
181(3) and (4) of the Constitution, Plaintiff submitted, section 10(15) of Act 919
constitutes an infringement of the Constitution and must be struck down.
The point was also taken before us in argument that if by the provisions of the Public
Financial Management Act, 2016, (Act 921) and Article 181 of the Constitution,
government cannot raise even a pesewa as a loan without the authority of Parliament,
then it stands to reason that loan agreements no matter the quantum, meant for the
purpose of exploration, development and production of petroleum, cannot be raised by
any party mentioned in section 10 of Act 919 otherwise than or under the authority of an
Act of Parliament. That being the case, so run Plaintiff’s argument, section 10(15) of Act
919 which seeks to exempt public institutions from Parliamentary oversight in respect of
borrowing and other economic transactions is inconsistent with the Constitution and
therefore a nullity.
Defendant’s Arguments
In response, the Defendant contested the Plaintiff’s case from a number of standpoints.
The main point of the defendant was that the plaintiff has failed to distinguish between
Government as intended in article 181 of the Constitution and GNPC which is not
government but a public corporation set up by government as a commercial venture. In
the plaintiff’s supplementary submissions he conceded that his initial statement of case
did not take account of the previous decisions of the Supreme Court that interpreted
Government in article 181 to be in reference to central government excluding public
corporations set up as commercial ventures. But the defendant further argued, that first,
there is nothing in Article 181(3) to suggest that public institutions, like the GNPC are
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constitutionally mandated to seek prior parliamentary approval before raising loans.
Secondly, he contended that to bring public entities set up as commercial ventures and
for that matter the GNPC directly under Article 181(3) of the 1992 Constitution, would
cripple their ability to perform their commercial functions in a manner required by law.
The Defendant in response to the plaintiff’s reliance on the Public Financial Management
Act, 2016 (Act 921) stated that Act 921 permits a Public Corporation, subject to approval
of the Minister for Finance to borrow to fund its operation where it does not involve a
guarantee by Government.
The defendant explained a distinction between the provisions of Act 919 with regard to
Petroleum Agreements for the exploration, development and production of petroleum and
the provisions relating to the conduct of GNPC as a state corporation that participates in
petroleum exploration, development and production on behalf of the state. He referred
to section 1 of Act 919 which stipulates that a Petroleum Agreement shall be entered into
by a body corporate, the Republic of Ghana and the Corporation, meaning GNPC. By this,
GNPC becomes a party to a Petroleum Agreement with certain roles to play. On the
strength of its balance sheet it can also borrow money for its operations. The defendant
argued that when GNPC is borrowing on the strength of its balance sheet in this manner,
it does not ordinarily require parliamentary approval, since Article 181 (3) does not cover
such public corporations. The issue of parliamentary approval will only arise where central
government borrows on behalf of the GNPC. Relying on the strength of Klomega (No.
2) v A-G & Ghana Ports and Harbours Authority & Ors. (2013-2014) 1 SCGLR
581 and Assibey Yeboah v Electricity Corporation of Ghana. Civil Appeal No.
J1/7/2016 dated the 28th of July 2016, Defendant invites us to hold that the GNPC
as a juristic person is different from central government and is not covered by Article 181
(3) of the 1992 Constitution. At paragraph 43 of his statement of case filed on the 7th of
March 2024 pursuant to order of court, the Defendant submitted as follows:-
“It is our submission that Act 919 recognizes and acknowledges the specialized
nature of petroleum industry and the need for flexibility in financing arrangements
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so as to remain competitive in the global market. Act 919 therefore seeks to create
a balance between the flexibility of engaging in commercial transactions in the
industry and accountability, hence the provision of a threshold to ensure that the
GNPC is not crippled by excessive bureaucratic procedures but is allowed a certain
threshold of flexibility.”
On the plaintiff’s claim that his preferred interpretation of article 181 will engender
accountability and transparency in the management of the states petroleum resources,
the Defendant submitted that there were adequate mechanisms under both the Public
Financial Management Act, 2016 (Act 921) as well as the GNPC’s enabling statute (PNDCL
64) to ensure accountability and transparency in the manner in which the GNPC conducts
its financial affairs. Consequently, it was not necessary to impute any requirement for
parliamentary approval under Article 181(3) for the loans it could raise under the
provisions of Act 919.
Consideration of Issues
In our considered view, the fundamental issues to be resolved in this action, after a
careful examination of all the materials on record alongside the rival arguments urged
upon the Court by the Parties in their respective written briefs are two fold and can be
stated thus:—
a) Whether or not upon a true and proper interpretation of Article 181(3) of the
1992 Constitution, public institutions and state agencies cannot raise loans on
their own except with prior approval from Parliament; and
b) Whether or not section 10(15) of Act 919 is inconsistent with the Constitution
and to the extent of that inconsistency is void?
We would commence our inquiry by reminding ourselves of perhaps one of the core
principles of constitutional interpretation applicable in cases relating to judicial review of
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legislative action, to wit the presumption of constitutional validity of enactments of
Parliament. The principle is that "to doubt the constitutional validity of a law, is to resolve
it in favour of its validity. In other words, doubts are resolved in favour of constitutionality
and not the person challenging or attacking it." by Wood JSC in case titled no. J1/8/2009
Daasebre Nana Baah III & 4 Ors v The Attorney- General & Electoral
Commission, dated 18th February 2010.
In the case of Republic v Tommy Thompson Books Ltd. Quarcoo & Coomson
[1996-97] SCGLR 804 at 851, Kpegah JSC explained the same principle in the following
terms:-
“the first point to note is that there is a presumption in favour of validity
when one is considering a legislation, even a law which imposes
limitations on free speech is presumed valid till the proponent of
invalidity or assailant of the law shows otherwise”
The above authorities serve to emphasise the point that at all material times in this suit,
the burden of displacing the presumption of constitutional validity of section 10(15) of
Act 919 rests on the Plaintiff.
Another important principle of interpretation which must guide the Court in addressing
the issues raised in this suit is the principle of harmonious interpretation of statutes to
avoid conflicts with other provisions of related enactments and their interpretations by
the courts. On this point Acquah JSC in the case of National Media Commission vrs
Attorney-General 2000 SCGLR, observed as follows:-
"Accordingly, in interpreting the Constitution, care must be taken to
ensure that all the provisions work together as parts of a functioning
whole. The parts must fit together logically to form rational, internally
consistent frame work. And because the frame work has a purpose, the
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parts are also to work dynamically, each workings accomplishing the
intended goal."
Finally, another principle of constitutional interpretation relevant on account of the issues
raised for determination in this action, is the principle of interpretation to avoid
absurdities. See the case of Agyei Twum v Attorney-General and Anor [2005-
2006] SCGLR 732.
With these guiding principles of constitutional interpretation at the back of our minds, we
proceed to tackle the issues we set out supra.
WHETHER OR NOT UPON A TRUE AND PROPER INTERPRETATION OF
ARTICLE 181(3) OF THE 1992 CONSTITUTION, PUBLIC INSTITUTIONS
AND STATE AGENCIES CANNOT RAISE LOANS ON THEIR OWN EXCEPT
WITH PRIOR APPROVAL FROM PARLIAMENT;
The jurisprudence of this court on article 181 has settled that “Government” in the article
refers to central government and does not include public corporations established as
commercial ventures. That notwithstanding, the effect of the arguments of the plaintiff
in this case are for the court to revisit this interpretation and depart from it. This he seeks
to do by inviting us to make an exception in relation to GNPC, when it is borrowing any
amount no matter the value, to be applied in the exploration, development and
production of petroleum resources of the country. By his arguments the plaintiff is calling
for a new interpretation of “Government” in article 181 that is expansive. The primary
issue is therefore;
Whether the wording of article 181(3) suggests a restrictive interpretation
applying only to central government or encompasses other government
agencies;
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Article 181 of the 1992 Constitution which is the pivot around which this dispute turns,
reads as follows:-
(1) Parliament may, be a resolution supported by the votes of a majority of all the
members of Parliament, authorise the Government to enter into an agreement for
the granting of a loan out of any public fund or public account.
(2) An agreement entered into under clause (1) of this article shall be laid before
Parliament and shall not come into operation unless it is approved by a resolution
of Parliament.
(3) No loan shall be raised by the Government on behalf of itself or any other
public institution or authority otherwise than by or under the authority of an Act
of Parliament.
(4) An Act of Parliament enacted in accordance with clause (3) of this article shall
provide -
(a) that the terms and conditions of a loan shall be laid before Parliament and shall
not come into operation unless they have been approved by a resolution of
Parliament; and
(b) that any moneys received in respect of that loan shall be paid into the
Consolidated Fund and form part of that Fund or into some other public fund of
Ghana either existing or created for the purposes of the loan.
(5) This article shall, with the necessary modifications by Parliament, apply to an
international business or economic transaction to which the Government is a party
as it applies to a loan.
(6) For the purposes of this article, "loan" includes any moneys lent or given to or
by the Government on condition of return or repayment, and any other form of
borrowing or lending in respect of which -
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(a) moneys from the Consolidated Fund or any other public fund may be used for
payment or repayment; or
(b) moneys from any fund by whatever name called, established for the purposes
of payment or repayment whether directly or indirectly, may be used for payment
or repayment.
(7) The Minister responsible for finance shall, at such times as Parliament may
determine, present to Parliament any information concerning any discrepancies
relating to -
(a) the granting of loans, their repayment and servicing;
(b) the payment into the Consolidated Fund or other public fund of moneys derived
from loans raised on institutions outside Ghana.
Section 10 (15) of Act 919 provides as follows:-
"Any borrowing exceeding the cedi equivalent of thirty million United States Dollars
for the purpose of exploration, development and production shall be approved by
Parliament and shall be in consonance with the Petroleum Revenue Management
Act, 2011 (Act 815)"
A plain casual reading of article 181 leaves no doubt that the operative phrase therein is
“Government”. The article comes into operation when government is “raising loans
on its own behalf or on behalf of other public institutions and authorities.” .
Since the draftsman is explicit that the article becomes operational in two different
circumstances, to wit, when government itself is borrowing or where it is borrowing on
behalf of other public institution, we find it hard to accept the arguments of the plaintiff
that the two circumstances mean the same thing. The provision does not say anything
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about where the other public institution or authority itself is borrowing for itself but the
plaintiff is inserting it in article 181 and we are unable to accept that.
In the case of Klomega (No. 2) v A-G & Ghana Ports and Harbours Authority &
Ors. (2013-2014) 1 SCGLR 581 at page 599, Date Bah JSC speaking on behalf of the
Supreme Court observed thus:-
“Where an agency has a separate legal personality distinct from central
government, it usually comes under sectoral ministerial supervision.
The Board of the corporation and the appropriate Ministry should then
exercise oversight over its international business or economic
agreements. That oversight should be exercised within the context of
the procurement laws of this country. Parliament would be sucked into
unnecessary minutiae if it were to have the function of approving the
international business or economic agreements of statutory
corporations. That is why “Government”, in the context of article 181(5),
should be interpreted purposively to exclude corporations such as the
2nd defendant. This interpretation is the only reasonable one, if one
reads the Constitution as an organic whole.”
Then at page 603 of the Klomega (N0. 2) Report, Date Bah JSC concluded thus:-
“In short, article 181(5) is to be interpreted as follows: generally, the
contracts of statutory corporations are not within the ambit of the
provision. However, in exceptional circumstances, through the
application of a customized Ghanaian version of the doctrine of alter
ego, the contracts of a Ghanaian statutory corporation could be brought
within the intendment of article 181(5).”
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Significantly, it is not suggested by the Plaintiff in this case that the GNPC falls within the
category of an alter ego of central Government as defined by Date Bah JSC in the
Klomega case. It follows therefore that this instant case cannot be distinguished from
the Klomega case on account of GNPC being an alter ego of central government.
The decision in the Klomegah case was followed and applied in the case of Assibey
Yeboah v Electricity Corporation of Ghana. Civil Appeal No. J1/7/2016 dated
the 28th of July 2016, where the Supreme Court speaking through Dotse JSC stated as
follows:-
“From the nature of the transactions in the instant case, it is clear that
the 1st and 2nd Defendants, as juristic persons had the capacity to enter
into the transactions they entered into with the relevant institutions
without seeking parliamentary approval as stipulated in article 181 (5)
of the Constitution. This is because, the position of the 1st and 2nd
defendants herein are just like those of the Ghana Ports and Harbours
Authority Defendants therein in the Klomegah (No.2) case (supra). That
being the case, we are of the considered view that the role of
Government in the instant transactions exemplified by the letter of
Comfort does not really qualify Government to be made a party using all
the criteria’s mentioned in the said judgment. These are the substance
or form, or the nature and party criteria.”
We think it may be useful to note the similarities between the facts of the Assibey
Yeboah case and the instant case. Both cases deal with the GNPC in respect of either
an international business transaction or a loan transaction. Meanwhile, the effect of the
Supreme Court’s decision in both Klomega and Assibey Yeboah is that regardless of
whether the matter concerns a business or loan transaction, Article 181 applies only to
central government and not “…..operationally autonomous agencies of government.
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In our considered opinion, this subsisting jurisprudence that distinguishes between
central government as opposed to “…..operationally autonomous agencies of
government” is so cogent, plain and reasonable on the face of article 181 that we find no
justification to depart from it. This meaning ascribed to the word "Government" in Article
181, is the ordinary natural interpretation of Article 181(3). It must simply mean that the
requirement of Parliamentary approval becomes necessary only when the loan is being
raised by central Government “….on its own behalf or on behalf of other public
institutions and authorities.”. There is nothing, in the text of Article 181(3) of the
Constitution which in the natural ordinary sense, conveys the meaning, that absent
Parliamentary approval, public institutions or statutory corporations, especially those set
up for commercial objectives, are barred from independently raising loans for their own
use.
An identity of reasoning likely informed the decision of the Supreme Court in the case of
Ndebugre v Attorney-General Unreported; Writ No J1/5/2013; 20th April 2016;
SC per Atuguba JSC as follows:-
“The purpose of requiring parliamentary approval of agreements or
measures of critical national importance has been held by this court to
be to ensure transparency, openness and parliamentary consent in the
national interest, but this court has never attributed an overbreadth role
to parliament in such matters beyond the parameters of the particular
matter in regard to which such parliamentary approval is required”
In an attempt to distinguish the case of Klomega (supra) from the facts of the instant
case, Plaintiff further submits that the Klomega case must be restricted only to an
interpretation of Article 181(5) whilst the instant case deals exclusively with Articles
181(3) and (4), which were left unconsidered by the Supreme Court in Klomega. He
concludes by inviting us to say that this action is about the interpretation of Articles 181
(3) and not 181(5)
Page 19 of 24
This is how Plaintiff expressed himself at paragraphs 9 and 10 of his written briefs filed
on the 19th of February 2024 pursuant to leave of this Court:-
9. My Lords, we have come to accept that such public entities set up as
commercial ventures do not require parliamentary approval only because
the issue of parliamentary approval under Article 181(5) came up for
determination in the Klomega case supra. This case did not determine any
issue with regards to Article 181(3) of the 1992 Constitution …..
10. My Lords the Klomega case (supra) determined only the issue of
parliamentary approval with regards to international business transactions
or economic transactions as provided by Article 181(5) of the 1992
Constitution”
With due respect, not only is the reasoning behind Plaintiff’s above submissions
misguided, but it is also premised on a faulty understanding of Article 181(5) as well as
this Court’s decision in Klomega.
In the first place, it is not true that Article 181(5) deals only with international business
transactions. On the contrary it applies as much to international business transactions as
it applies to loan transactions. That understanding is very clear, free from any ambiguity,
from even a casual reading of Article 181(5).
Secondly, Plaintiff’s argument implies that the legislature intended to use the same words
in different ways in the same statute, without providing any clear indication of such intent.
This is unacceptable.
It is a fundamental rule of statutory interpretation that the same word or phrase be given
a single, consistent meaning throughout the statute, unless the context clearly indicates
Page 20 of 24
otherwise. That is the principle of harmony and uniformity, laid down in a plethora of
respectable authority including the famous views expressed by Acquah JSC in the case of
National Media Commission vrs Attorney-General, already cited above. The
Plaintiff’s argument in this case simply strikes a prodigious discord with the settled canon
of interpretation which requires that statutes be construed within their contextual
moorings and not otherwise
It must be noted that in these matters, there is hardly any room for implicit or implied
impositions. Where the Constitution intends to impose any limitations or impositions and
require Parliamentary approval as a condition precedent necessary for a public institution
or government agency, to raise any loans by itself, these must expressly be stated, unless
of course implicit restrictions can without any doubt be necessarily deduced from the
requisite laws.
In Kuenyehia and Others v Archer and Others [1993-94] 2 GLR 525 at page 605-
606 Bamford-Adddo JSC stated as follows:-
“The first principle of interpretation is to give words in a statute their
ordinary meaning; if this yields a reasonable result the matter ends
there, if not then one goes on to apply other cannons of statutory
interpretation.”
The Plaintiff has proceeded from a faulty legal premise as article 181 does not say
anything about borrowing by an autonomous public institution or authority borrowing by
and for itself.
It follows therefore that we would be endorsing a foundation that repudiates existing
binding precedent, should we accept the interpretation pressed on us by the Plaintiff in
this case, and construe Article 181(3) in a manner that requires all public institutions, just
like central government, to subject their borrowing powers to parliamentary control,
Page 21 of 24
scrutiny and oversight. Plaintiff is simply precluded by stare decisis from re-opening that
litigation. The weight of authority compels us to follow the well-trodden path of prior
decisions like the Klomega and Assibey Yeboah cases.
It is true that under article 129(3) the Supreme Court may depart from its previous
decision. However, this may be done, only when it appears right to do so. The arguments
by the plaintiff do not make it right for us to depart from Klomega and the cases that
followed it.
As succinctly explained by Adinyira JSC in the case of Abdulai Yusif Fanash
Muhammed v The Attorney-General [Unreported; Writ No. J1/2/2016; 3rd
March 2016; SC] :-
“Though by article 129(3) the Supreme Court may depart from its own
previous decision, the place for inviting the Court to do so is not by
invoking our original jurisdiction by simply clothing a relief as an
interpretation issue.”
If a party decides to bring a case concerning a provision of the Constitution, the party or
his lawyer ought to be diligent researching whether the Supreme Court has not already
interpreted the provision and to apply that provision to advise himself or his client. If the
party or his lawyer is aware that the provision has previously been interpreted by the
Supreme Court but he intends to argue for the court to depart from its previous decision,
then he must undertake diligent research and marshal concrete and persuasive
arguments before approaching the court. We do not find that the plaintiff in this case
who is a lawyer properly advised himself before mounting this action. Motivations of
advancing probity and accountability may be commendable but if they are to be pursued
through litigation then attention must be paid to the requirements of the law.
Page 22 of 24
CONCLUSION
The sum effect of our discussion of the case presented by the plaintiff is that section
10(15) of Act 919 does not infringe article 181(3) of the Constitution. The whole of the
plaintiff’s case is mounted on a misreading and strained interpretation of the provisions
of article 181 of the Constitution. In conclusion therefore, for the reasons explained
above, the Plaintiff has failed to successfully make out a valid case. We accordingly
dismiss his relief (ii), having earlier struck out the other reliefs. The Plaintiff’s action fails
in its entirety and is dismissed.
SGD Y. DARKO ASARE
(JUSTICE OF THE SUPREME COURT)
SGD G. SACKEY TORKORNOO (MRS.)
(CHIEF JUSTICE)
SGD G. PWAMANG
(JUSTICE OF THE SUPREME COURT)
SGD PROF. H.J.A.N. MENSA-BONSU (MRS.)
(JUSTICE OF THE SUPREME COURT)
Page 23 of 24
SGD S. K. A. ASIEDU
(JUSTICE OF THE SUPREME COURT)
SGD E. Y. GAEWU
(JUSTICE OF THE SUPREME COURT)
SGD R. ADJEI-FRIMPONG
(JUSTICE OF THE SUPREME COURT)
COUNSEL
ELIKPLIM L. AGBEMAVA ESQ. APPEARS IN PERSON FOR THE PLAINTIFF.
GRACE OPPONG (MS.) (PRINCIPAL STATE ATTORNEY) FOR THE DEFENDANT.
Page 24 of 24
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