Debt Exchange: Lawyer Kpebu to lead class action against Government

Private Legal Practitioner, and a critique of the Akufo-Addo administration, Martin Kpebu, is leading about 200 individual investors to engage the government over the inclusion of individual bondholders in the debt exchange programme.

Kpebu noted that these investors do not want haircuts on their matured investments.

In an interview on Joy FM’s SMS on Monday, he said a class action lawsuit against the government would follow if negotiations fail.

A notice inviting affected individuals to join the class action suit described the government’s decision as “unconscionable”.

It said, “government cannot be allowed to use its might to impoverish Ghanaians.”

It would be recalled that days after the government announced the exclusion of pension funds in the debt exchange programme, it decided to include individual bondholders.

Individual investors were initially not part of the domestic debt restructuring. However, the exemption of pension funds from the programme triggered the inclusion of individual investors.

“…expanding the type of investors that can participate in the Exchange to now include Individual Investors”, a statement from the Finance Ministry indicated.

An amendment to the terms of the domestic exchange programme was then announced after individual investors were included.

Individual bondholders now have until January 16 to sign up for the debt exchange programme or be in default.

SOURCE: myjoyonline.com contributed to this story