Akufo-Addo signs bill prohibiting compound interest payments by the state

Ghanaian

President Akufo-Addo has given his assent to the Contracts (Amendment) Act, 2023 (Act 1114), a bill approved by Parliament that prohibits the payment of compound interest by the state in transactions entered into on her behalf by public officers.

Sponsored by the Attorney-General and Minister for Justice, Godfred Yeboah Dame, the law aims to address the tendency of public

Read full articleofficers to enter into contracts with high rates of compound interest, which has led to significant financial losses for the state.

The Contracts (Amendment) Act, 2023 was passed by Parliament in July 2023 but was only presented to the President for assent on March 5, 2024.

President Akufo-Addo assented to it on March 8, 2024. The Attorney-General noted that many large claims against the state were due to the accumulation of compound interest, often levied and awarded by the courts.

This amendment now prohibits public officers from entering into contracts on behalf of the state that stipulate compound interest rates.

In addition to the Contracts (Amendment) Act, the Attorney-General has also laid a Bill in Parliament known as the Criminal and Other Offences (Procedure) (Amendment) Bill.

Approved by Cabinet on February 2, 2024, this bill aims to reform the criminal procedure laws of the country to expedite the adjudication of criminal cases.

Proposed reforms include abolishing trials on indictment except for offences punishable by death, allowing trials to proceed in the absence of the accused, and providing for day-to-day trials of criminal cases.

The Criminal and Other Offences (Procedure) (Amendment) Bill also aims to reform the jury trial system by reducing exemptions from jury service, changing the composition of the jury, and allowing examination of witnesses by video conferencing.

The Attorney-General believes that these measures will modernize criminal justice administration in the country and align it with practices in more advanced democracies. He has called on the public, the legal profession, and all stakeholders in the administration of justice to support the swift passage of the bill into law by Parliament.