The Court of Appeal in Accra will today hear a case in which Group Nduom (GN) is challenging the revocation of its GN Savings and Loans licence by the Bank of Ghana (BoG) in 2024. GN alleges that the revocation was malicious, unreasonable, and violated existing laws.
On January 4, 2019, GN Bank Limited was reclassified as a savings and loans company and renamed GN Savings and Loans Company Limited.
Seven months later, on August 16, 2019, under the leadership of Dr Ernest Addison, the BoG revoked the company's operating licence and appointed Mr Eric Nana Nipah as Receiver. GN claims that this was part of the "so-called banking sector clean-up exercises" initiated by former Finance Minister, Ken Ofori-Atta, in 2018.
On August 30, 2019, the owners of GN Savings and Loans, led by Dr Papa Kwesi Nduom, challenged the revocation in the High Court, Accra.
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On January 24, 2024, the High Court, presided over by Justice Gifty Addo Adjei, ruled in favour of the BoG, upholding the legality of the licence revocation.
The court cited governance deficiencies that left GN Savings and Loans unable to meet its debt obligations. Justice Addo Adjei held that GN had failed to prove solvency at the time of revocation. Allegations of unreasonableness, malice, and legal violations were deemed unfounded.
On administrative justice, the court noted that BoG's intervention was supported under Article 130 of the 1992 Constitution, and no illegality occurred despite insolvency.
Regarding discrimination, the court ruled that the applicants were not unfairly treated, as other institutions faced similar outcomes.
Despite the ruling, GN maintained its intent to appeal.
The court also awarded GH¢50,000 in costs to all respondents, highlighting the BoG's reasonable and fair handling of the liquidity crisis while upholding fundamental legal principles.
BoG lawyers argued that the High Court lacked jurisdiction, while Dr Justice Srem Sai, representing Dr Nduom, contended that the Bank's actions violated human rights--a claim strongly opposed in court.
