The Court of Appeal in Accra yesterday ordered the Bank of Ghana to restore the license of GN Savings and Loans Company Limited, nearly six years after it was revoked during the banking sector clean-up exercise.
The company, owned by Papa Kwesi Nduom, had consistently argued that the revocation of its licence was unlawful, unreasonable and malicious.
GN Savings and Loans was among several financial institutions affected by the banking sector reforms introduced in 2018.
Court records indicated that on January 4, 2019, GN Bank was downgraded from a universal bank to a savings and loans company and renamed GN Savings and Loans Company Limited.
However, on August 16, 2019, the BoG, then under the leadership of Ernest Addison, revoked the company’s licence and appointed Eric Nana Nipah as receiver.
The company subsequently challenged the decision at the High Court in Accra on August 30, 2019.
On January 24, 2024, Justice Gifty Addo Adjei upheld the BoG’s decision, ruling that governance deficiencies had rendered the company incapable of meeting its obligations.
The court dismissed allegations of malice and illegality, holding that the applicants failed to establish the company’s solvency at the time of the revocation.
It further ruled that the central bank acted within its constitutional mandate and awarded GH¢50,000 costs against the applicants.
Dissatisfied with the ruling, the company filed an appeal on January 29, 2024.
Yesterday’s ruling by the Court of Appeal is expected to renew public debate over the banking sector clean-up and its impact on affected institutions and customers.
By Malik Sullemana
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