The Bank of Ghana (BoG) has filed an appeal at the Supreme Court challenging the Court of Appeal’s ruling ordering the restoration of the licence of GN Savings and Loans Company Limited.
According to court documents, the central bank is asking the Supreme Court to overturn the Court of Appeal’s judgment and reinstate the earlier High Court ruling that dismissed the case brought by Groupe Nduom and its chairman, Dr Papa Kwesi Nduom.
In its application, the Bank of Ghana argued that the Court of Appeal erred in law by proceeding to hear and determine the appeal filed by Dr Papa Kwesi Nduom, Coconut Grove Beach Resort, and Group Nduom Limited.
The central bank further contended that the appellants failed to comply with mandatory provisions under the Court Rules, 1997 (CI 19, as amended), which require that particulars of alleged errors of law be clearly stated in a notice of appeal.
The Bank of Ghana also raised concerns about the Court of Appeal’s position that it should have considered the report of an advisor appointed before revoking the licence of GN Savings and Loans.
According to the application, the central bank outlined several “particulars of error in law,” which it believes justify the reversal of the appellate court’s decision.
Through the appeal, the BoG is seeking to restore the High Court judgment that upheld the revocation of the financial institution’s licence.
Earlier this week, the Bank of Ghana indicated that it was awaiting legal advice from its external lawyers and the receiver of the defunct institution before deciding on its next course of action.
However, information gathered by JOY BUSINESS suggests that the central bank has now acted on the advice of its legal team by formally challenging the ruling at the Supreme Court.
Court of Appeal Decision
The Court of Appeal, in a unanimous decision delivered by a panel comprising Justice Jerome Noble Nkrumah, Justice Francis Achibonga, and Justice Mariama Sammo, ordered the restoration of the licence of GN Savings and Loans Company Limited.
The court also overturned the High Court’s earlier decision which had upheld the Bank of Ghana’s revocation of the company’s licence.
Additionally, the appellate court directed the receiver, Eric Nana Nipah, to return possession, management, and control of the company’s assets and operations to its shareholders under Groupe Nduom.
GN Bank Limited was reclassified as a savings and loans company on January 4, 2019, and subsequently renamed GN Savings and Loans Company Limited.
On August 16, 2019, the Bank of Ghana revoked its licence and appointed a receiver as part of the financial sector clean-up exercise, a move that triggered legal action by Groupe Nduom challenging the decision in court.
