BoG appeals GN Savings and Loans judgement on license restoration

The Bank of Ghana has officially filed an appeal at the Supreme Court of Ghana seeking to overturn the recent Court of Appeal ruling that ordered the restoration of the licence of GN Savings and Loans Company Limited.

According to court documents sighted by JOY BUSINESS, the central bank is asking the Supreme Court to set aside the judgment delivered by the Court of Appeal, arguing that the appellate court committed several errors in law in handling the case.

In its application, the Bank of Ghana contends that the Court of Appeal erred when it proceeded to hear and determine the appeal filed by Papa Kwesi Nduom, Coconut Grove Beach Resort, and Groupe Nduom.

The central bank argues that the appellants failed to comply with mandatory provisions under the Court’s Rules, 1997 (CI 19, as amended), which require that particulars of alleged errors of law be clearly stated in a notice of appeal.

According to the BoG, this procedural issue should have prevented the appeal from proceeding.

The Bank of Ghana also raised concerns about the Court of Appeal’s conclusion that the central bank failed to adequately consider the report of an advisor it appointed before revoking the licence of GN Savings and Loans.

The application outlines several issues described as “particulars of error in law,” which the central bank believes justify overturning the appellate court’s decision.

The BoG is therefore seeking an order from the Supreme Court restoring the earlier High Court judgment that dismissed the legal challenge brought by Groupe Nduom and Dr. Nduom.

Earlier this week, the Bank of Ghana indicated that it was awaiting legal advice from its external lawyers and the Receiver of the defunct financial institution before deciding on its next course of action.

However, developments now confirm that the central bank has acted on legal advice from its external counsel by escalating the matter to the Supreme Court.

The Receiver’s input was also expected to focus on the broader implications the Court of Appeal ruling could have on Ghana’s financial sector clean-up exercise and other previously revoked licences.

The legal dispute intensified after the Court of Appeal, in a unanimous decision presided over by Justice Jerome Noble Nkrumah alongside Justice Francis Achibonga and Justice Mariama Sammo, ordered the restoration of GN Savings and Loans’ licence.

The appellate court quashed the earlier High Court ruling that upheld the Bank of Ghana’s revocation of the company’s licence.

The court also directed Receiver Eric Nana Nipah to hand over possession, management, and control of the company’s assets and operations to its shareholders under Groupe Nduom.

On January 4, 2019, GN Bank Limited was reclassified as a savings and loans company and renamed GN Savings and Loans Company Limited.

Later, on August 16, 2019, the Bank of Ghana revoked the company’s licence and appointed a receiver as part of Ghana’s broader financial sector clean-up exercise.

The revocation subsequently triggered years of legal battles between the central bank and Groupe Nduom over the legality of the decision.

The Supreme Court’s eventual ruling is expected to carry major implications for Ghana’s banking sector reforms and the legal framework surrounding financial sector regulation.