The Court of Appeal has ordered the Bank of Ghana to reinstate GN Savings and Loans’ operating licence, thereby overturning a High Court ruling that had upheld its revocation.
Accordingly, the three-judge panel ordered the bank to return its assets to the original owners and to reinstate the company’s previous leadership.
This decision, in turn, resolves a long-standing dispute between GN Savings and Loans and the central bank, which dates back to the 2018 banking sector clean-up.
Previously, the High Court had dismissed claims that the Bank of Ghana acted illegally or unfairly, ruling that its intervention complied with Article 130 of the 1992 Constitution.
BACKGROUND
GN Savings and Loans was reclassified as a savings and loans company on January 4, 2019, and later renamed GN Savings and Loans Company Limited.
Seven months later, on August 16, 2019, the Bank of Ghana, under former governor Ernest Addison, revoked the company’s licence and appointed Eric Nana Nipah as receiver.
The company’s owners, led by Papa Kwesi Nduom, challenged the revocation in the High Court, calling it unlawful, malicious, and unreasonable. However, in a January 24, 2024 ruling, Justice Gifty Addo Adjei upheld the central bank’s action, citing governance deficiencies and the company’s inability to meet its debt obligations.
