Bank of Ghana has 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 cited by SweetFM Online, the central bank is asking the Supreme Court to set aside the appellate court’s judgment, arguing that significant legal errors were made in the handling of the case involving Dr. Papa Kwesi Nduom, Coconut Grove Beach Resort and Group Nduom Limited.
The latest development marks another major chapter in the long-running legal dispute arising from Ghana’s financial sector clean-up exercise initiated in 2019.
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 the applicants.
The central bank also contended that Dr. Nduom and the associated companies failed to comply with provisions under the Court’s Rules, 1997 (CI 19, as amended), which require appellants to clearly state particulars of alleged legal errors in a notice of appeal.
The Bank of Ghana further challenged the appellate court’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 filing, the central bank identified several “particulars of error in law” which it believes justify reversing the Court of Appeal decision and restoring the earlier High Court ruling that dismissed the suit brought by Groupe Nduom and its chairman.
The appeal follows indications earlier this week that the central bank was consulting its external lawyers and the receiver of the defunct institution before deciding on its next legal step.
Court of Appeal Ordered Licence Restoration
The Court of Appeal, in a unanimous decision delivered by Justice Jerome Noble Nkrumah, alongside Justice Francis Achibonga and Justice Mariama Sammo, ordered the restoration of GN Savings and Loans’ licence.
The ruling overturned a High Court judgment that had upheld the Bank of Ghana’s revocation of the company’s licence during the banking sector reforms.
The appellate court also directed receiver Eric Nana Nipah to return possession, management and control of the company’s assets and operations to Groupe Nduom.
GN Bank Limited was reclassified as a savings and loans company on January 4, 2019, and renamed GN Savings and Loans Company Limited.
However, on August 16, 2019, the Bank of Ghana revoked its licence and appointed a receiver as part of the country’s financial sector clean-up exercise aimed at stabilising the banking industry.
The move triggered legal action by Groupe Nduom, which challenged the decision in court, arguing that the revocation was unlawful.
The Supreme Court’s eventual decision is expected to have significant implications for Ghana’s financial sector regulation, administrative law and the ongoing fallout from the banking sector reforms.
