In a recent ruling, the Human Rights Division of the Accra High Court dismissed an application filed by Dr. Papa Kwesi Nduom, GN Saving and Loans Company, and others, challenging the revocation of GN Savings and Loans’ license by the Bank of Ghana (BoG).
The court, presided over by Justice Gifty Addo Adjei, upheld the legality of the Central Bank’s decision, emphasizing the institution’s right to revoke the license due to governance deficiencies that rendered GN Savings and Loans unable to meet its debt obligations.
The courtroom drama initially saw lawyers for the BoG raising a legal objection, claiming that the High Court’s jurisdiction had been wrongly invoked. Dr. Justice Srem Sai, representing Dr. Nduom, argued passionately that the BoG’s actions constituted a clear violation of human rights, a stance that faced vehement opposition.
The court, in its judgment, highlighted the failure of the applicants to establish the solvency of GN Savings and Loans at the time of license revocation. Claims of unreasonableness, malice, and violation of existing laws were deemed unfounded by Justice Addo Adjei.
Addressing the alleged violation of administrative justice, the court maintained that the Central Bank’s intervention was by the provisions of Article 130 of the 1992 Constitution. It emphasized that no illegality occurred in the face of insolvency.
On the issue of discrimination, the court concluded that the applicants were not unfairly treated, pointing out that other entities faced similar outcomes. The complaints were labeled as unfounded and without merit.
Despite the setback, the applicants maintained their intent to appeal the decision. However, the court, in a notable move, awarded a cost of GH₵50,000 in favor of all the respondents, emphasizing the validity of the BoG’s reasonable and fair decision in addressing the liquidity challenge while upholding fundamental principles.
This ruling marks a significant legal development, providing clarity on the Central Bank’s authority to make decisions in the interest of financial stability. The court’s decision reaffirms the BoG’s actions as legally sound and underscores the importance of sound governance structures within financial institutions. As the legal battle continues with the potential for an appeal, the financial landscape awaits further developments in this high-profile case.
