Ghana: Court Upholds Central Bank’s License Revocation of GN Savings and Loans

The Human Rights Division of the Accra High Court has ruled against 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 dismissed the application, asserting that the Central Bank was within its legal rights to revoke the license due to the company’s inability to meet debt obligations stemming from poor governance structures.

Dr. Nduom had sought the court’s intervention, claiming a violation of his fundamental human rights in the license revocation by BoG. Despite the dismissal, the applicants have expressed their intent to appeal the decision.

Justice Gifty Addo Adjei, presiding over the case, emphasized that the Central Bank’s decision to revoke the license was justified as the third respondent (GN Savings and Loans) was financially insolvent. The court rejected the argument that matters of banking revocation should go for arbitration, stating that the jurisdiction of the High Court had been correctly invoked.

Dr. Justice Srem Sai, counsel for Dr. Nduom, contended that the BoG’s actions, including the involvement of the receiver of savings and loans companies, constituted a violation of human rights. However, the court sided with the Central Bank and the Attorney General, asserting that the revocation was neither unreasonable nor malicious.

The court’s verdict highlighted that the Central Bank’s intervention was in line with Article 130 of the 1992 Constitution, and no illegality occurred in revoking the license due to insolvency. Addressing concerns of discrimination, the court concluded that the applicants were not singled out, as other entities faced similar consequences.

While the applicants argued about their outstanding debts owed by the government, the court maintained that the BoG’s decision was reasonable given the circumstances. The court awarded a cost of GH₵50,000 in favor of all respondents, underscoring the validity of the Central Bank’s actions in the face of financial challenges.