GN Savings and Loans shareholders have in a written address filed on their behalf by their lawyers, prayed an Accra High Court to order the central bank, the Bank of Ghana (BoG) to restore their specialised deposit-taking licence.
“These actions were taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent”, the revocation notice stated.
But Justice Srem-Sai, counsel for the shareholders, said the BoG failed to take the total indebtedness of the government to Groupe Nduom into account in its evaluation of GN Savings’ books.
“BoG had failed to take into account the relevant factors that it ought to”, the lawyers argued in their address which was filed on April 14, 2020.
They also argued that the BoG “has come to a conclusion which no reasonable person who is seized with all the relevant facts would have come to.”
Affidavit in support
In his affidavit filed on August 30, 2019, Dr Nduom on his part told the High Court that the government and its ministries, department and agencies owed the GN Savings more than GH¢ 600 million and not the GH¢ 30.3 million that the BoG stated in the revocation notice.
“The Bank of Ghana and the Minister of Finance deliberately diminished or distorted the total indebtedness of the government and its MDAs to the Groupe Nduom so as to enable the Bank of Ghana to revoke GN Savings’ licence”, Dr Nduom stated in his affidavit to the Court.
Meanwhile, an applicant by the lawyers for the Bank of Ghana and the Attorney-General to have the case referred to compulsory arbitration was dismissed by the Court in December 2019.
A further application by Bank of Ghana’s lawyers to have the case stayed pending an appeal they had filed in the Court of Appeal was also dismissed as having “failed to satisfy the Court of such special circumstances warranting a stay”.