BoG revoked license of GN Bank legally-Court

The Human Rights Division of the Accra High Court has dismissed an application filed by Dr. Papa Kwesi Nduom, GN Saving and Loans Company, and others, for the violation of fundamental human rights.

Dr. Nduom sought to challenge the Bank of Ghana’s (BoG) decision to revoke the license of GN Savings and Loans, claiming it violated his fundamental human rights.

The court, presided over by Justice Gifty Addo Adjei, delivered the judgment, affirming that the Central Bank was justified in revoking the license of GN Savings and Loans.

The decision was based on the apparent inability of the institution to meet its debt obligations due to poor governance structures.

Initially, lawyers for the BoG raised a legal objection, asserting that the High Court’s jurisdiction was wrongly invoked.
Dr. Justice Srem Sai, Counsel for Dr. Nduom, argued that the BoG’s actions were a clear violation of human rights, a stance opposed vehemently by Justice Srem Sai.

The court held that the applicants failed to demonstrate the solvency of GN Savings and Loans at the time of license revocation.

It deemed claims of unreasonableness, malice, and violation of existing laws unfounded.

Addressing the violation of administrative justice, the court maintained that the Central Bank’s intervention was in accordance with the provisions of Article 130 of the 1992 Constitution.

It stated that no illegality occurred in the face of insolvency.

Regarding discrimination, the court concluded that the applicants were not unfairly treated, as other entities faced similar outcomes.

The complaints were deemed unfounded and without merit.

While the applicants maintained their right to appeal, the court awarded a cost of GH₵50,000 in favor of all the respondents.

The decision underscores the court’s affirmation of the BoG’s reasonable and fair decision in addressing the liquidity challenge and upholding fundamental principles.