The Court of Appeal has by a unanimous decision granted the Bank of Ghana’s application for stay of proceedings in the GN Savings and Loans case in the High Court (Human Rights Division).
All three Justices’ decision is pending the determination of the central bank’s appeal at the Court of Appeal against the decision of the High Court to hear the case brought by shareholders of GN Savings and Loans.
The effect of the Court of Appeal’s ruling today is that the proceedings filed at the High Court by shareholders of GN are for now suspended. The Chairman of Groupe Nduom, Dr. Papa Kwesi Nduom, sued the BoG and two others over the revocation of the license of GN Savings and Loans Company Limited.
The suit, which was filed jointly by Coconut Grove Beach Resort and Conference Centre Limited and Groupe Nduom (GN) Limited, is challenging the decision of the central bank to declare GN Savings and Loans Company insolvent leading to the revocation of its operating license.
The suit is challenging the issue of insolvency claim by the BoG, saying contrary to the central bank’s claims, a fair, truthful, just and independent assessment of GN Savings and Loans’ books would show it was very solvent “and particularly, that the value of Gold Coast’s government infrastructure project portfolio, running in excess of ¢2.2 billion in addition to other assets available to Groupe Nduom, could support the GN Savings and Loans to far exceed the value of its liabilities.”
Among the reliefs being sought by the plaintiff include a declaration that by failing to take into account the indebtedness of the government of Ghana and its MDAs to Groupe Nduom, Gold Coast Advisors Limited or GN Bank, before concluding that the savings and loans company was insolvent and, consequently, revoking its specialized deposit-taking license, violates their rights.
They also want an order of certiorari, quashing the decision in the notice issued by BoG which declared GN Savings and Loans Company insolvent and, consequently, revoked its license to operate as a specialized deposit-taking institution.
Again, the suit is seeking an order on BoG to restore to the company its license to enable it to continue operating as a specialized deposit-taking institution.
It also wants an order on the receiver of the company “to submit the possession, management or control of the assets, operations and other activities of the company to its shareholders or persons who, immediately before August 16, 2019, were in possession, management or control of such assets, operations and activities.”