The Court of Appeal of Ghana has restored the operating licence of GN Savings and Loans Company Limited, overturning the decision by the Bank of Ghana to revoke the company’s licence during the country’s banking sector clean-up exercise.
In a unanimous ruling delivered by a three-member panel, the court held that the revocation of the company’s licence was unfair and unreasonable.
The judgment also overturned an earlier High Court decision that had upheld the central bank’s action.
As part of the ruling, the Court of Appeal directed the Receiver to immediately return possession, management and control of the company’s assets and operations to its shareholders.
The dispute dates back to January 2019 when GN Bank was downgraded and reclassified as GN Savings and Loans Company Limited.
Seven months later, on August 16, 2019, the Bank of Ghana, under former Governor Ernest Addison, revoked the company’s licence as part of the financial sector reform programme and appointed Eric Nana Nipah as Receiver.
Groupe Nduom, led by businessman Papa Kwesi Nduom, subsequently challenged the decision at the High Court in Accra later in 2019.
However, in January 2024, the High Court ruled in favour of the Bank of Ghana and upheld the revocation.
That decision has now been overturned by the Court of Appeal in what observers describe as a major legal victory for Dr. Nduom and Groupe Nduom.
The latest judgment is expected to reignite public debate over the legality and fairness of Ghana’s banking sector clean-up exercise, which resulted in the closure of several banks and financial institutions.
