The Court of Appeal today, Monday, June 22, 2020, dismissed an appeal by the Bank of Ghana (BoG), which challenged the jurisdiction of the High Court hearing the suit filed by GN Savings and Loans over the revocation of the latter’s license.
The BoG had argued that the High Court had no jurisdiction to hear the complaint challenging the revocation of GN Savings and Loans’ license, insisting that the only lawful forum for resolving the issue is the Ghana Arbitration Centre.
However, the High Court dismissed its application in December 2019; compelling the BoG to seek redress at the Court of Appeal.
Ruling on BoG’s appeal today, the Court of Appeal unanimously dismissed the application and directed the apex bank to go back to the High Court and justify the revocation of the license of GN Savings.
Lawyer for GN Savings, Justice Srem-Sai, expressed concern about BoG’s legal gymnastics, which he says are all aimed at stalling the case and thereby perverting the course of justice.
The application against the High Court was made in the ongoing case by Dr. Papa Kwesi Ndoum and some shareholders of GN Savings and Loans challenging the decision of the BoG to revoke their operating license.
In his statement of claim, Dr. Nduom insisted that GN Savings and Loans was in good standing despite being declared insolvent by the central bank.
He insists that most of the company’s funds had been invested in government projects as loans and advances to contractors who government through its ministries and agencies had hired to execute various projects.
According to Dr. Nduom, the government and state agencies, as of August 14, 2018, owed the company over GHS 600 million.
