The Bank of Ghana has taken a new legal step in the long-running dispute over the status of GN Savings and Loans Company Limited, filing an appeal at the Supreme Court against a Court of Appeal decision that ordered the restoration of the company’s operating license.
In its application to the Supreme Court, the Bank of Ghana is seeking to set aside the Court of Appeal’s judgment in its entirety. The Central Bank argues that the appellate court erred in law by proceeding to hear and determine the appeal filed by Dr. Papa Kwesi Nduom, Coconut Grove Beach Resort, and Group Nduom Limited.
According to the Bank of Ghana, the appeal before the Court of Appeal did not comply with mandatory procedural requirements under the Court of Appeal Rules, 1997 (CI 19, as amended).
It contends that the applicants failed to clearly state particulars of the alleged error of law in their notice of appeal, making the proceedings procedurally defective.
The Bank also argues that the Court of Appeal failed to properly consider the report of an advisor appointed by the central bank before the decision to revoke the license was taken. It maintains that this omission affected the legality and fairness of the judgment delivered by the appellate court.
Legal Grounds Cited by the Central Bank
The application filed at the Supreme Court outlines several issues described by the Bank of Ghana as “particulars of error in law.” These, according to the Bank, strengthen its argument that the Court of Appeal’s ruling should be set aside.
The Central Bank is therefore requesting the Supreme Court to allow its appeal against the earlier High Court decision that had dismissed the case brought by Groupe Nduom and Dr. Papa Kwesi Nduom.
If granted, this would effectively restore the High Court judgment and validate the Bank of Ghana’s original decision to revoke the license. The dispute raises critical legal questions about compliance with appellate procedure rules, the weight of advisory reports in regulatory decisions, and the scope of judicial review in financial sector governance.
The case stems from the financial sector clean up exercise in 2019, during which GN Bank Limited was first reclassified as a savings and loans institution and renamed GN Savings and Loans Company Limited.
On August 16, 2019, the Bank of Ghana revoked the company’s license and appointed a receiver, triggering litigation by Groupe Nduom and its leadership challenging the decision in court. The Court of Appeal delivered a unanimous ruling ordering the restoration of the license of GN Savings and Loans Company Limited.
The panel, presided over by Justice Jerome Noble Nkrumah, with Justices Francis Achibonga and Mariama Sammo, set aside the High Court decision which had earlier upheld the Bank of Ghana’s revocation of the license.
The court further directed the Receiver, Eric Nana Nipah, to return control, management, and possession of the company’s assets and operations to its shareholders under Groupe Nduom. The ruling effectively reinstated the company’s legal standing pending further action.
Reactions and Subsequent Developments
Earlier statements from the Bank of Ghana indicated that it was awaiting legal advice from its external counsel and the Receiver of the defunct institution before deciding on its next steps.
However, available information indicates that the Bank has now proceeded with the advice of its external lawyers and formally filed the appeal at the Supreme Court.
Following the Court of Appeal ruling, the President of Groupe Nduom Ghana, Dr Nana Kweku Nduom, expressed hope that the Bank of Ghana would not challenge the decision further.
He also expressed appreciation to President John Dramani Mahama, stating that conditions were improving for local businesses to operate effectively.
Separately, the Founder and Chairman of Groupe Ndoum, Dr Papa Kwesi Nduom, welcomed the appellate court’s decision and referenced President Mahama’s 2024 campaign commitments regarding the restoration of licenses of financial institutions that were unjustifiably affected by the banking sector clean-up.
The Supreme Court is now expected to determine whether the Court of Appeal’s decision restoring the license of GN Savings and Loans Company Limited should stand or be overturned.
The outcome will have significant implications for the parties involved and for broader questions surrounding regulatory authority and judicial oversight in Ghana’s financial sector.
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