The Court of Appeal has unanimously restored the operating licence of GN Savings and Loans Company Limited, overturning both the Bank of Ghana’s revocation decision and a previous High Court ruling that upheld it.
In a landmark judgment delivered by a three-member panel, the court ruled that the revocation of the company’s licence was unfair and unreasonable.
The ruling effectively quashes the decision by the Bank of Ghana to shut down the financial institution during the controversial banking sector clean-up exercise.
The court further directed the Receiver to immediately hand over possession, management and control of the company’s assets and operations back to its shareholders.
The case dates back to January 4, 2019, when GN Bank Limited was downgraded and reclassified as a savings and loans company under the name GN Savings and Loans Company Limited.
Just seven months later, on August 16, 2019, the Bank of Ghana, under then Governor Dr Ernest Addison, revoked the company’s licence and appointed Eric Nana Nipah as Receiver as part of the financial sector clean-up.
That same month, Groupe Nduom, led by businessman Dr Papa Kwesi Nduom, challenged the revocation at the High Court in Accra.
However, on January 24, 2024, the High Court upheld the Bank of Ghana’s decision — a ruling that has now been overturned by the Court of Appeal.
The latest judgment marks a major legal victory for Dr Nduom and Groupe Nduom and is expected to reignite debate over the fairness and legality of Ghana’s banking sector clean-up exercise.
