Appeals Court orders BoG to restore GN Savings and Loan's licence after 7-year legal battle

• The Court of Appeal overturned the Bank of Ghana’s revocation of GN Savings and Loans’ licence and ordered the receiver to return control of assets and management to shareholders.

• Dr. Nduom said the court confirmed the Bank of Ghana’s decision was wrong and stressed that the next step is enforcing the judgment.

• After describing the past seven years as painful, involving job losses and destroyed assets, Nduom pledged to restore the business and make it “even better than the first time.”

The Court of Appeal has overturned the revocation of the operating licence of GN Savings and Loans Company Limited, marking a major legal victory for the financial institution and its shareholders.

In a unanimous decision, a three-member panel of of the second-highest court quashed the decision of the High Court, which had upheld the revocation of the company’s licence.

The Court of Appeal ruled that the decision to revoke the licence was unfair and unreasonable.

The appellate court further directed the receiver to hand over the company’s assets, management, and operational control back to its shareholders.

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The legal battle traces back to January 4, 2019, when GN Bank Limited was downgraded and reclassified as a savings and loans company, leading to its new identity as GN Savings and Loans Company Limited.

However, just seven months later, on August 16, 2019, the Bank of Ghana, under the leadership of Ernest Addison, revoked the company’s operating licence as part of the country’s banking sector clean-up exercise.

Following the revocation, Eric Nana Nipah was appointed as receiver to oversee the affairs of the company. That same month, the owners of the company, Groupe Nduom, led by businessman Papa Kwesi Nduom, challenged the decision in court, arguing against the central bank’s action.

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On January 24, 2024, the High Court in Accra, presided over by Justice Addo, ruled in favour of the licence revocation, affirming the decision by the Bank of Ghana.

Unhappy with the outcome, the company’s shareholders appealed the ruling. The Court of Appeal has now overturned that decision, effectively restoring the company’s licence and ending a legal battle that has lasted several years.

Reacting to the ruling, Dr Nduom described the period as painful and emotionally exhausting for the company, its workers, and affected stakeholders.

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He also expressed gratitude to God for sustaining them through what he described as an extremely difficult journey.

Dr Nduom revealed that the company would later hold a press conference to share more details about its experience following the licence revocation.

He further expressed optimism about Ghana’s current political environment, saying he believes the country is experiencing a “wind of change” that could support the company’s recovery and contribution to national development.

“We are expecting that with the licence restored, that we will now play our part in making sure that this country achieves the level of prosperity that it needs,” he noted.

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While acknowledging the damage caused by the closure — including job losses, destroyed assets, and even deaths — Dr Nduom pledged to rebuild the business stronger than before.

Some people have died. Some have lost their jobs. Assets have been destroyed. Many things will not get back. But what we promise is that we will restore this country. We will restore our business. And we will make certain that our second time is even better than the first time,” he said.

The counsel added that the immediate focus would now be on ensuring the court’s decision is enforced.