An Accra high court has ordered the Bank of Ghana, the Attorney General and the receiver of GN Savings and Loans company to file their response within ten days in a lawsuit challenging the revocation of the licence for GN Savings and Loans.
The court gave the order after the three defendants in the matter failed to file responses as required by court procedures on 16 April.
Licence revoked
On 16 August 2019 the Bank of Ghana (BoG) revoked licences to trade as specialised deposit-taking institutions held by over 20 savings and loans companies. They included GN Savings and Loans.
At the time, the BoG said the decision was necessary because GN Savings and Loans was insolvent.
In response, the chairman of Groupe Nduom, Dr Papa Kwesi Nduom, sued the Bank of Ghana, the Minister for Finance, Ken Ofori-Atta, the Attorney General, Gloria Akuffo, and the receiver for GN Savings and Loans, Eric Nana Nipah, on 30 August 2019.
Nduom’s claim
In his statement of claim, Dr Nduom insisted that GN Savings and Loans was solvent despite the central bank’s claim of insolvency.
His statement of claim also alleged that the government infrastructure project portfolio with the company was in excess of GHC2.2 billion, more than the company’s liabilities.
He added that the company had invested most of its resources in government projects in the form of loans and advances to contractors. The government, through its ministries and agencies, had hired these same contractors to execute various projects, Dr Nduom said.
Violation of rights?
According to Dr Nduom, as of 14 August 2018 the state and allied agencies owed GN Savings and Loans over GHC600 million.
He argued further that the BoG and other parties failed to consider the government’s indebtedness to the company in making a determination on GN’s solvency and that constitutes a violation of rights.
Dr Nduom prayed the court to rule that the BoG’s failure to consider the Government of Ghana and its MDAs’ indebtedness to Groupe Nduom before declaring the company as insolvent constitutes a violation of his rights as well as those of Groupe Nduom and Coconut Grove Resort.
Atsu Boye
* Asaase Radio 99.5 FM. Coming to a dial near you.
* Twitter: @AsaaseRadio
