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BoG’s appeal in GN Savings & Loans case dismissed; ordered to justify license revocation

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.

In October 2019, BoG and the Attorney-General raised a preliminary legal objection to the case brought by the Dr. Papa Kwesi Nduom and two other shareholders of GN Savings and Loans Limited.

In the objection, the BoG and the Attorney-General argued that the High Court has no jurisdiction to hear the complaint which is challenging the revocation of GN Saving’ licence.

According to the Attorney-General and the Bank of Ghana’s lawyers, the only lawful forum for resolving the Applicants’ concerns is the Ghana Arbitration Centre.

This argument was opposed by Mr. Srem-Sai. In December 2019, the Presiding High Court judge, Justice Gifty Adjei-Addo, dismissed the legal objection as frivolous and without merit. She then ordered the BoG, the Attorney-General and the Receiver of GN Savings to file their defences by January 17, 2020.

The BoG and the Attorney-General failed to file their defence on January 17, 2020 as directed by the court. Rather, BoG appealed the High Court’s decision.

It also filed an application at the High Court for a stay of the High Court’s proceedings pending the determination of the appeal.

Fed up with the delays and evasiveness of the Bank of Ghana’s lawyers, the High Court Registrar wrote to the Court of Appeal Registrar and recommended that the Court of Appeal should strike out the entire appeal for abuse of the court process.

According to Dr. Nduom, the government and state agencies, as of August 14, 2018, owed the company over GHS 600 million.

Source:Fiilafmonline/CitiNews

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