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Dr Papa Kwesi Nduom
Dr Papa Kwesi Nduom

Court gives respondents in GN case 10 days to file defence

The Human Rights Division of the Accra High Court has given the receiver of the defunct GN Savings and Loans Limited 10 days to file his written submission in a case challenging the revocation of the licence of the financial institution by the Bank of Ghana (BoG).

The court further ordered the two respondents - the BoG and the Attorney-General (A-G), who had no legal representation in court, to also file their respective written submissions 10 days after they had been served with the court notes.

Dr Papa Kwesi Nduom, the founder of GN Savings and Loans Limited, and two entities affiliated to him – the Coconut Grove Beach Resort and Groupe Nduom — are in court challenging the revocation of the licence of GN Savings by the BoG on August 16, 2019.

The businessman is praying the court to restore GN Savings and Loans with an argument that the revocation was without any proper justification and is a violation of his right to administrative justice, property and equality or non-discrimination.

Written submissions

At the last hearing on March 26, 2020, the court, presided over by Justice Gifty Agyei Addo, ordered the parties to file their respective written submissions within 18 days.

Lawyers for Dr Nduom filed their written submissions on April 8, 2020.

At the hearing on Wednesday, April 22, lawyers for the receiver pleaded with the court to give them more time to file the written submission. The court granted the request and gave them 10 more days to file the submission.

Hearing continues on May 11, 2020. The court is expected to fix a date for its judgement on that day.

Revocation of licences

On August 16, 2019, the BoG revoked the licences of GN Savings and Loans and 22 other savings and loans and finance houses which the central bank declared as insolvent.

According to the BoG, GN Savings and Loans, despite its reclassification from a universal bank to a savings and loans company in January 2019, was unable to resolve its liquidity issues.

Suit

The applicants, on August 30, 2019, filed a suit challenging the decision of the BoG to revoke the licence of GN Savings and Loans Company Limited.

The Coconut Grove Beach Resort and Conference Centre Limited, Groupe Nduom (GN) Limited and Dr Nduom are praying the Human Rights Division of the High Court to make an order of certiorari quashing the August 16, 2019 announcement declaring GN Savings and Loans Company Limited insolvent and consequently revoking its licence to operate as a specialised deposit-taking institution.

The applicants want a declaration that the licence revocation is invalid because the BoG based its decision to revoke the licence of GN Savings and Loans, as a specialised deposit-taking entity, on woeful inaccuracies.

They are also praying the court to hold that by the respondents’ failure to take into account the government’s indebtedness to Groupe Nduom, Gold Coast Advisors and GN Savings and Loans Limited, before concluding that GN Savings and Loans was insolvent, the BoG had violated, was violating or was likely to violate the rights of the applicants and GN Savings and Loans to administrative justice, property and equality or non-discrimination.

Writer’s email: [email protected]

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