Nduom, others challenge BoG over GN Savings collapse
The Chairman of Groupe Nduom, Dr Papa Kwesi Nduom, and two others are challenging the decision of the Bank of Ghana (BoG) to collapse GN Savings and Loans Company Limited.
Together with the Coconut Grove Beach Resort and Conference Centre Limited and Groupe Nduom (GN) Limited, they 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.
They want the court to adjudge and declare that by failing to take into account that the indebtedness of the government of Ghana, its ministries, departments and agencies to Groupe Nduom Limited, Gold Coast Advisors and GN Savings and Loans Company Limited was GH¢30.3 million before revoking the licence of the GN Savings and Loans Company Limited, the BoG and the Minister of Finance violated, are violating or are likely to violate the rights of the applicants to administrative justice, to property and to equality or non-discrimination.
The application wants a declaration that the licence revocation was invalid because the BoG and the Minister of Finance based their decision to revoke the licence of GN Savings and Loans as a specialised deposit-taking entity on woeful inaccuracies.
The applicants 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 the 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, to property and to equality or non-discrimination.
Counsel for the applicants, Mr Justice Srem-Sai, filed the application at the registry of the High Court yesterday at 3 p.m.
The applicants, who attached the BoG, the Minister of Finance, the Attorney-General and the Receiver of GN Savings and Loans, Mr Eric Nana Nipah, are praying the court to make an order of mandamus to issue, compelling the BoG to restore to the GN Savings and Loans Company Limited its licence to enable it to continue operating as a specialised deposit-taking institution.
The applicants also want the court to order Mr Nipah to submit the possession, management or control of the assets, operations and other activities of GN Savings and Loans Company Ltd to its shareholders or persons who, immediately before August 16, 2019, were in possession, management or control of such assets, operations and activities.
An order of injunction restraining the other respondents, their agents, assigns, privies and workmen from interfering with the possession, management or control of the assets, operations and other activities of GN Savings and Loans Company Limited is also being sought.
An affidavit in support of the motion for the enforcement of the fundamental rights of the applicants, deposed to by Dr Nduom, said on August 16, 2019, the BoG through a public notice titled: “Notice of Revocation of Licences of Insolvent Savings and Loans Companies and Finance Houses, and Appointment of a Receiver” (hereinafter referred to as the “Revocation Notice”) did, on grounds of insolvency, revoke the specialised deposit-taking licence of GN Savings and Loans Company Limited alongside more than 20 other savings and loans and finance house companies.
On the issue of insolvency, the applicants are arguing that contrary to the BoG’s claims, a fair, truthful, just and independent assessment of GN Savings and Loans’ books would show it was very solvent “and particularly, that the value of Gold Coast’s government infrastructure project portfolio, running in excess of GH¢2.2 billion, in addition to other assets available to Groupe Nduom, could support the GN Savings and Loans to far exceed the value of its liabilities.
It said the books also showed that several government agencies owed the financial institution.
According to the affidavit in support of the motion, the circumstances surrounding the takeover of GN Savings and Loans Company Limited clearly showed the rights of the applicants had been violated.