An Accra High Court has given the Receiver of GN Savings and Loans Company Limited 10 days within which to file a response to a suit challenging Bank of Ghana’s revocation of the operating licence of GN Savings and Loans Company Limited.
The May 21, 2020 deadline was given after the Receiver failed to meet an earlier 10-day ultimatum given to him and two other defendants in the matter – Bank of Ghana (BoG) and the Attorney General (AG) – to file their response to the suit.
BoG and the AG’s Department have since filed their response, leaving the Receiver who is yet to follow the court’s order.
The Chairman of Groupe Nduom, Dr. Papa Kwesi Nduom, sued the BoG and two others over the revocation of the licence of GN Savings and Loans Company Limited.
The suit, which was filed jointly by Coconut Grove Beach Resort and Conference Centre Limited and Groupe Nduom (GN) Limited, is challenging the decision of the central bank to declare GN Savings and Loans Company insolvent leading to the revocation of its operating licence.
The suit is challenging the issue of insolvency claim by the BoG, saying contrary to the central bank’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.”
Among the reliefs being sought by the plaintiff include a declaration that by failing to take into account the indebtedness of the government of Ghana and its MDAs to Groupe Nduom, Gold Coast Advisors Limited or GN Bank, before concluding that the savings and loans company was insolvent and, consequently, revoking its specialized deposit-taking licence, violates their rights.
They also want an order of certiorari, quashing the decision in the notice issued by BoG which declared GN Savings and Loans Company insolvent and, consequently, revoked its licence to operate as a specialized deposit-taking institution.
Again, the suit is seeking an order on BoG to restore to the company its licence to enable it to continue operating as a specialized deposit-taking institution.
It also wants an order on the receiver of the company “to submit the possession, management or control of the assets, operations and other activities of the company to its shareholders or persons who, immediately before August 16, 2019, were in possession, management or control of such assets, operations and activities.”
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