GN Bank's action challenging its revocation fails at High Court

The High Court (Human Rights Division) has okayed the Bank of Ghana’s revocation of the operating license of GN Savings and Loans.

The court held that the Bank of Ghana could not be faulted for the move because it was a reasonable step taken to protect the public interest.

Following the revocation of the GN savings and Loans license by the Bank of Ghana through the financial sector clean-up, Dr. Papa Kwesi Nduom and two others filed a suit at the High Court.

Later, upon a motion filed by the Central Bank and an appeal that ended up at the Supreme Court, GN Bank and others were given the green light to proceed with the action at the trial court.

The applicants averred that the BoG, per its decision to revoke its licenses, violated its administrative right per the failure to take into consideration the government’s indebtedness to them.

They emphasized that since they had taken several actions to recover such money from the government but to no avail, the Central Bank should have reasonably considered that to deem it(GN Bank) as a solvent bank as at the time and not revoke its license.

However, the court was not convinced by this, thus noting that the GN Bank can take it up with the Ministry of Finance to recover the said debt.

Another issue that the court dealt with was the applicant’s accusation of discrimination against it by the Bank of Ghana, which was also rejected by the court, insisting that other entities also suffered a similar fate thereby dismissing the action.