The Court of Appeal has, by a unanimous decision, upheld the Bank of Ghana’s application that the challenge by Dr Papa Kwesi Nduom and others against the central bank’s revocation of the license of GN Bank be referred to arbitration.
The court took the decision on Thursday 2nd of June.
The Court held that per section 141 of Act 930, the forum for such a challenge is arbitration and not the court.
It held further that Dr Nduom and the other applicants had masqueraded their challenge to the decision of Bank of Ghana as a human rights application.
The Court therefore stayed the proceedings at the High Court and referred the matter to the Ghana Arbitration Centre.
During the cleanup exercise, the GN Bank was downgraded to savings and loans company by the Bank of Ghana for its failure to raise the new 400 million-cedis minimum requirement.
Governor of the Bank of Ghana, Dr. Ernest Addison announced on Friday Janury 4, 2019 that the commercial bank licence of GN Bank had been revoked.
“The GN Bank was unable to comply with the minimum capital directive by 31st December 2018. Consequently GN Bank has applied for and the Bank of Ghana has approved the grant of a savings and loans company licence,” Governor of BoG, Dr Ernest Addison revealed at a news conference.
“The Bank of Ghana will closely monitor implementation of the approved transitional plan which is expected to be completed by the end of June 2019. In this regard, the Bank of Ghana has appointed an advisor for GN,” Dr. Addison added.
The BoG revoked the licences of twenty-three insolvent savings and loans companies and finance house companies including the GN Savings and Loans.