BOG’S CASE AGAINST UNICREDIT SUIT DISMISSED, SLAPPED WITH GHC 3,000 COST

The Commercial Division of the Accra High Court presided over by Justice George Koomson has dealt a blow to the Bank of Ghana (BOG) by dismissing the central bank’s application asking the court to strike it out Unicredit’s suit seeking a Judicial review.

The central bank had filed an application in the court arguing that it should squash Unicredit’s application for judicial review because the applicant did not properly invoke the jurisdiction of the court.

UniCredit, one of the microfinance companies closed down by the Central Bank is challenging the revocation of its license. It filed an application for judicial review in the nature of Certiorari.

According to the mother company Hoda Holdings Limited-the mother company of Unicredit, its funds of over GHS 54 million were locked up with Unibank before it was forced to cease operations by the central bank in 2018 and it has since been trying to retrieve it.

It subsequently sued the Governor, Dr Ernest Addison and the Bank of Ghana for the action taken. But before that case could be heard, the Bank of Ghana through its lawyers, filed an application asking the court to strike it out. It argued that the applicant did not properly invoke the jurisdiction of the court.

But the High Court in its ruling dismissed the central bank’s application in the growing list of legal suits filed against the BoG for its draconian banking sector reform.

The Central Bank is facing another suit filed by Groupe Nduom. Chairman of Groupe Nduom, Dr Papa Kwesi Nduom filed an injunction suit to compel the Bank of Ghana (BoG) to restore the the license of GN Savings and Loans while the two battle in court over the license revocation.

In his statement of claim, Dr. Nduom insisted that GN Savings and Loans was in good standing despite being declared insolvent by the BoG.

He said government infrastructure project portfolio was in excess of GH¢2.2 billion, more than its liabilities. That case has been adjourned to the 24th of October 2019.

Mr Nduom prayed to the High Court to direct the BoG and its agents to restore the collapsed GN Savings and Loans Company Limited to its former status.

He also wants the court to direct the BoG and its agents not to further interfere directly or indirectly with the rights of the shareholders, management and directors to the possession, management and control of GN Savings and Loans Limited’s business activities. Two weeks ago, the High Court directed Bank of Ghana (BoG) to hold on with its move to collapse the operations of the GN Savings and Loans Company Limited till the substantive case is determined.