Court Gives BoG 10 Days To Answer Nduom in License Revocation Suit

An Accra High Court has given the Bank of Ghana, the Attorney-General and the receiver of Groupe Nduom (GN) Saving and Loans ten days to file their responses in the suit challenging the revocation of the license of GN Savings and Loans company.

This will end what GN has described as deliberate foot-dragging to muddy the suit.

The court gave the order following the failure of the three defendants in the matter to file their responses as required by procedures of the court.

GN owned by Dr. Paa Kwasi Nduom had sued the Bank of Ghana (Bog); the Finance Minister, Ken Ofori Atta; the Attorney General, Gloria Akuffo; and Receiver for GN Savings and Loans, Eric Nana Nipah following the controversial revocation of its operating license in 2019.

Lawyers for GN Savings and Loans had earlier told the High Court that the Ministry of Finance maliciously lied to the Bank of Ghana (BoG) about how much the Akufo Addo government really owed the bank.

The Finance Ministry claims the government owed GN Bank only GH¢ 30.33 million instead GHC 630 million.

A written address signed by counsel for the applicant, Justice Srem-Sai submitted that both the Minister of Finance and the Governor of the BoG, knew that the government owes Groupe Ndoum far in excess of GH¢ 629,091,335.00 and that this debt was responsible for the liquidity difficulties the financial institution faced causing its license revocation.

The BoG revoked the licence of GN Savings and Loans on August 16, 2019, with the reason that the savings and loans company was insolvent. GN Bank’s Universal banking license was revoked earlier, forcing it to downgrade to a Savings and Loans company.