GN SAVINGS & LOANS CASE… *Court dismisses BoG’s suit *Adjourns case to Oct 19, 2020

The Presiding  Judge at the Human Rights Division Court 2, Gifty Adjei Addo yesterday dismissed an application by the Bank of Ghana (BoG) seeking a stay of execution of the case involving    GN Savings and Loans  Company Limited  and BoG over the revocation of the former’s licence.

However, the  Presiding Judge adjourned the case to Monday, October 19, 2020 to rule on the application of the plaintiff.

According to the Judge, the BoG’s application was without merit.

In  the GN Savings case,  applicants are praying the High Court to make an order of certiorari quashing the August 16, 2019 announcement declaring GN Savings and Loans Company Limited insolvent and consequently revoking its licence to operate as a specialised deposit-taking institution.

The application wants a declaration that the licence revocation is invalid because the BoG and the Minister of Finance based their decision to revoke the licence of GN Savings and Loans, as a specialised deposit-taking entity, on woeful inaccuracies.

The BoG, the Attorney-General and the Receiver of GN Savings and Loans, Mr Eric Nana Nipah are the respondents.

The applicants are also praying the court to hold that by the respondents’ failure to take into account the government’s indebtedness to Groupe Nduom, Gold Coast Advisors and GN Savings and Loans Limited before concluding that GN Savings and Loans was insolvent, the BoG had violated, was violating or was likely to violate the rights of the applicants and GN Savings and Loans to administrative justice, property and equality or non-discrimination.

Aside the substantive case, the plaintiffs also filed for an order for interlocutory injunction seeking the restoration of the savings and loans company until the determination of the substantive motion that is challenging the decision to collapse the savings and loans company.

The applicants also want 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 Company Limited’s business activities, pending the determination of the claims in the originating motion, which is challenging the BoG’s decision to collapse the savings company.

 

News Desk Report

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