BANKING SECTOR BROUHAHA: GN makes headway against Bank of Ghana

Dr Papa Kwesi Nduom
Dr Papa Kwesi Nduom

The Court of Appeal has struck out the Bank of Ghana’s appeal in the GN Savings and Loans case this morning of Tuesday, 18th January, 2022.

This ruling clears the way for the High Court to deliver its final judgement in the case brought to it by Group Nduom.

It is recalled that Dr Papa Kwesi Nduom, Chairman of Groupe Nduom, owners of GN Bank which was later changed to GN Savings and Loans, filed a suit on August, 2019 challenging the decision of the central bank to revoke the banking license of GN Savings and Loans Company Limited. The suit was filed jointly by Coconut Grove Beach Resort and Conference Centre Limited and Groupe Nduom (GN) Limited.

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Dr Nduom challenged the issue of insolvency claim and that a fair, truthful, just and independent assessment of GN Savings and Loans’ books would show it was very solvent “and particularly, that the value of Gold Coast’s government infrastructure project portfolio, running in excess of ¢2.2 billion in addition to other assets available to Groupe Nduom, could support the GN Savings and Loans to far exceed the value of its liabilities.” At the High Court, Dr Nduom’s lawyers, Praetorium Solicitors, have argued that the Bank of Ghana’s decision to revoke GN Savings’ license was irrational and constitutes an abuse of regulatory authority.

The High Court then set 9th December, 2020 for its final judgement. Few days to the said date, however, the Bank of Ghana applied to the Court of Appeal or a stay of the High Court’s proceedings.
The said appeal caused the case to be paused for over a year.

Today, as the Court of Appeal has ruled, the way is clear for the High Court to deliver its final judgement in the protracted legal battle between Dr Papa Kwesi Nduom and the Bank of Ghana, the Attorney-General and Mr Nana Nipa as the Receiver.

This is one of a series of good news to hit the GN camp. Last year, a suit against it in the United States was thrown out by a US Federal court in Chicago, Illinois, presided over by District Judge, Thomas M. Durkin. It dismissed a complaint filed against GN Bank, its Chairman, Dr. Papa Kwesi Nduom, GN Bank’s outside directors, and others.
The equity fund and securities investment company based in the United States, Birim Group LLC, filed the legal challenge against Dr. Nduom and 18 others, including his immediate family, over claims of money laundering and wire fraud.

When that case was thrown out in the US, Dr Nduom, who is also a politician jubilated on his social media handles, attributing it to the handiworks of God and expressed hopes that his case against the Bank of Ghana will see him victorious.

Back here in Ghana, many people rationalized the closure of the bank as a political motive.

SOURCE: Coverghana.com.gh

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