BoG and others given 10 days to respond to suit against GN Savings and Loans license revocation

BoG and others given 10 days to respond to suit against GN Savings and Loans license revocation

Dr Paa Kwesi Nduom - Chairman of Group Nduom

The Bank of Ghana, the Attorney-General and the Receiver of GN Saving and Loans have been given a ten-day ultimatum by the High Court to file their responses in the suit challenging the revocation of the license of GN Savings and Loans company.

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

Mr Nduom sued the Bank of Ghana; Finance Minister, Ken Ofori Atta; Attorney General, Gloria Akuffo; and Receiver for GN Savings and Loans, Eric Nana Nipah in 2019 following his Bank’s revocation.

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

Again, he said government infrastructure project portfolio was over GH¢2.2 billion, more than the company’s liabilities.

Adding that most of the company’s funds had been invested in government projects as loans and advances to contractors who government through its Ministries, Department and Agencies (MDAs) had hired to execute such projects.

According to Dr Nduom, the government and state agencies, as of August 14, 2018, owed the company over GH¢600 million.

He further argued that the Bank of Ghana and other parties failed to consider the government’s indebtedness to his company before deciding on the company’s solvency and that constitutes a violation of rights.

As a result, he has asked the court to rule that the failure of the central bank to consider the indebtedness of the Government and its MDAs to Group Nduom before declaring GN Savings and Loans as insolvent, constitutes a violation of his rights and on his assets.