Receiver, two others given 10 days to respond to suit against GN Savings license revocation

Receiver, two others given 10 days to respond to suit against GN Savings license revocation

The Receiver of GN Savings and Loans Company, a subsidiary of Groupe Nduom has been given a deadline of May 21 to file a response to the suit challenging the revocation of the license of the GN Savings and Loans Company.

The deadline was given after the Receiver failed to meet the 10 days given to it and two other defendants to file their responses.

The two other defendants; the Bank of Ghana and the Attorney General, have since failed to respond with their defence.

Dr Kwesi Nduom and other shareholders of GN Savings applied to the High Court on August 30, 2019, to challenge the revocation of their licence.

In the suit, they described the revocation as “malicious, accusing the BoG of deliberately refusing to consider the entire portfolio of GN Savings’ assets in concluding that GN Savings was insolvent.

They prayed the court to, among other things, quash the decision of the Bank of Ghana and to restore GN Savings’ licence.

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.

He said government infrastructure project portfolio was more than GHS2.2 billion, more than the company’s liabilities.

Also, he added that most of the company’s funds had been invested in government projects as loans and advances to contractors who government through its ministries and agencies had hired to execute various projects.

According to Dr Nduom, the government and state agencies, as of August 14, 2018, owed the company over GHS600 million.

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

He thus asked the court to rule that the failure of the BoG to consider that indebtedness of the Government of Ghana and its MDAs to Groupe Nduom before declaring GN Savings and Loans to be insolvent, constitutes a violation of his rights, that of Groupe Nduom and Coconut Grove Resort.