Ghana's central bank takes Paa Kwesi Nduom's GN Savings licence fight to the Supreme Court

The Bank of Ghana has filed an application at Ghana's Supreme Court seeking to overturn the Court of Appeal ruling that restored the operating licence of GN Savings and Loans Company Limited, escalating a legal battle that has now spanned seven years and passed through every tier of Ghana's court system.

The central bank filed the appeal on May 27, just six days after the Court of Appeal delivered its unanimous ruling on May 21 that the Bank of Ghana's 2019 revocation of GN Savings and Loans' licence was unfair and unreasonable. The appellate court had ordered the receiver, Eric Nana Nipah, to hand back possession, management and control of the company's assets to shareholders led by Paa Kwesi Nduom.

In its application to the Supreme Court, the Bank of Ghana argues the Court of Appeal erred in law when it proceeded to hear and determine the appeal filed by Paa Kwesi Nduom, Coconut Grove Beach Resort and Group Nduom Limited. The central bank also stated in its application that Nduom's group did not comply with a mandatory provision under the court's Rules of 1997, specifically CI 19 as amended, which requires that particulars of an alleged error of law must be clearly stated in a notice of appeal.

The Bank of Ghana also raised concerns about the appellate court's finding that the regulator should have considered the report of an advisor it had appointed before proceeding to revoke the GN Savings licence. The central bank disputes that finding, maintaining it acted lawfully and within its statutory mandate throughout the process.

The GN Savings case originated in January 2019, when the Bank of Ghana downgraded and reclassified GN Bank Limited from a universal bank to a savings and loans company after it failed to meet the raised minimum capital requirement of GH¢400 million by the December 2018 deadline. Seven months later, on August 16, 2019, under the leadership of then-Governor Ernest Addison, the central bank revoked GN Savings and Loans' operating licence entirely as part of a sweeping financial sector cleanup exercise that shuttered 23 savings and loans companies and finance houses.

Nduom challenged the revocation in court the same month, describing the decision as unlawful, malicious and unreasonable. The High Court in January 2024 dismissed his challenge, finding that governance weaknesses had rendered the institution unable to meet its debt obligations and that the Bank of Ghana had acted lawfully. The Court of Appeal reversed that finding on May 21 in the unanimous ruling that the central bank is now appealing.

The Supreme Court appeal means GN Savings and Loans remains in receivership for the foreseeable future while the country's highest court determines whether the Court of Appeal's ruling can stand. Dr. Kweku Nduom, speaking after the Court of Appeal's May 21 ruling, had said the company could potentially resume operations before the end of 2026 if enforcement of the judgment proceeded without legal obstacle. That timeline is now unlikely.