The Court of Appeal has referred Dr Papa Kwesi Nduom to Ghana Arbitration Centre for redress, following the revocation of his license during the financial sector clean-up exercise.
The court took the decision on Thursday, June 2, 2022, after the Central Bank had filed an application that Dr Nduom refers the case to the arbitration.
In the ruling, the judges held that the hearing of such cases is the preserve of the arbitration.
The court also indicated that Dr Nduom erred by filing the challenge as a human rights case.
It thus stayed proceeding at the court and referred the case to the arbitration centre.
Background
During the financial sector clean up exercise, the Central Bank demanded that banks meet a minimum capital of GH₵400 million to operate in the country.
GN Bank among other financial institutions failed to meet the requirement which was expected to be complied with by December 31, 2018 according to the instruction of the Central Bank.
As a result, BoG revoked the license of GN Bank and 23 savings and loans companies in August 2019.
“GN is currently insolvent under section 123 (4) of the Banks and SDIs Act, 2016 (Act 930),” BoG said in a statement to the effect of the revocation of the license.
The Central Bank subsequently appointed a partner of Pricewaterhouse Coopers (PWC) Ghana as the Receiver of the bank to see to its liquidation.
Dr Nduom, raged by the decision of the government to revoke the company license, sued the Central Bank, Ken Ofori Atta who is the Finance Minister, Gloria Akuffo who was then Attorney General and the receiver for the GN savings and loans in the person of Eric Nipah.
He claimed that the move by the government to revoke his license and downgrade the bank to a status of a savings and loan company was malicious.
Further claiming that the government and its agencies as of August 14, 2018 owed the company over GH₵600 million, the CEO of the GN prayed the court to quash the decision of the Central and restore the license.
