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Business News of Wednesday, 22 April 2020

Source: laudbusiness.com

Respond to Nduom’s suit – High Court tells BoG, AG


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An Accra High Court has on Wednesday April 22, ordered the central bank, the Bank of Ghana (BoG), the Attorney-General and the Receiver of GN Saving and Loans to file their responses in the suit challenging the revocation of the license of GN Savings and Loans company, within 10 days.

The BoG, and the A-G failed to file a defence in the case brought against them by businessman and owner of GN Savins, Dr Papa Kwesi Nduom.

In the suit, Dr Nduom accused the BoG and the Minister of Finance of “deliberately and maliciously suppressing” the amount of money that the government owes GN Savings and Groupe Nduom. It would be recalled that on August 9, 2019, the Ministry of Finance informed the BoG that the government’s total indebtedness to Groupe Nduom was just GH¢ 30,329,483.84. This was far below the GH¢629,091,335.00, which Groupe Nduom says that government owes it.

Dr Nduom led his group of companies, to challenge the revocation of GN Savings and Loans’ licence by the Bank of Ghana. Counsel for the applicant, Justice Srem-Sai of Archbridge Solicitors argued that the reason for supressing the government’s indebtedness to GN Savings was to enable the BoG to reach the false conclusion that GN Savings was insolvent.

In an affidavit which was sworn to by Dr Nduom, it was stated that “while disputing the very existence of the IPCs debt-claims in the eyes of the public, the Bank of Ghana has at all times material nicodemously demanded that GN Savings assign the said IPCs to it.”

In respect of this allegation, the trial judge, Ms Justice Gifty Addo-Adjei, ordered all the three defendants (the Bank of Ghana, the Attorney-General and the Receiver, Mr Eric Nana Nipah), to file their defences by January 17, 2020. As at the close of March, however, it was only the Receiver who had filed a defence.

Dr Nduom is asking the Court to quash BoG’s revocation notice and rather restore the licence to GN Savings.

They are also asking the court for “an order of injunction, restraining the other Respondents, their agents, assigns, privies and workmen howsoever called or described from interfering with the possession, management or control of the assets, operations and other activities of GN Savings and Loans Company Limited.”

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