Business

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

The Receiver of GN Savings and Loans Company 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-day period 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 filed their defence. Dr. Kwesi Nduom and other shareholders of GN Savings filed an application at 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 coming to the conclusion 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 in excess of GHS2.2 billion, more than the company’s liabilities.

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 making a determination 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.

Source: Citinewsroom

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