BoG and others given Ten days to answer suit against GN Savings and Loans license revocation

The Bank of Ghana, the Attorney-General and the Receiver of GN Saving and Loans have been given ten days by the High Court to file their responses in the suit challenging the revocation of the license of GN Savings and Loans company.

The court gave the order following the failure of the three defendants in the matter to file their responses as required by procedures of the court.

Mr. Nduom sued the Bank of Ghana; Finance Minister, Ken Ofori Atta; Attorney General, Gloria Akuffo; and Receiver for GN Savings and Loans, Eric Nana Nipah in 2019.

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 GH¢2.2 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 GH¢600 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 Group Nduom before declaring GN Savings and Loans to be insolvent, constitutes a violation of his rights, that of Group Nduom and Coconut Grove Resort.

Source: Kwaku Citizen/Ghissues.com