Bank of Ghana cannot be faulted in revoking the license of GN Bank – Court

The Human Rights Court in Accra has dismissed an application filed by Dr Papa Kwesi Nduom, GN Savings and Loans, and another, alleging human rights infractions by the Bank of Ghana (BoG) in the revocation of the entity’s license.

The court ruled that the central bank was within its legal mandate, acting in the interest of shareholders and the public, and therefore could not be faulted for the license revocation.

While acknowledging the applicants’ capacity and the proper invocation of the court’s jurisdiction, the judge examined issues of discrimination, unreasonableness, unfairness, and violation of administrative rights.

Regarding the violation of administrative rights, the court addressed the claim that an honest assessment by BoG would have revealed the solvency of GN Savings and Loans. The applicants argued that considering the debt owed by the government, the entity would have met the capital adequacy ratio.

The court rejected this assertion, stating that the Bank of Ghana, as an administrative body, acted reasonably within its supervision regime. The judge emphasized that since the applicants did not meet the required threshold and were not solvent at the time of revocation, the BoG had a duty to make the decision it did.

The court advised the applicants to pursue their claims of debt owed by the government with the Finance Ministry, emphasizing that the Bank of Ghana took a reasonable decision to protect public interest.

Addressing the issue of discrimination, the court concluded that the applicants were not singled out, as other entities faced similar consequences. The court deemed the discrimination claims unfounded and without merit, asserting that the Bank of Ghana’s actions were consistent with the treatment of comparable entities.

In summary, the court upheld the Bank of Ghana’s decision to revoke GN Bank’s license, dismissing the human rights violation claims and discrimination allegations made by the applicants.