The Receiver of GN Savings and Loans Company has been given a due date of May 21 to submit an action to the suit challenging the revocation of the license of the GN Cost Savings and Loans.
The due date was offered after the Receiver failed to fulfill the 10-day period given to it and 2 other accused to respond to their actions toward GN savings and Loans
The two other defendants; the Bank of Ghana and the Attorney General, have since filed their defense.
Dr. Kwesi Nduom and other shareholders of GN Savings filed an application at the High Court on August 30, 2019, to challenge the cancellation of their license.
In the suit, they described the cancellation as “harmful, accusing the BoG of deliberately refusing to consider the whole portfolio of GN Savings’ possessions in coming to the conclusion that GN Savings was insolvent.
They prayed the court to, among other things, quash the choice of the Bank of Ghana and to restore GN Cost savings’ license.
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In his statement of claim, Dr. Nduom insisted that GN Savings and Loans remained in great standing in spite of being declared insolvent by the reserve bank.
He said the government infrastructure job portfolio was in excess of GHS2.2 billion, more than the business’s liabilities.
He included that most of the company’s funds had been purchased government jobs as loans and advances to contractors who the government through its ministries and firms had worked with to execute various tasks.
According to Dr. Nduom, the government and state firms, since August 14, 2018, owed the company over GHS600 million.
He argued even more that the BoG and other celebrations failed to consider the government’s indebtedness to the company in making a decision on the business’s solvency and that constitutes a violation of rights.
He, therefore, asked the court to rule that the failure of the BoG to think about that insolvency of the government of Ghana and its MDAs to Groupe Nduom before stating GN Savings and Loans to be insolvent, makes up a violation of his rights, that of Groupe Nduom and Coconut Grove Resort.
