GN Bank is set to resume operations after nearly a seven-year legal battle over the revocation of the financial institution's licence in 2019.

During an appearance on Channel One TV’s The Point of View with Bernard Avle on Monday, May 26, President of Groupe Nduom Ghana, Dr Nana Kweku Nduom, indicated that GN Savings and Loans could resume operations before the end of 2026 following the restoration of its licence by the Court of Appeal.

Speaking in the interview, Dr Nduom said the reopening of the institution would depend on the completion of the necessary approvals and regulatory clearances.

Despite the outstanding processes, he expressed confidence that the company would resume operations before the close of the year.

“I think it would be this year. I think maybe in the quarter. I think before the end of the year will be a very safe estimate. Before September will be somewhat ambitious,” he said.

His comments come after an appellate ruling on the Group’s Savings and Loans licence reinstatement by the Court of Appeal on Thursday, May 21, after it was revoked in 2019, about two years after the then Akufo-Addo-led administration embarked on a banking sector “clean-up exercise”, a regulatory overhaul carried out by the Bank of Ghana between 2017 and 2019 to address insolvency, weak governance, and capital shortfalls in the financial system.

Not only will their licence be reinstated, but the three-member panel further directed that all assets of the bank be returned to their original owners, ordering the Receiver to hand over management of the company to its previous management team.

GN Bank’s status

GN Bank first suffered a downgrade from operating as a bank to a savings and loans company on January 4, 2019, and was subsequently renamed GN Savings and Loans Company Limited.

Seven months later, on August 16, 2019, under the leadership of former Bank of Ghana Governor Ernest Addison, the central bank revoked the company’s operating licence and appointed Eric Nana Nipah as Receiver.

Unsatisfied with the ruling, the group led by Papa Kwesi Nduom challenged the decision, describing the revocation as unlawful, malicious, and unreasonable.

As part of the reasons why they lost the case against BoG in 2024 was that the court held that governance deficiencies had rendered GN Savings and Loans incapable of meeting its debt obligations and concluded that the company failed to prove it was solvent at the time its licence was revoked.

The judge also stressed that claims of unfairness and illegality in the bank’s licence revocation by the BoG were in accordance with law and were in consonance with Article 130 of the 1992 Constitution.

The court further rejected allegations of discrimination, noting that other financial institutions affected by the banking sector reforms were subjected to similar regulatory actions.

Despite the ruling, GN maintained that the revocation breached existing laws and appealed the decision, leading to the latest judgment by the Court of Appeal.

Speaking to journalists after the appellate ruling, Mr Nduom described the years of legal battle as “unimaginable”, citing the death of some employees and the loss of properties.

“It's been a very difficult seven years. We definitely give thanks to the Almighty for keeping us healthy enough to be where we are because this has been a very tough and difficult time that we have gone through. It's just unimaginable,” he said, adding that at the appropriate time, his outfit would address the public on the challenges it faced during these years.

“There's a lot to say, but not today. At the appropriate time, we will hold a press conference to go through what we have experienced and the difficulties we faced,” he added.

He went on to commend the government for creating a good political environment leading to significant systemic changes.

“What I want to say is that we are in a very good political environment. That environment has brought about a wind of change, and we are expecting that, with our licence restored, we will now play our part in making sure that this country achieves the level of prosperity that is needed,” he indicated.

Despite the difficulties the revocation caused, such as the deaths of some employees and customers, as well as the loss of businesses, among other implications, Mr Nduom assured that GN Bank would come back stronger.

“There are just too many difficulties. Some people have died, some have lost their jobs, assets have been destroyed, and many things cannot be recovered.

“But what we promise is that we will restore our business and do our part to help restore this country. We will make certain that our second chance is not wasted,” he continued.