The Supreme Court, in a unanimous decision, overturned the Court of Appeal's ruling and upheld the High Court's decision in the case involving The Republic versus the Bank of Ghana (BoG), Ex Parte Hoda Holdings Limited.

In its ruling, the Supreme Court affirmed that the Bank of Ghana was justified in revoking the license of UniCredit Ghana Limited.

Chief Justice Araba Esaaba Sackey Torkornoo presided over the five-member panel, which also included Justices Mariama Owusu, Prof. Henrietta Joy Abena Nyarko Mensa-Bonsu, Ernest Yao Gaewu, and Yaw Darko Asare. The ruling was issued on June 26, 2024.

Background

On August 16, 2019, the Bank of Ghana declared UniCredit Ghana (UniCredit) bankrupt and annulled its license to operate as a savings and loans company.

The Bank of Ghana justified its actions under section 123 of the Banks and Specialised Deposit Taking Institutions Act of 2016 (Act 930).

Following this decision, HODA Holdings Limited, the majority shareholder of UniCredit, filed an application at the Human Rights Division of the High Court. Their application sought judicial review of the Bank of Ghana's decision to annul UniCredit's license and requested an injunction to prevent the Bank from interfering with UniCredit's operations.

High Court Ruling on the Case

On March 18, 2021, Justice Gifty Agyei Addo's High Court ruling favored the Bank of Ghana, affirming that UniCredit was financially distressed before its license was terminated.

The court also determined that contrary to UniCredit's assertion of being denied a hearing, the Bank of Ghana had issued numerous notices to UniCredit.

“Directing it to rectify its capital deficiency failing which the Bank of Ghana would exercise its powers under s.123 of Act 930.”

The Court also affirmed that the Bank of Ghana acted correctly in revoking UniCredit's license.

It upheld that the Bank of Ghana's actions to revoke UniCredit's license and place it under receivership were in accordance with Act 930.

Appeal of the case by HODA Holdings

Hoda Holdings Ltd lodged an appeal with the Court of Appeal in response to the High Court's decision.

On July 7, 2022, the Court of Appeal, composed of Justice Janapare A. Bartels-Kodwo, Justice Merley Wood, and Justice G.S. Suurbaareh, overturned the High Court's ruling and sided with Hoda Holdings Ltd.

The Court of Appeal determined that the Bank of Ghana's revocation of UniCredit's license under section 123 of Act 930 should have adhered to the procedures outlined in section 16(3&4) of the same Act. It also found that the Bank of Ghana's failure to comply with these procedures meant that UniCredit was not afforded a hearing before its license was revoked.

BoG’s Appeal to the Supreme Court

The Bank of Ghana, which had some concerns with the decision of the Court of Appeal, also filed an appeal at the Supreme Court against the decision of the Court of Appeal. This has resulted in the new ruling by the highest court of the land on this particular case.