Ghanaian tycoon Paa Kwesi Nduom has received approval from Ghana’s Supreme Court to proceed with a lawsuit in the High Court, challenging the suspension of GN Bank’s license.
This decision comes after the Supreme Court nullified the Court of Appeal’s previous ruling, which had barred Nduom from contesting the license revocation in the High Court.
On July 19, 2023, the Supreme Court affirmed the jurisdiction of the High Court to handle the lawsuit filed against the Bank of Ghana (BOG) in August 2019. With the highest court supporting the High Court’s authority, the way is now clear for further proceedings and a final judgment.
The case will now return to the High Court, where it will be evaluated on its merits.
In 2018, as part of an effort to restructure the banking industry, the Bank of Ghana revoked the licenses of several financial institutions, including GN Bank, which was under the control of Paa Kwesi Nduom’s conglomerate, Groupe Ndoum.
Nduom, as the founder of GN Bank, initiated a lawsuit in the High Court to challenge the license revocation.
However, the respondents, including the Bank of Ghana, argued that arbitration should be the appropriate avenue for contesting the revocation, in accordance with the Specialized Deposit-Taking Institutions Act.
The Court of Appeal had granted their request, leading to a suspension of proceedings in the High Court and directing the parties to pursue arbitration. Subsequently, Groupe Ndoum appealed to the Supreme Court, which ultimately ruled in favor of Nduom’s position.
Groupe Ndoum, established by Paa Kwesi Nduom, is a multinational family holding company with Ghanaian and American roots, comprising over 60 independent businesses spanning various industries.