The Supreme Court has unanimously overturned the Court of Appeal‘s decision, affirming the High Court’s ruling in the case of The Republic Versus the Bank of Ghana (BoG), Ex Parte Hoda Holdings Limited.
This decision upholds that the Bank of Ghana committed no error in revoking the licence of UniCredit Ghana Limited.
The five-member panel, chaired by Chief Justice Araba Esaaba Sackey Torkornoo, delivered the ruling on June 26, 2024. The other justices on the panel were Justice Mariama Owusu, Justice Prof. Henrietta Joy Abena Nyarko Mensa-Bonsu, Justice Ernest Yao Gaewu, and Justice Yaw Darko Asare.
Background
On August 16, 2019, the Bank of Ghana declared UniCredit Ghana insolvent and revoked its licence to operate as a savings and loans company. This action was taken under section 123 of the Banks and Specialised Deposit Taking Institutions Act of 2016 (Act 930).
HODA Holdings Limited, the majority shareholder of UniCredit, sought a judicial review of this decision and filed an application at the Human Rights Division of the High Court. They also requested an injunction to prevent the Bank from interfering with UniCredit’s operations.
High Court Ruling
On March 18, 2021, Justice Gifty Agyei Addo of the High Court ruled in favour of the Bank of Ghana, stating that evidence showed UniCredit was insolvent before its licence was revoked. The Court also found that the Bank of Ghana had given UniCredit numerous notices to rectify its capital deficiency, warning that failure to do so would result in licence revocation under section 123 of Act 930. The High Court concluded that the Bank of Ghana had followed due process in revoking UniCredit’s licence.
Appeal by HODA Holdings
HODA Holdings appealed to the Court of Appeal, which on July 7, 2022, overturned the High Court’s decision. The Court of Appeal ruled that the Bank of Ghana should have followed the steps outlined in section 16(3&4) of Act 930 before revoking UniCredit’s licence. The Court of Appeal held that the failure to comply with these procedures meant UniCredit was not given a fair hearing.
Supreme Court Ruling
The Bank of Ghana, dissatisfied with the Court of Appeal’s decision, appealed to the Supreme Court. The Supreme Court’s recent ruling confirms that the Bank of Ghana acted correctly in revoking UniCredit’s licence and that the procedures followed were in accordance with Act 930. This ruling is the final decision on the matter, affirming the High Court’s initial judgement.