GN Savings and Loans begins preparations to resume operations
The Vice-President of Groupe Ndoum, Nana Ofori Owusu, has stated that GN Savings and Loans has commenced preparations to resume operations after the Court of Appeal ruled in favour of restoring the institution’s licence, having determined that the revocation was unjustified.
In an interview with Graphic Business, he said GN savings and Loans had initiated the necessary legal procedures to formally notify the Bank of Ghana (BoG) and the receiver before discussions could commence regarding the transfer of assets, branches and operational control back to the company.
“We have commenced the process of entering judgement and serving the affected institutions so that discussions may begin on the subsequent steps,” he stated.
He further explained that the company would need to reconcile records relating to branches, vehicles, generators, computers, air conditioners and other assets currently under receivership before full operations could resume.
According to him, the legal team was continuing efforts to ensure that the BoG and the receiver were officially served with the entry into judgement documents before timelines for engagement could be established.
Mr Owusu stated that GN Savings and Loans had already begun assembling teams in areas such as human resources, operations and technology in preparation for the institution’s return.
He noted that work was ongoing on software systems, Internet infrastructure and branding to ensure operational readiness once all legal requirements had been fulfilled.
“We are prepared to commence operations immediately upon completion of the legal processes,” he said.
Mr Owusu explained that the operational rollout would begin with a branch at Elmina before expanding in phases across Greater Accra, Kumasi, Takoradi and other parts of the country.
He added that the institution intended to restore full nationwide operations as systems and deployment plans were finalised.
“We believe the ruling will help restore public confidence because the court made it clear that the revocation was unwarranted,” he stated.
Funding and liabilities
Mr Owusu maintained that government obligations to the company remained central to the case and could support the institution’s revival.
“GN Savings and Loans has consistently maintained that the government owes it funds through interim payment certificates and investments,” he stated.
He argued that the court accepted evidence demonstrating that amounts owed by the government exceeded the alleged financial shortfalls cited during the license revocation process.
According to him, the company would also need to assess the status of its loan portfolio and determine the extent of recoveries made by the receiver over the years.
Mr Owusu stated that discussions were ongoing with potential investors interested in supporting the revival process, although details had not yet been disclosed.
“We intend to engage depositors directly across the country to restore confidence and assure them that the institution remains safe for business,” he said.
Court ruling
The Court of Appeal ruling has reignited debate surrounding Ghana’s banking sector clean-up exercise, which resulted in the closure of several banks, savings and loans companies and microfinance institutions between 2018 and 2019.
The exercise, led by the Bank of Ghana, reportedly cost the state between GH¢25 billion and GH¢30 billion in bailout and resolution expenditures.
Following the implementation of the clean-up exercise, receivers were appointed to assume control of assets, liabilities, customer obligations, loan portfolios and the operational management of affected institutions.
The restoration of GN Savings and Loans' licence is expected to require engagements between regulators, receivers and shareholders regarding the transfer of assets and operational control.
Authorities are also expected to assess the status of assets, liabilities and recoveries made during the receivership period before full operations can resume.
Context
A financial sector expert and banking consultant, Dr Richmond Atuahene, stated the judgement could have implications for future disputes involving financial sector regulation and licence revocations.
According to him, the decision may encourage other affected institutions to revisit legal actions connected to the clean-up exercise while also increasing scrutiny of regulatory processes undertaken during the period.
He further noted that the ruling could expose the state and regulators to possible compensation claims if affected institutions successfully pursue damages linked to operational losses and reputational harm.
The ruling has raised broader legal and regulatory questions regarding the banking sector clean-up exercise and the extent of judicial intervention in regulatory decisions.