A High Court in Accra has overturned the Bank of Ghana’s (BoG) 2019 decision to revoke the operating licence of CDH Savings and Loans Company Limited. The court directed both parties to resolve the matter through arbitration, following a decision from Justice Brew.

The ruling criticized the Bank of Ghana’s approach, highlighting what it described as an “unreasonable and unfair” two-week deadline given to CDH to sell assets in order to address its liquidity problems. The deadline was deemed by the court to fall short of constitutional requirements for fair administrative action.

The BoG had initially revoked CDH’s licence on 16 August 2019, citing liquidity concerns and the company’s inability to sell repossessed collateral to meet withdrawal demands from depositors. CDH’s shareholders, CDH Financial Holdings Limited, subsequently challenged the decision in court, claiming procedural unfairness.

Justice Brew, referencing Article 23 of Ghana’s 1992 Constitution, underscored that administrative bodies must conduct actions with fairness and reasonableness. The ruling is seen as a reinforcement of legal protections for businesses facing regulatory actions and highlights the importance of due process within Ghana’s financial sector.

The case now moves to arbitration, where CDH and the BoG will negotiate a potential resolution.

Source:TheDotNews