The Supreme Court has in a unanimous decision reversed the decision of the Court of Appeal and affirmed the decision of the High Court in the case of The Republic Versus the Bank of Ghana (BoG), Ex Parte Hoda Holdings Limited.

By this, the Supreme Court has affirmed that the Bank of Ghana committed no error in revoking the licence of UniCredit Ghana Limited.

The five-member panel, was chaired by the Chief Justice Araba Esaaba Sackey Torkornoo acting as President of the court gave the ruling today June 26, 2024. The rest are Justice Mariama Owusu, Justice Prof. Henrietta Joy Abena Nyarko Mensa-Bonsu, Justice Ernest Yao Gaewu and Justice Yaw Darko Asare

Background

On 16th August 2019, The Bank of Ghana declared UniCredit Ghana (Unicredit) insolvent and revoked its licence to operate as a savings and loans company.

The Bank of Ghana had then argued that this was done under section 123 of the Banks and Specialised Deposit Taking Institutions Act of 2016 (Act 930).

HODA Holdings Limited, the majority shareholder of UniCredit, filed an application at the Human Rights Division of the High Court seeking a judicial review of the decision of the Bank of Ghana, to revoke UniCredit’s licence and an order of injunction restraining the Bank from interfering with the operations of UniCredit

High Court Ruling on the Case

The High Court presided over by Justice Gifty Agyei Addo, on March 18, 2021,  ruled in favour of the Bank of Ghana, and held that from the evidence before the Court, UniCredit was insolvent prior to the revocation of its licence.

The Court also in its ruling,   found that contrary to UniCredit’s claim of not being given a hearing, the Bank of Ghana served UniCredit with numerous notices

“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 further held that the Bank of Ghana committed no mistakes in revoking the license of Unicredit.

The High Court thus affirmed that the steps taken by the Bank of Ghana to revoke the licence of UniCredit and place it under receivership is in accordance with Act 930.

Appeal of the case by HODA Holdings

Hoda Holdings Ltd appealed to the Court of Appeal, following concerns with the decision of the high court.

 On 7th July 2022, the Court of Appeal comprising Justice Janapare A. Bartels-Kodwo, Justice Merley Wood and Justice G.S.Suurbaareh overturned the decision of the High Court and ruled in favour of Hoda Holdings Ltd.

The Court of Appeal held that the Bank of Ghana in revoking the licence of UniCredit under section 123 of Act 930 should have followed the steps provided in section 16(3&4) of Act 930. The Court of Appeal further held that the failure of the Bank of Ghana to comply with the procedure in section 16(3&4) of Act 930 meant that UniCredit was not given a hearing before its licence 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.