The High Court in Accra has reinstated the operating licence of CDH Savings and Loans Company Limited, overturning the Bank of Ghana’s (BoG) 2019 decision to revoke it.
Delivered last week, the court’s judgment highlighted procedural unfairness in the BoG’s actions and mandated that both parties engage in arbitration to resolve the dispute.
The Bank of Ghana had revoked CDH’s licence on August 16, 2019, citing liquidity challenges stemming from the company’s failure to liquidate repossessed collateral, which it argued jeopardised depositor confidence and hindered withdrawal capabilities.
However, the court criticised BoG’s two-week ultimatum for CDH to rectify its liquidity issues, deeming it “unreasonable and unfair” and insufficient for the company to stabilise its operations.
CDH Financial Holdings Limited, the parent company of CDH Savings and Loans, contested the BoG’s revocation in court, asserting that the decision lacked procedural fairness and sought to pause any further disruptions to operations until arbitration could take place.
Justice Brew, in his ruling, referenced Article 23 of Ghana’s 1992 Constitution, which emphasises the need for fairness and reasonableness in administrative actions.
He concluded that the central bank’s approach violated these constitutional principles.
