High Court faults BoG for revoking CDH operating licence, orders arbitration
By DL News
Published
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On November 1, 2024, Justice Brew delivered the ruling, critiquing the BoG’s handling of the case and underscoring the constitutional mandate for administrative actions to be fair and reasonable.
An Accra High Court has annulled the Bank of Ghana's (BoG) 2019 decision to revoke CDH Savings and Loans Company Limited's operating license, directing both parties to resolve their dispute through arbitration.
On November 1, 2024, Justice Brew delivered the ruling, critiquing the BoG’s handling of the case and underscoring the constitutional mandate for administrative actions to be fair and reasonable.
The Court deemed BoG’s two-week deadline for CDH to liquidate assets and resolve its liquidity issues as “unreasonable and unfair.”
Initially, the BoG had withdrawn CDH's license on August 16, 2019, citing liquidity issues arising from CDH's struggle to sell repossessed assets, which limited its ability to meet depositors’ withdrawal requests.
In response, CDH’s shareholders, CDH Financial Holdings Limited, contested the decision, arguing procedural unfairness and requesting arbitration to mitigate further disruption to their operations.
Justice Brew referenced Article 23 of Ghana’s 1992 Constitution in his judgment, emphasizing the necessity for fairness in administrative decisions.
