A High Court in Accra has overturned the Bank of Ghana’s (BoG) 2019 decision to revoke the operating license of CDH Savings and Loans Company Limited, directing both parties to resolve the matter through arbitration.

In a ruling delivered on November 1, 2024, Justice Brew criticized the BoG’s approach, highlighting the constitutional requirement for fair and reasonable administrative actions.
The court deemed the BoG’s two-week deadline for CDH to liquidate assets to address its liquidity issues as “unreasonable and unfair.”
The BoG had initially revoked CDH’s license on August 16, 2019, citing liquidity problems due to the company’s failure to sell repossessed collateral, which led to an inability to fulfill withdrawal requests from depositors.
In response, CDH’s shareholders, CDH Financial Holdings Limited, challenged the revocation in court, seeking to quash the decision on the grounds of procedural unfairness and to halt any further disruption to its operations until the arbitration could take place.
Justice Brew referenced Article 23 of Ghana’s 1992 Constitution, emphasizing that administrative actions must be conducted with fairness.
By reversing the BoG’s license revocation, the ruling strengthens legal protections for businesses facing regulatory challenges and underscores the importance of due process within Ghana’s financial sector.
The case is now set for arbitration, where CDH and the BoG are expected to negotiate a resolution.
The Bank of Ghana, in its August 16, 2019 notice, revoked the license of CDH Savings and Loans Company Limited, arguing that the company’s failure to sell repossessed collateral led to liquidity challenges and an inability to meet withdrawal demands from depositors.
In August 2019, CDH Financial Holdings Limited initiated a case against the Bank of Ghana (THE REPUBLIC vs. BANK OF GHANA (Suit No. HR/088/2019)) seeking the following reliefs:
a) An Order of Certiorari directed at the Respondent to bring before the court the notice dated August 16, 2019, declaring CDH Savings and Loans Company Limited insolvent and revoking its license to operate as a specialized deposit-taking institution.
b) An order of interlocutory injunction preventing the Respondent and its agents from interrupting CDH Savings and Loans Company Limited’s operations and referring the matter to arbitration.
c) Any further orders deemed appropriate by the court based on the grounds set out in the accompanying affidavit and related filings.
In his ruling, Justice Brew quashed the BoG’s decision and directed the parties to arbitration, reiterating that, according to Article 23 of the 1992 Constitution, administrative bodies must act fairly and reasonably, noting that the BoG’s two-week ultimatum for CDH to dispose of its assets was unjust.