The Supreme Court has affirmed that the Bank of Ghana’s (BoG) revocation of Unicredit’s license was carried out in accordance with the law.
“We are satisfied that on the face of the record, there is evidence of a hearing between Unicredit and BoG prior to the revocation of Unicredit’s licence.
“We are also satisfied that the revocation of Unicredit’s licence was done in accordance with the stipulated law appearing on the face of the record,” a five-member panel of the Supreme Court, with the Chief Justice as the Chairperson, ruled.
The Supreme Court has confirmed that the Bank of Ghana’s (BoG) revocation of Unicredit’s license was lawful, overturning a previous Court of Appeal decision.
This ruling supports a prior High Court decision involving HODA Holdings Limited, the majority shareholder of Unicredit Ghana Limited, which had sought a judicial review.
HODA aimed to overturn the BoG’s notice declaring Unicredit insolvent and revoking its license, arguing that neither Unicredit nor its directors and shareholders had been notified of the bank’s financial difficulties or the possibility of license revocation.
HODA contended that Sections 16 and 106 of the Specialised Deposit-Taking Institutions Act 2016, Act 930, required the BoG to provide notice and time for corrective measures before revoking a license.
The BoG countered that HODA’s reliance on these sections was incorrect since the license was revoked under Section 123 of Act 930. The BoG stated it had taken supervisory and regulatory actions regarding Unicredit’s license and investments with Unibank and Unisecurities to address irregularities and compliance issues.
The BoG provided evidence from September 2017 to July 2019 to show prior communications with Unicredit, offering opportunities to rectify capital deficiencies.
The BoG argued that it acted fairly, within legal limits, and in accordance with the principle of audi alteram partem (the right to a fair hearing).
