Court reverses BoG's revocation of CDH's licence, orders arbitration

An Accra High Court has reversed the Bank of Ghana's (BoG) 2019 decision to revoke the operating license of CDH Savings and Loans Company Limited. The court directed both parties to settle the matter through arbitration.

On November 1, 2024, Justice Brew delivered the ruling and criticized the BoG’s methods, stressing the constitutional requirement for fair and reasonable administrative actions. The court deemed the BoG’s two-week deadline for CDH to liquidate assets to resolve its liquidity issues as “unreasonable and unfair.”

The BoG initially revoked CDH's license on August 16, 2019, citing liquidity issues stemming from CDH's failure to sell repossessed collateral, which hindered its ability to fulfill depositors’ withdrawal requests. Following this, CDH’s shareholders, CDH Financial Holdings Limited, contested the revocation, arguing it was procedurally unfair and seeking arbitration to prevent further operational disruptions.

In his decision, Justice Brew referenced Article 23 of Ghana’s 1992 Constitution, underscoring the requirement for fairness in administrative actions.

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