High Court orders arbitration and reverses BoG’s decision to revoke the CDH licence.

The Bank of Ghana’s (BoG) 2019 decision to cancel CDH Savings and Loans Company Limited’s operating licence was overruled by an Accra High Court.
The court ruled that arbitration should be used to settle the dispute between the parties.

In his November 1, 2024, ruling, Justice Brew questioned the BoG’s strategy and emphasised the need for fair and acceptable administrative proceedings under the constitution.

BoG’s two-week deadline for CDH to sell assets in order to solve its liquidity issues was deemed “unreasonable and unfair” by the Court.

On August 16, 2019, the BoG first cancelled CDH’s licence, stating that it was unable to meet depositors’ withdrawal requests due to liquidity issues caused by CDH’s inability to sell repossessed collateral.

In order to prevent more business delays, CDH Financial Holdings Limited, the company’s shareholders, later appealed the revocation, requested arbitration and having it revoked on the grounds of procedural injustice.

In his decision, Justice Brew emphasised the need for justice in administrative proceedings by citing Article 23 of Ghana’s 1992 Constitution.