Justice Nana Brew, presiding over the case on Monday March 10, 2025 ruled that the central bank did not properly execute the revocation process, leading to the court’s decision to overturn it.
BoG had initially revoked the company’s licence as part of its financial sector clean-up exercise, citing insolvency and poor governance structures.
However, the court ruled that the revocation was unjustified, capricious, null, and void effectively restoring Ideal Finance’s legal standing.
Background
In 2018, the management of Ideal Finance urged the public to disregard a false publication claiming that the Bank of Ghana was set to take over its operations due to liquidity challenges.
According to Ideal Finance, the publication was untrue and contained fictitious quotes attributed to the then Finance Minister, Ken Ofori-Atta.
Ideal Finance was among the 23 insolvent savings and loans companies and finance houses whose licenses were revoked by the Bank of Ghana during its clean-up exercise.
The revocation was based on the company’s insolvency, despite a reasonable period of engagement with the Central Bank, during which it was expected that shareholders would recapitalise the company to restore solvency.
Source: www.ghanaweb.com
