Court to rule on uniCredit license revocation today

An Accra High Court will today rule on whether it has the jurisdiction on the case brought before it by owners of defunct finance firm uniCredit.

Owners of uniCredit have argued that over GHC54 million of the company’s funds were locked up in erstwhile unibank prior to revocation of its license by the regulator.

Unicredit was among some 15 Savings and Loans company whose licenses were revoked last month for being insolvent.

Lead Counsel for the Bank of Ghana, Frank Davies, is praying the court to quash a matter brought before it by Unicredit which seeks to reverse the actions by the central bank to revoke the licenses of the firm and to declare it insolvent.

According to the lawyers for the Bank of Ghana (BoG), the matter should have been handled at an arbitration level before proceeding to court.



However, the lawyer for the Unicredit savings and loans argued that there is a breach of natural justice in the action taken by the bank of Ghana.

Background

The mother company of Unicredit Savings and Loans Company – Hoda Holdings Limited in August 2019 sued Dr Ernest Addison and the Bank of Ghana for revoking the license of the company.

In the company’s affidavit filed at the Human Rights Division of the High Court on Monday, Hoda Holdings said its funds of over GHS 54 million were locked up with Unibank before it was forced to cease operations by the central bank in 2018 and it has since been trying to retrieve it.

Source: Starrfm.com.gh