SAMUEL GYAMFI & 693 OTHERS v. BANK OF GHANA & ANOR
2019
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE DR. RICHMOND OSEI-HWERE
Areas of Law
- Civil Procedure
- Evidence
- Banking and Financial Regulation
- Investment Law
2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
The case involves a dispute about the regulatory duty of the Bank of Ghana (1st Defendant) over the operations of Onward Investment Limited (2nd Defendant) and whether the 1st Defendant was negligent in its regulatory duty. The court found that the 2nd Defendant provided investment services and not banking services. As such, the 2nd Defendant's operations were outside the ambit of the 1st Defendants constitutional and statutory mandate. Consequently, the 1st Defendant did not owe a duty of care to the Plaintiffs, and the Plaintiffs' action was dismissed with no order as to costs.
JUDGMENT
Background
This is a suit arising from the operations of the 2nd Defendant herein and the regulatory duty of the central bank, Bank of Ghana (1st Defendant herein). It is about whether the Bank of Ghana was the regulator of the 2nd Defendant herein and if yes, whether it was negligent in its regulatory duty.
The Plaintiffs were described as customers of the 2nd Defendant herein. The 2nd Defendant was an incorporated limited liability company under the laws of Ghana. The 1st Defendant herein, Bank of Ghana is a constitutional and statutory body responsible for the regulation of banks and non-bank financial institutions among other functions. It must be noted that the names of the then Governor of the Bank of Ghana, Paa Kwesi Amissah Arthur and the Head of Banking Supervision, Franklin Belnye who were originally the 2nd and 3rd Defendants respectively have been struck out of the suit as non- proper parties to the suit. Consequently, Onward Investment Limited is now the 2nd Defendant while the Bank of Ghana remains the 1st Defendant. The 2nd Defendant has undergone liquidation and so did not participate in the trial.
By a Writ of Summons and Statement of Claim dated the 29th day of June, 2012, the Plaintiffs are seeking the following reliefs against the Defendants therein:
“a. A Declaration that the deliberate and or intentional act of 1st defendant, 2nd defendant & 3rd defendant permitting and or indulging the 4th defendant to operate commercially as a bank concern in the Greater Accra region, Ashanti region, and Brong Ahafo region respectively for over 2 years without the requisite Bank of Ghana banking Licence was not only negligent and or unconscionable but unconstitutional, fraudulent and legally impermissible and as a result have caused substantial miscarriage of justice and civil injuries to plaintiffs.
b. A Declaration that by the testimony of the Representative of the Governor of Bank of Ghana and Head of Banking Supervision (i.e. 2nd & 3rd defendants) herein on oath in civil Suit No. RPC 102/2012 admitting and confirming that the Bank of Ghana was aware that 4th defendant had no Licence from the Bank of Ghana whilst it (4th) defendant was operating and also failing to warn the General Public from dealing with the 4th defendant who was operating illegally and fraudulently in foreign transactions/ exchange amounted to a breach of article 183 (2)(d) of the 1992 Constitution of Ghana, the Bank of Ghana Act, 2002 (Act 612) and the Banking