Group Chairman and Chief Executive Officer (CEO) of Groupe Nduom Dr. Papa Kwesi Nduom has given the assurance that the GN Savings and Loans will bounce back.
The BoG last Friday revoked the licences GN Savings and Loans and 22 Savings others citing various infractions and violations of Acts governing their operations.
The BoG explained among other reasons that “of particular interest are the funds totaling GH¢761.55 million that GN Bank as it then was, placed with its sister companies Ghana Growth Fund (Gold Coast Advisors) and Gold Coast Fund Management Limited (now Blackshield Capital Management), both licensed by the Securities and Exchange Commission. Some of these funds were used by the two related parties to pay their customers whose investments with them had matured, while some were also used to fund road and other contractors, who claim to have worked on Government projects.
It is important to note that the IPCs claimed by GN are not supported by transactions that were entered into directly by GN and such contractors or Government and its entities. They reflect transactions entered into by Ghana Growth Fund or Gold Coast Fund Management with these contractors using funds taken from GN under circumstances that violated prudential norms.
According to the BoG, the failure of the two related parties to pay back these funds to GN affected GN’s capital position, leading eventually to its insolvency and acute liquidity challenges.documentation to support such transfers in breach of section 19 of the Foreign Exchange Act 2006, Act 723, Section IV of Bank of Ghana Notice No. BG/GOV/SEC/2007/4, and subsequent Bank of Ghana Notices issued in August 2014 prohibiting such practices.”
But Nduom has in a statement said GN Savings with all of its challenges, has more assets than liabilities urging government to pay contractors to also settle their indebtedness to the company.
“Why not use the taxpayers’ money to pay the contractors, to pay the company, for the company to pay the depositors and as a result, preserve GN Savings, the jobs of employees and keep needed infrastructure projects going? Our story, for now.”