Home Finance Groupe Ndoum Demands Payment of GH¢7bn Government Debt to His Companies

Groupe Ndoum Demands Payment of GH¢7bn Government Debt to His Companies

The bank is hopeful about regaining its licenses soon and is committed to launching a broader advocacy campaign to address the central bank's actions. The goal is to restore the bank's operations, ensuring that it can once again serve its customers and contribute to the Ghanaian economy.

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Groupe Ndoum Demands Payment of GH¢7bn Government Debt to His Companies

Groupe Ndoum (GN), led by CEO Dr. Paa Kwesi Nduom, is actively working to restore its banking license and resume operations throughout Ghana. Speaking to a crowd on Sunday, May 26, 2024, at the old bank branch in Brewa and Agona, Central Region, Dr. Nduom expressed optimism about the bank’s future, promising that the bank would soon reopen, benefiting stakeholders and clients.

Assurance to Stakeholders

Dr. Nduom reassured the audience, stating, “I’m here to reassure everyone that the bank will eventually open for business for all of you. We are in the process of obtaining our license from the Bank of Ghana. Since we are the people’s bank, we will do all within our ability to open for business on your behalf.”

Regulatory Action by the Bank of Ghana

The Bank of Ghana took significant regulatory action on August 16, 2019, by revoking the licenses of 23 finance houses and savings and loans institutions, including GN Bank. This decision was based on Section 123(1) of the Banks and Specialized Deposit-Taking Institutions Act, which grants the central bank the authority to revoke licenses when necessary, particularly if an institution is found to be bankrupt.

Dispute Over License Revocation

Dr. Nduom criticized the central bank’s decision, calling it discriminatory and unfair. He argued that the government’s failure to settle its debts to the bank, particularly funds owed to contractors, was the primary cause of the bank’s collapse. He stated, “What was once GH¢1.8 billion in debt has now grown to about GH¢7.1 billion. It is developing with interest every day. Thus, there wouldn’t be a problem with the Gold Coast or Black Shield if the Ghanaian government and its agencies had given us even a third of that money to the contractors six years ago.”

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Proposed Solutions

Dr. Nduom suggested that if the government is unable to provide the necessary funds, a middle-ground approach should be considered, where both parties share the burden. He emphasized that if the government paid the bank, customers would also be paid, helping to stabilize the bank’s financial situation.

License Recovery Push

The “Bring Back GN Bank” campaign includes various initiatives such as discussions with former bank employees and a nationwide tour of the company’s assets. Dr. Nduom visited several branches, including Afransie, Awutu Senya, Potsin, and Ngleshi Amanfrom. He noted that some branches, like Potsin, were destroyed, while others, such as Amanfrom and Awutu Senya, had been converted into churches.

Employment and Economic Impact

Before the license revocation, GN Bank employed about 7,000 people and had 300 branches nationwide. The license recovery effort aims not only to regain the bank’s licenses but also to launch an advocacy campaign to highlight what is perceived as the central bank’s unjust revocation of the bank’s licenses.

Future Prospects

The bank is hopeful about regaining its licenses soon and is committed to launching a broader advocacy campaign to address the central bank’s actions. The goal is to restore the bank’s operations, ensuring that it can once again serve its customers and contribute to the Ghanaian economy.

Vesta Daily
Author: Vesta Daily

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