Ghanaian News

Blaming us for GN Savings’ woes misplaced – Government to Elmina residents

Government has rubbished claims that it is to blame for the collapse of GN Savings and Loans, a company owned by Dr. Paa Kwesi Nduom.

This comes after a press conference held by some aggrieved residents of Elmina who accused the Akufo-Addo government of failing to honour its financial obligations to the bank, leading to its collapse.

The group which says the Bank of Ghana deliberately revoked the license of the financial institution gave the government a three-week ultimatum to pay back monies owed Dr. Nduom or face their wrath.

But a statement issued by the government in response to the group’s claims indicated that the claims are misplaced, needless and lack substance given the fact that the Central Bank acted in accordance with the law.

“The claim made by the organisers of the press conference that the woes of GN Savings and Loans had been caused because Government had failed to honour its financial obligations to GN Savings and Loans is completely misplaced. The Akufo-Addo administration has nothing to gain from the closure of a company belonging to a Ghanaian. The deliberate attempt to draw in Government and President Akufo-Addo into the insolvency problems of GN Savings and Loans and others is totally unwarranted, unfortunate and without any substance,” portions of the statement said.

The government in the statement said as of August 6, 2019, its indebtedness to GN amounted only to GHC 30.33 million adding that an agreement has indeed been reached between the Ministry of Finance and GN Savings and Loans is to settle this debt.

In spite of this intervention, the government, however, says, even when these arrears are completely settled, “it will not address GN’s capital deficit of GHC 683.66 million.”

The group also blamed the Finance Minister, Ken Ofori Atta of masterminding the collapse of GN Savings and Loans adding that the situation could have been resolved without revoking his license.

Leader of the group, John Quansah indicated that they will protest on September 10, 2019, if nothing is done about the situation. But the government says persons who are peeved over the shutdown, should use legal means to have their concerns addressed because it will not meddle with the affairs of state regulatory bodies. “The Bank of Ghana is an independent institution of State. Persons who may feel aggrieved by actions of the Central Bank may employ the established avenues for redress, including recourse to the courts for the resolution of their grievances. President Akufo-Addo has not and will not interfere with the workings of independent institutions of the state”, the statement said.

GN Savings loses license

GN Savings and Loans company limited was part of some 23 finance houses and savings and loans companies whose licenses were revoked by the central bank.

The Bank of Ghana in announcing the revocation of GN Savings and Loans’ license said: “GN’s shareholders have failed to restore the bank to the required regulatory capital and liquidity levels in spite of long-standing promises that new capital was expected from foreign investors.”

In response, the Chairman and Chief Executive Officer of Groupe Nduom, Papa Kwesi Nduom discredited claims by the Bank of Ghana that the company was in serious financial distress and fell far below its capital requirement level, hence the revocation of its license.

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