Debt value of Groupe Nduom was deliberately reduced to collapse GN bank – Dr Nduom alleges

On July 10, 2024, 9:25 PM

The Global Chairman of Groupe Nduom, Dr Papa Kwesi Nduom, says the debt value of his defunct GN Bank was deliberately misrepresented as low to force the closure of the bank.

According to Dr Nduom, a debt of 2.2 billion cedis was recorded as 30 million Ghana cedis, placing the bank as unstable and facing systemic risk.

The exercise affected at least one million customers of GN Bank.

In 2019, the Bank of Ghana revoked the licenses of 23 savings and loans companies and financial institutions which included the GN Bank.

The exercise formed part of a reform agenda by the central bank, including the aggressive closure of financial institutions that were judged to be unviable due to poor financial health or non-compliance with new regulatory standards.

Global Chairman of Groupe Nduom, Dr Papa Kwesi Nduom, during an inspection of the defunct GN Bank office at Roman Hill in Kumasi stressed that his bank was unduly shut down.

The facility, which still has GN Bank branded stickers around its walls and windows, has been rented out to a Chinese curtain and bed material retailer.

“People who said we only have about 30 million cedis, I know they did it deliberately because the same people, a year before said they counted 640 million Ghana cedis.

“Meanwhile, they have seen a report by an independent auditor, which confirmed that the value of our project was 2.2 billion Ghana cedis. And so why did they use this to collapse the GN bank?” he asked.

Despite the bank’s legal action challenging the revocation by the Bank of Ghana (BoG), the legality of the exercise was upheld by an Accra High Court.

The court emphasised the Central Bank’s right to revoke the license due to governance deficiencies that rendered GN Savings and Loans unable to meet its debt obligations.

Meanwhile, Dr. Nduom says shareholders and stakeholders of GN Bank will not relent but pursue justice.

“People were happy saving with us and the business was thriving. We are just sending a message because we have done things closed door and are not getting the results.

“We have to do this before Akufo-Addo leaves office and we want any government that may take over to know that, there is an outstanding matter to be resolved,” he said.