GN Savings & Loans solvent, BoG’s claims ‘wildly inaccurate’ – Nduom

The Chairman and Chief Executive Officer of Groupe Nduom, Papa Kwesi Nduom has 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.
Nduom, in a statement, said the claims by the central bank was “wildly inaccurate.”

He was reacting to news of the Bank of Ghana’s decision to revoke the licenses of some 23 Savings and Loans Companies and Financial Houses including GN Savings and Loans.

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.”

“While GN has indicated that government owes it a total amount of GH¢942.98 million of which GH¢102.73 million represented Interim Payment Certificates (IPCs), the Bank of Ghana’s assessment is that IPCs totaling GH¢30.33 million only have been confirmed by the Ministry of Finance as at 6th August 2019 as owed to contractors that may be indebted to affiliates of GN,” the Bank of Ghana said.

Nduom in the statement also stated that: “Neither shareholders nor management of GN Savings have received any official communication from the BoG regarding receivership.”

“Our position is that GN Savings is not only solvent, but would be highly liquid if the MoF simply ordered itself and other government agencies to quickly pay amounts owed to GN Savings and other related entities. We expect this matter to be resolved in due course,” the statement added.

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