Nduom sues BoG, others over revocation of GN Savings and Loans licenses

Dr Papa Kwesi Nduom
Dr Papa Kwesi Nduom

Chairman of Group Nduom, Papa Kwesi Nduom has sued the Bank of Ghana including the Finance Minister, Ken Ofori Atta; Attorney General, Gloria Akuffo over the revocation of the licenses of GN Savings and Loans.

Attached to the suit is the receiver of GN Savings and Loans Eric Nana Nipah.

Nduom, among other things, is praying the court to quash the decision of the Central Bank to revoke the license of GN Savings and Loans.

The BoG on Friday, August 16, 2019, revoked the licences of GN Savings and Loans and 22 other insolvent savings and loans companies and finance house companies.

But Nduom maintains that his company would have been highly liquid if the Ministry of Finance and other government agencies had paid debts owed to it.

According to the BoG, GN Savings and Loans, despite its reclassification from a universal bank to a savings and loans company in January this year, the company was unable to resolve its liquidity crisis.

But in a statement, Dr Nduom stated that “Given the detailed information provided to the BoG nearly a year ago, these statements are inconsistent with our discussions with both the BoG and the Ministry of Finance (MoF).”

He added “Our position is that GN Savings is not the 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.”

Source: Ghana|Starrfm.com.gh|103.5FM

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