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

Groupe Ndoum (GN) Bank is on a mission to recover its banking license and resume operations across Ghana, with CEO Dr. Paa Kwesi Nduom leading the charge. Groupe Ndoum (GN) Bank is on a mission to recover its banking license and resume operations across Ghana, with CEO Dr. Paa Kwesi Nduom leading the charge.

Groupe Ndoum (GN) has taken steps to recover its banking license in order to resume operations across Ghana.

On Sunday, May 26, 2024, the CEO of Groupe Nduom (GN), Dr. Paa Kwesi Nduom addressed a gathering at the former branch of the defunct bank in Brewa and Agona, Central Region. He assured the audience that the bank would resume operations soon, bringing hope to customers and stakeholders.

“I am here to assure you all that sooner or later the bank will begin operations for you all. We are currently taking steps to access our license from the Bank of Ghana. We are the bank for the people, so we will do everything in our power to commence operations for you people,“ he said.

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On August 16, 2019, the Bank of Ghana took regulatory action and revoked the licenses of 23 savings and loans companies and finance houses, effectively shutting down their operations.

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Read Also: Revoking My License Gave Me Health Problems — Dr Nduom

The central bank’s action was taken under the provisions of Section 123(1) of the Banks and Specialised Deposit-Taking Institutions Act, which empowers the Bank of Ghana to revoke licenses when necessary.

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The Act mandates the central bank to revoke the licence of a bank or specialised deposit-taking institution if it determines that the institution is insolvent.

However, Dr. Nduom, in an address to the communities he visited, described the bank’s decision as unfair and unjustified, disagreeing with the central bank’s move to revoke GN Bank’s licenses.

He explained that the bank’s insolvency was caused by the government’s failure to pay debts owed to the bank, specifically locked-up funds from contractors, which had been withheld for an extended period.

According to the CEO, had the government settled its debt to the contractors, the bank would have been in a stronger financial position at the time of the license revocation, potentially avoiding the regulatory action.

“A debt that used to be GH¢1.8 billion is now more than GH¢7.1 billion. It is growing every day with interest. So the government of Ghana and its agencies, if they had paid us even one-third of that money to the contractors six years ago, there wouldn’t be a Gold Coast or Black Shield problem. There wouldn’t be a GN Bank problem, there wouldn’t be a problem with any of our companies. So today, what we are asking is we are saying let them pay the money,” he said

Dr. Ndoum proposed that if the government lacks the necessary funds, a middle-ground solution could be explored, where both parties share the burden.

“If the government doesn’t have the money, let us come up with a payment plan. They pay us, the customers get paid,” he added.

Prior to its license revocation, the bank had 300 branches across the country, with a workforce of about 7,000 employees.

The license recovery drive also featured other activities, including a visit to the various branches of the defunct banks and communities.

In the coming days, the defunct bank will embark on a mission to reclaim its licenses, complemented by an advocacy campaign to raise awareness about the allegedly unfair revocation of its banking licenses by the central bank.

The “Bring Back GN Bank” license recovery drive comprised a range of activities, prominently featuring a nationwide tour of the company’s assets and meetings with former bank employees.

Dr. Ndoum visited the former and proposed branches of the bank  in Afransie, Awutu Senya, Potsin and Ngleshi Amanfrom.

The branches in  Amanfrom and Awutu Senya have been converted into churches while the branch in Potsin has been destroyed.

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