Awutu Senya farmers chase govt over deposits at collapsed GN S&L

A group of farmers in the Awutu Senya District, Abeefo Amedua Farmers have called on the government to help them retrieve their, locked up deposits from the collapsed GN Savings and Loans.

Chairman of the group Mr. Emmanuel Lardi told Nyankonton Mu Nsem on Rainbow Radio 87.5Fm that they have waited for two years without their deposits being paid.

The farmers he lamented are unable to cater for their families because they have all their investments to the bank.

He revealed they have more than GHc86,000 with the collapsed bank and has appealed to the government to help them retrieve their cash or they will unleash their wrath on them.

He blamed the government for failing to help them retrieve their deposits and stressed the need for authorities to fulfil their pledge to them by giving them their deposits.

Background

The Bank of Ghana in 2019 revoked the licenses of twenty-three (23) insolvent savings and loans companies and finance house companies including the GN Savings Limited.

The central bank in its statement said the revocation of the licenses of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.

The case is currently pending in the High Court.

In the suit, Dr Papa Kwesi Nduom, the owner has accused the Bank of Ghana(BoG) and the Minister of Finance of “deliberately and maliciously suppressing” the amount of money that the government owes GN Savings and Groupe Nduom. It would be recalled that on August 9, 2019, the Ministry of Finance informed the BoG that the government’s total indebtedness to Groupe Nduom was just GH¢ 30,329,483.84. This was far below the GH¢629,091,335.00, which Groupe Nduom says that government owes it.

Counsel for the applicant, Justice Srem-Sai of Archbridge Solicitors argued that the reason for supressing the government’s indebtedness to GN Savings was to enable the BoG to reach the false conclusion that GN Savings was insolvent.

In an affidavit which was sworn to by Dr Nduom, it was stated that “while disputing the very existence of the IPCs debt-claims in the eyes of the public, the Bank of Ghana has at all times material nicodemously demanded that GN Savings assign the said IPCs to it.”

In respect of this allegation, the trial judge, Ms Justice Gifty Addo-Adjei, ordered all the three defendants (the Bank of Ghana, the Attorney-General and the Receiver, Mr Eric Nana Nipah), to file their defences by January 17, 2020. As at the close of March, however, it was only the Receiver who had filed a defence.

Dr Nduom is asking the Court to quash BoG’s revocation notice and rather restore the licence to GN Savings.

They are also asking the court for “an order of injunction, restraining the other Respondents, their agents, assigns, privies and workmen howsoever called or described from interfering with the possession, management or control of the assets, operations and other activities of GN Savings and Loans Company Limited.”