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Business News of Saturday, 17 August 2019

Source: citinewsroom.com

We’re working to challenge license revocation in court – Groupe Nduom Veep

The Vice President of Groupe Nduom, Nana Ofori Owusu, says work is ongoing to challenge the revocation of the licence of GN Savings and Loans in court.

Speaking on The Big Issue on Saturday, Mr. Owusu described the revocation of GN Savings and Loans’ license as “injustice at the highest level.”

Groupe Nduom lost its license alongside 22 other Savings and Loans Companies and Financial Houses.

“We are saying that this grievous misrepresentation of the facts and the truth that is being perpetrated against GN Savings and Loans is a travesty of process and we have to go to the court to seek redress in this matter and we are on it. The team is on it,” he added.

The Groupe Nduom Vice President’s remarks followed similar opposition from the company’s Chairman and Chief Executive Officer, Papa Kwesi Nduom.

Mr. Nduom in a statement said claims by the Bank of Ghana that the company was in financial distress and fell far below its capital requirement level were “wildly inaccurate.”

The Bank of Ghana in announcing the revocation of GN Savings and Loans’ license said GN’s shareholders failed to restore the bank to the required regulatory capital and liquidity levels despite prior promises.

The Bank of Ghana noted that GN Savings and Loans indicated that government owed it GHc942.98 million.

GHc102.73 million of the amount represented Interim Payment Certificates (IPCs).

But the Bank of Ghana held that only IPCs totalling GH¢30.33 million have been confirmed by the Ministry of Finance as at August 6, 2019.

This is owed to contractors that may be indebted to affiliates of GN Savings and Loans.

No good faith

Mr. Owusu insisted that his company had been forthright with the government and decried a lack of good faith in handling the matter.

He said the company currently felt “scandalized and we feel that a breach of good trust and faith has been committed.”

“We have shown to the government every single contractor, all the work that was done and the cost of the work. What we were haggling about was the interest accrued on that money.”



According to him, GN Savings and Loans had been working with the Finance Ministry on validating all the payment certificates.

He also said the company was in court trying to recover the monies due to the company.

“In trying to recover monies due us, we have taken the government to court as phase one in a series of lawsuits that are pending to recover monies that are due to Groupe Nduom.”