Dr Paa Kwesi Nduom addressing some traders in the Western Region
Dr Paa Kwesi Nduom addressing some traders in the Western Region
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Pay us to settle our indebtedness - Nduom to govt

The Global Chairman of Groupe Nduom, Dr Paa Kwesi Nduom, has called on the government to settle a debt of GH$7.1 billion owed by the GN Bank to enable it to repay its creditors and depositors.

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He said the debt stemmed from funds the GN Bank advanced to pre-finance various government infrastructure projects, adding that those investments were made with the expectation that loans to the government, seen as low-risk, would be repaid promptly.

The chairman claimed that failure to receive those funds was a major contributing factor to the bank’s collapse.

“BringBackGNBank” campaign

Dr Nduom made the call in an engagement with the public during a tour of the Western Region as part of his “BringBackGNBank” campaign. The campaign involves a visit to all 300 GN Bank offices across the country to inspect the state of facilities, engage with customers and also reveal to them his plans to resuscitate the company.

As part of the Western Region tour, Dr Nduom, together with some management and staff of Groupe Nduom, engaged town folks in Takoradi, Elmina, Cape Coast and Mankessim.

The defunct financial institution was closed down during the Bank of Ghana’s financial sector reforms in 2017.

Debt repayment

Dr Nduom said, “a debt that used to be GH¢1.8 billion is now over GH¢7.1 billion and growing every day with interest. “If the government had paid us even one-third of that money six years ago, there would not have been a Gold Coast or Black Shield problem. There wouldn’t have been a GN Bank problem and there wouldn’t have been problems with any of our companies.

“If the government doesn’t have the money, let us come up with a payment plan. They pay us, the customers get paid,” Dr Nduom said. The plea for the government to repay the debt includes calls for the reinstatement of the GN Bank’s operating license.

The chairman expressed confidence that with the settlement of the debt, the GN Bank would re-emerge as a viable institution, capable of meeting its obligations to customers and contributing to the broader economy.

Background

The GN Bank’s closure was part of a broader regulatory intervention that led to the dissolution of numerous financial entities including banks, savings and loans companies, microfinance institutions, finance houses and asset management firms.

The clean-up exercise was aimed at restoring stability and confidence in the country’s financial sector which was plagued by insolvency and poor governance issues.

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