Nduom sues BoG, Ken Ofori Attah, Others over collapse of GN Savings and Loans

The Chairman of Group Nduom, Papa Kwesi Nduom has sued the Bank of Ghana; Finance Minister, Ken Ofori Atta; Attorney General, Gloria Akuffo; and Receiver for GN Savings and Loans, Eric Nana Nipah.

BoG on August 16 revoked the licence of 23 savings and loans companies, including GN Savings and Loans, for being insolvent, but the chairman of the GN group, Dr Papa Kwesi Nduom, immediately rejected the central bank’s claim.

The central bank maintained its decision in revoking the licence of the GN Savings and Loans company, which until January 4, was a licenced universal commercial bank. It was downgraded after it failed to meet the 400 million-cedi minimum capital.

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.”