GN bank brouhaha: Stop blaming gov't for your woes - Dep. Minister

Her reactions come at the back of the residents of blaming President Nana Addo Dankwa Akufo-Addo of scheming to render the Chairman and President of Groupe Nduom, Dr Papa Kwesi Nduom poor.

The residents said they consider Dr Nduom their father, son, helper, caretaker of the jobless and father of orphans in the community and would not sit for his business to be collapsed.

But the Deputy Information Minister refuted claims that its indebtedness to GN Savings and Loans caused the insolvency of the financial institution, hence their closure.

According to her, "The deliberate attempt to draw the government and President Akufo-Addo into the insolvency problems of GN Savings and Loans is totally unwarranted, unfortunate and without any substance."

Nana Ama Dokua in a statement stated that the government's total debt obligation to the company stands at GH¢30.33 million of which an agreement has been reached with Groupe Nduom for payment to commence.

The statement adds that the sum, even if paid in full, would not solve the liquidity challenges GN Savings is grappled with.

"GN's insolvency problems are largely attributable to overdraft and other facilities it extended to its related parties who are other companies in the Groupe Nduom network of businesses, under circumstances that violated relevant prudential norms, including transfers of large sums of money (US$62,255,516.93, GBP718,528.59 and EUR 4,200) from depositors’ fund to foreign accounts of companies of Groupe Nduom, in breach of section 10 of the Foreign Exchange Act 2006, Act 723, Section IV of the Bank of Ghana Notice No. BG/GOV/SEC/2007/4," the statement added.

GN Savings and Loans was among 23 savings and loans companies whose licenses were revoked by the Bank of Ghana on Friday, August 16.

The Bank of Ghana said following the reclassification of GN Bank from a universal bank to a savings and loans firm, it has deteriorated with both negative capital adequacy ratio and negative net worth.

Despite a stiff challenge mounted by Dr Nduom against the move, the Central Bank declared GN Savings and Loans insolvent under Section 123 (4) of the Banks and SDIs Act, 2016 (Act 930).