Dr Nduom begins campaign to resuscitate GN Bank

Broken doors, windows and weedy compounds were what welcomed the Global Chairman of Groupe Nduom, Dr Paa Kwesi Nduom, to the office premises of the defunct GN Bank offices as he commenced a nationwide tour to campaign for the return of the collapsed bank.

Dubbed “BringBackGNBank”, the purpose is to visit all the 300 GN Bank offices across the country to inspect the state of the facilities, engage with customers and also reveal to them his plans to resuscitate the company.

The first phase of the tour commenced last Sunday with a visit to most of the branches within the Central Region. Accompanied by some management and staff of Groupe Nduom, the team visited the old offices in Kasoa Amanfrom, Awutu Breku, Gomoa Potsin, Afranse, Biriwa, Makessim, Cape Coast and Takoradi.

Situation

In some areas, the team was shocked to see the offices in a complete state of disrepair. Although few were intact, others such as the Kasoa Amanfrom and Awutu Breku branches have been taken over by churches.

At various engagements, Dr Nduom expressed his worry that since the collapse of the bank, most of its customers had still not been given the opportunity to participate in the formal financial system.

Particularly in the remote areas, he said, most of them were faced with challenges ranging from limited savings options to restricted opportunities for economic growth, a service the bank was providing then.

“We were the only bank which saw the opportunity in establishing branches in some of these deprived areas and ever since our licence was revoked, no bank has made an effort to fill that vacuum,” he said.

He further explained that prior to the revocation of the licence, the bank was in good standing and most of the company’s funds had been invested in government projects as loans and advances to contractors which the government, through its ministries and agencies, had hired to execute various projects.

Government’s indebtedness

Dr Nduom emphasised that the Bank of Ghana and other parties failed to consider the government’s indebtedness to the company in deciding on the company’s solvency. He, therefore, charged every individual who had been affected by the collapse of the bank to add their voices to the call for government to restore the bank’s licence.

“I am very much hopeful that even if this administration ignores us, the next government will restore our licence and we will all see what will happen all over this country. The vigour and the enthusiasm that we will use to lift up GN Bank to make it become a spectacular bank for the unbanked will be unprecedented.”

“The millions and millions who are looking for a safe way to save their money but also the small businesses who are looking for money so that their businesses can grow will have that opportunity to do so,” Dr Nduom said.

Background

In 2019, the Bank of Ghana revoked the licences of 23 savings and loans companies and finance house companies which included the GN Bank. The bank subsequently sought legal action challenging the revocation of GN Savings and Loans’ licence by the Bank of Ghana.

But in January this year, an Accra High Court presided over by Justice Gifty Addo Adjei, upheld the legality of the Central Bank’s decision, emphasising the institution’s right to revoke the licence due to governance deficiencies that rendered GN Savings and Loans unable to meet its debt obligations.

After the ruling, the bank indicated that it was going to appeal that decision.