GN is not only solvent but will be ”highly liquid” if gov’t pay amounts owed it-Nduom jabs

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Chief Executive Officer (CEO) of Groupe Nduom the business conglomerate with GN Savings and Loans as one them has reacted to the revocation of licence of the company.

The Bank of Ghana (BoG) has explained through a statement that the revocation of the licence of GN and the remaining 22 has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.

”It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors,” the statement said.

As part of the reasons for the revocation of the licence of GN, the BoG said: ”While GN has indicated that government owes it a total amount of GH¢942.98 million of which GH¢102.73 million represented Interim Payment Certificates (IPCs), the Bank of Ghana’s assessment is that IPCs totalling GH¢30.33 million only have been confirmed by the Ministry of Finance as  at 6th August 2019 as owed to contractors that may be indebted to affiliates of GN. The Bank of Ghana’s supervisory assessment shoeeds that even when the total outstanding IPCs amount of GH¢30.33 million was considered, it still did not address GN’s capital deficit of -GH¢683.66 million. It must be noted that 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 Ndoum network of businesses, under circumstances that violated relevant prudential norms. Of particular interest are the funds totalling GH¢761.55 million that GN Bank as it then was, placed with its sister companies Ghana Growth Fund (Gold Coast Advisors) and Gold Coast Fund Management Limited (now Blackshield Capital Management), both licensed by the Securities and Exchange Commission.”

But reacting to the issue, the CEO said: ”If these documents are indeed genuine, the statements within regarding GN Savings are wildly inaccurate. 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). We are aware that the MoF has previously confirmed that balances due to GN Savings and other related parties are far in excess of the amounts quoted in the communication from the BoG.”

He insisted ”Our position is that GN Savings is not 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.”

PRESS RELEASE
DATE: AUGUST 16, 2019
SUBJECT: REGARDING REPORTS OF GN SAVINGS RECEIVERSHIP
_____________________________________________________________
It has come to the attention of Groupe Nduom Limited, the entity representing the interests of the majority shareholders and founders of GN Savings Limited, that documents are circulating that purport to be from the Bank of Ghana (BoG) regarding the receivership of GN Savings Limited.

Please note the following:

1.1. Neither shareholders nor management of GN Savings have received any official communication from the BoG regarding receivership.

1.2. If these documents are indeed genuine, the statements within regarding GN Savings are wildly inaccurate. 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). We are aware that the MoF has previously confirmed that balances due to GN Savings and other related parties are far in excess of the amounts quoted in the communication from the BoG.

1.3. Our position is that GN Savings is not 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.

1.4. GN Savings and all other concerned stakeholders will respond with more detail shortly, but in the meantime, we pray that all customers and stakeholders remain calm while we work through this matter with the relevant parties.

Sincerely yours,

Papa Kwesi Nduom Chairman and CEO Groupe Nduom

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