With reference to the circumstances surrounding the bank’s liquidation, Dr. Paa Kwesi Nduom, CEO of the Nduom Group of Companies, which owned GN Bank, has made shocking allegations.
According to Dr. Nduom, the GN Bank closure was planned by the former Minister of Finance, Ken Ofori-Atta, in order to forward his political agenda. He disclosed that the Finance Minister at the time had presented a memorandum asking for the cabinet’s approval to close GN Bank.
The memorandum was attacked by Dr. Nduom, who said that it failed to recognize the vital role that GN Bank plays in advancing financial inclusion and economic development. He clarified that GN Bank was the biggest bank with the widest distribution network, greatly advancing financial inclusion and economic expansion, but this was not acknowledged in the text.
Rather, it asserted that the bank’s closure was justified by the political issues it was creating.
Furthermore, Dr. Nduom claimed that delaying payments was a deliberate attempt to create the liquidity situation that ultimately led to the bank’s collapse.
Additionally, he revealed that the government had originally opposed the closure of GN Bank, even in spite of Ken Ofori-Atta’s best efforts.
In 2019, the Bank of Ghana closed GN Bank and six other local banks, citing insolvency and mismanagement as the primary reasons. The central bank revoked GN Bank’s license after determining that the bank could not meet the required capital requirements.
GN Bank had been struggling with financial difficulties, including a high ratio of non-performing loans, and had failed to implement effective risk management practices. The collapse of GN Bank, along with other indigenous banks, was attributed to poor corporate governance, non-performing loans, and regulatory lapses.
The Bank of Ghana’s actions faced criticism from some quarters, with detractors arguing that the central bank’s handling of the situation was overly harsh and potentially politically motivated.
See video:
“Here is Memo by KOA, Former Finance Minister, that said we should collapse GN Bank because it was affecting our political chances so let’s shut it down” – Dr. Papa Kwesi Nduom alleges pic.twitter.com/OgfpGxRoM3
— roland walker👣 (@rowalkerghana) June 7, 2024
