Misrepresentation of GN Bank's financial position led to collapse - Dr Kweku Nduom

Dr. Papa Kwesi Nduom alleged that false claims about GN Bank's financial position played a major role in the institution's eventual collapse, speaking on JoyNews' Newsfile on Saturday, May 23. Dr. Nduom claimed that some individuals deliberately misrepresented the bank's financial health, creating the impression that the institution was insolvent. He also accused some persons of deliberately spreading misinformation, saying "During this process, there were some deliberate liars about the money that was at stake."

Dr. Nduom explained that Groupe Ndoum had engaged the Ministry of Finance and undertaken an independent audit to establish the extent of monies owed to the bank. He said, "We set up a team with the Ministry of Finance, and we spent several hours sitting down with the Minister of Finance, Ken Ofori-Atta," and "We had an independent audit of our portfolio, and we delivered all this information. But at the last minute, somehow they decided to let the Bank of Ghana say that it was only GH¢30 million that was due to us," calling it "A bald-faced lie, and that was the key piece of evidence used against us in revoking the licence."

Dr. Nduom argued that the combination of unpaid government-related obligations and what he described as false representations about the bank's financial status contributed to its downgrade from a universal bank to a savings and loans company and the eventual revocation of its licence. He added, "So if that money - just the IPCs - had been paid, we would not be having the conversation we are having now. We would not have had to be reclassified as a savings and loans company in the first place." The Groupe Ndoum President made the remarks while discussing the group's recent legal victory in the Court of Appeal over the revocation of the licence of GN Savings and Loans.