Founder of the defunct GN Bank, Dr. Papa Kwesi Nduom, has issued an impassioned appeal to the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, to review new evidence and reinstate the bank’s license, revoked in 2018 due to alleged insolvency.
Dr. Nduom argues that the bank’s assets remain viable and ready for operation.
He stressed the importance of maintaining GN Bank’s assets in good condition, suggesting the institution is poised to resume operations if given the opportunity.
“We are prepared to start working, even in our reclassified state as a savings and loans company. Once all the accounting is done, and funds begin to flow, it will be evident that GN Bank can thrive once more,” he noted.
New Evidence Challenges BoG’s Insolvency Claims
In a recent Facebook post, Dr. Nduom contested the BoG’s assertion of GN Bank’s capital inadequacy, referencing the 2019 GN Savings and Loans transition report.
He implored Dr. Addison to recognize the new facts presented, which he claims demonstrate the bank’s sufficient funds at the time of license revocation.
Regulatory Breaches Disputed by Dr Nduom
The BoG cited significant regulatory breaches and failure to meet crucial financial regulations as reasons for the license revocation.
Dr. Nduom, however, vehemently disputes these claims, asserting that the new evidence submitted should prompt a reconsideration of the decision.
Dr. Nduom envisions the reinstatement of GN Bank’s license leading to the reemployment of thousands and the reopening of hundreds of branches, bolstering financial inclusion.
“What we are looking for is to go back and put thousands of people back to work and restore financial services to our network,” he stated.
Capital Requirements and Asset Management
Highlighting the requirements for a savings and loans company, Dr. Nduom noted, “Even the GHC30.3 million erroneously reported by the finance ministry would suffice to meet our capital requirements. Our properties and branch buildings could further bolster our capital base.”
He criticized the BoG-appointed receiver for neglecting these assets, leaving them to deteriorate.
Source: Norvanreports