Audio By Carbonatix
Dr Nana Kweku Ndoum, President of Group Ndoum, has disputed claims that GN Bank was insolvent before it was downgraded to a savings and loans company and subsequently had its licence revoked by the Bank of Ghana.
Speaking on JoyNews' Newsfile on Saturday, May 23, following the Court of Appeal victory for GN Savings and Loans, Dr Ndoum said the bank remained solvent at the time regulatory actions were taken against it.
According to him, assertions that GN Bank was insolvent when it was reduced from a universal bank to a savings and loans institution in 2019, and later had its licence withdrawn, were not supported by the facts.
"It was untrue that the institution (GN Bank) was insolvent and unable to pay its obligations", he said.
He argued that the institution possessed sufficient assets and should not have been classified as insolvent, maintaining that the latest court ruling vindicates the position consistently advanced by his father, businessman and politician Paa Kwesi Nduom, and the wider Groupe Nduom.
"It was actually on the advice of the Bank of Ghana that we were reclassified as a loan and savings institution, and there were a number of requirements that obligators are to fulfil.
"We were very diligent in meeting those requirements, and we have made significant progress within the eight months between the reclassification and verification, so it came as a shock to us when we heard the license had been revoked," he added.
Dr Ndoum's comments come days after the Court of Appeal overturned key aspects of an earlier High Court ruling in a long-running legal dispute involving the Bank of Ghana and Groupe Nduom's GN Savings and Loans.
He said the judgment reinforces concerns raised by the group over the processes and decisions that led to the collapse of institutions during the banking sector clean-up exercise.
The legal battle stems from regulatory measures introduced by the Bank of Ghana in 2019, which resulted in GN Bank being downgraded to a savings and loans company and eventually having its licence revoked.
Dr Ndoum indicated that the group would continue pursuing remedies to clear the names of the affected businesses and secure justice for customers, investors and shareholders.
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