The appeal comes amid ongoing controversies and legal battles following the central bank's decision to withdraw the bank's operating license.
The Central Bank of Ghana (BoG) defended its 2019 decision to revoke GN Bank's license, citing significant regulatory violations as the basis for the revocation. The bank asserted that GN Bank's failure to adhere to critical financial regulations and banking standards threatened its operational stability, making it impossible to restore the license as demanded by the bank's management.
BoG in August 2019, detailed that GN Bank did not meet requirements for capital adequacy, liquidity, governance, and risk management.
However, in a recent statement, Groupe Nduom challenged the BoG’s declaration of GN Savings' insolvency, arguing that it was based on “wildly inaccurate” information. The group emphasized the significant negative impact of the license revocation on its operations and the broader financial sector, contending that the BoG's actions were premature and did not accurately reflect GN Bank's actual financial health and compliance status.
Groupe Nduom asserted that GN Savings had more than the GHS30.33 million cited by the BoG in its decision.
"The statements issued by the Bank of Ghana on August 16, 2019, regarding GN Savings are wildly inaccurate. The BoG was aware that GN Savings had available to it more than the GHS30.33 million that it relied upon to declare it insolvent. GN Savings was not allowed by regulation, and GN Bank did not engage in illegal foreign currency transfers. GN Savings complied with all requirements laid down by the BoG as a savings and loans company and provided a detailed report in June 2019 proving that its business was moving positively forward," the statement read.
Groupe Nduom further highlighted that the Government of Ghana, its agencies, and contractors owe Groupe Nduom companies over GHS7.1 billion. They claimed that with this money, customers could be paid, and GN Savings would have enough capital to become a universal bank once again.
"These facts are indisputable. The BoG made a mistake that it must admit to and correct. Today, the Government of Ghana, its agencies, and contractors owe Groupe Nduom companies over GHS7.1 billion with this money, customers will be paid, and GN Savings will have enough capital to become a universal bank once again," portions of the statement said.