Search
Close this search box.

GN Bank never took a bailout from BoG – Group Nduom VP clarifies

Facebook
Twitter
LinkedIn
WhatsApp
Telegram
Email

Nana Ofori Owusu, the Vice President of Groupe Nduom, has provided an clarity on the status of GN Savings and Loans in comparison to other local banks that were stripped of their licenses by the Bank of Ghana in 2017.

He pointed out that GN Bank, which was later converted into a savings and loans company before its eventual downfall, did not partake in any bailout funds from the Central Bank, unlike its counterparts.

This statement comes on the heels of Dr. Papa Kwesi Ndoum, Chairman of Groupe Ndoum and former owner of the now-defunct Gold Coast Fund Management Company, asserting that the government is indebted to his firms and their affiliates to the tune of over GH¢7 billion.

Dr. Ndoum has been actively appealing to the government to settle debts with contractors who have financial ties to Groupe Ndoum, suggesting that such actions in the past could have prevented the financial predicaments his companies are currently facing.

Speaking on the matter on the Citi Breakfast Show on Tuesday, May 28, 2024, Mr Ofori Owusu, emphasised the uniqueness of GN Bank’s situation, distinguishing it from other cases in the banking sector.

“A statement was made that some people have been jailed in the banking sector, I want people to understand that this is not a ‘banku effect’; that everybody is the same. Somebody was jailed for taking a bailout from the Bank of Ghana and using it in a way that was not appropriate. With the GN bank matter, GN has never taken a bailout from the Bank of Ghana,” he stated.

The conversation around bailouts and financial misconduct in the banking sector was reignited by the recent imprisonment of William Ato Essien, the former CEO of the now-defunct Capital Bank.

On October 15, an Accra High Court, led by Justice Kyei Baffour, sentenced Mr Essien to 15 years of imprisonment with hard labour after he failed to repay GH¢90 million to the state as ordered by the court.

Mr Essien had previously struck a deal with the state under section 35 of the Courts Act, which allows for an accused person to plead guilty and make restitution for financial losses to the state, potentially avoiding a custodial sentence. Despite this agreement, he did not fulfil his financial obligations within the stipulated timeframe.

Share this post :

Facebook
Twitter
LinkedIn
WhatsApp
Telegram
Email