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GN Bank Disputes BoG’s Claims

The Groupe Nduom Bank has taken a bold stance against the Bank of Ghana (BoG), refuting claims of regulatory infringements that have been cited as grounds for the collapsed financial establishment.

In a rebuttal, Group Nduom dismissed the central bank’s depiction of alleged infractions related to purported unauthorized fund transfers to its overseas arm as fabrications.

Through an official statement, Group Nduom said the BoG’s assertions surrounding the movement of $62 million to an American subsidiary were grossly inaccurate and devoid of substantiation.

“Did GN Bank illegally transfer $62 million to a related company in the USA? No. The company involved, International Business Solutions (IBS), was started by Dr. Nduom in the 1980s. Its objects included business advisory services, the procurement of business equipment, the sale of computers and printers, etc. An IBS company was also established in Ghana.”

“Generators, computers, air conditioning equipment, vehicles, and raw materials for Groupe Nduom companies have been imported through IBS and paid for by the relevant companies. This has gone on legally with appropriate documentation since the 1980s.

“The idea that over $60 million in foreign currency transactions can occur over a 10-year period with “no documentation” as implied by the Bank of Ghana in that release is extremely far-fetched.”

According to the statement, GN Bank Management and IBS provided documentation to support their activities, adding, however, that “nothing was heard from BoG after repeated requests until the allegation showed up in the GN Savings statement on August 16, 2019.”

The Company also denied claims by the BoG that the GN Bank was used to mobilise funds for subsidiary companies of the Bank.

“Was GN Bank’s object to mobilise deposits for affiliates? Not true. The truth that can be confirmed is that GN Bank’s affiliates were the Bank’s biggest depositors and today have the most funds locked up with the receiver.  Also, GN Bank affiliates, as of August 16, 2019, had paid off loans they had taken from the Bank. “They have pay-off letters to this effect.”

The defunct Bank reiterated that its insolvency was occasioned by the government’s indebtedness to contractors, indicating that “If the government had paid the GH¢1.8 billion it owed the contractors, the defunct bank would have been in a better financial position,” it stated.

Meanwhile, the bank strongly believes that its absence had created a huge vacuum in the financial inclusion efforts in the country, as current banks had failed in filling the gap.