Solicitors for Dr Papa Kwesi Nduom and Groupe Nduom Limited, the shareholders of GN Savings and Loans Limited, Archbridge Solicitors have written to the Receiver for the 23 collapsed savings and loans companies and Finance Houses, Eric Nana Nipah, asking for a meeting to discuss a myriad of issues concerning the defunct GN Savings and Loans Limited.
Among the issues, the solicitors are looking at discussing include the particulars such as the name, category of investment and amounts of the customers or depositors who have put in claims for their monies; the details of what the Receiver has been able to pay out to the customers or depositors who have put in such claims.
They also want information on the loans and other credits they have been able to collect from debtors since August 16, 2019.
The solicitors are also asking for the statement of GN Savings and Loans’ financial position as at February 29, 2020; and any other related issue or information.
“We will be available for such a meeting during the working hours of any day from Wednesday, March 11 through to Tuesday, March 31, 2020. Alternatively, you may supply the information in respect of the above issues through us to our Clients within the period which we have indicated in Paragraph 5 of this letter,” the solicitors requested in the letter.
Following the collapse of some Savings and Loans companies, microfinance firms and finance houses, government assured to pay customers of the defunct companies their locked up cash.
The Receiver last Monday started paying out customers their locked-up funds from a GHS5 billion made available by the government as part of plans to restore confidence in the financial sector.
According to the Consolidated Bank Ghana, the bank mandated to make the payments, as of Friday, February 28, 2020, over 13,000 customers had been paid fully.
The bank added that the number of customers paid included 490 companies, 581 social organizations, 174 financial institutions, and 48 financial security institutions.
Why GN Savings and Loans license was revoked
The Bank of Ghana revoked the license of GN Savings and Loans in August 2019 together with 22 other firms.
The Bank of Ghana in announcing the revocation of GN Savings and Loans’ license said: “GN’s shareholders have failed to restore the bank to the required regulatory capital and liquidity levels in spite of long-standing promises that new capital was expected from foreign investors.”
“While GN has indicated that government owes it a total amount of GH¢942.98 million of which GH¢102.73 million represented Interim Payment Certificates (IPCs), the Bank of Ghana’s assessment is that IPCs totaling GH¢30.33 million only have been confirmed by the Ministry of Finance as at 6th August 2019 as owed to contractors that may be indebted to affiliates of GN,” the Bank of Ghana said in a statement.
But the former managers of the defunct company rejected the claims by the central bank and subsequently went to court over the issue.