The BoG on June 14 justified its decision to revoke the license of GN Bank in 2019 insisting that the action was warranted due to significant regulatory breaches.

The Central Bank maintains that GN Bank failed to comply with critical financial regulations and banking standards, threatening its operational stability.

Simply, the BoG is implying, it cannot restore the license of GN Bank as demanded by its management.

Referring to a statement issued in August 2019 detailing reasons for the revocation, the Central Bank said that GN Bank fell short of capital adequacy, liquidity, governance, and risk management requirements.

But the Groupe in a release on Sunday, June 16 claimed that the BoG’s declaration of insolvency for GN Savings was based on “wildly inaccurate” information and demanded the restoration and upgrade of GN Savings’ license.

It stated that the contention began when the BoG cited a lack of sufficient funds as the reason for GN Savings’ insolvency.

Groupe Nduom refuted this, stating that GN Savings had more than the GHS30.33 million BOG relied upon to make its decision.

It asserted that GN Savings was compliant with all BOG regulations and had even submitted a detailed report in June 2019 demonstrating positive business progress.

Groupe Nduom also highlighted that the Government of Ghana and its agencies owed Groupe Nduom companies over GHS7.1 billion.

The Groupe argued that if these debts were paid, not only would customers be compensated, but GN Savings would also possess sufficient capital to become a universal bank once more.

It said it had sought justice through legal channels, petitioning influential figures, including President Nana Akufo-Addo and Vice President Mahamudu Bawumia.

It therefore called for the BOG to admit and correct its mistake.

“The statements Bank of Ghana (BOG) issued on August 16, 2019, regarding GN Savings are wildly inaccurate; 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 BOG as a savings and loans company and wrote a detailed report in June 2019 to prove that its business was moving positively forward.”

“These facts are indisputable. 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,” it stated.