Dr. Papa Kwesi Nduom - Chairman, Groupe Nduom
Lawyers for Dr. Papa Kwesi Ndoum have asked the High Court to reject the evidence being relied on by the Bank of Ghana (BoG) and the Receiver of GN Savings & Loans justifying their decision to revoke the license of the financial institution.
According to the lawyers, some documents filed by the defendants such as their affidavits, containing their averments were not signed by the appropriate people. Lead lawyer on the case, Justice Srem Sai, in the application also raised concerns with some documents which he says pertains to GN Bank and not the savings and loans company.
What caused GN Banks Insolvency?
The application at the High Court was made in the ongoing case by Dr. Papa Kwesi Ndoum and some shareholders of GN Savings and Loans challenging the decision of the BoG to revoke their operating license. In his statement of claim, Dr. Nduom had insisted that GN Savings and Loans was in good standing despite BoG declaring it as insolvent.
Dr. Nduom said government infrastructure project portfolio was more than GH¢2.2 billion, a figure more than the company’s liabilities. He added that most of the company’s funds had been invested in government projects as loans and advances to contractors who government through its ministries and agencies had hired to execute various projects. Also, he said government and state agencies, as of August 14, 2018, owed the company over GH¢600 million.
His arguments further stated that the BoG and other parties failure to consider the government’s indebtedness to the company before proclaiming it as insolvent constitutes a violation of rights.
As a result, he has asked the court to rule that the failure of the BoG to consider that indebtedness of the government of Ghana and its MDAs to Groupe Nduom before declaring GN Savings and Loans to be insolvent, constitutes a violation of his rights, that of Groupe Nduom and Coconut Grove Resort.