Lawyers for Dr Papa Kwesi Nduom, the majority shareholder of the defunct GN Savings, have urged the Accra High Court to cancel the revocation of the license of the financial institution by the Bank of Ghana (BoG) on the basis that the BoG failed to properly assess the company’s books.

In a 39-page address to the Human Rights Division of the Accra High Court, lead counsel for Dr Nduom, Mr Justice Srem–Sai, argues that the BoG failed to conduct “a true, fair and independent assessment of GN’s savings books” and that if the Central Bank had done a proper assessment it would have realised that GN Savings was indeed solvent.

“Indeed if the BoG had conducted a proper, fair, true and independent audit into the books of GN Savings, it would have known or come to the obvious conclusion that GN Savings was solvent and, therefore, capable of meeting its debt obligation at the time the BoG revoked its operational license,” the address argued.

Dr Nduom and two entities affiliated to him – the Coconut Grove Beach Resort and Groupe Nduom are in court challenging the revocation of the license of GN Savings by the BoG on August 16, 2019.

“GN was solvent”
On August 16, 2019, the BoG revoked the licenses of GN Savings and 22 other savings and loans, and finance houses which the central bank declared as insolvent.

With regard to GN Savings, the BoG stated that even though GN Savings indicated that the government owes it Gh¢942.98 million of which Gh¢102.73 million represented interim payments certificates (IPCs), the BoG was able to confirm only Gh¢30.33 million as the debt owed by the government to GN Savings.

The BoG, therefore, concluded that even if the outstanding Gh¢30.33 million was taken into consideration, GN Savings still had a capital deficit of Gh¢683.66 million and was therefore still insolvent.

However, Mr Srem-Sai contends in his written address to the High Court that an independent audit conducted on loans advanced by GN Savings and Groupe Ndom to contractors engaged in government projects between October, 2005 and June 30, 2019 put the value at Ghc385, 905,327.81(the amount was without the interest).

Source: Graphic.com.gh