Founder and Chief Executive Officer of Groupe Ndoum, Dr. Paa Kwesi Nduom, is making headlines once again. This time, he’s demanding that the Ghanaian government settle a staggering debt of GH¢7.1 billion owed to his defunct GN Bank. The financial institution, which was once thriving, fell victim to the banking sector clean-up and reforms conducted by the Bank of Ghana in 2017.
The GN Bank Saga
As part of the clean-up exercise, the Bank of Ghana discovered several breaches within GN Bank, rendering it insolvent. The bank’s collapse had far-reaching consequences, affecting depositors and creditors whose funds were locked up. Dr. Paa Kwesi Nduom, a prominent figure in Ghana’s business landscape, is now seeking justice for his institution and its stakeholders.
Structured Repayment Plan
Addressing journalists at a press briefing, Dr. Nduom emphasized the need for a structured repayment plan. The loans used to prefinance government projects must be repaid promptly to restore GN Bank’s financial health. Dr. Nduom’s plea extends beyond mere financial restitution; he also calls for the restoration of GN Bank’s banking license.
Government’s Role
Dr. Nduom’s argument centers on the importance of infrastructure development in Ghana. His companies played a crucial role in financing key projects across the country, including cocoa roads and educational institutions. At the time, government loans were considered low risk, and repayment was expected to be swift. However, the outstanding debt of GH¢7.1 billion remains unpaid.
A Call for Accountability
The government’s failure to honor its debt obligations has left GN Bank in a precarious position. Dr. Nduom’s demand for repayment is not only about financial recovery but also about holding the government accountable. If the debt had been settled years ago, the current Gold Coast/Black Shield, GN Bank crisis might have been averted.
