Nduom seeks injunction on revocation of GN Savings and Loans’ license

• Posted on September 4, 2019
• by Nana Kwesi Coomson
• Comment

The Chairman of Groupe Nduom, Papa Kwesi Nduom has asked the court to compel the Bank of Ghana (BoG) to restore the license of GN Savings and Loans while the two battle in court over the license revocation.

In an application sighted by citinewsroom.com, Nduom is asking the court to restore the firm “to its specialised deposit-taking license pending the determination of the originating motion.”

In the application, Dr. Nduom is captured as the first applicant, Coconut Grove Beach Resort and Groupe Nduom limited were also listed as 2nd and 3rd applicants.

Mr. Nduom also wants an order from the court to keep the Reciever of GN Savings and Loans from “further interfering directly or indirectly with the rights of [the firm’s] shareholders, directors and management… to control the [firm’s] business activities pending the determination” of the case.

In his statement of claim, Dr. Nduom insisted that GN Savings and Loans was in good standing despite being declared insolvent by the BoG.

He said government infrastructure project portfolio was in excess of GH¢2.2 billion, more than its 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.

According to Dr. Nduom, the government and state agencies, as of August 14, 2018, owed the company over GH¢600 million.

He argued further that the BoG and other parties failed to consider the government’s indebtedness to the company in making a determination on the company’s solvency and that constitutes a violation of rights.

He wants the court to rule that the failure of the BoG to consider that indebtedness of the Government of Ghana and its MDAs to Group Nduom before declaring GN Savings and Loans to be insolvent, constitutes a violation of his rights, that of Group Nduom and Coconut Grove Resort.

Papa Kwesi Nduom has already sued the Bank of Ghana; Finance Minister, Ken Ofori Atta; Attorney General, Gloria Akuffo; and Receiver for GN Savings and Loans, Eric Nana Nipah.

He wants the court to among other things quash the decision of the Bank of Ghana to revoke the license of GN Savings and Loans.