Dr. Papa Kwesi Nduom Expresses Confidence in Regaining Revoked Licenses Under Future Administration
Dr. Papa Kwesi Nduom, Chairman and Founder of GN Bank, has voiced his optimism regarding the restoration of his financial institutions’ licenses, expressing belief that a future administration will correct the current situation.
Speaking to the media, Dr. Nduom detailed the challenges GN Bank and other related companies have faced since the Bank of Ghana revoked their licenses.
“Our licenses were revoked not only for GN Bank but also for Blackshield, our insurance company, and other financial entities under our group. The consequences of this decision have been devastating,” Dr. Nduom said.
He went on to describe the legal battles the group has endured both locally and internationally. “We have faced several legal actions, some even extending beyond Ghana to the United States and Liberia.
However, I’m proud to say we have successfully won all legal cases against us in the U.S., despite the appeals by opposing groups in different states,” he explained.
The impact of the license revocation has gone beyond financial losses. According to Dr. Nduom, many of the group’s properties have been locked out or left in poor condition. Some of the company’s lands, including one in the Central Region, were reportedly seized and handed over to other corporate institutions to develop.
He pointed out that some of these properties have been looted and left to deteriorate.
“In all this, it is clear that some individuals are acting out of sheer wickedness. The revocation of our licenses is a move that not only hurt our businesses but also led to the loss of over 7,000 jobs,” Dr. Nduom lamented. “Former President John Agyekum Kufuor himself disagrees with the treatment we have received.”
Dr. Nduom believes that indigenous banks like GN Bank are critical to the strength of the national economy. He vowed to continue the fight to restore his financial businesses, emphasizing that such actions by the authorities are detrimental to Ghana’s economic progress.
“We remain hopeful that justice will prevail and we will once again be able to contribute meaningfully to the nation’s financial landscape,” he concluded.
The closure of GN Bank and other Nduom-owned businesses has raised concerns about the treatment of locally-owned enterprises within Ghana’s banking and financial sector.
Backstory:
In late 2018, the Bank of Ghana (BoG) initiated a wave of reforms in the banking sector to improve stability and compliance with capital requirements.
As part of these efforts, GN Bank was reclassified as GN Savings after it failed to meet the BoG’s minimum capital requirement of GH¢400 million by the December 31, 2018, deadline.
The bank was given a six-month grace period to meet these specific financial benchmarks in order to retain its operating license.
However, by August 2019, after the six-month period had lapsed, the Bank of Ghana revoked GN Bank’s license alongside 22 other insolvent savings and loans companies and finance houses.
The decision was part of a broader move to clean up the financial sector, but it had severe consequences for the affected institutions, including GN Bank, which was one of the largest locally-owned banks at the time.
The revocation not only marked the end of GN Bank’s operations but also led to the collapse of other associated entities within Dr. Papa Kwesi Nduom’s financial group, including Blackshield Capital and insurance firms.
The closure of these businesses resulted in the loss of thousands of jobs and a ripple effect across the Ghanaian economy. Dr. Nduom and his group have since faced legal challenges both within and outside of Ghana as they seek to reverse the decisions made by the central bank.
