From Grace to Grass: Dr Ndoum Kicked Out Of BOG’s Backyard, SEC To Takeover

The Bank of Ghana (BOG) has yet again gone on its usual clean up exercise in the financial sector as part of its efforts to restore confidence in the banking and specialized deposit-taking sectors, this time targeting savings and loans companies.

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This latest clean up has led to the revocation of licenses of some 23 institutions which includes Dr Papa Kwesi Nduom’s GN Savings and Loans company.

According to a statement issued by the BOG, these actions were taken pursuant to Section 123 (1) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialized Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent. The Bank of Ghana has also appointed Mr. Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.

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Not long ago, GN Bank was demoted to savings and loans from a universal banking status as result of failure to meet the GHC 400 million minimum capitalization requirement.

Prior to losing that status, Dr Nduom refused to merge with other under capitalized foreign banks, citing the need to support and strengthen indigenous banks hence electing to be savings and loans instead.

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It appears Groupe Nduom’s empire in the financial sector may be coming to an end soon as Gold Coast Securities faces issues of insolvency. Should this happen, it will be one of the greatest fall ever in the financial sector in the country.

Below is the list of the 23 affected institutions.

Source: AfricaCelebrities.com