GN Bank denies regulatory breaches, accuses Bank of Ghana of inaccuracies

In a media statement copied to the Ghana News Agency, the defunct bank described the BOG’s claims of regulatory breaches related to the illegal transfer of money to its subsidiary abroad as “far-fetched.”

The statement clarified, “Did GN Bank illegally transfer $62 million to a related company in the USA? No. The company involved, International Business Solutions (IBS), was started by Dr. Nduom in the 1980s. Its objectives included business advisory services, the procurement of business equipment, and the sale of computers and printers, among others. An IBS company was also established in Ghana.”

“Generators, computers, air conditioning equipment, vehicles, and raw materials for Groupe Nduom companies have been imported through IBS and paid for by the relevant companies. This has been conducted legally with appropriate documentation since the 1980s.”

“The notion that over $60 million in foreign currency transactions could occur over a 10-year period with ‘no documentation,’ as implied by the Bank of Ghana in that release, is extremely far-fetched.”

The statement emphasized that GN Bank Management and IBS provided documentation to support their activities. However, it added, “nothing was heard from the BOG after repeated requests until the allegation appeared in the GN Savings statement on August 16, 2019.”

The company also denied claims by the BOG that GN Bank was used to mobilize funds for subsidiary companies of the bank.

“Was GN Bank’s objective to mobilize deposits for affiliates? Not true. This is one of the selective stories told by Ghana’s banking regulator. The truth that can be confirmed is that GN Bank’s affiliates were the bank’s biggest depositors, and today they have the most funds locked up with the receiver. Also, GN Bank affiliates had paid off loans they had taken from the bank as of August 16, 2019. They have payoff letters to this effect.”

The defunct bank reiterated that its insolvency was caused by the government’s indebtedness to contractors.

“If the government had paid the GHS 1.8 billion it owed to contractors, the defunct bank would have been in a better financial position,” it stated.

The bank also reiterated that its absence had created a significant vacuum in the financial inclusion efforts in the country, as current banks had failed to fill the gap.