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Is Nduom’s bank in trouble in Liberia?

There are contradictions from Liberia on SIB Liberia Limited, a commercial bank owned by Ghanaian businessman and politician, Dr. Papa Kwesi Nduom.

According to a report by frontpageafricaonline.com, SIB Liberia Limited is one of two major commercial banks operating in Liberia facing insolvency issues, prompting customers to seek withdrawals.

The report indicated that Nduom’s bank is on the brink of bankruptcy after assuming liabilities totalling around US$23 million when it took over the First International Bank (FIB).

It indicated the bank was only able to pay US$14.7 million of the liabilities it inherited and relied on the Central Bank of Liberia (CBL) to pay the remaining US$8.5 million to the legacy depositors, arguing that it is the debt of the government of Liberia and the central bank.

The CBL accepted the request by Nduom’s bank, however, reports indicate that the central bank is yet to pay the liabilities owed the depositors, which has led to some of them threatening legal action against the bank.

Reacting to media reports of SIB Liberia Limited being insolvent, the central bank, in a statement issued on August 8, 2024, rejected assertions that Nduom’s bank was broke and could not pay its depositors.

It stated that the bank’s financial position is robust, with its liquidity and capital reserves above the stated requirements.

“The CBL considers these impulsive claims as not only misleading, unfounded and damaging for the existing confidence in the economy, but they are completely unsupportive of relevant financial statistics published by the CBL regarding the soundness of the banks.

“The CBL hereby informs the public that the financial position of banks remains robust, with their liquidity and capital reserves above the regulatory requirements of the CBL, implying that the banks are in full compliance with regulatory thresholds of capital and liquidity under the supervision of the CBL. Meanwhile, the CBL is very cognizant of the importance of safeguarding depositors’ funds with the aim of maintaining public confidence in the banking sector,” part of the statement reads.

It added, “Whilst the CBL encourages the media to remain professional by engaging with the CBL directly for clarification and verification to balance their reporting in the interest of safeguarding the financial sector, the Bank urges the public to disregard the misinformation published by the newspaper and rely on verified and accurate sources of information. The Bank reassures the public of its commitment and transparency in support of the core objectives of price and financial sector stability”.

 

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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