President of Groupe Ndoum, Dr. Papa Kwesi Ndoum, stated that false information greatly contributed to the collapse of GN Bank. He alleged that individuals deliberately spread lies about the bank’s money. This created an impression that the bank was unable to pay its debts. The claims damaged public confidence in GN Bank. This worsened existing problems. These problems began when government contracts financed by the bank were suspended.
Dr. Ndoum reported that Groupe Ndoum worked with the Ministry of Finance. They arranged an independent audit of the bank's finances. He shared that his group spent many hours with the Minister of Finance, Ken Ofori-Atta. They provided all the audit results. However, he claimed that at the last moment, the Bank of Ghana stated only GHS 30 million was owed to them. Dr. Ndoum called this statement a "bald-faced lie." He argued it was the main evidence used to take away the bank's license.
These events fit a pattern seen in Ghana's financial sector. Ghana has faced banking crises before. The Bank of Ghana has been working to clean up the sector. This involves reviewing and sometimes revoking licenses of shaky financial institutions. The banking sector clean-up has aimed to improve stability. However, it has also led to job losses and disruption for customers. Data shows that the sector has undergone significant restructuring since the crisis began.
Dr. Ndoum expressed that the combination of unpaid government contracts and the alleged false statements about the bank's finances caused GN Bank's downgrade. Initially a universal bank, it was reclassified as a savings and loans company. This eventually led to the revocation of its operating license. He believes the payment of just the interim payment certificates (IPCs) would have prevented this outcome. He stated that if the GHS 300 million owed for IPCs had been paid, the current discussions would not be happening. The bank would not have needed reclassification.
The implications of Dr. Ndoum's claims are significant for the financial sector. They raise questions about transparency and the process of bank regulation. The Groupe Ndoum legal team won a victory in the Court of Appeal regarding the revocation of GN Savings and Loans' license. This legal outcome could influence future regulatory actions and investor confidence. Investors and the public will watch for further developments in the legal challenges brought by distressed financial institutions. The potential for continued litigation could impact the overall stability and public perception of Ghana's banking industry.