Ghana: GN Savings and Loans Customers in Komenda-Edina-Eguafo-Abrem React to BoG's Action

Elmina — Some aggrieved residents of Elmina in the Komenda-Edina-Eguafo-Abrem (KEEA) have called for the reversal of the revocation of the licence of GN Savings and Loans by the Bank of Ghana (BoG).

They are also calling on the government to pay every money owed contractors who procured loans from GN Savings and Loans as well as Gold Coast Securities to enable the company to honour its commitment to its clients.

Failure on the part of government to pay the contractors, they said, would result in series of demonstrations.

To them, the government was only interested in collapsing businesses of Dr Paa Kwesi Ndoum just for political expediency by looking on while "injustice" is perpetuated by the BoG.

Last Thursday, the Bank of Ghana revoked the licences of 23 insolvent savings and loans companies and finance house companies including the GN Savings and Loans Company.

The action was taken in pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.

It went further to appoint Mr. Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.

Addressing a news conference at Elmina, spokes person for the group, John Quayeson explained that the decision against Dr Ndoum and his GN Savings and Loan Company, was unfair due to the fact that, contractors who had executed government contracts were still in arrears due to government's failure to pay such contractors.

The current state of affairs at the GN Savings and Loans, he said, was not the making of the management but the government.

"The government has contributed tremendously to the current state of GN Savings and Loans as well as Gold Coast Securities" he said.

Mr Quayeson indicated that, Dr Ndoum had the bigger picture of the nation as he had gone ahead to establish businesses across the country.

Ms Sylvia Ackon, one of the aggrieved residents, said the decision by the Bank of Ghana was unfair as it would end up affecting businesses within the municipality.

She said, a number of them had their savings with the collapsed GN Savings and Loans and said that, they were currently struggling to access their monies.

Another resident, Hannah Awortwi Donkor for her part, said the current situation was a disincentive to business promotion in the country.

"My money that I will be using to purchase items for sale is locked up at the place" she said.

She wondered why the Bank of Ghana after down grading GN Bank to a savings and loans company will then go ahead to revoke its licence in a few months after such a decision.

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