GhArticles.com Every News in Detail
The Chairman of Groupe Nduom and former owner of Gold Coast Fund Management Company, Dr. Paa Kwesi Nduom, is urging the government to repay a GH¢7.1 billion debt owed to his bank and other subsidiaries. This debt emerged following the Bank of Ghana’s financial sector reforms in 2017.
The reforms, which led to the Securities and Exchange Commission (SEC) revoking the licenses of 53 fund management firms, including Gold Coast Fund Management, resulted in the freezing of depositors’ funds. These actions aimed to restore stability and trust in Ghana’s financial sector, which had been struggling with issues of insolvency and poor governance.
During a recent media briefing, Dr. Nduom stated that his companies would not have failed if the government had paid the contractors it owed years ago. He believes that a structured repayment plan from the government could restore GN Bank’s financial stability, enabling it to pay its creditors and depositors.
“A debt that was once GH¢1.8 billion has now grown to over GH¢7.1 billion due to accumulating interest. If the government of Ghana and its agencies had paid even one-third of that money to the contractors six years ago, there wouldn’t be a problem with Gold Coast, Black Shield, or GN Bank, nor with any of our companies. Today, we are asking them to pay the money.
“If the government doesn’t have the funds, let’s develop a payment plan. They pay us, and the customers get paid,” he said.
