Restore GN Bank If You Win December Polls – Nduom Begs Mahama
The management of Groupe Nduom has petitioned the flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, to restore GN Bank’s licence if he emerges victorious in the December 7 elections. GN Bank had its licence revoked by the Bank of Ghana in August 2019, a decision that has left the bank’s 300 branches in a deteriorating state.
During a meeting with the former president in Accra, Dr. Papa Kwesi Nduom, the Global President of Groupe Nduom, expressed grave concern over the adverse impact of the licence revocation on the bank’s operations and the wider economic implications. He emphasized the importance of reinstating the licence to safeguard jobs and promote economic stability.
“We believe that if this administration doesn’t give us our licence before they leave and start paying the money before they leave, we believe that the next one will understand the situation and give the licence back. So we are continuing with the hope and preparing and working our plans with the hope that, at some point, we will get the licence back and we’ll bring the jobs back. Because it is the jobs that we are also looking for,” Nduom stated.
He further articulated that the collapse of a 300-branch financial entity is detrimental to the economic interest of the country, regardless of ownership. “So we feel that collapsing a 300-branch financial entity is inimical to the economic interest of the country. So whether it even belongs to us or belongs to someone else, it is something that needs to be there,” he added.
Mahama Criticizes 2019 Banking Sector Cleanup
In response, the NDC’s flagbearer criticized the decision of the New Patriotic Party (NPP) government to revoke the licences of some indigenous financial institutions during the 2019 banking sector cleanup. Mahama described the action as hasty and ill-considered, highlighting the inconsistent criteria used in the process.
“I do think that government was hasty in what it did. If you look at the criteria that was used, I mean, it didn’t fit. It was, it was not a one-size-fits-all. I mean, it was just like different rules for different folks. And so, yes, as you said, a lot of these banks had also financed government suppliers and contractors and the government owed them and they owed the banks,” Mahama said.
He argued that the government’s failure to pay contractors hindered the banks’ ability to recover debts, thereby affecting indigenous capital in the financial and banking sector. Mahama emphasized his administration’s commitment to restoring the capital of indigenous businesses in the financial sector and proposed an independent review of the banking sector cleanup process.
“We have pledged that we would work to restore, you know, the capital of indigenous businesses in the financial sector. So we are advocating an independent review of the processes that went into the banking sector cleanup and where we believe these were unjustifiable, look at the restoration of the licences of these banks,” he declared.