Groupe Nduom requests receiver to provide update on defunct GN Savings & Loans

Dr. Papa Kwesi Nduom and Groupe Nduom Limited, the shareholders of GN Savings and Loans, which was placed into receivership last year by the Bank of Ghana, have written to the receiver requesting a meeting over the progress made so far.

The shareholders of the company, who are already contesting the BoG’s decision in court through their lawyers, Archbridge Solicitors, wrote to the receiver, Eric Nana Nipah, saying they will be available for a meeting between March 11-31, 2020.

The letter dated March 4, said the meeting with the Receiver will discuss issues such as the particulars – name, category of investment and amounts of the customers or depositors who have put in claims for their monies.

The shareholders are also requesting the details of what the receiver has been able to pay out to the customers or depositors who have put in such claims.

Other requests being made by Dr. Nduom and the Groupe Nduom Limited include the details of loans and other credits that the Receiver has been able to collect from debtors since August 16, 2019, which is when the revocation was done by the central bank.

The receiver is also been asked to generate a statement of GN Savings and Loans’ financial position as of February 29, 2020.

According to the lawyers, the Receiver may alternatively supply the information in respect of the above issues through them to their Clients, Dr. Nduom and Groupe Nduom, within the period it expressed its readiness the receiver.

The shareholders say their request is based on several rulings by an Accra High Court restraining the Receiver from taking action with respect to GN Savings and Loans pending the final determination of the case in court seeking to overturn their license revocation and the subsequent appointment of a receiver.

Savings and Loans clean-up

GN Savings and Loans is one of the 23 savings and loans companies and finance houses that had their licenses revoked by the regulator in August 2019.

The regulator appointed Eric Nana Nipah of the PricewaterhouseCoopers as the receiver for the affected companies. His work was to take steps to ensure that affected depositors are paid their locked funds, while ensuring that it goes after assets due the affected companies for the purpose of paying customers and other creditors.

The clamour by depositors for their funds saw government intervening with a GHS5 billion fund to ensure that customers receive their deposits in full.

A statement later issued by the Receiver said customers would be paid with a combination of cash and 5-year zero-coupon bonds. Earlier, a cap of GHS25,000 on payouts to depositors was instituted by the receiver as a way of ensuring as many customers as possible are paid.

But that subsequently was increased following the government’s recent allocation of the GHS5 billion fund.