Groupe Ndoum directed to re-serve receiver of GN Savings & Loans with lawsuit


Organization Information of Thursday, 19 September 2019

Resource: citinewsroom.com

DR. PAPA KWESI NDUOM23Chairman of Group Nduom, Papa Kwesi Nduom

The High Court has directed lawyers of Groupe Ndoum to effectively provide the receiver of GN Discounts and .

According to the court, the method in which the match was served was wrongly accomplished for the reason that the personal who been given the writ was not rightly positioned to get it.

The Chairman of Groupe Nduom, Papa Kwesi Nduom filed an injunction suit to compel the Lender of Ghana (Bog) to restore the of GN and Financial loans though the two battle in courtroom about the .

The receiver was 1 of the four defendants in the match.

In the application, the applicants were being in search of an buy from the courtroom to retain the Reciever of GN Cost savings and Financial loans from “further interfering specifically or indirectly with the rights of [the firm’s] shareholders, administrators and management to management the company activities of GN Financial savings and financial loans pending the determination” of the scenario.

The case has been adjourned to the 24th of Oct 2019.

In his statement of declare, Dr. Nduom insisted that GN Price savings and Financial loans was in good standing in spite of getting declared insolvent by the Bog.

He mentioned federal government infrastructure task portfolio was in excess of GH¢2.2 billion, extra than its liabilities.

He added that most of the company’s funds had been invested in governing administration jobs as financial loans and developments to contractors who government as a result of its ministries and businesses had employed to execute many jobs.

In accordance to Dr. Nduom, the federal government and point out organizations, as of August 14, 2018, owed the corporation about GH¢600 million.

He argued that the Lavatory and other get-togethers failed to take into account the government’s indebtedness to the firm in producing a willpower on the company’s solvency and that constitutes a violation of legal rights.

He therefore desires the court docket to rule that the failure of the Lavatory to take into consideration that indebtedness of the Governing administration of Ghana and its MDAs to Group Nduom prior to declaring GN Personal savings and Loans to be bancrupt, constitutes a violation of his legal rights, that of Group Nduom and Coconut Grove Vacation resort.

Court puts on hold plans by BoG to collapse GN Savings


Governor of the Bathroom, Dr. Ernest Addison

The Financial institution of Ghana has been purchased by an Accra Substantial Court to keep on with any ideas to hand in excess of GN Discounts and Organization Restricted to a .

Justice George Koomson has directed that until finally the end result of an application for interlocutory injunction is founded the regulator and any other respondents need to cease processes to shut down the monetary company.

The Central Bank has 8 times to respond to the legal go well with in advance of the following listening to day of September 19, 2019.

History

In late August, the chairman of Group , Papa Kwesi sued the Bank of Ghana together with the Finance Minister, Ken Ofori Atta Lawyer General, Gloria Akuffo above the revocation of the licenses of GN Price savings and Financial loans.

Connected to the suit is the receiver of GN Discounts and Loans Eric Nana Nipah.

Nduom, among the other items, is praying the court to quash the decision of the Central Lender to revoke the license of GN Personal savings and Financial loans.

The Bog on Friday, August 16, 2019, the licences of GN Discounts and Financial loans and 22 other bancrupt price savings and loans firms and finance dwelling providers.

But Nduom maintains that his firm would have been highly liquid if the Ministry of Finance and other federal government agencies experienced paid out debts owed to it.

Source: Ghana/Starrfm.com.gh/103.5FM

Nduom seeks injunction on revocation of GN Savings and Loans’ license


The Chairman of Groupe , Papa Kwesi has asked the court docket to compel the Lender of Ghana (Bog) to restore the of GN Cost savings and while the two fight in court docket more than the revocation.

In an software sighted by citinewsroom.com, Nduom is asking the court to restore the agency “to its specialised deposit-using license pending the resolve of the originating movement.”

In the software, Dr. Nduom is captured as the initially applicant, Coconut Grove Beach front Vacation resort and Groupe Nduom confined ended up also shown as 2nd and 3rd applicants.

Mr. Nduom also wishes an purchase from the court to maintain the Reciever of GN Savings and Loans from “further interfering instantly or indirectly with the legal rights of [the firm’s] shareholders, directors and management… to management the [firm’s] small business routines pending the determination” of the scenario.

Originating situation

In his statement of assert, Dr. Nduom insisted that GN Personal savings and Loans was in very good standing inspite of being declared insolvent by the Bog.

He claimed federal government infrastructure challenge portfolio was in surplus of GH¢2.2 billion, more than its liabilities.

He extra that most of the company’s funds experienced been invested in federal government tasks as financial loans and advances to contractors who governing administration via its ministries and agencies had hired to execute a variety of assignments.

In accordance to Dr. Nduom, the govt and condition organizations, as of August 14, 2018, owed the corporation around GH¢600 million.

He argued further more that the Bathroom and other functions failed to take into account the government’s indebtedness to the business in building a dedication on the company’s solvency and that constitutes a violation of rights.

He desires the courtroom to rule that the failure of the Lavatory to take into consideration that indebtedness of the Govt of Ghana and its MDAs to Team Nduom in advance of declaring GN Discounts and Financial loans to be insolvent, constitutes a violation of his legal rights, that of Group Nduom and Coconut Grove Vacation resort.

No forms at GN Savings for customers to retrieve locked up cash


Some aggrieved consumers of GN Price savings and Financial in Chereponi, in the North East Location, are complaining above the unavailability of sorts essential by prospects to retrieve their locked-up funds at the now-defunct fiscal institution.

The are for that reason asking the correct authorities to make clear why the are not at the branch.

One particular of the buyers who spoke to Citi News said, the growth is hampering their initiatives to get their monies.

“Ever considering that the Bathroom revoked their license, we ended up told that there will be forms available for us to fill to recover our funds. But, as we converse, we have not gained the varieties in Chereponi and the deadline is just 9 times away from currently. We contacted our colleagues in distinct branches and they have gained theirs. That is why we are listed here to categorical our considerations above our locked-up money. We need to have aid due to the fact it is as if, Chereponi is not section of the area GN Financial institution operated.”

GN Financial savings loses license

GN Personal savings and Loans enterprise confined was element of some 23 finance residences and price savings and financial loans providers whose licenses ended up revoked by the central financial institution.

The Bank of Ghana in asserting the of GN Savings and Loans’ license reported: “GN’s shareholders have unsuccessful to restore the lender to the needed regulatory capital and liquidity amounts in spite of lengthy-standing guarantees that new funds was predicted from overseas investors.”

In response, the Chairman and Main Executive Officer of Groupe Nduom, Papa Kwesi Nduom discredited statements by the Lender of Ghana that the corporation was in serious fiscal distress and fell significantly down below its capital requirement stage, hence the revocation of its license.

GN sues Bathroom

The Chairman of Team Nduom, Papa Kwesi Nduom has sued the Financial institution of Ghana Finance Minister, Ken Ofori Atta Legal professional Common, Gloria Akuffo and Receiver for GN Discounts and Loans, Eric Nana Nipah.

He desires the courtroom to between other points to quash the choice of the Lender of Ghana to revoke the license of GN Discounts and Financial loans.

In his statement of assert, Papa Kwesi Nduom said opposite to statements by the Lender of Ghana that GN Cost savings and Loans had its license revoked for the reason that the firm was bancrupt, the company, he insisted, was in good standing and its government infrastructure job portfolio was in excess of GH¢2.2 billion, far more than its liabilities.

Nduom sues BoG, others over GN Savings and Loans collapse


Founder of Groupe Dr. Papa Kwesi

Chairman of Team Nduom, Papa Kwesi Nduom has sued the Bank of Ghana like the Finance Minister, Ken Ofori Atta Legal professional Normal, Gloria Akuffo about the revocation of the licenses of GN Cost savings and Financial .

Connected to the go well with is the receiver of GN Savings and Financial loans Eric Nana Nipah.

Nduom, amongst other matters, is praying the to quash the choice of the Central Bank to revoke the license of GN Personal savings and Loans.

The Bathroom on Friday, August 16, 2019, revoked the licences of GN Price savings and Financial loans and 22 other insolvent savings and financial loans and finance residence organizations.

But Nduom maintains that his business would have been extremely liquid if the Ministry of Finance and other govt companies had paid debts owed to it.

In accordance to the Lavatory, GN Cost savings and Financial loans, inspite of its reclassification from a common lender to a cost savings and financial loans company in January this 12 months, the organization was not able to resolve its liquidity disaster.

But in a statement, Dr Nduom said that “Given the detailed information and facts provided to the Bog almost a year back, these statements are inconsistent with our discussions with both the Bathroom and the Ministry of Finance (MoF).”

He added “Our situation is that GN Price savings is not the only solvent, but would be remarkably liquid if the MoF simply requested by itself and other authorities businesses to speedily spend quantities owed to GN Discounts and other relevant entities . We hope this issue to be fixed in owing program.”

Supply: Ghana|Starrfm.com.gh|103.5FM

GN Savings’ insolvency not govt’s fault – Dokuaa


Governing administration has refuted claims that its indebtedness to GN Discounts and Financial loans brought on the insolvency of the economic establishment.

The reaction comes after some inhabitants of Elmina, at a push meeting blamed the Akufo-Addo-led authorities for the shutdown of the Groupe Nduom enterprise.

But authorities in a assertion signed by Deputy Information and facts Minister Nana Ama Dokua Asiamah Adjei said such claims, as perpetrated by the Elmina inhabitants, remain unfortunate, unwarranted and with no foundation.

“The deliberate try to draw in government and President Akufo-Addo into the insolvency complications of GN Financial and Financial loans is totally unwarranted, unlucky and with out any compound,” the assertion reads in portion.

In accordance to the statement the government’s whole financial debt obligation to the firm stands at GHS 30.33million of which an settlement has been achieved with Groupe Nduom for payment to begin.

The statement provides that the sum, even if paid out in comprehensive, would not fix the liquidity difficulties GN Personal savings is grappled with.

“GN’s insolvency troubles are largely attributable to overdraft and other amenities it prolonged to its connected functions who are other providers in the Groupe Nduom community of corporations, under circumstances that violated pertinent prudential norms”, including transfers of huge sums of income (US$62,255,516.93, GBP718,528.59 and EUR 4,200) from depositors’ fund to overseas accounts of of Groupe Nduom, in breach of area 10 of the International Exchange Act 2006, Act 723, Part IV of the Bank of Ghana Observe No. BG/GOV/SEC/2007/4.”

Source: Ghana/Starrfm.com.gh/103.5FM

Gov’t claim of $7billion savings on PPAs cancellation misleading


An electrical power analyst and previous Chief Government of the Ghana Nationwide Petroleum Company (GNPC), Alex Mould has questioned the government’s assertion that it created over $7billion price from the cancellation of some Electrical power Obtain Agreements (PPA)’s signed in Mahama’s administration.

He said a PPA is signed in between Unbiased Power Plant (IPP) investor and the offtaker (in this situation Energy Company of Ghana (ECG)), and that no wherever was Governing administration immediately a occasion to that agreement.

He unveiled that government “is only involved when the investors’ financiers demand a  assurance to mitigate political risk.”

According to him, considering the fact that govt was not obliged to give this sort of political possibility guidance to the IPP growth, “in the type of a Governmemt Consent and Help Arrangement (GCSA) or in much more latest instances a  Place/Simply call Possibility Settlement (PCOA), except if of study course the governing administration wanted a specific IPP designed, all the PPAs would expire worthless as no IPP could be developered with out the explicit support of government”

In his most recent educative sequence on task financing, the Electrical power and Finance professional reported a PPA was not the conclude of the transaction but instead a vital need to get the investor’s financiers intrigued in commencing the acceptance method.

Mr Mould mentioned that considering the fact that the IPP traders experienced not attained a monetary investment final to go forward with the IPP assignments they consequently had not fully commited economically to the venture and that, “this are not able to be explained to be costing the Government of Ghana noticeably, allow alone $7B (USD).”

“How then does cancelling a amount of PPA’s when Investors’ financiers have not committed to these IPPs (with no mention of accompanying Federal government Consent and Assistance Settlement/PCOAs), conserve the Governing administration of Ghana so a great deal funds?” he queried.

Mr. Mould who is also the previous Government Director of Common Chartered Financial institution stated this sort of “references are disturbingly misleading to the community, and can only be alleged both from a sturdy place of ignorance of the overall process or simple  political maneuvering – or both.”

Go through Whole Statement

PPA CANCELLATION: – NO Financial savings Built – ALEX MOULD

In modern situations, there have been conversations about the latest administration’s skill to save the men and women of Ghana USD7 billion by terminating some of the Electrical power Obtain Agreements (PPAs) signed with Independent Electric power Producers (IPP)’s during the former administration less than H.E John Mahama.

These PPAs –  initiated by the Electric power Corporation of Ghana (ECG) and approved by PURC have been entered into with the goal of resolving the ability disaster at the time (Dumsor) – are currently being portrayed as some of the reckless agreements the NDC govt entered into and which the NPP Govt is searching for to rectify.

In order to decipher the validity of this declare, it is essential to continue to be educated on the in general system and nuisances bordering any IPP investor’s means to obtain funding for a power plant venture close-to-finish.

Just one need to also understand the job of essential agreements in the value chain of such Electricity Purchase Agreements (PPAs), Federal government Consent and Aid Agreements (GSCAs) and so on., and take pleasure in the roles of essential contributors these types of as Off-Takers, Funding Institutions/Lenders, Authorities, etc.

To kick off the financing method, an fascinated IPP investor must show its functionality to raise the required project funding to ECG. Though performing this, the IPP trader concurrently convince its financing companions (i.e. banking institutions/monetary institutions) of its capability to make a solid Off-Taker settlement with a credible power Off-Taker i.e. ECG.

This dynamic predicament of balancing these two adjoining get the job done streams (1: Reveal promise of financing ability 2: Deliver assurance of credible off-get) generates a recognised “chicken and egg” situation for the IPP investor i.e. which just one will come very first?

To move forward in the process and be taken severely by its financing companions, the IPP investor should operate diligently to enter a signed PPA with Off-Taker (i.e ECG).

This PPA permits for demanded due diligence actions necessary by funding partners (i.e. financial institutions) to commence, which include investigating validity of desire, and the creditworthiness of the counterparty (i.e. ECG) to fulfill its obligations.

To exhibit the “chicken and egg” realities embodying this early stage of the approach, make sure you note that ahead of getting into the PPA, the Off-Taker (ECG) also seeks to comfort and ease from the financial institutions backing the IPP investors, and utilizes these interactions to assess the IPP investor’s in general financial whir-withal to attain fiscal near, acknowledged as Monetary Investment Selection (FID), to deliver the IPP improvement to fruition

Following the necessity of obtaining a sound PPA with ECG, financing partners of the IPP trader assessments the country’s political possibility, and most very likely will require federal government aid in the type of a Federal government Consent and Aid Settlement (GCSA) or a Set/Simply call Option Arrangement (PCOA)).

This arrangement is required if the economical institutions consider, as in the standard practice in building nations, that there is a higher possible of interference by Governing administration (latest or long term administrations) which might jeopardize the IPP investor’s skill to meet its obligations to them.

Used as a mitigation arrangement concerning the IPP trader and vital Off-Taker, this arrangement basically locations a load on the Federal government to make the IPP trader full, if there is a default caused by the govt or any of its companies i.e. General public Utility Regulatory Commission(PURC) or, if there is Government interference on pricing and or payments owing from Authorities – a widespread observe in our sections of the globe.

To partake in a good GCSA /PCOA with any really serious IPP buyers, it is popular knowledge that the Government of Ghana was not able to instill the long-term self esteem needed independently, and needed the backing of renowned credit rating worthy enhancement financial establishments these kinds of as Globe Bank, AfDB for the tenor required (about 15 years). In other words, any severe IPP trader, collectively with its economic partners, who entered into a PPA with ECG from 2006 onwards, would not be in a position to establish the Unbiased Electric power Plant in Ghana until it experienced supportive assurances created by the Federal government of Ghana’s (which would have to be credit rating-increased by a progress bank these types of as Environment Financial institution or AfDB).

Get for occasion the eniGhana Sankofa-Gye-Nyame fuel task as a requirement for assist of the E&P gasoline enhancement project, the Globe Bank was also essential to help the financing of the 4 IPPs to off-acquire the fuel to produce power (Gas2Ability) by backing the PCOA issued by federal government essential for the funding of the IPPs, the PCOAs issued by Federal government of Ghana was credit rating improved (i.e supported) by the Globe Bank.

In this job, the World Bank acted in two important roles –  as credit rating enhancer to the picked out IPP and also to the SGN Gasoline Venture directly . Without the need of this innovative arrangement, the challenge would not have been executed.

Remember to be aware that when a PPA is signed in between an IPP trader and ECG, Federal government is not obliged to give a PCOA except if the Authorities finds it important to do so i.e. except Governing administration needs that distinct IPP formulated.

Giving the deficiency of creditworthiness, and prevalent troubles to recover entire execution charges that have plagued the power business for yrs, no Impartial Power Producer (IPP) investor will endeavor to establish an IPP with out distinct help by Federal government (GCSA/PCOA).

In brief, devoid of a GSCA or a PCOA no IPP can be formulated irrespective of the energy of the PPAs signed in between ECG and IPP investor.

So, a PPA on its own – with out a GCSA/PCOA – is only a preliminary necessity, in a extremely lengthy negotiating procedure.

A PPA on its have does not assurance the financial backing of an IPP trader, and is employed by IPP buyers to just kick-start the course of action of garnering early curiosity of money institutions in the likely possibility. And commonly, a timeframe is stipulated in a PPA for the trader to get hold of ultimate financial investment choice (FID) from its fiscal establishments just after all the previously mentioned thanks diligence has been absolutely undertaken

In actuality, only about 6/7 PPA’s have resulted in authorities backing these developments by the issuance of a GCSA/PCOA since 2008, and just about every GCSA/PCOA also has been credit rating enhanced (supported) by a AAA credit rating advancement monetary organisation these types of as the Planet Bank or AfDB (yet again, at the ask for of the Government of Ghana).

How then does cancelling a number of PPA’s (with no point out of accompanying GCSA/PCOAs), save the Federal government of Ghana so a great deal cash?

These PPAs which have not reached a monetary financial investment selection to go ahead with the IPP expense, cannot be costing the Authorities of Ghana significantly, permit by itself USD7bn .

This sort of references are disturbingly deceptive to the community, and can only be alleged possibly from a powerful position of ignorance of the general approach, political maneuvering – or each.

Getting a PPA is not the end of the transaction but alternatively the commencing of the transaction and a very long negotiation system.

It is our obligation to hold the Citizens of Ghana informed.

Conclusion

Gov’t Claim Of $7billion Savings On PPAs Cancellation Misleading — Alex Mould


An Energy Skilled and former Main Govt of the Ghana Countrywide Petroleum Corporation (GNPC), Mr Alex Mould has chided government’s assertion that it built around $7billion cost from the cancellation of some Power Buy Agreements (PPA)’s signed erstwhile in President Mahama’s administration.

He claimed a PPA is signed in between Impartial Electrical power Plant (IPP) investor and the offtaker (in this circumstance Electric power Company of Ghana (ECG)), and that no where was Federal government straight a celebration to that arrangement.

He disclosed that government “is only associated when the investors’ financiers demand a guarantee to mitigate political risk.”

In accordance to him, considering the fact that government was not obliged to give these kinds of political possibility assist to the IPP advancement, “in the sort of a Governmemt Consent and Support Agreement (GCSA) or in more recent times a Place/Call Choice Agreement (PCOA), until of training course the federal government required a individual IPP developed, all the PPAs would expire worthless as no IPP could be developered without having the express assistance of govt”

In his newest educative series on challenge funding, the Strength and Finance skilled mentioned a PPA was not the stop of the transaction but somewhat a needed prerequisite to get the investor’s financiers intrigued in commencing the acceptance method.

Mr Mould said that because the IPP buyers had not reached a monetary investment decision to transfer ahead with the IPP assignments they thus experienced not committed economically to the undertaking and that, “this can not be claimed to be costing the Govt of Ghana significantly, allow on your own $7B (USD).”

“How then does cancelling a amount of PPA’s when Investors’ financiers have not dedicated to these IPPs (with no mention of accompanying Federal government Consent and Aid Arrangement/PCOAs), help you save the Authorities of Ghana so substantially dollars?” he queried.

Mr. Mould who is also the previous Executive Director of Regular Chartered Bank said these kinds of “references are disturbingly deceptive to the community, and can only be alleged possibly from a solid point of ignorance of the total system or basic political maneuvering – or equally.”

Study Complete Statement:
PPA CANCELLATION: – NO Discounts Created – ALEX MOULD
In current instances, there have been discussions about the recent administration’s means to conserve the folks of Ghana USD7 billion by terminating some of the Power Buy Agreements (PPAs) signed with Independent Electricity Producers (IPP)’s in the course of the previous administration less than H.E John Mahama.

These PPAs – initiated by the Electric power Business of Ghana (ECG) and accredited by PURC had been entered into with the purpose of resolving the electric power disaster at the time (Dumsor) – are remaining portrayed as some of the reckless agreements the NDC govt entered into and which the NPP Govt is searching for to rectify.

In buy to decipher the validity of this , it is vital to keep educated on the in general method and nuisances surrounding any IPP investor’s ability to acquire financing for a electrical power plant job finish-to-stop.

A single must also realize the position of vital agreements in the price chain of these types of Energy Order Agreements (PPAs), Government Consent and Guidance Agreements (GSCAs) and so forth., and value the roles of essential contributors these kinds of as Off-Takers, Funding Institutions/Creditors, Government, etc.

To kick off the funding approach, an intrigued IPP investor need to establish its capability to raise the necessary undertaking funding to ECG. Even though performing this, the IPP trader should concurrently convince its financing companions (i.e. banks/monetary establishments) of its means to make a stable Off-Taker agreement with a credible power Off-Taker i.e. ECG.

This dynamic predicament of balancing these two adjoining perform streams (1: Show assure of financing functionality 2: Give assurance of credible off-acquire) results in a recognized “chicken and egg” scenario for the IPP trader i.e. which 1 will come initial?

To transfer forward in the approach and be taken very seriously by its financing partners, the IPP investor ought to work diligently to enter a signed PPA with Off-Taker (i.e ECG).

This PPA permits for necessary thanks diligence pursuits needed by funding associates (i.e. banks) to start, which include investigating validity of desire, and the creditworthiness of the counterparty (i.e. ECG) to satisfy its obligations.

To demonstrate the “chicken and egg” realities embodying this early stage of the procedure, please observe that ahead of entering the PPA, the Off-Taker (ECG) also seeks to comfort from the financial establishments backing the IPP buyers, and takes advantage of these interactions to assess the IPP investor’s overall money whir-withal to achieve fiscal shut, identified as Financial Investment Conclusion (FID), to convey the IPP enhancement to fruition

Pursuing the prerequisite of obtaining a sound PPA with ECG, financing companions of the IPP trader opinions the country’s political chance, and most probably will involve govt aid in the kind of a Federal government Consent and Guidance Agreement (GCSA) or a Place/Connect with Solution Agreement (PCOA)).

This arrangement is important if the economical institutions think, as in the usual apply in creating nations around the world, that there is a high probable of interference by Authorities (current or foreseeable future administrations) which may jeopardize the IPP investor’s means to fulfill its obligations to them.

Made use of as a mitigation arrangement in between the IPP investor and key Off-Taker, this settlement mainly areas a stress on the Authorities to make the IPP investor whole, if there is a default prompted by the authorities or any of its businesses i.e. Public Utility Regulatory Commission(PURC) or, if there is Governing administration interference on pricing and or payments due from Federal government – a popular observe in our elements of the entire world.

To partake in a sound GCSA /PCOA with any critical IPP buyers, it is typical expertise that the Government of Ghana was unable to instill the extensive-time period self confidence essential independently, and needed the backing of renowned credit worthy progress monetary institutions these types of as Earth Lender, AfDB for the tenor needed (approximately 15 several years). In other phrases, any serious IPP investor, jointly with its fiscal companions, who entered into a PPA with ECG from 2006 onwards, would not be able to build the Impartial Ability Plant in Ghana unless it had supportive assurances designed by the Authorities of Ghana’s (which would have to be credit rating-enhanced by a advancement lender these kinds of as Planet Bank or AfDB).

Take for occasion the eniGhana Sankofa-Gye-Nyame gasoline challenge as a need for assistance of the E&P gasoline advancement task, the Environment Bank was also required to guidance the financing of the 4 IPPs to off-choose the fuel to develop electrical power (Gasoline2Ability) by backing the PCOA issued by government necessary for the funding of the IPPs, the PCOAs issued by Federal government of Ghana was credit history increased (i.e supported) by the Environment Financial institution.

In this project, the Planet Financial institution acted in two important roles – as credit score enhancer to the selected IPP and also to the SGN Gasoline Venture immediately . With out this revolutionary arrangement, the project would not have been executed.

Remember to be aware that when a PPA is signed among an IPP investor and ECG, Federal government is not obliged to give a PCOA unless the Authorities finds it vital to do so i.e. unless Government wishes that unique IPP designed.

Supplying the absence of creditworthiness, and typical worries to get well full execution fees that have plagued the power field for years, no Independent Ability Producer (IPP) trader will endeavor to construct an IPP without having distinct assist by Govt (GCSA/PCOA).

In limited, with no a GSCA or a PCOA no IPP can be formulated irrespective of the toughness of the PPAs signed among ECG and IPP investor.

So, a PPA on its own – with out a GCSA/PCOA – is only a preliminary prerequisite, in a incredibly long negotiating approach.

A PPA on its personal does not ensure the monetary backing of an IPP trader, and is applied by IPP buyers to merely kick-get started the course of action of garnering early desire of economical establishments in the probable chance. And generally, a timeframe is stipulated in a PPA for the investor to attain remaining expense final decision (FID) from its money establishments following all the above due diligence has been completely undertaken

In actuality, only about 6/7 PPA’s have resulted in government backing these developments by the issuance of a GCSA/PCOA considering that 2008, and just about every GCSA/PCOA also has been credit score improved (supported) by a AAA credit score enhancement economic organisation this kind of as the Globe Financial institution or AfDB (all over again, at the ask for of the Federal government of Ghana).

How then does cancelling a quantity of PPA’s (with no point out of accompanying GCSA/PCOAs), save the Govt of Ghana so a lot income?

These PPAs which have not attained a monetary financial investment final decision to go forward with the IPP investment, are unable to be costing the Authorities of Ghana substantially, enable by itself USD7bn .

This kind of references are disturbingly to the public, and can only be alleged both from a sturdy stage of ignorance of the over-all process, political maneuvering – or both of those.

Acquiring a PPA is not the close of the transaction but alternatively the starting of the transaction and a extensive negotiation process.

It is our obligation to hold the Citizens of Ghana educated.

Conclude
ALEX MOULD
20/08/2019

Audio: Shut down of GN Savings and Loans attempt to ‘murder’ Nduom – Groupe Nduom Veep


Dr Papa Kwesi Nduom, CEO, Groupe Nduom

The Vice President of Groupe Nduom has explained as irrational the Lender of Ghana’s (Bog) assertion that sought to justify why GN Discounts and Minimal was closed down by the entity.

Nana Ofori Owusu mentioned the move by the Central Lender was an try by the bank “to kill an entrepreneur who has committed his lifetime to be ready to supply possibility to Ghanaians.

“You are speedy to damage company but you are not quick to spend the monies you owed us. Is it reasonable? It’s not rational and we sit down unconcerned as a country. What is heading on is injustice and an endeavor to murder Nduom,” he claimed angrily on Accra based Neat FM, monitored by Adomonline.com.

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Groupe Nduom misplaced its along with 22 other
Personal savings and Financial loans Firms and Economical Residences.

The Bathroom claimed “the revocation of the licences of these institutions has become important since they are bancrupt even after a acceptable interval in which the Lender of Ghana has engaged with them in the hope that they would be recapitalised by shareholders to return them to solvency.”

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But, Mr Owusu said do the job is ongoing to challenge the revocation of the licence of GN Personal savings and Financial loans in docket.

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“We are expressing that this grievous misrepresentation of the details is a travesty of process and we have to go to the court docket to search for redress in this subject and we are on it. The group is on it,” he added.

He stated the organization currently feels “scandalised and we come to feel that a breach of great trust and faith has been dedicated.”

Resource: Adomonline.com | Dorcas Abedu-Kennedy

Savings and Loans companies in good standing


Below are the Discounts and that are now in great standing, according to the Lender of Ghana (Lavatory):

ABii Nationwide Discounts and Financial loans Ltd

Adehyeman Discounts and Loans Company Ltd.

Advans Ghana Financial and Loans Ltd.

Asa Discounts and Financial loans Business Ltd.

Assurance Personal savings and Loans Ltd.

Bond Price savings and Loans Ltd.

Most effective Point Financial savings and Financial loans Ltd.

Bayport Savings and Financial loans Plc.

Immediate Price savings and Loans Ltd.

Fairness Savings and Financial loans Ltd.

Golden Backlink Discounts & Financial loans Ltd.

Golden Satisfaction Cost savings and Loans Ltd.

Izwe Savings and Financial loans Ltd.

Jins Personal savings and Financial loans Ltd.

 Letshego Ghana Financial savings and Financial loans Plc

Multi Credit Savings & Loans Co. Ltd.

Prospect Worldwide Price savings and Financial loans Co. Ltd.

Pacific Price savings & Loans Co. Ltd.

Pan-African Financial savings and Financial loans Corporation Ltd.

Progress Financial savings and Financial loans Ltd.

Products and services Integrity Price savings and Financial loans Ltd.

SIC Everyday living Price savings and Loans Ltd.

Sinapi Aba Personal savings and Financial loans Business Ltd.

The Seed Cash Personal savings and Loans Ltd.

Utrak Discounts and Financial loans Ltd.

NDC questions BoG’s decision to collapse 23 savings & loans companies


General Information of Saturday, 17 August 2019

Resource: primenewsghana.com

Alhassan Suhuyini Fake TweetAlhassan Suhuyini, MP for Tamale North Constituency

The NDC has questioned the final of the Bank of Ghana, Lavatory to revoke the licences of 23 personal savings and corporations.

MP for Tamale North Constituency, Alhassan Suhuyini talking on the collapse of some 23 discounts and financial loans providers by the Lavatory said there ought to have been improved methods to tackle the insolvency of the fiscal establishments somewhat than collapsing them.

In accordance to him, some of the organizations have raised problems about the government’s indebtedness to them and the cash could have served the organizations carry on their enterprises.

Sharing his ideas, Alhassan Suhuyini mentioned, “This brings the query of the how, all people is aware the need to have for us to clean the banking sector but reforms are not synonymous to closure, some individuals turn to make the issue to look as if there is a contact for us to reform our banking sector then it intended that we required to just shut people banking institutions so it raises the dilemma of whether the how it is done is the finest way we could have carried out this complete training and the charge at which it is completed is also crucial that as we concur that there is a want to reform our monetary establishments, the way we have absent about it and the expense as which we are undertaking..”

It is that definitely the most excellent way we could have approached this? I will not believe it is, i believe that there are superior methods that we could have accomplished this specially with some of these concerns that are lifted by the entrepreneurs and the actuality that federal government is not denying most of these promises that they owe these institutions and producing the place that if they shell out the quantity that they owe maybe people banking companies might not have collapsed, authorities is not talking about that but instead highlighting how substantially it is costing us to but not how substantially to pay out these establishments to allow for them to proceed to function..”

Licence revocation

The Bank of Ghana, Bog on Friday, August 16 revoked the licences of twenty-3 (23) insolvent price savings and loans corporations and finance residence companies.

The central bank in a assertion on Friday reported the revocation of the licences of these institutions has grow to be essential simply because they are bancrupt even following a reasonable period of time within which the Financial institution of Ghana experienced engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.”

“It is the Lender of Ghana’s assessment that these institutions have no reasonable prospective buyers of restoration, and that their ongoing existence poses serious risks to the security of the financial program and to the pursuits of their depositors,” the assertion extra.

Bathroom in the statement described that the actions “were taken pursuant to Part 123 (1) of the Banking companies and Specialised Deposit-Getting Institutions Act, 2016 (Act 930), which requires the Financial institution of Ghana to revoke the licence of a Financial institution or Specialised Deposit-Taking Establishment (SDI) wherever the Bank of Ghana establishes that the institution is insolvent. The Lender of Ghana has also appointed Mr Eric Nipah as a for the specified institutions in line with area 123 (2) of Act 930.”

Assurance to prospects

Bog has also confident that funds are available to pay back buyers of the 23 finance homes and cost savings and loans firms whose licences have been revoked currently.

The Central Financial institution states it has delivered resources to make certain that the Receiver of the fiscal entities, whose licences have been revoked, will pay out the influenced customers.

“The Federal government has built accessible cash to allow the Receiver to pay back depositors of the financial savings and loans corporations and finance residences immediately after validation of their claims. Other creditors of the unsuccessful establishments will be settled by the Receiver in line with the hierarchy or priority of creditors’ statements set out under Act 930,” the Financial institution of Ghana said in a assertion.

Over 1,400 workers of GN Savings and Loans to lose their jobs


It is estimated that about 1,400 of GN Personal savings and Financial loans would reduce their employment in the coming months.

Also Read: 23 Menzgold shoppers DIE out of aggravation – colleague reveal

The anticipated dismissal comes at the back of the
of the licence of the business which was downgraded from a Bank to a Price savings and
Financial loans previously this yr for failing to meet up with the new minimum cash need
for banking institutions.

Federal government has appointed a to lead the system of
payment of depositors and financial debt restoration.

On Friday August 16, 2019 the Lender of Ghana (Bog) announced
that “the Bank of Ghana has attained the conclusion that GN is now
bancrupt underneath part 123 (4) of the Banking companies and SDIs Act, 2016 (Act 930),
staying in breach of its vital prudential regulatory prerequisites. Its Capital
Adequacy Ratio (Car) is presently -61%, in breach of the minimal necessary of
13%. It is also facing a severe liquidity disaster with various grievances
acquired by the Fiscal Balance Office of the Lender of Ghana from
aggrieved buyers who have been not able to access their deposits with the
institution for the very last a number of months. What is far more, it has continuously
unsuccessful to fulfill the least cash reserve requirement of 10% of its full
deposits, since the finish of the first quarter of 2019.

GN’s shareholders have unsuccessful to restore the bank to the
essential regulatory capital and liquidity amounts in spite of prolonged-standing
guarantees that new cash was expected from international investors.”

Though the firm was working above 240 branches throughout the
region with existence in nearly all districts in Ghana, sources at the enterprise
say over 1,400 workers may possibly eliminate their work opportunities.

Most branches may possibly be closed down, the resource added.

Also Read: I have been tagged a corrupt ‘BRIBE taker’- Maurice Ampaw cries around NAM 1

Cashiers, cell bankers, motorists, security and cleaners could
be the casualties.

Supply:MyNewsGh.com/Stephen Zoure/2019



How Prophet Nigel Gaisie prophesied the collapse of savings and loans companies


How Prophet Nigel Gaisie prophesied  the collapse of savings and loans companies

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Information of the Central Bank’s revoke of licenses of 20-3 (23) insolvent savings and loans businesses and finance homes with rapid effect has definitely shaken the nation barely 3 months just after some 386 microfinances experienced the same destiny.

It however does appear it was disclosed to controversial and outspoken founder and chief of Real Word Hearth Prophetic Ministries (TWFPM) Prophet Nigel Gaisie as he predicted the misfortune.

In a Facebook write-up weeks back, Prophet Gaisie cautioned clients of some cost savings and financial loans firms to “do the needful” as risk looms.

“Before the close of this thirty day period, most of it will be collapsed,” a part of the post study.

Out of the 20 (20) organizations he described, twelve (12) were element of the impacted establishments.

They are: GN Financial savings and Loans, Adom Discounts and Financial loans, Alpha Cash Personal savings and Financial loans, Commerz Cost savings and Loans, First African Savings and Financial loans, Very first Ghana Savings and Financial loans, Idle Finance, Midland Personal savings and Loans, Unicredit Financial savings and Financial loans, Women’s Environment Banking Price savings and Loans, AllTime Finance Ltd and Legacy Money Savings and Loans Ltd.

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In accordance to a assertion from Lavatory, “The of the licences of these institutions has come to be required for the reason that they are bancrupt even soon after a acceptable period within which the Financial institution of Ghana has engaged with them in the hope that they would be recapitalized by shareholders to return them to solvency.”

The statement included, “It is the Lender of Ghana’s evaluation that these establishments have no affordable potential of recovery, and that their ongoing existence poses extreme risks to the security of the economical program and to the passions of their depositors.”

The motion was taken pursuant to Part 123 (1) of the Banks and Specialised Deposit-Getting Establishments Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the of a Financial institution or Specialised Deposit-Getting Establishment (SDI) the place the Bank of Ghana establishes that the institution is bancrupt.”

GN Savings and Loans fires back at BoG over revocation


GN Savings and Loans fires back at BoG over revocation

GN Savings and Loans fires back at BoG over revocation

Management of GN Personal savings and Financial loans Restricted has said they are unaware about the appointment of a for the corporation following a of .

This comes on the back again of a assertion released by the Lender of Ghana on Friday to the outcome that the working licenses of 23 price savings and loans corporations have been revoked for failing to meet up with the minimum amount money prerequisite.

But in a statement signed by Chairman of Groupe Ndoum (mom company of GN Cost savings and Loans Organization), Dr. Papa Kwesi Ndoum, the enterprise said it has no expertise of the reported revocation, and that there are inaccuracies in some of the claims produced from it by the Central Bank.

“Neither shareholders nor administration of GN Financial savings have obtained any formal interaction from the Bathroom concerning receivership.

“If these paperwork are certainly authentic, the statements within just with regards to GN Financial savings are wildly inaccurate. Offered the comprehensive info offered to the Bog virtually a calendar year back, these statements are inconsistent with our conversations with the two the Bog and the Ministry of Finance (MoF),” the assertion indicated.

The assertion further more stated federal government owes them large sums of dollars, which the enterprise indicates is section of the lead to of their ‘woes’.

“We are informed that the MoF has previously verified that balances because of to GN Discounts and other similar events are significantly in excess of the quantities quoted in the conversation from the Bog.

“Our situation is that GN Savings is not only solvent, but would be really liquid if the MoF simply just requested by itself and other govt organizations to rapidly fork out quantities owed to GN Savings and other connected entities.”

GN Financial savings and Financial loans urged consumers to stay relaxed, as it is effective to make certain points are place in get.

Supply: 3news.com|Ghana

GN Savings is solvent, customers should remain calm – Dr. Nduom



Print

Dr. Papa Kwesi Nduom7

news, story, posting

Accra, Aug 16, GNA – Shareholders and
Management of GN Savings , say they have not acquired any official
interaction from the Bank of Ghana (Bog) about the revocation of the
company’s for insolvency.

This was contained in a push statement
signed by Dr. Papa Kwesi , Chairman and Main Government Officer (CEO) of
Groupe Nduom, the greater part shareholders and founders of the Savings Corporation.

It mentioned it had appear to notice that
documents ended up circulating that purport to be from the Lavatory, concerning
receivership of GN Personal savings, and that “if these documents are certainly genuine”
they could not be real for their Enterprise.

It included that “the statements in,
with regards to GN Cost savings are wildly inaccurate”, looking at the in depth
info presented the Central Financial institution approximately a 12 months back.

“These statements are inconsistent with our
discussions with each the Bathroom and the Ministry of Finance (MoF).

“We are mindful that the MoF has earlier
confirmed that balances because of GN Financial savings and other similar parties are much in
extra of the amounts quoted in the communication from the BoG”.

Their situation, It mentioned, was that “GN
Cost savings is not only solvent, but would be extremely liquid, if the MoF simply
requested by itself and other governing administration companies to speedily fork out amounts owed to GN
Discounts and other associated entities”.

They ended up consequently anticipating the make a difference be
resolved in owing course and called for tranquil amongst shoppers and all stakeholders
as “we perform by this matter with the suitable parties”.

GNA


GN Savings and Loans is Solvent


Groupe Ndoum Constrained has claimed the Bank of Ghana’s causes for revoking the licence of a person of its subsidiaries – GN Discounts and are inconsistent with discussions and paperwork offered to the regulator.

Also Go through: NDC presents checklist of ‘missing cars’, suggests government’s claims baseless

The Bog on Friday revoked the licences GN Personal and Financial loans and and 22 Financial citing various infractions and violations of Acts governing functions.

The Bathroom spelled out among other factors that “Of certain desire are the cash totalling GH¢761.55 million that GN Financial institution as it then was, positioned with its sister providers Ghana Advancement Fund (Gold Coast Advisors) and Gold Coastline Fund Management Minimal (now Blackshield Capital Management), the two certified by the Securities and Exchange Commission. Some of these cash have been used by the two associated events to spend their prospects whose investments with them had matured, even though some had been also utilized to fund road and other contractors, who declare to have labored on Authorities jobs.

It is crucial to notice that the IPCs claimed by GN are not supported by transactions that were being entered into straight by GN and such contractors or Authorities and its entities. They mirror transactions entered into by Ghana Growth Fund or Gold Coastline Fund Administration with these contractors working with funds taken from GN underneath conditions that violated prudential norms.

In accordance to the Bathroom, the failure of the two related parties to pay back again these money to GN influenced GN’s money position, primary finally to its insolvency and acute liquidity troubles.documentation to assist these transfers in breach of segment 19 of the Overseas Trade Act 2006, Act 723, Segment IV of Lender of Ghana Notice No. BG/GOV/SEC/2007/4, and subsequent Financial institution of Ghana Notices issued in August 2014 prohibiting these types of techniques.”

Even so, an official assertion signed by the Group Chairman and CEO Dr. Papa Kwasi Ndoum reported the entity is however to receive an official interaction from the Lender of Ghana with regards to receivership.

“Neither shareholders nor administration of GN Personal savings have obtained any formal conversation from the Lavatory with regards to receivership. If these paperwork are indeed real, the statements inside of regarding GN Price savings
are wildly inaccurate. Given the detailed information and facts furnished to the Lavatory virtually a yr in the past, these statements are inconsistent with our discussions with equally the Bathroom and the Ministry of Finance (MoF). We are conscious that the MoF has earlier confirmed that balances due to GN Discounts and other linked functions are much in extra of the quantities quoted in the communication from the Lavatory,” the assertion mentioned.

It further said that if governing administration experienced honoured its debt obligations to Groupe Ndoum entities, it would have been extra than liquid incorporating “our placement is that GN Savings is not only solvent, but would be extremely liquid if the Ministry of Finance (MoF) simply purchased by itself and other federal government agencies to rapidly pay quantities owed to GN Cost savings and other similar entities. We expect this subject to be solved in owing course.

Also Study: Your super incompetence a serious risk to money sector-Adongo jabs Bog Governor

GN Savings and all other worried stakeholders will answer with far more detail shortly, but in the meantime, we pray that all customers and stakeholders continue to be quiet when we work by this make any difference with the applicable parties.”

Supply:MyNewsGh.com/Stephen Zoure/2019

‘Mere’ Savings and Loans Too Nduom Couldn’t Survive – GN Savings and Loans One of 23 Companies Closed Down By Bank of Ghana


Soon after staying pressured to downgrade his lender to a ‘savings and loans’ business, Dr Papa Kwesi has missing the battle wholly as the Financial institution of Ghana has announced his company’s licence has been revoked.

GN Discounts and Personal loan Business, which arrived out of GN Financial institution, has been uncovered as just one of two dozen personal and loans shut down by the Financial institution of Ghana.

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The crackdown was declared in a statement unveiled now.

According to the Bog, the closure of these providers has turn out to be required due to their inability to solvent.

Other impacted discounts and loans businesses include things like Ideal Finance, Very first Allied Savings and Loans, ASN Financial Providers and Midland Price savings and Loans.

“These actions had been taken pursuant to Portion 123 (1) of the Banking companies and Specialised Deposit-Having Institutions Act, 2016 (Act 930), which necessitates the Financial institution of Ghana to revoke the licence of a Bank or Specialised Deposit-Using Establishment (SDI) in which the Lender of Ghana determines that the establishment is bancrupt,” the assertion read, in aspect.

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Examine out the list of impacted establishments below…

  • 1. Accent Financial Companies Ltd
    2. Adom Savings and Loans Ltd
    3. AllTime Finance Ltd
    4. Alpha Money Personal savings and Loans Ltd
    5. ASN Economical Expert services Ltd
    6. CDH Price savings and Loans Ltd
    7. Commerz Personal savings and Financial loans Ltd
    8. Crest Finance Property Ltd
    9. Desire Finance Business Ltd
    10. Specific Price savings and Financial loans Firm Ltd
    11. 1st African Discounts & Loans Company Ltd
    12. First Allied Discounts and Loans Co. Ltd
    13. Very first Ghana Cost savings and Loans Co. Ltd
    14. FirstTrust Savings and Loans Ltd
    15. World-wide Entry Financial savings and Financial loans Business Ltd
    16. GN Savings and Loans Ltd
    17. Perfect Finance Ltd. Finance Property
    18. IFS Money Products and services Ltd
    19. Legacy Cash Savings and Loans Ltd
    20. Midland Savings and Loans Company Ltd
    21. Sterling Economic Expert services Ltd
    22. Unicredit Price savings and Loans Ltd
    23. Women’s World Banking Savings and Financial loans Co. Ltd

Supply: GhanaCelebrities.Com

Why GN Savings and Loans license was revoked


The Bank of Ghana has been detailing why the GN Savings and License was revoked amid 23 some others in the most current work out.

Also Read through: NPP gov’t spent GH¢18 billion to collapse banks that wanted GH¢9 billion to survive – Muntaka

In accordance to the Bog, GN Cost savings and Company Restricted
was initially included as Initial Nationwide Personal savings and Financial loans (FNSL) Firm
Confined and licensed as a Personal savings and Loans Corporation on 8th Might 2006. It was
subsequently issued with a universal banking license by the Financial institution of Ghana on
4th September 2014 and was renamed GN Bank Restricted.

On 4th January 2019, the Lender of Ghana authorized a request to
reclassify GN Bank from a universal bank to a Cost savings and Financial loans firm
following its lack of ability to satisfy new expected least paid out-up capital of GH¢ 400
million by 31st December 2018. The reclassification was to among other items
empower the institution to downsize its operations and also inject added
cash to resolve the acute liquidity problems it was confronted with. The
Bank of Ghana subsequently appointed an Advisor to GN to support in the
reclassification method.

In spite of the higher than, the establishment has been unable to
take care of its liquidity disaster and has also not been ready to satisfy the majority of
the disorders the Bank of Ghana imposed on the institution subsequent its
reclassification as a financial savings and financial loans corporation. The fiscal issue of the
institution has also deteriorated considering the fact that the reclassification with each destructive
funds adequacy ratio and adverse internet worthy of.

The Bank of Ghana has arrived at the summary that GN is
presently bancrupt underneath portion 123 (4) of the Banking and SDIs Act, 2016 (Act
930), staying in breach of its important prudential regulatory needs. Its
Cash Adequacy Ratio (Motor vehicle) is at present -61%, in breach of the minimum amount
required of 13%. It is also struggling with a significant liquidity crisis with quite a few
problems been given by the Economical Stability Office of the Bank of Ghana
from aggrieved clients who have been not able to access their deposits with the
institution for the previous quite a few months. What is extra, it has persistently
failed to meet up with the minimal income reserve necessity of 10% of its full
deposits, since the close of the initial quarter of 2019.

GN’s shareholders have failed to restore the lender to the
essential regulatory capital and liquidity degrees in spite of lengthy-standing
promises that new money was envisioned from foreign traders.

Even though GN has indicated that government owes it a whole
sum of GH¢942.98 million of which GH¢102.73 million represented Interim
Payment Certificates (IPCs), the Bank of Ghana’s evaluation is that IPCs
totaling GH¢30.33 million only have been verified by the Ministry of Finance
as at 6th August 2019 as owed to contractors that might be indebted to affiliates
of GN. The Bank of Ghana’s supervisory evaluation showa that even when the
whole excellent IPCs amount of money of GH¢30.33 million was regarded as, it even now did
not deal with GN’s funds deficit of -GH¢683.66 million will have to be mentioned that GN’s
insolvency complications are mostly attributable to overdraft and other facilities
it prolonged to its relevant parties who are other companies in the Groupe Ndoum
community of organizations, underneath situation that violated pertinent prudential
norms.

Of specific desire are the resources totaling GH¢761.55
million that GN Lender as it then was, put with its sister providers Ghana
Advancement Fund (Gold Coast Advisors) and Gold Coast Fund Management Minimal (now
Blackshield Cash Administration), equally accredited by the Securities and Trade
Commission. Some of these funds were utilized by the two similar get-togethers to shell out
their clients whose investments with them experienced matured, even though some were being also
employed to fund street and other contractors, who declare to have labored on Federal government
assignments. It is essential to take note that the IPCs claimed by GN are not supported
by transactions that have been entered into specifically by GN and such contractors or
Authorities and its entities. They replicate transactions entered into by Ghana Expansion
Fund or Gold Coastline Fund Administration with these contractors using money taken
from GN less than instances that violated prudential norms. The failure of the
two similar events to pay again these resources to GN impacted GN’s capital
posture, primary eventually to its insolvency and acute liquidity troubles documentation
to assistance these kinds of transfers in breach of portion 19 of the Overseas Exchange Act
2006, Act 723, Area IV of Lender of Ghana See No. BG/GOV/SEC/2007/4, and
subsequent Lender of Ghana Notices issued in August 2014 prohibiting these
procedures.

 The company is yet to
publish its 2018 audited accounts contrary to portion 90 (2) of the Banking institutions and
Specialised Deposit-Using Establishments Act, 2016 (Act 930). Also, the
corporation did not continue to keep accounting records in a fashion that offers an accurate and
trusted account of the transactions of the enterprise, and did not therefore exhibit
a legitimate and good check out of its operations.

 GN has suspended
operations in seventy (70) of its branches such as the Head office environment department at
Asylum Down and Castle Road branch, and briefly suspended its overall
administration group without the acceptance of the Bank of Ghana opposite to part
25 (2) of the Banks and Specialised Deposit-Having Institutions Act, 2016 (Act
930), mostly as a final result of its insolvency and liquidity troubles.

In addition to GN’s insolvency and liquidity problems, the
Bank of Ghana has discovered other crucial regulatory violations these kinds of as the pursuing:

 The institution’s
modified Net worthy of of adverse GH¢30.70 million as at finish May possibly 2019 signifies
that its paid out up capital is impaired in violation of Area 28(1) Act 930.

The institution’s modified cash adequacy ratio of
adverse 61.20% as at stop Could

2019 is in violation of Segment 29(2) of Act 930.

 Contrary to section
64 (2) of the Banking institutions and Specialised Deposit-Using Institutions Act, 2016 (Act
930), the institution’s publicity to its similar get together has consistently been
above the regulatory restrict of 25% of net personal funds (NOF). Exposures to other
affiliate marketers corporations have been mostly payments produced by the financial institution on behalf of these kinds of
affiliates.

The construction of GN’s equilibrium sheet clearly exhibits that the
financial institution mobilizes deposits for its connected companies. The lack of ability of these
related corporations to honour their obligation to GN has resulted in significant
liquidity difficulties and contributed to their insolvency as all connected get together
exposures are non-carrying out. The institution’s superior non-performing financial loans (NPL)
was predominantly attributed to these linked bash exposures, which have been never ever compensated,
therefore placing the deposits of its purchaser at possibility.

 A the latest Financial institution of
Ghana investigation conducted at GN exposed that a major quantity
(USD62,255,516.93, GBP718,528.59 and EUR4,200) of depositors’ money held with
GN had been transferred to International Company Solutions (yet another corporation
owned by Groupe Nduom and which is based in the U.S.A) without the need of any
documentation to support these types of transfers in breach of section 19 of the Overseas
Exchange Act 2006, Act 723, Portion IV of Bank of Ghana Observe No.
BG/GOV/SEC/2007/4, and subsequent Bank of Ghana Notices issued in August 2014
prohibiting these techniques.

 The firm is but to publish its 2018 audited accounts contrary to area 90 (2) of the Banking companies and Specialised Deposit-Having Institutions Act, 2016 (Act 930). In addition, the company did not maintain accounting data in a method that offers an correct and reliable account of the transactions of the enterprise, and did not for that reason show a real and truthful see of its functions.

Also Read: Your tremendous incompetence a real threat to financial sector-Adongo jabs Bog Governor

 GN has suspended
operations in seventy (70) of its branches which include the Head office branch at
Asylum Down and Castle Street department, and briefly suspended its overall
administration crew with out the approval of the Lender of Ghana opposite to part
25 (2) of the Banking institutions and Specialised Deposit-Having Institutions Act, 2016 (Act
930), generally as a result of its insolvency and liquidity troubles.”

Source:MyNewsGh.com/Stephen Zoure/2019

BoG collapses Dr Duffuor’s Unicredit Savings and Loans Limited, 22 others


Dr Ernest Addison, Bathroom Governor

The Lender of Ghana (Bog) has revoked the licences of 23 bancrupt price savings and loans companies and finance household companies.

The influenced corporations incorporate Dr Kwabena Duffuor’s Cost savings and Financial loans Restricted and Dr Papa Kwesi ’s GN Financial savings and Loans Limited.

The Bank of Ghana has also appointed Eric Nipah as a for the specified establishments in line with part 123 (2) of Act 930.

In accordance to a assertion from Lavatory, “the revocation of the licences of these establishments has become essential for the reason that they are insolvent even right after a realistic interval inside which the Bank of Ghana has engaged with them in the hope that they would be recapitalised by shareholders to return them to solvency.

“It is the Financial institution of Ghana’s evaluation that these establishments have no reasonable prospective customers of restoration, and that their continued existence poses significant hazards to the balance of the money program and to the pursuits of their depositors.

“These actions ended up taken pursuant to Section 123 (1) of the Banking companies and Specialised Deposit-Using Institutions Act, 2016 (Act 930), which involves the Lender of Ghana to revoke the licence of a Bank or Specialised Deposit-Having Institution (SDI) wherever the Lender of Ghana determines that the establishment is insolvent.”

Under is the list:

Dr. Nduom reacts to BoG’s revocation of GN Savings Limited license


Common Information of Friday, 16 August 2019

Source: www.ghanaweb.com

Dr.Papa Kwesi NduomDr Papa Kwesi Nduom

The Chairman and CEO Groupe Nduom, Dr Papa Kwesi Nduom has reacted to the Bank of Ghana’s selection to revoke the license of his enterprise, GN Price savings Limited.

The Bank of Ghana on Friday revoked the licenses of 20-3 (23) bancrupt financial savings and financial loans organizations and finance household organizations like the GN Savings Restricted.

The central lender in its statement said the of the licenses of these institutions has turn out to be vital mainly because they are bancrupt even soon after a acceptable time period in just which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.

Even so reacting to the topical situation in a release, Dr. Nduom said

“Neither shareholders nor administration of GN Personal savings have obtained any formal conversation from the Bog concerning receivership.

“If these paperwork are in fact legitimate, the statements within regarding GN Cost savings are wildly inaccurate. Provided the specific info furnished to the Lavatory practically a yr in the past, these statements are inconsistent with our discussions with both of those the Bog and the Ministry of Finance (MoF). We are informed that the MoF has earlier verified that balances because of to GN Cost savings and other linked functions are much in excessive of the quantities quoted in the conversation from the Lavatory.

“Our place is that GN Cost savings is not only solvent, but would be hugely liquid if the MoF merely requested itself and other governing administration organizations to immediately spend quantities owed to GN Price savings and other relevant entities. We expect this subject to be solved in owing study course.

“GN Personal savings and all other worried stakeholders will answer with more element shortly, but in the meantime, we pray that all clients and stakeholders stay calm when we operate as a result of this issue with the relevant functions,” the assertion signed by Dr. Nduom read.

Beneath is BoG’s in depth motives for the revocation of GN Savings and Loans Corporation Constrained license

GN Cost savings and Financial loans Corporation Minimal was originally integrated as Very first National Financial savings and Loans (FNSL) Business Constrained and licensed as a Price savings and Loans Firm on 8th May well 2006. It was subsequently issued with a common banking license by the Lender of Ghana on 4th September 2014 and was renamed GN Financial institution Limited.

On 4th January 2019, the Financial institution of Ghana accepted a request to reclassify GN Financial institution from a universal lender to a Personal savings and Loans corporation pursuing its incapability to satisfy new needed minimum amount compensated-up capital of GH¢ 400 million by 31st December 2018. The reclassification was to amongst other matters permit the establishment to downsize its operations and also inject extra money to solve the acute liquidity difficulties it was confronted with. The Bank of Ghana subsequently appointed an Advisor to GN to aid in the reclassification course of action.

In spite of the previously mentioned, the institution has been unable to solve its liquidity crisis and has also not been ready to meet the vast majority of the circumstances the Bank of Ghana imposed on the establishment pursuing its reclassification as a savings and financial loans company. The economical condition of the institution has also deteriorated since the reclassification with both of those adverse money adequacy ratio and adverse net well worth.

The Bank of Ghana has attained the conclusion that GN is at present insolvent beneath portion 123 (4) of the Financial institutions and SDIs Act, 2016 (Act 930), getting in breach of its essential prudential regulatory needs. Its Funds Adequacy Ratio (Vehicle) is currently -61%, in breach of the bare minimum essential of 13%. It is also experiencing a critical liquidity disaster with several problems gained by the Fiscal Security Office of the Bank of Ghana from aggrieved shoppers who have been not able to accessibility their deposits with the establishment for the final several months. What is far more, it has regularly failed to fulfill the minimal dollars reserve necessity of 10% of its whole deposits, considering the fact that the conclude of the very first quarter of 2019.

GN’s shareholders have unsuccessful to restore the bank to the necessary regulatory capital and liquidity stages in spite of lengthy-standing claims that new cash was expected from foreign buyers.

Whilst GN has indicated that governing administration owes it a overall amount of GH¢942.98 million of which GH¢102.73 million represented Interim Payment Certificates (IPCs), the Bank of Ghana’s evaluation is that IPCs totaling GH¢30.33 million only have been confirmed by the Ministry of Finance as at 6th August 2019 as owed to contractors that may be indebted to affiliates of GN. The Lender of Ghana’s supervisory evaluation demonstrates that even when the full outstanding IPCs total of GH¢30.33 million was regarded as, it continue to did not deal with GN’s capital deficit of -GH¢683.66 million.

It have to be famous that GN’s insolvency issues are mostly attributable to overdraft and other facilities it prolonged to its relevant parties who are other corporations in the Groupe Ndoum community of enterprises, below situation that violated suitable prudential norms. Of individual fascination are the cash totalling GH¢761.55 million that GN Bank as it then was, put with its sister businesses Ghana Growth Fund (Gold Coastline Advisors) and Gold Coast Fund Management Limited (now Blackshield Capital Management), each certified by the Securities and Exchange Fee. Some of these funds were being used by the two relevant functions to shell out their clients whose investments with them had matured, while some have been also applied to fund street and other contractors, who claim to have labored on Governing administration jobs. It is important to take note that the IPCs claimed by GN are not supported by transactions that had been entered into instantly by GN and these contractors or Government and its entities. They reflect transactions entered into by Ghana Development Fund or Gold Coast Fund Management with these contractors working with cash taken from GN underneath circumstances that violated prudential norms. The failure of the two connected parties to pay back again these funds to GN influenced GN’s funds place, leading eventually to its insolvency and acute liquidity troubles.

In addition to GN’s insolvency and liquidity challenges, the Lender of Ghana has found other critical regulatory violations these kinds of as the subsequent:

• The institution’s modified Web truly worth of damaging GH¢30.70 million as at close Might 2019 indicates that its paid up capital is impaired in violation of Segment 28(1) Act 930.

• The institution’s modified capital adequacy ratio of destructive 61.20% as at conclude May possibly 2019 is in violation of Segment 29(2) of Act 930.

• Opposite to section 64 (2) of the Banks and Specialised Deposit-Using Establishments

Act, 2016 (Act 930), the institution’s publicity to its related celebration has persistently been higher than the regulatory limit of 25% of net very own cash (NOF). Exposures to other affiliate marketers were primarily payments produced by the financial institution on behalf of this sort of affiliates.

• The structure of GN’s stability sheet plainly reveals that the financial institution mobilizes deposits for its connected firms. The inability of these connected corporations to honour their obligation to GN has resulted in major liquidity difficulties and contributed to their insolvency as all connected social gathering exposures are non-doing. The institution’s significant non-executing loans (NPL) was mainly attributed to these related get together exposures, which have been never ever paid, thereby placing the deposits of its shopper at danger.

• A current Bank of Ghana investigation performed at GN discovered that a significant volume (USD62,255,516.93, GBP718,528.59 and EUR4,200) of depositors’ money held with GN experienced been transferred to International Organization Solutions (an additional company owned by Groupe Nduom and which is primarily based in the U.S.A) devoid of any documentation to assistance such transfers in breach of area 19 of the Foreign Trade Act 2006, Act 723, Section IV of Bank of Ghana See No. BG/GOV/SEC/2007/4, and subsequent Lender of Ghana Notices issued in August 2014 prohibiting these kinds of techniques.

• The firm is nevertheless to publish its 2018 audited accounts opposite to section 90 (2) of the Banking institutions and Specialised Deposit-Using Establishments Act, 2016 (Act 930). Also, the business did not maintain accounting data in a fashion that offers an exact and reliable account of the transactions of the corporation, and did not thus present a genuine and honest look at of its operations.

• GN has suspended functions in seventy (70) of its branches together with the Head office environment department at Asylum Down and Castle Street branch, and briefly suspended its overall administration staff with out the approval of the Financial institution of Ghana opposite to portion 25 (2) of the Banking companies and Specialised Deposit-Having Institutions Act, 2016 (Act 930), largely as a result of its insolvency and liquidity difficulties.