Akufo-Addo has no interest in collapsing Ghanaian businesses; Gov’t Responds to Elmina Residents

The government of Ghana through the ministry of information has stated that the NPP Government and the President, Nana Addo Dankwa Akufo-Addo have on interest in collapsing businesses belonging to Ghanaians.
“On the contrary, since assuming office in 2017, the pre-occupation of President Akufo-Addo has been to incentivize the Ghanaian private sector to be
able to compete effectively in the region, the continent and the world, create jobs for the Ghanaian people, and put our nation onto the path of progress and prosperity.” The government has said.
This was contained in a statement signed  by the Deputy Minister of Information Nana Ama Dokua Asiamah-Adjei in a response to a press conference held by some residents of Elmina in the Central Region.
Some aggrieved residents of Elmina on Wednesday 21st August 2019 accused the government of deliberately collapsing the business of Dr. Paa Kwesi Nduom, a native of Elmina.
This follows the decision of the Bank of Ghana to revoke the operating licenses and close down some 23 insolvent savings and loans companies, including that of GN Savings and Loans Company, owned by Dr. Paa Kwesi Nduom.
Despite the detailed statement put out by the Bank of Ghana explaining the rationale for their decision, the aggrieved residents of Elmina in their press conference sought to lay the blame for the closure of GN Savings and Loans at the doorstep of Government and indeed, of President Nana Addo Dankwa Akufo-Addo.
But responding to the Press Conference, the Deputy Minister of Information, Mrs. Dokua Asiamah-Adjei stated that “it is important to repeat, for the record, that the operating License of GN Savings and Loans was revoked, in the words of the Bank of Ghana, because of ‘insolvency and liquidity challenges’.”
“As stated clearly in the Bank’s statement, ‘GN’s insolvency problems are largely attributable to overdraft and other facilities it extended to its related parties who are other companies in the Groupe Ndoum network of businesses, under circumstances that violated relevant prudential norms’, including transfers of large sums of money (US$62,255,5 16.93, GBP718,528.59 and EUR4,200) from depositors’ funds to foreign accounts of companies of Groupe Nduom, in breach of section 19 of the Foreign Exchange Act 2006, Act 723, Section IV of Bank of Ghana Notice No. BG/GOV/SEC/2007/4, and subsequent Bank of Ghana Notices issued in August 2014 prohibiting such practices.” The statement said.
The statement added that “the claim made by the organisers of the press conference that the woes
of GN Savings and Loans had been caused because Government had failed to honour its financial obligations to GN Savings and Loans is completely
Mrs. Asiamah-Adjei said “indeed, as at 6th August, 2019, Government’s indebtedness to GN amounted only to GH¢30.33 million” saying “an agreement has, indeed, been reached between the Ministry of Finance and GN to settle this debt.”
“However, even when completely settled, it will still not address GN’s capital deficit of GH¢683.66
million.” Mrs. Asiamah-Adjei said.
She stated that “the Akufo-Addo administration has nothing to gain from the closure of a company belonging to a Ghanaian.”
She has therefore stated that “the deliberate attempt to draw in Government and President Akufo-Addo into the insolvency problems of GN Savings and Loans and others is totally unwarranted, unfortunate, and without any substance.”
She said the Bank of Ghana is an independent institution of State and persons who may feel
aggrieved by actions of the Central Bank, may employ the established avenues for redress, including recourse to the courts for the resolution of their grievances.


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