Nduom wants court to reject BoG, Receiver’s evidence

Groupe Nduom CEO, Dr Papa Kwesi Nduom

Lawyers of Dr Papa Kwesi Nduom have asked the High Court to reject the evidence being relied on by the Bank of Ghana and the Receiver of GN Savings & Loans.

It is the case of Dr Nduom that some documents filed by the central bank and Eric Nana Nipah, such as affidavits, were not signed by the appropriate people.

Justice Srem Sai, the lead counsel for the businessman, also raised concerns about some documents, which he said pertained to GN Bank and not the Savings and Loans company.

The application at the High Court was made in the ongoing case by Dr Nduom and some shareholders of GN Savings and Loans, who are challenging the decision of the BOG to revoke their operating license.

In his statement of claim, Dr Nduom insisted that GN Savings and Loans was in good standing, despite being declared insolvent by the central bank.

He said the government infrastructure project portfolio was in excess of GH₵2.2 billion, more than the company’s liabilities.

Dr Nduom stated that most of the company’s funds had been invested in government projects as loans, which were yet to be repaid.

According to Dr Nduom, the government and state agencies, as of August 14, 2018, owed the company over GH₵600 million.

The loans were advanced to contractors who executed government contracts through ministries and agencies.

He further argued that the BoG and other parties failed to consider the government’s indebtedness to the company, in making a determination on the company’s solvency.

That, he said constituted a violation of rights.

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