The Bank of Ghana (BoG) a few days ago closed down 23 Savings and Loans companies including GN Savings and Loans owned by Dr Paa Kwesi Nduom.
According to a statement from BoG, “The revocation of the licences of these institutions has become necessary because they are insolvent even after a reasonable period within 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.”
The statement added that, “It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors.”
However, Dr Paa Kwesi Nduom described the BoG's statement as 'wildly inaccurate' and 'inconsistent'.
"Given the detailed information provided to the BoG nearly a year ago, these statements are inconsistent with our discussions with both the BoG and the Ministry of Finance (MoF). We are aware that the MoF has previously confirmed that balances due to GN Savings and other related parties are far in excess of the amounts quoted in the communication from the BoG".
“Our position is that GN Savings is not only solvent; but would be highly liquid if the MoF simply ordered itself and other government agencies to quickly pay amounts owed to GN Savings and other related entities," Dr. Nduom said in a statement.
Analyzing these two reactions during a panel discussion on Peace FM's morning show 'Kokrokoo', Managing Editor of the Insight newspaper, Kwesi Pratt Jnr wonders whose report Ghanaians should believe.