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Business News Thu, 19 Sep 2019

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

The High Court has directed lawyers of Groupe Ndoum to properly serve the receiver of GN Savings and Loans.

According to the court, the manner in which the suit was served was wrongly done because the individual who received the writ was not rightly placed to receive it.

The Chairman of Groupe Nduom, Papa Kwesi Nduom filed an injunction suit to compel the Bank of Ghana (BoG) to restore the license of GN Savings and Loans while the two battle in court over the license revocation.

The receiver was one of the four defendants in the suit.

In the application, the applicants were seeking an order from the court to keep the Reciever of GN Savings and Loans from “further interfering directly or indirectly with the rights of [the firm’s] shareholders, directors and management to control the business activities of GN Savings and loans pending the determination” of the case.

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

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

He said government infrastructure project portfolio was in excess of GH¢2.2 billion, more than its liabilities.

He added that most of the company’s funds had been invested in government projects as loans and advances to contractors who government through its ministries and agencies had hired to execute various projects.

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

He 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 and that constitutes a violation of rights.

He thus wants the court to rule that the failure of the BoG to consider that indebtedness of the Government of Ghana and its MDAs to Group Nduom before declaring GN Savings and Loans to be insolvent, constitutes a violation of his rights, that of Group Nduom and Coconut Grove Resort.



Source: citinewsroom.com
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