The Bank of Ghana (BoG) has firmly defended its decision to revoke the license of GN Savings and Loans, dismissing allegations of political interference. This response comes from accusations made by Dr. Papa Kwasi Nduom, Chairman of Group Nduom, suggesting that the bank's closure was influenced by former Finance Minister Ken Ofori-Atta.

Bernard Otabil, Director of Communications at BoG, clarified that the central bank’s actions were based on regulatory violations by GN Savings and Loans. "We do not arbitrarily decide to close financial institutions. Our decisions are grounded in the adherence to financial regulations and the institution's operational conduct," Otabil stated.

Regulatory Violations Cited in GN Bank Closure

Otabil highlighted specific breaches of the Foreign Exchange Act of 2006 (Act 723) by GN Savings and Loans, including unauthorized foreign currency transfers to International Business Solutions, a subsidiary linked to Group Nduom. "Such actions are clear violations of our financial laws, and our August 2019 statement outlines all reasons for the license revocation," he explained.

Legal Validation of Central Bank's Actions

In January, an Accra High Court upheld BoG's decision, reinforcing the central bank’s authority to revoke licenses of financial institutions failing to meet governance and financial obligations. Justice Gifty Addo Adjei ruled that GN Savings and Loans had significant governance deficiencies that justified the license revocation.

Political Interference Allegations Addressed

Dr. Nduom has contested the central bank's decision, alleging that Ken Ofori-Atta orchestrated the collapse of GN Bank due to political motivations. Nduom claimed that Ofori-Atta submitted a memorandum to the Cabinet, proposing the bank's closure to eliminate potential political threats. However, the Cabinet did not endorse this request.

Ongoing Legal Battles

Despite the court's ruling, Dr. Nduom has filed an appeal to overturn the decision. He argues that GN Bank's contributions to financial inclusion and economic development in Ghana were overlooked. "Our bank had the widest distribution network and played a crucial role in financial inclusion. Shutting it down ignored these benefits," Nduom asserted in a viral video.