Management of multinational family holding business, Groupe Nduom, says none of its subsidiaries invested in the now troubled gold dealership firm, Menzgold Ghana Limited, as has been suggested by some people.
According to the company, which owns the securities and brokerage firm Gold Coast Securities and the now downgraded GN Bank, there are commentary on social media to suggest Group Nduom has invested part of its funds in Menzgold.
The claims were even heightened by GN Bank and Gold Coast Securities’ inability to pay their customers returns on their matured investments, particularly at a time Menzgold was also in crisis and struggling to pay its customers their matured investments.
A statement issued by the head of corporate affairs of Groupe Nduom, Frank Owusu-Ofori, unequivocally denied such claims, stating “neither Groupe Nduom nor its subsidiaries, has made any investment with Menzgold Ghana Ltd”.
The collapse of some banks in the country triggered what was termed “panic withdrawals” which Chairman of the group, Dr. Paa Kwesi Nduom said affected the banks as a lot of customers started to withdraw their monies with them.The situation forced Dr. Nduom to begin a campaign he dubbed “Stop the panic withdrawals and strengthen indigenous banks” in October 2018.
He explained it was aimed at urging the public against withdrawals which he said was negatively affecting the operations of local banks in the country.
But it appeared the campaign did not work for his GN bank as in the midst of its “crisis,” failed to raise the new 400 million-cedi minimum capital at the expiry of the December 31, 2018 deadline set by the Bank of Ghana.
The BoG consequently on Friday downgraded GN Bank to savings and loans company, and appointed an advisor to help it go through the transition from commercial bank to a savings and loans company.
“The GN Bank was unable to comply with the minimum capital directive by 31st December 2018. Consequently GN Bank has applied for and the Bank of Ghana has approved the grant of a savings and loans company licence,” Governor of BoG, Dr Ernest Addison explained.