Nduom ‘siphoned’ depositors’ fund; 80% of GN loans went to himself – Kyei Mensah-Bonsu Reveals

Minister for Parliamentary Affairs Mr Osei Kyei Mensah-Bonsu has made shocking revelations about the President and Chairman of Groupe Nduom (GN), Dr Papa Kwesi Nduom and the reason he has found himself in his current state.

He disclosed in an interview MyNewsGh.com monitored that whiles people deposited their money in the bank, Dr Papa Kwesi Nduom was said to have offered about 80% of the money as a loan to himself.

According to of the Suame lawmaker who is also the Majority Leader in Parliament, Dr Nduom used about 80% of the total deposits from customers for his own businesses which is against the regulatory laws on bank operations.

The legislator made this assertion during an interview with Kumasi based radio Angel Fm last Friday as MyNewsGh.com monitored.

He stated owners of some collapsed banks created the banks just to use depositors’ money to invest in their own businesses and not operate in line with the banking regulations in the country.

“I can mention a name; take Groupe Nduom Bank. For him, whiles people deposited their money in the bank, then he offered the money as a loan to himself. Therefore, he used about 80% of the total deposits of customers as loans for himself. Where can you do this? Where do you have this? He quizzed.

Hon. Osei Kyei Mensah-Bonsu continued that, “because Groupe Nduom Bank was all over the country especially in the rural areas, the government used it as the bank of transferring funds for the school feeding programme but it could take beneficiaries more than three months to access their money”

“This is because the bank wanted to use all means to invest the money and make a profit before it pays customers. The government at a point had to look through this and it was realized the bank was a savings and loans and not a bank”. He explained.

It would be recalled that Bank of Ghana early this month downgraded GN Bank into a Savings and Loans Company after it failed to meet the minimum capital.

“GN Bank (GN) 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. The Bank of Ghana has also approved a transition plan submitted by GN for winding down aspects of its business which are not compatible with a savings and loans company license,” Governor of the Bank of Ghana Dr Ernest Addison revealed.

 

Source: Ghana/Mynewsgh.com