- BoG revokes GN Savings and Loans' license for regulatory violations.
- No political interference, says BoG's Bernard Otabil.
- GN Savings and Loans breached Foreign Exchange Act.
- Court upholds BoG's decision, citing governance deficiencies.
The Bank of Ghana (BoG) has justified its decision to revoke the license of GN Savings and Loans, dismissing claims of political interference. Bernard Otabil, Director of Communications at the Bank of Ghana, explained that GN Savings and Loans violated financial regulations, including the Foreign Exchange Act of 2006 (Act 723).
Otabil emphasized that the central bank’s decision was based on the institution’s non-compliance with prudential norms, not political influence. He cited a transfer of dollars, pounds, and euros to International Business Solutions, an affiliated institution outside Ghana, in breach of the Foreign Exchange Act.
The Bank of Ghana revoked the licenses of 23 savings and loans companies and finance houses in 2019, including GN Bank. GN Bank subsequently sought legal action challenging the revocation, but an Accra High Court upheld the central bank’s decision in January.
The court cited governance deficiencies that rendered GN Savings and Loans unable to meet its debt obligations. Dr. Papa Kwasi Nduom, Chairman of Group Nduom, claimed that former Finance Minister Ken Ofori-Atta petitioned Cabinet to facilitate the collapse of GN Bank.
However, Otabil maintained that the central bank’s decision was based on regulatory requirements, not political influence. The Bank of Ghana stands by its statement of August 16, 2019, detailing the reasons for the revocation of GN Savings and Loans’ license.
