Government has refuted claims that it is to blame for the collapse of GN Savings and Loans, a company owned by Dr. Paa Kwesi Nduom.

This comes after a press conference held by some aggrieved residents of Elmina who accused the Akufo-Addo government of failing to honour its financial obligations to the bank, leading to its collapse.

The group which says the Bank of Ghana deliberately revoked the license of the financial institution gave the government a  three-week ultimatum to pay back monies owed Dr. Nduom or face their wrath.

But a statement issued by the government in response to the group’s claims indicated that the claims are misplaced, needless and lack substance given the fact that the Central Bank acted in accordance with the law.

“The claim made by the organisers of the press conference that the woes of GN Savings and Loans had been caused because Government had failed to honour its financial obligations to GN Savings and Loans is completely misplaced.  The Akufo-Addo administration has nothing to gain from the closure of a company belonging to a Ghanaian. The deliberate attempt to draw in Government and President Akufo-Addo into the insolvency problems of GN Savings and Loans and others is totally unwarranted, unfortunate and without any substance,” portions of the statement said.

The government in the statement said as of August 6, 2019, its indebtedness to GN amounted only to GHC 30.33 million adding that an agreement has indeed been reached between the Ministry of Finance and GN Savings and Loans is to settle this debt.
In spite of this intervention, the government, however, says, even when these arrears are completely settled, “it will not address GN’s capital deficit of GHC 683.66 million.”

The group also blamed the Finance Minister, Ken Ofori Atta of masterminding the collapse of GN Savings and Loans adding that the situation could have been resolved without revoking his license.