YEN.com.gh is reliably informed that the woes of Gold Coast Securities and GN Bank both owned by Ghanaian politician and businessman, Papa Kwesi Nduom, is being caused by the government.
A source at the two companies told your authoritative YEN.com.gh that government owned Gold Coast Securities to the tune of GH?200 billion, for which reason the company had been crippled financially.
According to the source, Gold Coast Securities had invested that huge sum into a government’s project.
However, government had still not paid back on the investment, making the operations of the company very tough. YEN.com.gh, however, is not privy to the exact government project Gold Coast Securities invested in.
We are following up on this new development and would update readers as fresh information come in.
Further explaining why GN Bank had also been in crises for about six months, the source revealed that it was as a result of panic withdrawals.
He disclosed that following the crises that hit the banking sector months ago where some banks were collapsed and merged to form Consolidated Bank Ghana, clients of many banks including GN Bank feared for their monies, and started massive withdrawals.
It will take us 6 months to operate as Savings and Loans – Nduom
According to him, all who have saved with GN Bank have their monies safe and at the right time, would allow customers to make withdrawals.
Meanwhile, the Bank of Ghana has downgraded GN Bank to a savings and loans company.
This is because the bank was unable to meet the required capital to continue as a bank, according to an earlier report by YEN.com.gh.
Other reports have revealed how many clients of the bank had been left hopeless because they could not make withdrawals.
In fact, in the wake of Menzgold’s woes, the clients feared that their deposits with Nduom’s companies had been locked up too, or gone for good. Some of the angry clients stormed Nduom’s hotel for their monies.
Another woman also narrated how her business had collapsed and her livelihood challenged because all her money had been locked up at GN Bank.