Month: June 2020

NOTICE TO ALL BORROWERS AND LOAN DEFAULTERS

BOG | Matilda Akakpo | June 23, 2020 | Comment off

The receiver for 347 collapsed Microfinance companies and 23 Savings and Loans and Finance House Companies in a statement issued to the general public, person/persons/institutions who took loan facilities from these defunct companies are to visit any of the maintained branches of these institutions for repayment of the loans immediately. “Notice to all Borrowers and Loan Defaulters,” the statement added IN THE MATTER OF THE BANKS AND SPECIALISED DEPOSIT-TAKING INSTITUTIONS ACT, 2016 (ACT 930) AND IN THE MATTER OF THE RECEIVERSHIPS OF THE 347 MICROFINANCE COMPANIES AND THE 23 SAVINGS & LOANS AND FINANCE HOUSE COMPANIES NOTICE TO ALL BORROWERS AND LOAN DEFAULTERS Pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) (“the Act”), Bank of Ghana (“BoG”) on 31 May 2019 and 16 August 2019 revoked the operating licenses of 347 insolvent Microfinance Companies and 23 Savings and Loans and Finance House Companies respectively, and in accordance with Section 123(2) of the Act appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers Ghana Limited (“PwC”) as the Receiver for the purposes of winding down the affairs of these Companies. Section 127 (3) of the Act mandates the Receiver to realise all assets of the resolved companies, including outstanding loans and advances, for the benefit of creditors. Accordingly, the Receiver wishes to notify the general public especially person/persons/institutions who took loan facilities from these defunct companies to visit any of the maintained branches of these institutions for repayment of the loans immediately. (for a list of the maintained branches, please visit the Receiver’s website: www.ghreceiverships.com) Customers may settle their outstanding obligations to the defunct companies through the respective MTN MoMo numbers and/or receivership bank accounts listed on the adjacent tables. The Receiver would like to entreat all borrowers to cooperate with his authorised representatives/agents in this regard. Borrowers are to note that, the Receiver will pursue all recalcitrant defaulters through all available means as permitted by the Act including, but not limited to, legal actions and publishing names of recalcitrant defaulters in national and international newspapers. In this regard, the Receiver will soon publish the first list of recalcitrant defaulters and their respective addresses in the national dailies. Please note that the working hours for the maintained branches of the defunct companies remain from 8:00am to 5:00pm, Mondays to Fridays. For further information on the Loan Repayments, please call 024 243 9441/ 0550000966. You may also write to the; The Receiver, 25 B Manet Towers PMB CT42, Cantonments Accra, Ghana www.ghreceiverships.com SGD ERIC NANA NIPAH

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PAYMENT WON’T STOP PROSECUTION AGAINST YOU – AG TO ATO ESSIEN

BOG | Matilda Akakpo | June 18, 2020 | Comment off

The Chief State Attorney, Marina Appiah Opare, has said the plan by Mr. Willaims Ato Essien, CEO of the defunct Capital Bank, to pay the funds will not stop the trial from proceeding since the negotiation will affect only four of the charges. He and three others are facing 26 charges for various roles they played leading to the collapse of Capital Bank. The Attorney General on Thursday, June 18, 2020, rejected the repayment terms submitted by Ato Essien, who is standing trial for the collapse of the bank. Ato Essien wrote to the Attorney General’s Office for a payment plan. But Ms. Marina Appiah Opare told an Accra High Court on Thursday, June 18, 2020, that the agreement was “totally unacceptable”. She said the terms were not favorable to the State. The trial judge, Justice Kyei Baffour, after hearing the case, adjourned proceedings to July , 2020, saying should the State fail to reach an agreement, the case will proceed.  

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COURT GRANTS BOG STAY OF PROCEEDING IN GN SAVINGS AND LOAN CASE

Uncategorized | Matilda Akakpo | June 3, 2020 | Comment off

The Court of Appeal has by a unanimous decision granted the Bank of Ghana’s application for stay of proceedings in the GN Savings and Loans case in the High Court (Human Rights Division). All three Justices’ decision is pending the determination of the central bank’s appeal at the Court of Appeal against the decision of the High Court to hear the case brought by shareholders of GN Savings and Loans. The effect of the Court of Appeal’s ruling today is that the proceedings filed at the High Court by shareholders of GN are for now suspended. The Chairman of Groupe Nduom, Dr. Papa Kwesi Nduom, sued the BoG and two others over the revocation of the license of GN Savings and Loans Company Limited. The suit, which was filed jointly by Coconut Grove Beach Resort and Conference Centre Limited and Groupe Nduom (GN) Limited, is challenging the decision of the central bank to declare GN Savings and Loans Company insolvent leading to the revocation of its operating license. The suit is challenging the issue of insolvency claim by the BoG, saying contrary to the central bank’s claims, a fair, truthful, just and independent assessment of GN Savings and Loans’ books would show it was very solvent “and particularly, that the value of Gold Coast’s government infrastructure project portfolio, running in excess of ¢2.2 billion in addition to other assets available to Groupe Nduom, could support the GN Savings and Loans to far exceed the value of its liabilities.” Reliefs Among the reliefs being sought by the plaintiff include a declaration that by failing to take into account the indebtedness of the government of Ghana and its MDAs to Groupe Nduom, Gold Coast Advisors Limited or GN Bank, before concluding that the savings and loans company was insolvent and, consequently, revoking its specialized deposit-taking license, violates their rights. They also want an order of certiorari, quashing the decision in the notice issued by BoG which declared GN Savings and Loans Company insolvent and, consequently, revoked its license to operate as a specialized deposit-taking institution. Again, the suit is seeking an order on BoG to restore to the company its license to enable it to continue operating as a specialized deposit-taking institution. It also wants an order on the receiver of the company “to submit the possession, management or control of the assets, operations and other activities of the company to its shareholders or persons who, immediately before August 16, 2019, were in possession, management or control of such assets, operations and activities.”

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