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We're determined to see the restoration of all banking licenses wrongfully taken — PPP

Business & Finance We're determined to see the restoration of all banking licenses wrongfully taken — PPP
THU, 13 JUN 2024 LISTEN

The Progressive People's Party (PPP) is determined to see the restoration of the GN Savings and Loans license as well as others, which the Bank of Ghana revoked in 2019.

In a statement, PPP National Chairman Nana Ofori Owusu accused the central bank of acting on "political considerations" rather than proper regulatory analysis in its decision to collapse the savings and loans company.

"The revocation of the license of GN Savings & Loans was not based on any serious analysis of the bank’s overall situation but it was born out of political considerations, the abuse of the combined powers of the Ministry of Finance and the Bank of Ghana and on the egos of emotionally unstable people exercising regulatory authority," the party said.

PPP further dismissed claims by Bank of Ghana spokesperson Bernard Otabil that GN Savings breached foreign exchange rules.

It explained that the savings company held a different license than GN Bank and did not conduct any foreign transactions in the period before its license was revoked.

"GN Savings did not have the permission to engage in any form of foreign transactions. In fact, between January 2019 and August, 2019 (when the Savings & Loans license was withdrawn), GN Savings did not engage in any foreign transactions, let alone breach any provisions of the said legislation referred to by Mr. Otabil," the stated noted.

The party vowed to push for the "restoration of all banking licenses wrongfully taken" as part of its agenda for national unity and promoting local businesses.

This comes after the bank’s owner recently accused former Finance Minister Ken Ofori-Atta of collapsing the bank for political interest.

Read the party’s full statement below:

Rejoinder: GN Savings & Loans breached the Foreign Exchange Act; They were Disrespectful to BoG

The Progressive People’s Party (PPP) has read a publication attributed to the Director of Communications of the Bank of Ghana, Mr. Bernard Otabil. In that publication, Mr. Otabil was shamefully heard dismissing statements made by the Chairman of Groupe Nduom, Dr. Papa Kwesi Nduom that ‘the Central Bank was influenced by the former Finance Minister, Ken Ofori Atta to collapse GN Savings & Loans’. Again, Mr. Otabil justifying the revocation of the license alleged that, ‘GN Savings & Loans breached the Foreign Exchange Act 2006, (Act 723)’ and that “GN Savings and GN Bank were actually disrespectful to the Bank of Ghana.”

First of all, Mr. Otabil’s attempt to justify the reckless and wicked decision of the BOG to collapse financial houses points to our long-held position that, the revocation of the license of GN Savings & Loans was not based on any serious analysis of the bank’s overall situation but it was born out of political considerations, the abuse of the combined powers of the Ministry of Finance and the Bank of Ghana and on the egos of emotionally unstable people exercising regulatory authority.

When Mr. Otabil mentioned “GN Bank” and “GN Savings” in his interview with Media General, he didn’t know, as the Damage Control Officer of the Bank of Ghana, that the two entities he mentioned were different and distinct legal persons. To educate his ignorance and lack of understanding, we want to point out to him that, GN Savings was licensed in January, 2019 as a Savings and Loans Company. GN Savings did not have the permission to engage in any form of foreign transactions. In fact, between January 2019 and August, 2019 (when the Savings & Loans license was withdrawn), GN Savings did not engage in any foreign transactions, let alone breach any provisions of the said legislation referred to by Mr. Otabil.

Moreover, Mr. Otabil could not, by any known principle in law and in business, visit the alleged, contested and debunked infractions supposedly committed by GN Bank against GN Savings. The Bank of Ghana cannot punish a person for the alleged crimes and offenses of another. What was necessary for the Bank of Ghana to do, to save the thousands of jobs and protect local businesses, was to recognize the huge infrastructure debt owed to the entity by the government of Ghana and its agencies. Unfortunately, the Bank of Ghana, as an able and willing partaker in the wicked conspiracy to collapse a thriving Ghanaian business, allowed itself to be misled by the Ministry of Finance to disregard the infrastructure portfolio.

For the avoidance of doubt, the Bank of Ghana did not undertake or conduct any regulatory inspection on the activities of GN Savings between January, 2019 and August, 2019. That explains the hurriedly conjured compilation of alleged violations and infractions of GN Bank as a pretext and an attempt to find a basis to revoke the license of GN Savings.

The PPP will not allow any public servant, who is motivated by their myopic and cheap desire to earn a gold watch at the expense of the tax payer, when they retire from the Bank of Ghana, to disparage the conduct of legitimate business, in their attempt to find a non-existing justification for the reckless decision that led to the revocation of the license of GN Savings & Loans.

The PPP is determined to make every effort for the restoration of all banking licenses wrongfully taken to mark the end to the abuse of regulatory power to destroy local businesses and entrepreneurs. We need to embrace a new Ghana where local businesses are nurtured, protected, and promoted.

We remain wide awake to the agenda of national unity, cohesion, using the state purchasing power to promote local businesses to guarantee the creation of sustainable jobs for the youth, majority of whom remain unemployed.

Long Live Ghana.
Awake!
Signed: Nana Ofori Owusu
(National Chairman)

Isaac Donkor Distinguished
Isaac Donkor Distinguished

News ReporterPage: IsaacDonkorDistinguished

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