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15.11.2019 Feature Article

Greedy minds in Ruin

08.11.2019, SEC (Security Exchange Commission) Ghana revoked the licence of 53 companies including Company "Blackshield" of CPP Leader and Presidential Aspirant Dr. Papa Nduom, CEO and Chairman of Nduom Group. While Dr. Papa Nduom is down in tears crying to the heavens about the felt injustice done to his company blaming SEC for not having assisted him in the retrieving of money Goverment bodies owned his company causing the collapse of part of his business, he exposes himself as a good Manager of Mismanagement.

Entrepreneurship is about Profit making and Risk-Management with good professional judgment in between these two parameters. To have Government bodies as credit takers in an environment like Ghana -or other African countries- with poor governance, weak economies, uncertain tax returns and failed justice system to enforce the law correctly, to borrow money other than to the private sector, is a blue print for disaster based on blind greediness. Most certainly, and proven by evidence of the past that had led UT-Bank, Merchant Bank and others to collapse, such lenders play with the devil and gamble high. Greediness makes such companies and their owners and Managers blind to ignore reality.

To give out large sums of money is, as one factor, based on time of the right and correct repayment of the loan given to spin the wheel a vibrant financial institution is founded on. While from private and company borrowers assests can be taken away as a compensation for the loan granted in case the loan taker shows problems to pay back the loan given in a set time, while it is impossible to confiscate goverment assets like schools, roads, hospitals, Ministry buildings etc. which only works for foreign countries like China that had taken the Airport in Lusaka/Zambia and Germany Airports in Greece, but never for local companies against their own governments in any African country. Any judgment sentence against the Government in the hands of a Bank is dillussional as enforcement can never be undertaken, paper wasted.

Ghc 8 Billion (approx. € 1,6 Billion) are loocked up in the collapsed companies costing the state of Ghana including the clean up cost of the Banking and Savings & Loan sector a wooping Ghc 21 Billion (approx. € 4,2 Billion) estimated by the Minister of lost for the nation...and trust destroyed in the ability to govern a country propper. It is a reminder when UT-Bank stayed listed on the Ghana Stock Exchange for four years without having presented any balance sheets to the public, investors and Ghana Revenue Authority before being de-listed finally. In the developed world Managers and financial institution owners would end up in prison and their personal assests confiscated, while in Ghana and other African countries the perpetrators walk among their countries for free ready to continue the cycle of poverty mind again.

To claim SEC Ghana did not assist Dr. Papa Nduom as he did not support the current President of Ghana, Nana Akuffo-Addo, in his 2008 election campaign is fundamentally and systemacially baseless. Like the other 52 companies in jepoday now extreme greed and Mismanagement is the basis of the current situation.

In Germany, like in many other developed countries, local companies can insure themselves against any possible risk involved in doing business abroad cause by foreign specific problems. In Germany Hermes Credit Insurance owned by the state helps local companies to engage in foreign land and limit their operational and financial risk giving our companies a destintive advantage over African companies doing business inside or outside their own countries for which reason the cry of Ghanaians like Dr. Papa Nduom "Soon we will see only foreign companies running our financial institutions!" is a home made problem as Ghana, like other African countries, does not provide the same infrastructure to their local companies.

As long as Ghana is highly indebted a re-assurance company like Hermes can not be put into place and effect as it requires big and strong financial muscles for cases turning seriously sour. For the meantime it means simply for GN Group and others to be vigilant and manage their own operations in the framework set before them and not step out into the area of high risk ventures by doing business with Government entities; bodies of the highest risk category possible in Africa! His tears shed on media plattforms are tears self-inflicted and unjustified; only a sign of greed to become rich in the shortest possible time. As long as Ghanaian companies are not managed by people with the highest standard of professionalism and ethics, the enconomy is bound to collapse in the middle of everything given and blessed by GOD.

Oh GOD, punish your people for not listening and not learning severly!

Karl-Heinz Heerde
Karl-Heinz Heerde, © 2019

The author has 340 publications published on Modern Ghana. Column Page: KarlHeinzHeerde

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