President of Groupe Ndoum, Dr. Nana Kweku Ndoum, has asserted that the government owed GN Bank approximately GH¢300 million in unpaid Interim Payment Certificates (IPCs) before its reclassification and eventual license revocation. These financial difficulties, he claims, began after the New Patriotic Party (NPP) administration initiated a review of contracts financed by the bank in 2017.
Context of Government Contract Reviews
Prior to 2017, GN Bank had a history of successfully financing numerous government projects. Upon assuming office, the NPP administration launched a comprehensive review of various existing contracts. This review process aimed to assess ongoing projects and financial commitments.
Dr. Ndoum explained that while this review did not uncover any evidence of fraudulent activity related to the financed contracts, a significant number of them were subsequently terminated or put on hold. This action left contractors and their financiers, including GN Bank, with substantial outstanding payments in the form of IPCs.
Financial Strain from Unpaid Certificates
The unpaid IPCs, amounting to an estimated GH¢300 million, significantly impacted GN Bank’s liquidity and overall financial health. Dr. Ndoum stated that Groupe Ndoum had been diligently financing government contracts for seven years, with a total value of around GH¢10 billion, selected with careful consideration.
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