Dr. Papa Kwesi Nduom, founder of Groupe Nduom, challenges Ghana’s banking cleanup, alleging political motives, while admitting operational mistakes and pursuing justice to revive his businesses
It is indeed true that the full story is often unknown until the very end. Years after the banking sector cleanup was conducted, it is now that some details of the whole story are becoming known to the public. Dr. Papa Kwesi Nduom, founder and chairman of Groupe Nduom, was one of the victims of the financial sector cleanup. Two of his companies, GN Bank and Gold Coast Fund Management which later became Blackshield Capital Limited were casualties of the exercise.
Even 7 years after the exercise, Papa Kwesi Nduom still insists the exercise was wrong for all intent purposes. The visibly aggrieved and pained Dr. Nduom believes the touted financial sector reform was rather politically motivated with a hidden agenda to clamp down on businesses of political opponents of which he was a victim.
The man who is currently on a mission to get justice and restore his businesses has been speaking about the inside stories making some damning allegations.
In his latest broadcast titled Journey About Business in Ghana, the founder of the Progressive Peoples’ Party (PPP) has been chronicling circumstances and events that took place leading to the fall of the once vibrant Groupe Nduom business empire.
Admission of Wrongdoing
Interestingly, Dr. Papa Kwesi Nduom admits that some things were not done right in the operations of GN Bank and Blackshield Capital Limited. According to him, he admits that he regrets some decisions that were taken which resulted in these financial institutions ending in a bad place. Failing to specify those wrongdoings, he however indicated he and his team made all attempts to resolve these issues. He says nothing was swept under the carpet as was widely propagated during the time.
“We try to solve the problems that we have created, try to remove the challenges that are in our way,” Dr. Nduom admitted adding that, ” I’m not sitting here talking as if I haven’t done anything wrong. There are some things that have gone wrong and we’ve tried to fix them.”
Attempts to Resolve Financial Challenges – GH₵ 600 Million Barter Trade
Dr. Nduom claims several attempts were made to resolve the financial distress his financial institutions faced. He adds that never did he expect that the financial challenge he was making every effort to resolve could degenerate into the revocation of his licenses leading to the loss of his businesses, employment, and his capital.
He claims that an equivalent of GH₵ 600 million was taken from the resources of his other businesses to deal with the challenge. Poised to do whatever it took to save his financial institution, he engaged in barter trade with some people he needed to settle.
He mentions that some apartment buildings in Accra were exchanged. In addition, some products assembled by his factories such as refrigerators and televisions were also traded. Even some of his vehicles were let go all to save his business.
“We went all over looking for resources to resolve some of the financial difficulties, thinking that they would be short term in duration, that they wouldn’t lead to the cessation of businesses or practices or employment. We actually paid back to some of the former Gold Coast Fund management, now Black Shield customers, over 600 million Ghana Cedis,” he narrated.
He added that, “We took from our resources some of the apartments that we had built in Accra and we did barter with them. Some of the televisions that we had assembled in Elmina, some of the refrigerators that we had assembled in Elmina, some vehicles that we had, we did barter.”
The 7-Figure Loan From the US
They say desperate times call for desperate measures. Given that the local measures could not fully resolve the challenges given its enormity, the Groupe Nduom boss alleges he had no option but to travel to the United States to seek a loan to stem the tide.
He further justifies that this move was necessary because the help he expected from the government and its agencies never came hence matters needed to be taken into his own hands.
Failing to name the exact amount, he hints the loan secured from the US was in seven figures which could run into millions of dollars.
“We did all manner of things, trying to stem the tide of the difficulties and the challenges, but it was huge because the solutions that we were looking for which would have come from the government, those once did not come. But we worked hard to resolve them. I went to the United States and borrowed, borrowed seven-figure sums to come and try and pay some people,” Dr. Nduom further rather.
The Betrayal of Friends and Business Associates
Dr. Nduom could not help but also reveal the treatment and actions he suffered from people he considered as friends, partners, and business associates, among others. He narrates that in the midst of the challenges, people he considered as close allies were the ones who led the charge to harass, torment, and threaten him.
Throwing past relationships to the dogs, Dr. Nduom alleges these people became aggressive towards him failing to reason with him even though he was doing everything possible to address the situation.
“Some of our sometimes now former business associates, now former friends, people that we used to do business and personal things with came at us aggressively, really very aggressively, wouldn’t listen, wouldn’t hear anything just descended on us,” the very aggrieved Dr. Nduom narrated.
The Mission
The Chairman of Groupe Nduom believes despite whatever has happened, these issues can be resolved for him to get his licenses back to resume operations. He believes he can still revive the once vibrant Groupe Nduom.
Although he has not been successful, he wants to sit with the government so that issues can be resolved amicably. He says he wants to revive the private sector which he believes is the surest way of growing the economy and creating jobs again for the teaming unemployed Ghanaians.
