As a customer of Gold Coast Securities Limited for years l was worried when I heard media reports of the troubles the company was going through. I set out to find out the reasons why an ‘A’ class performing company will all of a sudden be struggling to pay its customers their monies.
Even in the face of the banking crisis of 2017 and 2018 GCFL GHc1.3 billion of investment funds to its customers stressing no investment company can be unscathed if 25 percent of its customers redeemed their funds at a go.
The challenge the Company is going through now is the failure of government to pay its debt of 1.5 billion Cedis it owes the company. This is as a resulted of investments in pre-financing of government’s infrastructure projects across the country.
Dr. Papa Kwesi Ndoum in January this year wrote this on Facebook on the back of Gold Coast wahala. “For all those wondering what’s going on. First let me assure you that I operate on the principle that every problem has a solution. We are working to keep GN Bank doors open come 2019. The Gold Coast Fund Management problem needs long term solution and we will put one there.
Eventually it will work. It needs goodwill. All these problems were created deliberately by some people. The end game they wanted is total collapse of all Groupe Nduom entities. But we are down into the fabric of this country, Ghana. We are inextricably linked to everything Ghanaian. It is difficult now, yes. We are working hard to do better. Please keep the faith..."
I chanced upon an infrastructure finance and projects related cost report by ABA, Chartered Accountants and Management Consultants on Group Ndoum and its operations.
The report gives details of projects undertaken by Gold Coast Fund Management with support from UTs sister company GN Bank across the country. They include Department of Urban Roads, GETFUND, Various MMDAs, Ministries, Departments & Agencies, Department of Feeder Roads, Ghana Highway Authority, Ministry of Food and Agriculture among host of others - a tall list.
All infrastructure projects were initially financed by Gold Coast securities before Ghana Growth Fund Limited (GGFL), a subsidiary of Gold Coast Securities took over from 2009 due to restructuring. GGFL also took over projects that were financed by First National Savings and Loans in 2014. Groupe Nduom (GN) being the ultimate beneficiary of these companies engaged the services of ABA to review the Groups ‘financial exposure in the financing of various infrastructure projects. The procedures were done with respect to interim payment
Certificates (IPCS), Contract loans and related outstanding balances on loans and delayed payments due Groupe Ndoum as at 1“November. 2018. Our engagement was undertaken in accordance with the international Standard on Related Services 4400.
Per the report, verification of all interim Payment Certificates (IPCs) that have been issued for projects funded by Groupe Nduom companies such as Ghana Growth Fund Company come up to approximately 14 Billion cedis. Yes 14 Billion cedis. There is more, a total of 976 lPCs were compiled between October 2005 and January 2018 with a total value of GH¢373.081.170.91.
Here is the breakdown
a) Completed - Gh¢246.339.180.64
b) On-going , Gh¢116.287.255.34
c) Terminated — Gh¢7.549.362.76
d) Suspended - Gh¢2.905.372.16
The report also gives details which agencies were awarded Accra Met. Roads Dept, AFDB/ Road Fund, COCOBOD Department 0F Feeder Roads, Department Of Urban Roads, Getfund Ghana Highway Authority, Min of Works and Housing Min. Local Govt & Rural Devt, Ministry of Food & Agriculture, Ministry Of Health among other just to mention a few.
The report also talks about loans given to contractors for their projects with the hope that when government pays them they pay back the loans to GN Bank. A total of GH¢316.814.538.08 loans were granted contractors to finance infrastructure projects as at 1“ November. 2018. All the loans verified had valid loan agreements indicating agreed terms of the facility between the contractors and either Ghana Growth Fund Limited. Gold Coast Securities or First National Savings & Loans. The loans were disbursed in phases.
The loan balances were categorized as follows:
a. Completed Projects - GH¢ 930.140.061.66
b. On-going Projects - GH¢ 426,768.894.53
c. Suspended Projects- GH¢ 82.524.073.50
d. Terminated Projects - GH¢ 222,880.419.05
From the figures above do I need to say more that a fraction payment of the debt owe Dr. Papa Kwesi Ndoum will go a long way to help him pay agitated and angry customers of Gold Coast Management Fund .
Will be right if it is concluded that the failed bhb to pay the debt is political knowing very well Dr. Ndoum has a political party and an ambition of been President of Ghana one day?.
Mr. Ken Ofori Atta, l am well informed of series of meetings between officials of Group Ndoum and the Presidency asking you to at least pay part of the debt to restore hope and confidence in Group Ndoum investment. Mr. Ofori Atta please pay Ndoum for him to pay us.
By Nii Armah Abbey, a concerned Gold Coast Fund Management Customer.
Source: By Nii Armah Abbey, a concerned Gold Coast Fund Management Customer
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FRYDAY OR WHATEVER YOU CALL YOURSELF, YOU SEEMED TO HAVE A HOLLOW MIND, WHEN PEOPLE INVEST IN A COMPANY, DO YOU EXPECT THE COMPANY TO KEEP THE MONEY UNDER THEIR PILLOWS, PLEASE SAY SOMETHING SENSIBLE AND STOP THIS TRASH, DO YOU KNOW THE MEANING OF CHEAP FUNDS, HOW CAN YOU AN AMOUNT OF ONE MILLION INVESTED IN GOLD COAST IS A CHEAP FUND. PLEASE USE YOUR HEAD TO TYPE, I DONT WANT TO WASTE MY TIME ON THIS YOUR TRASH AFTER GOING THROUGH. MENZGOLD SHOULD COME AND TELL US WHERE THEY HAVE INVESTED CUSTOMERS MONEY, IN ANY CASE ASSUMING THE GOVERNMENT IS TO TAKE OVER THE DEBT AND AND USE WHAT IT OWES GOLD COAST TO PAY THE CUSROMERS IS IT NOT BETTER THAN THAT YOUR F000LISFFFF MEZGOLD COMPANY AND DKM WHERE YOU WERE WORKING
The gov knows this story is true that's why they are silent. There is no justification for not paying what is due them.
God is in control.
MR PRESIDENT GOVERNMENT IS A GOING CONCERN ,YOU STILL COLLECT TAXES FROM GHANAIANS .GHANA NOW HAS MORE OIL KINDLY PAY PAPA NDUOM BECAUSE CUSTOMERS ARE DYING PLEASE ,OFORI ATTA DONT BE GREEDY DATA BANK CAN NEVER BE COMPERED TO GOLD COAST OR GN BANK. PAY NDUOM NOW OR LOSE 2020 ELECTION.FREE ADVICE
Ignorance of the law is not an excuse....this is a popular phrase from the corridors of legal practitioners and I will like to borrow it for once. The writer of the article and those commenting on it right here on peacefmonline please seek some knowledge and stop being ***barred word***. What kind of a good fund manager will invest poeple's money into things that were list above? For your information in fund management, you have no right to invest people's money in anywhere or thing. If you have a fund whose maturity is in 6month to 1 year and a fund manager decide to invest in investment with maturity of 5-10years who do you blame if investors come asking for their money. Ndoum get cheap funds from his Gold Coast fund management then release it to GN bank, then GN bank give it out at unreasonable rate or investments. This was what was happening. This government via the SEC just decided to pull the breaks on the illegalities that were happening to our financial sector.
Ken Ofori Atta is a wicked man. He wants on Data Bank and Womens World Banking to benefit under his leadership as finance minister. Nana Addo must watch him or he will take him to opposition.
government is the overall beneficiary at the end of the day...he steal from the people and give back to them..in you want good road/health center/good salary then they'll take your own money pays you, construct the infrastructural projects then collapse the security system knowing the risk factor they face then at the long run keep quiet on the issue as of nothing happened. The world is indeed a mafia place to be...these are the movers and shakers of our economy....Ken Ofori Atta is a director and a co owner of DATA bank and overseeing a rooting banking and security system, now ppl dnt even want to take money to the banks...it scary very scary
Just one question: Is the finance minister responsible for Ndoums business ?
NPP communicators, where are you. Your government preaches virtues and practice vise. Ken Ofori Attach is leading the party to opposition but all are quiet. The party does not belong to Akufo Addo and his family. Force him to push out Ken so the party can retain power. I rest my case
It is being alleged that the NPP is not carrying out any infrastructural developments in Ghana so why blame the NPP for debts accumulated by somebody else? Governance is an on going process if funds were available why were the contractors not paid at the time they executed the projects? Do you use depositors money for your projects or contracts that you obtained? If anything, it is the Managers of the Funds who should be blamed. Groupe Nduom must plan well.