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GN Savings and Loans owned by Dr Papa Kwesi Nduom is heading to court to seek redress following the revocation of its license to operate.

The BoG last Friday revoked the licences of GN Savings and Loans and 22 other insolvent savings and loans companies and finance house companies citing various infractions and violations of Acts governing their operations.

The BoG explained among other reasons that "of particular interest are the funds totaling GH¢761.55 million that GN Bank as it then was, placed with its sister companies Ghana Growth Fund (Gold Coast Advisors) and Gold Coast Fund Management Limited (now Blackshield Capital Management), both licensed by the Securities and Exchange Commission. Some of these funds were used by the two related parties to pay their customers whose investments with them had matured, while some were also used to fund road and other contractors, who claim to have worked on Government projects."

It is important to note that the IPCs claimed by GN are not supported by transactions that were entered into directly by GN and such contractors or Government and its entities. They reflect transactions entered into by Ghana Growth Fund or Gold Coast Fund Management with these contractors using funds taken from GN under circumstances that violated prudential norms.

Speaking on Monday’s edition of Peace FM's morning show ‘Kokrokoo’, Vice President of Groupe Nduom, Nana Ofori Owusu described BoG’s action as a ‘travesty of justice’ and further indicated the company’s intention of going to court.

“We are going to court . . . the team is working on it and somewhere in the middle of this week, we are going to court,” he indicated.