IPNews-Monrovia: Reports coming out of the GN Bank Liberia Limited, says authorities at the Bank has dismissed with immediate effect 23 of its employees without cause.
An Independent Probe Investigation, uncovered most of the employees dismissed were old employees of the former First International Bank Liberia Limited (FIBank)
There has been no response from the Bank’s management on this inquiry of the matter but sources at the Bank confided that the Bank’s action is a continuation of its crackdown on perceived former employees of the Bank to advert financial settlement.
It may be recorded GN Bank in 2017, takeover the management of then FIBank after the Central Bank of Liberia, resolution to ensure a takeover due to FIBank inability to lent depositors and shareholders desire payments and dividend
A year later in 2018 some former employees of GN Bank Liberia Limited following the takeover from First International Bank (FIBank) in a 18.5 Million United States dollars deal brokered by the Central Bank of Liberia in 2016, demanded settlement in compensations for one hundred and forty-five former employees wrongfully layoff .
The employees some of whom told the Independent Probe Newspaper ‘since the takeover of the Bank back in 2016, the Management of the GN Bank Liberia Limited has refused to settled them which led to them raising concern following reports Accra, Ghana signaling an imminent closure of the Bank following the retrieval of its operating license from the Bank of Ghana.
The former employees are still calling on the government of Liberia under the President George Manneh Weah, through the Central Bank of Liberia to move in quickly to ensure their just benefits are paid but to no avail.
The dismissal of the 23 employees come at a time when the economy of the country is in a diet need for resuscitation.
Financial experts spoken to on the renew dismissal of the Management of GN Bank, wonders how would the Bank have a takeover without assuming the liabilities of its former owners.
But inside sources within the Central Bank of Liberia confided in the Independent Probe that the Bank under the leadership of former Governor Millis Jones, clandestinely allowed GN Bank takeover FIBank without proper negotiation on the settlement of employees of the Bank before GN Bank assume its takeover, including the requisite required Bank balance. The claim has not been independently verify, a the GN Bank Management remains quiet on the matter.
It may be recorded, in January 2019, the Bank of Ghana downgraded GN Bank to a ‘savings and loans Company.
According to a dispatch from Accra, Ghana, where GN Bank operates its headquarters, stated that the Bank of Ghana downgraded GN Bank to a savings and loans company, after the Central Bank finished what it describes as the banking resolution requiring each commercial bank operating in the country to have a minimum capital of ¢400 million.
Addressing reporters in Accara, on Friday, January 4th, 2019, the Governor of the Central Bank of Ghana, Dr Ernest Addison stated that an advisory team has been appointed for GN Bank to ensure its smooth transition to a micro-finance company.
“GN Bank (GN) was unable to comply with the Minimum Capital Directive by 31stDecember 2018. Consequently, GN Bank has applied for, and the Bank of Ghana has approved the grant of a savings and loans company license.
The Bank of Ghana has also approved a transition plan submitted by GN for winding down aspects of its business which are not compatible with a savings and loans company license,” Dr. Addison said.
According to Governor Addison, the Bank of Ghana will closely monitor implementation of the approved transitional plan which is expected to be completed by the end of June 2019.
He added that “ the Adviser will hold office until otherwise advised by the Bank of Ghana and will furnish the Bank of Ghana with a status report on the GN in three months and as frequently as the Bank of Ghana may require.”
The Central Bank Governor also confirmed reports that Stanbic Bank will now take over deposits of customers of the Bank during the face-off.
Dr Addison also revealed that the operating licenses of Premium Bank and Heritage Bank have now been revoked over various issues including low capital. The capital adequacy ratio of Premium Bank, for example, was found to be negative 125%.
As a result, selected assets and liabilities of the Premium Bank and Heritage Bank will now be transferred to the Consolidated Bank.
He said 16 banks – Ecobank, Zenith, GCB, Standard Chartered, Stanbic, Fidelity, UBA, Barclays, Access, Consolidated, CAL, FBN, Republic, Societe General, GT Bank and the Bank of Africa – have so far met the minimum capital requirement as at December 31.
Three banks – First Atlantic Merchant Bank/Energy Commercial Bank, Omni Bank/Bank Shael Sahara and First National Bank/GHL Bank – have also received the blessing of the Central Bank to merge.
Five indigenous banks – ADB, NIB, Omni/BSIC, UMB and Prudential – will be benefiting from government GAT initiative with the Bank of Baroda existing and transferring its customers to Stanbic Bank
Shortly after pronouncement by the Bank of Ghana, the owner of GN Bank Papa Kwesi Nduom , stated that the Management of GN Bank has chosen to become a ‘savings and loans company’ instead of selling the bank off to a foreign entity in the bank clean up exercise being undertaken by the Central Bank.
Papa Kwesi Nduom comments came less than 24 hours following the bank of Ghana downgraded the bank into a savings and loans company after it failed to meet the new GHC400 million minimum capital requirement.
In a statement after the action was taken by the Bank of Ghana, GN Bank said ‘it chose to accept the downgrade because they have considerable experience in that sector since they operated there for long before transitioning into a universal bank’.
“The Shareholders, Directors and Management of GN Bank wish to inform our cherished customers and the general public that we have elected to continue our operations as a Savings & Loan Institution.
“This means that our doors will remain open for business as usual in January, 2019 and beyond. We have started the transition process. Our immediate objective is to find the liquidity needed to service the needs of our customers. This means that as a licensed deposit taking institution, customer funds remain safe with us. The decision allows us to concentrate on ensuring maximum liquidity to sustain the business, instead of raising funds for additional capital as a universal bank,” the statement said.
Meanwhile, the universal banking licenses of Heritage and Premium banks have been withdrawn by the Central bank and have been merged with the Consolidated bank of Ghana (CBG) by the banking regulator Bank of Ghana.
According to the Central Bank, 23 banks were able to recapitalize after the December 31 deadline. Out of the number there were three mergers; they are Energy Bank and First Atlantic, OmniBank and Sahel Sahara, FNB and Ghana Home Loans Bank.
The Governor of the Central Bank Ernest Addison also announced at a news conference currently ongoing in Accra that some 5 banks are going to benefit from a GHC2 billion bailout from Ghana Amalgamated limited. These banks are Universal Merchant Bank, Abd, NIB, Prudential and the Merged OmniBank and Sahel Sahara Bank.
It may further be recorded that a deserving customer of the GNBank, Philip G. Gayetay, January of 2019, filed lawsuit against the GNBank in action of damages for wrong in the tone of over US$7 million United States dollars.
Philip legal counsel, Cllr. Arthur Johnson said the defendant (GN Bank) should be held liable for the action based on facts and legal reasons.
Philip is a Liberian Businessman and owner of ‘Young Philip Business Center’, engaged in the sale of assorted merchandise and other business related activities in Nimba County.
According to the lawsuit, on December 6, 2016, Philips secure an overdraft from GN Bank in the amount of fifteen thousand United States dollars so as to increase stocks at his business center and had since been in compliance up to the incident.
But, defaulted on two payments during the course of the 2017 presidential and representative elections; circumstances he communicated with the bank and recommitted liquidation of his debt.
Court document in possession of this paper quotes complainant Philip at saying “After he had made substantial payment against his financial obligation in the amount of nine thousand five hundred United States dollars (US$9,500.00) with a remaining a balance of seven thousand United States dollars (US$7,000.00) inclusive of interest to be paid over time.”
Following the commitment by Philip, the Bank preceded to the commercial court in action of debt by attachment something that eventually led to the closure of the business center.
During the said closure of the business center, GN bank was obligated to provide security for the Complainant business in the face of the closure as requested by them.
Court document revealed that on July 13, 2018, while Philip was under the full possession and control of the bank, his business was burglarized. The situation was again communicated with Court whose ordered the business be open in the presence of police authority to assessed the extend of the burglary with respect to property loss. Investigation continues….
