IPNews-Monrovia: The authoritative Independent Probe has established that the GN Bank Liberia Limited, member of the Odum Group of Companies, is now SIB Liberia Limited.

SIB Liberia Limited is a subsidiary of Standard Chartered Bank Ghana Ltd.

Standard Chartered Ghana (officially Standard Chartered Bank Ghana Limited) is a banking financial services company in Ghana, and an 80% subsidiary of Standard Charted. They are listed on the stock index of the Ghana Stock Exchange, the GSE All-Share Index. Operating since 1896, it is one of the oldest companies in Ghana. It is the successor to the Bank of British West Africa in Ghana.

GN Bank Managing Director, Joseph K. Anim, confirmed to IPNews that indeed the report of GN Bank takeover is true.
“Yes, SIB Liberia Limited is now the new name for GN Bank Liberia Limited.” GN Bank Managing Director, Joseph K. Anim, stated.

It may be recorded GN Bank upon its takeover in 2017, from the then FIBank after the Central Bank of Liberia, resolution to ensure a takeover due to FIBank inability to lend depositors and shareholders desire payments and dividend dismissed with immediate effect 23 of its employees without cause.
There was no immediate response from the Bank’s management on the gross and unwarranted dismissals, however, sources at the GN Bank confided that the Bank’s action is a continuation of its crackdown on perceived former employees of the FIBank to advert financial settlement.

A year later in 2018 some former employees of FIBank, who still remain employees of the GN Bank Liberia Limited following its 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 who were wrongfully layoff .

The employees some of whom have yet to receive settlement benefits told the Independent Probe Newspaper Liberia Limited.

It may further be recorded, in January 2019, IPNews reported an imminent closure of GN Bank after the Bank of Ghana downgraded GN Bank to a ‘savings and loans Company.

A dispatched 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 Accra, 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.

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.

In all this, both depositors and employees fate hangs in the balance as to whether the situation of uncertainty following the takeover of GN Bank from FIBank in 2016, will persist.

It remains uncertain what prompted the swapped but in recent weeks GN Bank has been rocked into a major conspiracy when some employees defrauding the government of Liberia thousands of United States dollars at one its holding accounts at the GN Bank.

At a press briefing, Liberia’s Comptroller-General, Republic of Liberia Janga A. Kowo, told IPNews that this had been a syndicate ring which has persisted for many years now.

Kowo stated the uncovered missing millions discoveries begin evidently clear following a vagarious monitoring policy adopted by this office on various government of Liberia accounts currently at commercial Banks across the country.

The astute financial management expert explained that several persons from the department of Financial management and compliance are now being in rounded up for investigation by the National Security Agency.

Janga Kowo stated Minister Samuel Tweah was been duly informed with ongoing investigation to established the extend of the syndicate which robed the government of Liberia out of millions in revenue.

Latest informed gathered by IPNews says apart from earlier six million Liberian dollars discovered to have gone missing; an additional one hundred and thirty-right thousand United States dollars was also discovered to be diverted from the government ‘Unapplied account’, at the GN Bank Liberia Limited.

Sources told IPNews that disbursements of signed checks were encashed by several persons at the Clara Town breach of the GN Bank.

Under the Governance, Budget Deficits And Financial Crisis vi-sa-vi the role of the CBL in The Liberian Banking Crisis pursuant to the legislative act in 1974 and part V of the new Ceteral Bank Act of 2012, addressing Seizure, Reorganization and Liquidation of Financial Institutions, states that: “ the reorganization and liquidation of financial institutions shall be subject to prior authorization by the Central Bank. ”

This authorization according to the Act shall be granted only if it appears to the Central Bank that ’ the financial institution is solvent and has sufficient liquid assets to repay its depositors and other creditors without delay; and the liquidation has been approved by two-thirds of the stockholders having the right to vote at a meeting called expressly for this purpose.

Count 42 of the CBL Act, states that When the commercial Bank has received the authorization of the Central Bank, the financial institution shall immediately cease to do business, retaining only the powers to do the necessary business for the purpose of effecting an orderly liquidation; repay its depositors and other creditors; wind up all operations undertaken prior to the receipt of the authorization within thirty days from the receipt of the authorization referred to in Section 41 of the CBL Act.

Another important issue is, a notice of voluntary liquidation, setting forth such information as the Central Bank may prescribe, shall be sent by mail to all depositors, other creditors, and persons otherwise entitled to the funds or property held by the financial institution as a fiduciary, lessor of a safe deposit box, or bailee.

This notice according to the CBL Act shall also be posted conspicuously on the premises of each office and branch of the financial institution and shall be given such publication as the Central Bank may direct.

Additionally, the CBL Act states that ‘the authorization to go into voluntary liquidation shall not prejudice the rights of a depositor or other creditor to payment in full of his claim nor the right of an owner of funds or other property held by the financial institution to the return thereof. All lawful claims shall be paid promptly and all funds and other property held by the financial institution shall be returned to their rightful owners within such maximum period as the Central Bank may prescribe’.

Furthermore Count 45, states that ‘When in the judgment of the Central Bank the financial institution has discharged all the obligations referred to in Section 44, it shall be struck from the list of licensed financial institutions and the remainder of its assets shall be distributed among its stockholders in proportion to their respective rights. No such distribution shall be made before: all claims of depositors and other creditors have been paid or in the case of a disputed claim, before a financial institution has turned over to the Central Bank or to any other person proposed by the liquidating financial institution and approved by the Central Bank sufficient funds to meet any liability that may be judicially determined; any funds payable to a depositor or other creditor who has not claimed them have been turned over to the Central Bank or to any person proposed by the liquidating financial institution and approved by the Central Bank; any other funds and property held by the financial institution that could not be returned to the rightful owners in accordance with the provisions of Section 44 have been transferred to the Central Bank or to any other person proposed by the liquidating financial institution and approved by the Central Bank, together with the inventories pertaining thereto. Any funds or property not claimed within a period of fifteen years following the transfer thereto shall be presumed to be abandoned property as defined in Sections 69-71.