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Company News of Wednesday, July 10, 2019
Source: citibusinessnews.com
2019-07-10
Dr. Papa Kwesi Nduom
The Ghana Growth Fund, a subsidiary of the Ndoum Group, has taken legal action against the Ministry of Finance and other ministries, with the ultimate goal of recovering more than 20 million GH ¢ from the company.
The company engaged in three separate prosecutions is suing the Ministries of Finance and Roads and Highways for their inability to honor the obligations of the road contractors who had borrowed from the GN subsidiary to execute certain road contracts.
In a brief filed on July 9, 2019, the Ghana Growth Fund Company blames the two departments for not honoring a debt of 13.9 million GH ¢ to Amoh Prempeh Company, a subcontractor.
The GN subsidiary has asked the court to compel the government to pay the outstanding debt, as well as any interest accrued on this amount as well as damages for breach of contract.
Two other actions commencing on the same day as the first had a total value exceeding GHS 6 million due to contractors. The Ghana Growth Fund also asked the courts to award other fees if they deemed it necessary.
More costumes to come
Gold Coast Securities and GN Bank, all subsidiaries of the Nduom Group, faced a prolonged liquidity problem that prevented people depositing funds from both institutions to access them.
Sources at both institutions have consistently emphasized that their difficulties stem from the government's inability to honor payments to entrepreneurs funded by funds from clients of these businesses.
According to a source who asked not to be named, GN subsidiaries advanced more than GHS 2 billion to various contractors and the Group, after using all possible means to recover the unpaid claim, will seek compensation from courts.
The lawsuit this week, the source said, only marks the beginning of GN's approach to recovering its funds that have been blocked and that have been advanced to subcontractors executing works in the public services.
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