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 to 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 KwesiNdoum 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 a 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 GroupeNduom 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. GroupeNduom (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 was done with respect to interim payment
Certificates (IPCS), Contract loans and related outstanding balances on loans and delayed payments due GroupeNdoum 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 GroupeNduomcompanies 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:
- Completed Projects – GH¢ 930.140.061.66
- On-going Projects – GH¢ 426,768.894.53
- Suspended Projects- GH¢ 82.524.073.50
- 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 KwesiNdoum 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 failbhb 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 NiiArmah Abbey, a concerned Gold Coast Fund Management Customer.