Founder of Group Nduom, Dr Papa Kwasi Nduom, has blamed governmental interference and a lack of support for local companies as what has accounted for the collapse of many indigenous organisations.
Dr Nduom, in a podcast on the topic ‘Fresh matters-why we don’t have many conglomerate companies in Africa’, said regulators demand payment of huge sums of money from owners of companies.
Failure to meet this demand, he continued, results in series of actions geared at collapsing the company.
“We have the Ghana Revenue Authority, we have the Social Security and National Insurance Trust, we have a number of different regulators who know that because of Covid and all manner of other global activities, negative activities going on, shortage of raw materials and inability to ship products from here to there and that indeed many companies are facing severe cash flow difficulties yet they will want to go and lock doors, take people to court, disrupt their activities and demand pay me huge sums of money now, if not, close down the company, collapse it, let it go away.
“They will rather do that than find solutions that will enable the companies to exist while they take time to deal with all these global problems that have surfaced,” he said.
He also claimed governmental interference contributes to this situation.
Dr Nduom’s business was greatly affected when the regulator shut down some of its financial institutions for alleged regulatory breaches.
GN Savings and Loans was part of 23 companies that had their licenses revoked in August 2019 for being insolvent.
According to a statement from the BoG, “the revocation of the license of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalised by their shareholders to return them to solvency.”