Collapse of GN Bank led to loss of over 4,500 jobs — Dr. Ndoum

The President of Groupe Ndoum, Dr Nana Kweku Ndoum, has revealed that the collapse of GN Bank and the eventual revocation of the licence of GN Savings and Loans resulted in the loss of more than 4,500 direct and indirect jobs across the country.

Speaking during a media interview on Saturday, May 23, Dr Ndoum described the development as one of the most devastating consequences of Ghana’s financial sector clean-up exercise, stressing that the impact on workers, families, and businesses has been enormous.

According to him, the closure of the bank did not only affect employees directly working with the institution but also many others whose livelihoods depended on the operations of the bank nationwide.

Dr Ndoum explained that before GN Bank was reclassified in January 2019, the institution had built a strong workforce of about 3,000 employees serving in branches across the country.

He stated that the situation changed drastically after the bank was downgraded from a universal bank to a savings and loans company, forcing management to cut down staff numbers significantly in order to adjust to the new operational structure.

“Before the reclassification, we had around 3,000 employees working with GN Bank,” Dr Ndoum stated during the interview.

He explained that after the reclassification process, management had no option but to reduce the workforce by about 1,600 employees.

According to him, the situation became even worse when the licence of GN Savings and Loans was eventually revoked, leading to the complete loss of the remaining jobs connected to the institution.

Dr Ndoum further disclosed that the impact of the shutdown extended beyond the bank’s direct employees, affecting hundreds of individuals and small businesses that provided support services to the bank.

He explained that GN Bank operated close to 300 branches nationwide and relied on several service providers to support its daily activities.

According to him, each branch had security officers assigned to it, while cleaners and maintenance staff also depended on the bank for employment opportunities.

In addition, he noted that motorbike riders who handled deliveries and operational errands for the bank across different communities also lost their jobs following the closure of the institution.

“We had about 1,200 indirect jobs linked to the operations of the bank,” he explained.

“We had four security personnel for every branch, cleaners working at the branches, and motorbike riders supporting operations in nearly 300 branches.”

Dr Ndoum stressed that the closure affected not only the workers themselves but also their families and dependents who relied on their salaries and income for survival.

“In total, about 4,500 direct and indirect jobs were lost,” he said.

He argued that public discussions surrounding the collapse of GN Bank often overlook the broader social and economic consequences of the decision, especially the hardship faced by former employees and their families.

Dr Ndoum made the remarks while discussing Groupe Ndoum’s recent legal victory at the Court of Appeal regarding the revocation of the licence of GN Savings and Loans.