Dr. Papa Kwesi Nduom, Ghanaian businessman and politician
There are conflicting statements from the Liberian side regarding SIB Liberia Limited, a commercial bank owned by Ghanaian businessman and politician, Dr. Papa Kwesi Nduom.
According to a report from frontpageafricaonline.com, SIB Liberia Limited, one of the two largest commercial banks operating in Liberia, is facing insolvency issues and customers are seeking withdrawals.
According to reports, Nduom’s bank is on the verge of bankruptcy after taking on debt totalling about $23 million when it acquired First International Bank (FIB).
The report noted that the bank has only been able to repay $14.7 million of the debt it assumed, and is relying on the Central Bank of Liberia (CBL) to pay old depositors, claiming the remaining $8.5 million is owed to the Liberian government and central bank.
CBL accepted Nduom’s bank’s request, but the central bank has reportedly yet to pay its debts to depositors, some of whom have threatened to take legal action against the bank.
Reacting to media reports that SIB Liberia Limited had gone bankrupt, the Central Bank in a statement released on August 8, 2024, denied claims that Nduom’s bank was insolvent and unable to pay depositors.
The bank said its financial position was strong, with its liquidity and capital reserves exceeding stated requirements.
“The CBL believes that these impulsive assertions are not only misleading, unfounded and undermining the existing confidence in the economy, but also completely unsupported by the relevant financial statistics released by the CBL on the health of banks.
“CBL informs the public that the bank’s financial position remains strong with liquidity and capital reserves in excess of CBL’s regulatory requirements. This means that the bank is in full compliance with the regulatory standards of capital and liquidity under CBL’s supervision. Meanwhile, CBL is very conscious of the importance of safeguarding depositors’ funds with a view to maintaining public confidence in the banking sector,” the statement read in part.
It added: “While the Central Bank encourages the media to engage directly with the Central Bank for clarification and verification and to remain professional in order to balance reporting in the interest of protecting the financial sector, the Bank urges the public to disregard misinformation published by newspapers and rely on verified and accurate sources of information. The Bank reassures the public of its commitment and transparency in supporting its core objective of price and financial sector stability.”
BAI/NOQ
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