Westbanc Capital swindles over 15,000 customers

Over 15,000 Ghanaians have allegedly been swindled by Westbanc Capital Group, an indigenous financial institution. The company, which has its head office at Mallam Junction in the Greater Accra region, is said to have duped unsuspecting clients to the tune of over one million Ghana cedis.

The company is headed by one Emmanuel Dankwah, Chief Executive Officer (CEO), Raymond Klutse, General Manager and Apostle Walter Saakwa-Mante, Board Chairman. CITY & BUSINESS GUIDE’s checks indicate that the company has over 10 branches at Ajumako and Kasoa in the Central region, Asikuma in the Eastern region, Akatsi, Agbozume and Sogakofe in the Volta Region and Kokomlemle, Odorkor and Mallam (head office) in the Greater Accra Region.

Offices Closed Down

The management of the company allegedly closed all the offices after deviously siphoning monies from unsuspecting clients through the hard work of their employees. According to reports, the employees are currently living in fear due to incessant threats from clients.

In some instances, employees have sustained injuries after being subjected to severe beatings by angry clients. Reports said an employee of the company died after an alleged jinx by an angry client.

Investigations

Checks by the paper indicate that although a little over 70 companies have been licensed to undertake microfinance operations in the country, others have not been authorized to operate. Westbanc has been working for at least two years.

The paper mainly undertook its investigations in the Volta region. At Akatsi, 5,000 clients were owed over GH¢600,000. At Agbozume, 1,200 clients were owed over GH¢200,000 while 500 clients were owed over GH¢30,000 at Sogakofe, all in the Volta region.

The company offers incredible interest rates, benefits and dividends to its clients. In 2011, the company operated smoothly at Akatsi in the Volta region but between August and November 2012 the head office refused to return money to the branches.

Where deposits are kept

Per the rules of the company, all deposits and monies that are mobilized at the branches are to be lodged in the account of the CEO. The CEO is supposed to transfer monies to the accounts of the local branches to allow clients to make withdrawals and access their other dividends. A branch was opened at Agbozume and Sogakofe in October and December 2012 respectively.

The paper gathered that between December 2012 and January 2013, the head office stopped transferring monies to its branches. However, stringent were taken to ensure the continuous transfer of monies from the local branches to the head office until May when almost all the branches were closed down.

Employees were urged to give assurances to clients while the management mobilized monies for the clients, but to date management has failed to take action.

Operating without licence

Efforts by CITY & BUSINESS GUIDE to contact the Board Chairman of the company proved futile after several calls were not answered. As of March 2013, the website of the Bank of Ghana (BoG) published the list of registered finance-related companies.

Westbanc Capital Group was not included in the September 2012 provisional list provided by the BoG or the final list in October 2012. The company does not also have a business operating licence or licence from the various Metropolitan, Municipal and District Assemblies within which they operate.

Checks at the Ghana Revenue Authority also show that the company had failed to honour its tax obligations. The company also operates a school known as the Westbanc Graduate School of Leadership and Entrepreneurship.

Confirmation by Branch Manager

The Branch Manager at Agbozume, Somevi Foster, who spoke to CITY & BUSINESS GUIDE, confirmed the development and noted that he had relocated from his house due to threats and disgrace.

He hinted that the matter had been reported to the Police, stressing that the company was dragged to the Circuit Court at Tokor in the Ketu South district where the case was forwarded to the High Court due to the monies involved.

He noted that he assembled most of the clients to testify in court, but they had difficulty in securing the services of a lawyer due to the cost.

Most of the clients, who spoke to this paper, expressed disgust at the conduct of the company. Samuel Bedzra, a Kente weaver, Veronica Kumi, a local gin vendor and Akos Fiagbor, a trader, among others, called on government to assist them.