‘We have lost confidence in traditional banks’

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• IDDISAH SAAKA 8 years ago

  Greed, frustration and llliteracy were major reasons why clients of DKM and other micro-finance companies have fallen prey to the fraudulent pranks of these companies.
  The astronomical interest rates are no where near realit ...
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  Greed, frustration and llliteracy were major reasons why clients of DKM and other micro-finance companies have fallen prey to the fraudulent pranks of these companies.
  The astronomical interest rates are no where near reality for any prudent investor to risk his money into their portefolio. At 30% interest rate per month, DKM is never ever going to be capable of paying those dividends. The scenario is simple; DKM invests in transport by acquiring Yutong buses at GHC 300.000 per bus. Assuming a single client managed to invest GHC 300.000 which is used to buy 1 bus and this bus runs between Accra-Tamale charging GHC70.00 Per passenger @ 30 passenger full load, this bus should be able to gross GHC2100 plus GHC500.00 luggage charges per trip less expenses of GHC900.00 . This leaves us with GH1700.00 per trip multiplied by 30 Days to give as a net income of GHC 54.000 A Month. DKM is supposed to pay 30% of GHC300.000 to the investor which sums up to GHC90.000 a month which already shows DKM has a deficit of GHC46000.00. Now Clearly, DKM profit margin is just not feasible nor sustainable.
  Any investor who thoroughly ponders over this simple calculation will never venture into DKM. Even though we partly would blame BOG for allowing them to operate, customers should have been wiser.

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• kofi adu 8 years ago

  What is greed and illiteracy?

  What is greed and illiteracy?

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