Government has taken measures to repay deposits of all customers of defunct DKM microfinance company, the Finance minister has revealed.

Ken Ofori Atta told Parliament during the presentation of the 2019 budget Thursday that over 90% of customers deposits at DKM has been paid by the state.

“In addition to all these clean-ups, Government has also taken steps to settle almost all claims of DKM customers. Mr. Speaker, you would recall that DKM Diamond Microfinance Limited had its license revoked in February 2016 with considerable suffering imposed on depositors, without any meaningful response from the previous government. That has significantly changed.

“The official liquidator received 99,858 claims and the validated claims amounted to GH¢502 million. I would like to inform the country that out of the 99,858 claims, 79,708 (80 percent) have been settled and depositors have been paid. The Government has set aside funds at the Bank of Ghana to pay the remaining 20 percent of depositors upon validation. An additional 12,612 claims have been fully provided for but the customers have not as yet been able to show proof of deposit. This means that 92 percent of DKM claims from depositors have been paid or provided for. Depositors for the remaining 7,568 claims of above GH¢10,000 are yet to reach agreement with the liquidators,” Ofori Atta said.

About DKM

DKM was incorporated on April 3, 2013, and was licensed by the Bank of Ghana as a tier two microfinance company on October 25, 2013.

The balance sheet of DKM, as of May 11, 2015, showed its net liability stood at negative 21 million cedis.

The company at the time its license was revoked by the BoG on February 29, 2016 had 10 branches with two agency offices and six subsidiaries.

Though the central bank subsequently lifted the ban on the company’s operations, DKM was unable to pay its customers their locked up cash leading to the liquidation of the financial company.