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Business News of Tuesday, 31 January 2017

Source: B&FT

Agro Development Fund Services Limited in Sunyani unlicensed – BOG

The Bank of Ghana (BOG) has warned the general public, especially those living in Sunyani in the Brong Ahafo region, against do business with Agro Development Fund Services Limited (A.D.F. Services Ltd.) operating as a microfinance company.

According to the central bank, Agro Development Fund Services Limited (A.D.F. Services Ltd.) has not been licensed and have no right to collect deposits or offer credit to the general public.

In a public notice published on BOG’s website and copied to thebftonline.com, the BOG noted “It has come to the notice of the Management of Bank of Ghana that a company named Agro Development Fund Services Limited (A.D.F. Services Ltd.), located at A67/3, Asufufu, opposite the Sunyani Traditional Council, Sunyani, is carrying on the business of microfinance without a licence from the Bank of Ghana.”

“The Bank of Ghana wishes to inform the general public that Agro Development Fund Services Limited (A.D.F. Services Ltd) is NOT LICENSED by the Bank of Ghana to engage in any form of microfinance activity (deposit taking and granting credit),” the notice added.

In view of the development, the Bank of Ghana is urging the general public especially those within the catchment area where the A.D.F. Services Ltd operates to desist from depositing or engaging in in other business with the company, as anyone who does business with Agro Development Fund Services Limited, does so at their own risk.

The public notice (NOTICE NO. BG/GOV/SEC/2017/01) was signed by Caroline Otoo (Mrs), the secretary of the bank of Ghana.

The Brong Ahafo region and parts of the three Northern and Volta regions for some time now, has been riddled with microfinance companies who promise high interest rates in their quest to rake in more deposits from the unsuspecting public.

Most of these microfinance companies who offered interest rates up 70% on deposits ended up not being able to pay the promised interest and in some cases not even able to refund the principal deposited with them by customers.

Currently the central bank had to oversee the liquidation of the assets belonging to embattled microfinance company DKM who promised customers high interest rates and pay customers their principal