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Business News of Thursday, 4 October 2018

Source: citibusinessnews.com

BoG closes down Dancom Microfinance Limited, arrests directors

The Bank of Ghana has shut down Dancom Microfinance Limited for operating illegally.

The Directors of the company have also been arrested and are being prosecuted for operating without a license.

“…Dancom Microfinance was engaged in deposit-taking activities without licence contrary to section 6(1) of the Banks and Specialized Deposit-Taking Institutions Act, 2016(Act 930).”

“The general public is hereby informed that Dancom Microfinance Ltd. was NOT LICENSED to engage in microfinance business,” the BoG’s statement said.

The statement from the central bank on its decision also cautioned the public against doing business with the company.

According to the Bank of Ghana, it will not be liable to clients who continue to transact business with the company.

“The general public is cautioned that anyone who transacts business with Dancom Microfinance Limited does so at his or her own risk, and Bank of Ghana WILL NOT be liable to such clients or depositors in the event of loss.”

Until its closure, Dancom Microfinance operated from offices at Old Ningo, Ada and Afienya.

The closure of the company comes on the back of the central bank’s tightened stance on sanitizing the financial sector by clamping down on recalcitrant operators.