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Business News of Friday, 15 January 2016

Source: citifmonline.com

BoG to sell DKM assets to pay aggrieved depositors

Bank of Ghana (BoG) has decided to liquidate the assets of DKM Microfinance to offset their debts and pay back customers who have their investments locked up.

This follows President Mahama’s directive to the Bureau of National Investigations to confiscate properties of DKM Microfinance as the government rolled out plans to pay customers whose monies had been locked up with the company.

Hundreds of customers of DKM have seen their investments, running into thousands of Cedis, locked up following the suspension of operations of these companies by the Bank of Ghana last year.

DKM had its operations suspended by the central bank after it violated the Banking Act after undertaking operations deemed detrimental to the interest of depositors.

Various attempts by customers of DKM and some other Microfinance companies to retrieve their monies have been unsuccessful for almost 12 months.

The BoG had earlier directed the companies to show proof of secured funds, bank balances and a plan for payment of outstanding depositors’ funds or risk liquidation of assets but the companies have not been able to meet the BoG’s terms.

The BOG has thus decided to sell off all its assets to settle outstanding debts.

Addressing a forum in Sunyani this morning, the Head of Other Financial Institution Supervision at the Bank of Ghana, Raymond Amanful, stressed to the aggrieved depositors present at the forum, the Central bank would continue with their steps to have their monies returned.

However, some aggrieved customers who spoke to Citi News remain unconvinced with the assurances given by the central bank.

One gentleman, for instance, remained skeptical of the BoG’s submission saying, “said they have not been able to convince me personally as at now… because what they have been telling us has been told before on several media platforms now.”

One other exasperated lady said, “Marriages have collapsed, because of this deal. I blame the bank of Ghana for not revoking the license earlier but rather allowed them to work even after it expired in 2013.”

“We need our monies back,” she concluded. “This is not judgment debt. It is our own hard earned money.”