GNFS personnel chase leadership over locked up funds at CBG

Some personnel at the Ghana Fire Service (GNFS) have accused the leadership of reinvesting their savings at defunct CDH Group without their approval.

The personnel (names withheld) claim the investments have been handed over to the GNFS for disbursement to them but leadership told them they reinvested the monies into another fund.

Speaking to Rainbowradioonline.com, the aggrieved GNFS personnel disclosed they were deducted GHc20 from their monthly salaries since 2012-2016.

According to them, they want their investments to be given to them because they do not approve of the reinvestment done by GNFS.

But reacting to the claims, Public Relations Officer (PRO) DO2 Ellis Robinson Okoe denied them flatly.

He told the website the Consolidated Bank Ghana (CBG) is holding the funds for the GNFS and will pay all the claims back to the GNFS.

He also disputed the claims that the deduction was still ongoing.

”We have stopped the deductions from January…We have sent our claims on evidence that our money is with them. They are processing it, and will give it to us so, we give it to the personnel. So, it is not true that we have invested anywhere.”

DO2 Okoe emphasised that CBG has aksed the GNFS to bring evidence that our personnel have their monies with them and we have done that, but we are yet to process the payment.

The service he added has communicated this to their personnel, hence see no reason why some of their men would make such claims.

Background

CDH SAVINGS and Loans Limited, was one of the 23 institutions whose licences were revoked last week.

The Bank of Ghana in a report said the company was over-exposed to its affiliate companies to the tune of 319 per cent, contrary to the regulatory limit of 25 per cent.

According to the BoG report, the inability of CDH to access placements/investments with other insolvent financial institutions, including related companies, worsened its solvency liquidity situation.

In September 2018, CDH was identified as insolvent per the August 2018 prudential returns submitted.

CDH itself reported a negative capital adequacy ratio which was further adjusted downward by the BoG. The BoG also noted severe liquidity challenges which threatened the ability of the institution to operate.

The institution’s net worth of negative GH¢171.36 million as of end May 2019 violated Section 28(1) Act 930. Also, its capital adequacy ratio of negative 35.90 per cent as of end May 2019 was in violation of Section 29(2) of Act 930.

Also, in 2019, the Securities and Exchange Commission (SEC) revoked the licences of some 53 fund managers Intermarket Asset Management Limited (formerly CDH Asset Management).

The SEC announcement said “the revocation of the licences of the specified companies has become necessary as they have largely failed to return client funds, which remain locked up and in a number of cases, they have even folded up their operations.”

“Essentially, they have failed to perform their functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws, rules or conditions, despite opportunities provided to them by the SEC within a reasonable period of time to resolve all regulatory breaches,” it said.