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Business News of Friday, 1 March 2019

Source: citibusinessnews.com

Good news for defunct DKM customers yet to receive funds

The Registrar-General, the Official Liquidator for defunct Diamond Microfinance Limited, DKM, has asked depositors to collect their payments from selected GCB Bank branches by May 31, 2019 or forfeit their monies.

In a public notice, the Liquidator said depositors who filed cases in court against DKM and wish to withdraw the case can also do so for renegotiations before the May 31 deadline.

In 2015, hundreds of depositors lost their investments which totaled millions of cedis after the Bank of Ghana suspended the operations of the DKM for violating the Banking Act, (673), 2004.

The BoG later confiscated the assets of the company and appointed the Registrar General’s Department as the official liquidator to start the process to pay customers funds.

According to the Finance Ministry, the liquidator received a total of 99,858 claims which amounted to some 502 million cedis.

As at November 2018 when the 2019 budget was read, government indicated that it had paid 80 percent of those claims and added that government had set aside funds at the Bank of Ghana to pay the remaining 20 per cent of depositors upon validation.

“Government has also taken steps to settle 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, Mr Speaker,” Finance Minister Ken Ofori-Atta told Parliament when he read the 2019 budget last year.

However, in the new notice, the liquidator asked Depositors who had investments above 10,000 cedis to sign the Term of Settlement with the Liquidator before the deadline in order to receive their funds.

Depositors who have outstanding balance have also been asked to sign the Term of Settlement to receive their money by May 31.

Again, the liquidator said it will by the end of February complete validation processes to pay depositors who were not given their investments earlier due to insufficient supporting documents.

The depositors have been asked to visit selected branches of GCB Bank to receive their funds.