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Business News of Friday, 7 February 2020


Prices to auction vehicles of collapsed Savings and Loans companies create furor

Bidders at the auctioning of vehicles belonging to defunct Savings and Loans and Microfinance companies have expressed discontentment at the pricing.

Patrons at the event which took place in Accra told GhanaWeb the process used by the auctioneers was questionable.

They believe the exercise is a mere front adopted by the receiver because the law mandates it to do so.

Some bidders complained about the marginal price difference between the auction cars and sales at various garages in the country.

Many factors were weighed-in on the pricing, said Philomena Kuzoe, a spokesperson for the Receiver of the defunct Savings and Loans companies.

She explained that cars were “valued by professional valuers. We got our values from STC and they came up with the figures”.

“I believe that it is a free market and bidders are not obliged to patronize cars which are beyond their budget”, she added.

Kuzoe further stated that unsold cars will be re-valued by the valuators and added to future auctions

She dismissed issues raised by bidders on getting no chance to see the vehicles before day of auction.

“We made a huge advertisement across different media for three days viewing of the vehicles. For those who were really interested and wanted to buy they went there and inspected the cars before the auction day.

“For those who could not inspect the cars before the auction days were allowed to bid and also given the opportunity to see the product before making payments,” she added.

The money the receiver makes from auctioning the vehicles will be used to pay the affected customers of the defunct companies.

A statement released by the receiver said the exercise is in accordance with its mandate to secure all assets of the affected companies and maximize their realizations for the benefit of creditors.