The Supreme Court will on Thursday 18th December, 2014 rule on a suit for funds of some aggrieved customers of Onward investments to be paid them.
Citi Business News gathers the aggrieved customers headed to court after the Bank of Ghana closed down Onward investment in 2012 because they had no licence to operate.
According to a press statement from the bank of Ghana on the matter released in February 13th, 2012 ‘In December 2011, the attention of the Bank of Ghana was drawn to the operations of Onward Investment Limited, a company which took deposits from the public and ostensibly engaged in on-line foreign exchange trading’.
‘The company, which operated branches in Accra, Kumasi, Sunyani and Techiman, initially offered interest rates of 25% for a trading cycle of 42 days. In December 2011, the interest rate was raised to 35% as a special Christmas bonanza.
The company has never been licensed by the Bank of Ghana either to take deposits or to engage in foreign exchange trading’.
Onward investment which failed to honour a promise to pay its customers a promised fixed return on their investments was subsequently dragged to court by its customers over the matter.
In court on 9th December,2014 lawyers for the Bank of Ghana argued Onward investment ltd did not fall under their jurisdiction because it was an investment company not a bank or microfinance institution.
But the council for the aggrieved customers of Onward Investment also debated why the central bank went ahead to close the company down and confiscate assets when they were not under their jurisdiction.
By: Anim Kwaku Boadu/citifmonline.com/Ghana