Suspects are to appear before the Court presided over by Mr. Jojo Amoah Hagan on the 21st February 2018 on charges of “defrauding by false pretenses”.

The other four are Aziz Abdalla Achulowor, Amadu Ibrahim, Richard Zawi and Juliana K. Delleh all executive members of Care for Humanity Fun Club International, based in New Jersey in the United States of America but with a branch at Nkoranza.

Prosecuting, Police Chief Inspector John Amaning Kwakye, told the court that complainants in the case were clients of Care for Humanity, a micro finance company.

He said in 2015, the accused made false representations on radio stations at Nkoranza that they were operating a micro finance business that yielded 60 per cent interest on cash deposits for a period of two months.

The prosecution said accused misrepresentations attracted over 5000 people including the complainants and each deposited various sums of monies ranging between GHC500.00 and GHC500,000.00 with the company.

He said after the maturity of the investments, the accused failed to pay the principal sums and the corresponding interest to the complainants.

The prosecution said when complainants visited the company’s offices at Nkoranza they observed that the offices had been closed down and none of the workers were present.

He said complainants then reported the matter to the Police and after investigations suspects were charged with the offence to appear before the Court.

DKM Diamond Micro Finance is a defunct micro finance company.

It would be recalled that in 2015 the Bank of Ghana (BoG) suspended the operations of the above two companies (DKM and Care for Humanity) and some others for flouting the rules governing the operations of micro-finance business in the country.

The action revealed loss of cash deposits by thousands of Ghanaians who had invested in those companies.
–
Source: GNA

The post Court orders arrest of DKM founder, 4 others appeared first on Citi 97.3 FM - Relevant Radio. Always.

John Mahama said he and his wife were vilified by the NPP during the 2016 electioneering period and wondered why its members had suddenly gone quiet over the matter after winning the election.

Thousands of customers of DKM Microfinance Company lost their investments, running into millions of cedis, after the owners of the company invested in unapproved ventures and lost their funds.

[contextly_sidebar id=”l0sVoQ1f4HDhSW3CDpIwRxxoEqY6j6GW”]The Bank of Ghana subsequently confiscated the assets of the company and appointed the Registrar General’s Department to commence the liquidation process to refund customers of the company in 2016.

While some of the customers are yet to receive any pesewa from the official liquidator, others have complained that the amount of money they have been given is not a representation of their investments.

Speaking at the NDC’s Unity Walk in Techiman in the Brong Ahafo Region Region on Saturday, the former President said the government’s silence on claims that he owned the company had vindicated him.

“When the DKM issue came up, the NPP accused my wife and I of owning that company. So they said when they come into power, they will retrieve the money from us and give it back to those it was taken from. By God’s grace today, they are in now power. I challenge them to investigate the ownership of DKM. If DKM is owned by my wife and me, arrest us but they are now very quiet.”

“For lies, if you tell one, you have to keep telling lies to save yourself. It is said that you can lie to win power but you can’t govern a nation with lies,” he added.

I’ll investigate DKM – Akufo-Addo

President Akufo-Addo while campaigning ahead of the December general elections promised to investigate the DKM scandal if he gets the nod.

“I will investigate government’s inability to pay the monies owed as well as investigate the DKM scandal and to ensure that there would be total restoration to all affected in both scandals,” said Nana Akufo-Addo, in November 2016 when he addressed NPP supporters in the Brong Ahafo Region.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Arrest Lordina and me if DKM is ours – Mahama dares Gov’t appeared first on Citi 97.3 FM - Relevant Radio. Always.

The move comes after numerous complaints by the customers over their failure to get their monies despite reaching the maturity dates as scheduled.

Citi Business News understands that the Central Bank’s intervention follows an official complaint to the Banking Supervision Department.

The company has since been compelled to find pragmatic ways to pay all claims which are due customers.

The decision is also in line with advice from security agencies that the Bank of Ghana has engaged over the matter.

It is unclear how many customers may have been affected but Citi Business News’ checks have revealed that hundreds of clients have found difficulty in retrieving their locked up cash running into hundreds of thousands of cedis, since November 2017.

A visit by Citi Business News’ Bobbie Osei to the head office of Alpha Capital located on the Liberty Link in Adabraka in Accra, showed notice of temporary closure on the doors of the locked offices.

Portions of the notices read, “Dear Valued Customer. Kindly take note of the break in our operations for the Christmas Festivities from 23^rd December 2017 to 3^rd January 2018”.

But a frustrated customer who had visited the premises with the hope of withdrawing his savings will not just bear with any suggestion that the company may be in the process of folding up.

“If they tell me to come back later for my money, I won’t take that. My mother lost all her money in the Pyramid Bank Ponzi scheme. I will withdraw all my money if they tell me stories, even though I haven’t experienced any difficulty in getting my money in the past,” he told Citi Business News.

Already, customers of defunct DKM Microfinance and some others are yet to get over the brunt of a similar fate.

But for clients of Alpha Capital Savings and Loans, the intervention by the Bank of Ghana should bring nothing but a complete relief to their plight.

–

By: Bobbie Osei/citibusinessnews.com/Ghana

The post BoG probes Alpha Capital over locked up cash appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the victims, Alexander Gyan, was once a manager for the God Is Love microfinance company that duped thousands of them in one of Ghana’s biggest financial scams.

[contextly_sidebar id=”UNkhJCzhYvIkVN4wmdML1qkDt4RV30nH”]But speaking to Citi News, the Brong Ahafo Regional Communications Director for the NPP, Adjei Malik, said Alexander Gyan was only an employee of the financial firm.

Mr. Malik further noted that, most of the affected persons have been settled, and beyond this point, Alexander Gyan “was nominated on the basis of his competence to deliver, and that surpasses virtually everything.”

“The gentleman [Alexander Gyan], happens to only be a sector coordinator for God is Love. He worked around the Kintampo area and as we speak now, we are aware that God is Love, as an institution that wrongfully engaged in financial activities, has been able to settle a chunk of the people who actually invested their money with them.”

“In any case, it is the directors of the company and managing directors who are called to book. An ordinary young man seeking an employment opportunity who gets employed in the process should not be the one to suffer the consequences of the legal regulatory confusion that erupted,” Mr. Malik said.

The God is Love Fun Club, along with DKM Microfinance, Little Drops Financial Services, Jaster Motors and Investment Limited, and Care for Humanity Fun Club, took deposits from clients with the promise of huge returns, but they ended up not fulfilling their promises.

They shut down their offices making it difficult for clients to contact them for their deposits.

Thousands of these clients lost their investments, running into millions of cedis, after the Central Bank suspended the operations of the institutions for violating the banking Act.

–

By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post B/A NPP defends DCE from God Is Love Microfinance appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the MP, Eric Opoku, President Akufo-Addo, during his campaign for the Presidency as the New Patriotic Party Flagbearer, promised that all the victims of the DKM scam would be paid in full.

Mr. Opoku, a National Democratic Congress (NDC) MP, however believes that indications from the Finance Minister-designate, Ken Ofori Atta, are that the NPP may not commit to the promise.

When Mr. Ofori Atta appeared before the Parliament’s Appointments Committee, he insisted that, no such promise of refund to DKM customers was captured in the NPP’s manifesto.

“So I asked him a question about the amount involved and the preparations underway to ensure that these people are paid, and he responded by saying that, that is not captured in their manifesto,” the MP noted.

Mr. Opoku subsequently raised his concerns on the floor of Parliament, but some NPP MPs questioned the relevance of his submission.

The MP, however maintained that, he is simply trying to ensure accountability on the part of President Akufo-Addo and the NPP government.

“The issue is that, when you promise, you must deliver… so long us you have made a promise, you must ensure that promise is redeemed and that is exactly what I trying to do now,” Mr. Opoku stated.

I can’t be blamed for DKM saga 

Mr. Opoku, also debunked claims that he allowed the DKM scandal to fester with his inaction given that he was the Chair of the Regional Security Council.

According to him, “the Regional Coordinating Council does not supervise microfinance institutions. It is the Bank of Ghana (BoG) that supervises microfinance institutions.”

“When we realized that they were being cheated, we had to look into how we could save the situation, and that is the reason why we had several security meetings with the bank of Ghana, and ensured that they came up with a road map to pay them.”

Background to DKM saga

Thousands of customers of DKM Microfinance Company lost their investments, running into millions of cedis, after the owners of the company invested in unapproved ventures and lost their funds.

Customers of the company thronged to all the branches to withdraw their funds after the news went viral, creating a panic situation.

The Bank of Ghana confiscated the assets of the company and appointed the Registrar General’s Department to commence liquidation process to refund customers of the company.

The process to refund some of customers is underway, although it is facing some challenges.

–

By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Eric Opoku dares Nana Addo; pay DKM customers now appeared first on Citi 97.3 FM - Relevant Radio. Always.

“When the NPP comes to power, we will refund all monies that were lost through the DKM saga. If you want your monies to be refunded then vote for the NPP but if you want vice versa, then do not vote for the NPP. “

Speaking at the campaign launch of NPP’s Parliamentary Candidate for Sunyani East Constituency [Mr. Ameyaw Kyeremeh], Mr. Boahen further revealed that the NPP will go to court over the counting of special votes during the general polls, next week.

“From tomorrow till Wednesday, you will hear  from the NPP. We will be in court over the special votes next week,” he revealed.

The party has been making a strong case for the Electoral Commission (EC) to count and make known the ballots emanating from the special voting which will precede the December 7 elections to help avoid “confusion and rigging.”

According to the party, keeping mute on the results of the special voting which will take place one week before making the results known could promote confusion.

Mr. Boahen also appealed to the constituents to vote for the party in the upcoming elections.

–

By: Marian Ansah/citifmonline.com/Ghana

The post NPP will refund monies of DKM creditors – Obiri Boahen appeared first on Citi 97.3 FM - Relevant Radio. Always.

The customers are angry over what they say are the paltry amounts being paid them.

Some of the customers who spoke to Citi Business News complained that they are paid as little as 10 cedis after investing about 1000 or 1500 cedis.

Citi News’Upper East regional correspondent, Frederick Awuni said activities have come to a halt due to the refusal of creditors to accept the payment.

“They try enquiring from the reps of the liquidator and they have since not had any better answer. Although some have cashed the GHc10.00 and GHc20.00, majority of them have refused those cheques and the process has been brought to a halt,” Awuni reported

He however said that the liquidator representative who was present at the scene at the time refused to comment on the situation.

Meanwhile some of the affected customers have also threatened not to vote if their monies are not refunded to them in full.

“We feed our family and children, plus children’s school fees. So what are you trying to tell us? President should sit up and look at how best to solve this issue. Otherwise, we will vote him out. If he is comfortable in his office and state, we are really suffering. We won’t take that GHc10.00. DKM also better refund our monies to us” one aggrieved customer stated.

Another added that “Because of this issue, people have lost their lives. And we come here only to be told that we are to receive only GHc10.00, what do we use GHc10.00 for? I will not vote for this government. How can I invest all my money and be given only GHc10.00? What do they mean?”

DKM customers lose investment

Thousands of people lost their investment when DKM Microfinance Company misapplied deposits of the customers against the Bank of Ghana regulation.

Customers lost millions of cedis leading to a panic withdrawal in all branches of the company.

The BoG appointed the Registrar General’s Department to oversee the liquidation process of DKM’s assets to help refund customers.

–

By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post DKM creditors given GHS10, vow to vote against Mahama appeared first on Citi 97.3 FM - Relevant Radio. Always.

The customers are angry over what they say is the deliberate attempt by the Official Liquidator to eliminate their names in the list of validated customers due to receive their monies.

The unhappy customers also tell Citi News’ Northern regional correspondent, Abdul Karim Nantongmah they are confident their action will ensure that they are duly catered for by the Registrar General’s Department (RGD).

“We were informed that our names will be released this week but we are just returning from the Regional Coordinating Council and nothing like that has been published. The situation is really affecting us negatively and we are heading to the court to seek the injunction,” one of the leaders asserted.

Another stated, “We are told we could access the list in the Upper West regional capital, Wa. Although there were two branches of DKM in Wa, as it stands now, only one branch has the names posted there and we are even worried whether to believe if the Official Liquidator engaged any other party in the processes so far.”

Official Liquidator publishes creditors’ list

The Official Liquidator, today, October 10, released the list of the first batch of creditors whose claims have been validated and due for payment.

Meanwhile a statement released by the Registrar General’s Department and copied to Citi Business News said, “Creditors whose names do not appear on the list of claims validated to date, are advised to contact the Official Liquidator’s Customer Service Units to be set up in the various Recipient Bank branches for further direction.”

It added, “Creditors should note that the list of validated creditor claims will be updated and supplementary lists would be posted as and when new creditor claims are agreed and validated.”

Wa DKM customers to boycott payments

In a related development, some customers of DKM in the Upper West region have intimated to Citi Business News plans of boycotting the payments scheduled for next week Monday.

The spokesperson for the customers’ union, Fred Kuuyine however explained that the decision will be agreed on after a meeting with the union’s lawyers.

“We are considering boycotting the payment of claims planned for next week Monday but for now we are engaging our legal advisors on the decision. We are of the view that the best the Official Liquidator could have done was to be frank with us regarding whatever that they have been able to obtain from the liquidation process,” he observed.

“We have not heard or read the OL putting anything forward indicating they are liquidating any assets belonging to DKM Microfinance,” Mr. Kuuyine further noted.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post DKM customers seek injunction to stop payments appeared first on Citi 97.3 FM - Relevant Radio. Always.

A statement released by the Registrar General’s Department and copied to Citi Business News said, “There will be payment of dividends to unsecured creditors of DKM Diamond Microfinance Limited (hereinafter called ‘DKM’) whose claims have been agreed and validated in the liquidation process, in the week commencing 17th October 2016.”

According to the statement, the list of the first batch of validated customers will be released on October 10 at some designated places across the country.

“On Monday, 10th October 2016, the first batch of unsecured creditors namely, DKM Investment and Susu Account holders only, whose claims have been validated and agreed in the liquidation process will be posted at the following locations,” it added.

Over 70,000 customers of DKM Microfinance have so far been validated by the Official Liquidator for payments to be made.

The company was forced to suspend operations over a year ago after the industry regulator; the Bank of Ghana, found that it had flouted some regulations in the financial industry.

The Official Liquidator had served notice that payments will commence in the first week in October.

It was however compelled to reschedule over logistics challenges.

But the publication to be issued is expected to contain the names of creditors whose claims have so far been validated; DKM Account numbers of these creditors (as appropriate); designated “Recipient Bank” branches where payments will be made to creditors as well as specific dates when payment will be made to batches of individual creditors.

Meanwhile GCB Bank has been appointed as the recipient bank for the payments.

The statement however assured that “creditors  whose names do not appear on the list of claims validated to date, are advised to contact the Official Liquidator’s Customer Service Units to be set up in the various Recipient Bank branches for further direction.”

It further assured, “Creditors should note that the list of validated creditor claims will be updated and supplementary lists would be posted as and when new creditor claims are agreed and validated.”

Mode of payment

The mode of payment for the first batch according to the Official Liquidator is scheduled as follows;

1. Creditors whose names appear on the list of validated claims to be posted at these centers, are advised to proceed to the designated branches of the Recipient Bank earmarked for the payment of their dividends on the date indicated against their names, with any one of the following documents stated below for identification, prior to their collection of dividends (Creditors should bring along both the original ID and a Photocopy of the ID), and that is mandatory; Passport, Driver’s License , NHIS card and/or Voter I.D.
2. Creditors will also be required to bring along a DKM official document bearing their name and account number (eg. Pay-in-slip, pass book etc) for verification.
3. For deceased creditors, their next of kin or nominated family member would be required to submit Letters of Administration before payments could be made to them.
4. Creditors who will miss their payment dates, should contact the Official Liquidator’s Customer Service Unit at the designated Recipient Bank, to be rescheduled for payment.

Meanwhile, “creditors are to note that the first round of payment will be interim dividends. The timing and quantum of future payments will be determined by the levels of asset realizations, liquidation costs, and creditor claims proven and submitted,” the statement further noted.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Official Liquidator releases list of validated DKM creditors appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, unlike corporate private entities, an insolvency involving financial institutions like DKM, have larger societal impact which have dire economic implications.

“A regime for insolvency for financial institutions has to involve the public protection component which is very different from a traditional corporate insolvency…typically one finds a financial institution in insolvency regime involves an element of conserved ownership by the government or an arm of government,” he stated.

Over 70,000 customers of DKM microfinance are awaiting payments of their locked up cash after the company suspended operations about a year ago.

Government through the Registrar General’s department is expected to carry out the repayment exercise.

The Financial Sector Specialist also explains to Citi Business News international standards permit public protection from government’s due to the strategic importance of such cases.

“This is acceptable as opposed to a traditional corporate insolvency which in most countries is left to the private sector although even there, it is conducted in a strategically and important buy tadalafil online business as happened in the US when in the financial crisis,” he stated.

“Financial institutions have broader societal impact and they need to be treated on an entirely separate regime,” Mahesh Uttamchandani added.

Mahesh Uttamchandani who was speaking at a round table conference on promoting international insolvency regimes across Africa further implored on regulators to develop efficient regimes and foster economic growth.

“Comparing Ghana’s insolvency regime to international best practices, there is still more room for improvement as to working to promote growth and access to finance particularly for small businesses,”

“One aspect of insolvency is to ensure that NPL’s result in an efficient and transparent manner and also promote growth and access to finance,” he observed.

The two day conference brought together both private and public policymakers regarding insolvency reform in Africa whilst encouraging the sharing of reform experiences.

This year’s edition on the theme, “Freedom to Fail? Insolvency for Micro, Small and Medium Enterprises”, is the seventh edition since its inception in 2010.

It was organized under the auspices of Insol International and the World Bank Group in association with the Ghana Association of Restructuring and Insolvency Advisors (GARIA).

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Gov’t interference in DKM acceptable – World Bank Executive appeared first on Citi 97.3 FM - Relevant Radio. Always.