The reforms are expected to among others provide a comprehensive plan by the central bank to improve activities in the microfinance industry.

It also comes on the back of reports of customers losing their investments to some microfinance institutions when their operations have been suspended over inefficiencies.

In a publication, the BoG listed the microfinance companies that are in good standing for the information of the public.

According to the latest publication, there is a total of three hundred and nineteen (319) micro finance institutions.

A further breakdown also shows that there are forty (40) money lending institutions, six (6) Financial NGOs as well as two hundred and seventy-three (273) microfinance institutions.

Already, the Governor of the Bank of Ghana, Dr. Ernest Addison has served notice that the central bank will not issue any license this year.

According to Dr. Addison, this is to allow the central bank strengthen control and supervision of the activities of the financial institutions.

In response, the microfinance association has lauded the move by the regulator saying it will help identify non-complying institutions and sanction them accordingly.

For last year alone, Citi Business News reported at least seven separate cases of microfinance institutions whose inefficiencies led to investors losing their investments.

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By:Pius Amihere Eduku/citibusinessnews.com/Ghana

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At least, this is the hope of the Ghana Association of Microfinance Companies (GAMC). The Association is also confident the move will restore confidence in the industry.

Reports of people losing their investments to such unauthorized institutions are increasing despite efforts to clamp them down.

The optimism follows recent alerts from the Bank of Ghana cautioning the public against illegally operating microfinance institutions.

For this year (2017) alone, the Bank of Ghana has issued publications warning the public against doing business with at least five entities for operating illegally.

They include; ponzi scheme; MMM, Hebron Financial Services, Money-doubler, Agro Development Fund Services Limited with the latest being Oboanipa Ventures Limited.

In each of these cases, the central bank argued that their operations flouted provisions of the Banks and Specialized Deposit-Taking Institutions Act.

But the Executive Secretary of the Ghana Association of Microfinance Companies, Joseph Donkor tells Citi Business News the actions taken by the Bank of Ghana gives confidence of ridding the system off all undeserving institutions.

“When the MMM issue came up, two of the people who were behind their operations were picked up because the issue was a widely circulated one which also involved the EOCO and the Financial Intelligence Centre. So I know that it attracted the needed attention,” he said.

Already, government through the Registrar General’s Department, is repaying the over 70, 000 victims of DKM Microfinance Company.

Yet, customers of other closed down schemes like God is Love Fun Club are yet to be reimbursed their due.

Despite this, Mr. Joseph Donkor is confident the implementation of the Depositors Insurance Act will protect affected victims from any adverse impact going forward.

“There are a whole lot of processes that we go through to ensure that depositors do not suffer…with the introduction of the Depositors’ Protection Bill, a lot is being done to have insurance systems in place to handle cases of people falling victims to these kind of illegal acts.”

As at October 17^th, 2017 checks by Citibusinessnews.com at the BoG’s website showed that the central bank had licensed 346 microfinance companies; 72 Specialized Deposit taking Institutions, 140 Rural Banks as well as 51 Money Lending Companies.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post BoG sanitizes microfinance sector by ‘naming & shaming’ 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.

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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.

The concerns come barely twenty-four hours to the first of three creditors’ meeting scheduled by the Official Liquidator.

The Official Liquidator is set to meet the 70,000 customers validated for payment of their locked up investments, via three separate creditors’ meetings across the country.

The first meeting comes of tomorrow, Tuesday, September 20, 2016 at the Brong Ahafo regional capital, Sunyani.

But the spokesperson for a group of the concerned customers in the region, Maxwell Mahama tells Citi Business News the members are unsatisfied with the means of communication.

According to him, they are forced to rely on some media reports and ‘unconfirmed’ messages on social platforms.

“As I talk to you now it is only whatsapp messages and some statements circulating that do not bear the signature of the Official Liquidator,” he remarked.

But responding to the concerns, the Acting Registrar General and Official Liquidator, Jemima Oware explained that the medium of communication could only be done through the nationwide circulated newspapers and online platforms.

“We have published the information in the national news papers… there are about 63,000 to 70,000 creditors; as such we cannot be able to call them up individually. So once we are aware that the media has been able to get wind of the information, we consider it circulated. And we equally expect them to inform other creditors,” she explained.

Mrs Oware further disclosed the iterinary for each of the three occasions as,

“Basically it is the first creditors meeting where we will be providing all the creditors with the requisite information on the liquidation.”

“We will be informing them on schedules in relation to when and how much and how many people will be paid so we urge all the creditors to be present,” she added.

Meanwhile the representatives of the aggrieved customers have assured of their continuous co-operation with the process to get their issues addressed.

“Those of us who have heard the information on the meeting will certainly be there to listen to what the Official Liquidator has in store for us,” Maxwell Mahama stated.

“We are more than prepared to meet the Official Liquidator on the 24^th of September at the scheduled venue,” Fred Kuuyine, Spokesperson for some affected customers of DKM in the Upper West region opined.

The two other creditors’ meeting are expected to be held at the Jubilee Parks at Upper East (Bolgatanga) and Upper West (Wa) on the 22^nd and 24^th September respectively.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post DKM customers bemoan ‘official’ correspondence ahead of meeting appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Registrar General’s Department, which is the official liquidator previously had challenges accessing assets and documents of DKM which intricated moves to round up their search for information.

Over 63,000 DKM customers will receive their funds from the Registrar General Department.

Acting Registrar General at the Registrar General’s Department Jemima Oware tells Citi Business News the liquidation process is set to commence soon.

“We have been able to get some hard drive so we are now finalizing the list of who are the real creditors. So we look at the asset, we liquidate the asset then we pay.”

She further states that customers will be directed to the exact bank to receive their monies in October when it is ready.

“After that we will indicate to them sometime in October which banks they will be asked to go collect their monies”.

Registrar General to meet customers of DKM

The Registrar General earlier called for a first creditors meeting with customers to process payment of customers locked up funds.

In a statement copied to Citi Business News the department urged all affected customers to be at the said meeting.

According to the statement, the move is in accordance with section 23 and 42 of the bodies corporate (official liquidator), Act 1963 (Act 180).

The statement further clarified that the Brong Ahafo meeting will be held on September 20, 2016, 10am at the Sunyani Coronation Park.

The Upper East region creditors meeting is expected to take place on September 22, 2016 at the Bolgatanga Jubilee Park, while the last creditors meeting will be held in the Upper West region at the Wa Jubilee Park on September 24 2016.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post All set for liquidation of DKM – Registrar General appeared first on Citi 97.3 FM - Relevant Radio. Always.

He asked; “the Minister of Local Government has been dismissed. Was he responsible for the garbage? Is that his job or is it the job of the Mayor? …But then you have to dismiss the Mayor too.”

Mr. Oppong Fosu was on Friday dismissed by the President and was replaced by Eastern Regional Minister, Julius Debrah.

It is unclear what caused the Minister to lose his job but it is believed that the decision was taken because of the persisting sanitation problems in Accra.

For over a month, there were heaps of garbage in front of the homes of residents and on the streets of the Metropolis following the refusal of waste management companies to collect them.

They cited the unavailability of landfill sites to dump the refuse and debt owed them by government.

The situation was worsened after the Accra Compost and Recycling Plan shut down operations and retrenched about 100 of its workers.

But Mr. Casely-Hayford is of the opinion that the sector Minister is mandated to carry out an oversight responsibility on Metropolitan, Municipal and District Assemblies (MMDAs), therefore, the Metropolitan Chief who is directly responsible for ensuring sanitation in his area of jurisdiction must equally be punished.

“So if in this case, you are the Mayor of a city and your city is beginning to smell because your garbage is not being collected, is it your Minister’s fault?” he asked.

He disagreed with the dismissal of Mr. Oppong Fosu but was quick to add that “if there are other reasons like if he had some involvement in the Subah motorcycle deal or there are other issues which have come up in the past which we are not privy to, then why not? Tell us what the reasons are,” Casely-Hayford implored the President.

Meanwhile, the financial analyst is urging the President, John Mahama to root out all non-performing Ministers and political appointees.

“I would like to see a little bit more of a shaking up,” he remarked.

By: Efua Idan Osam/citifmonline.com/Ghana
Follow @osamidan

 

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