Skip to main content

BoG demands list of depositors from 2 illegal financial companies


By: Fred Yaw Sarpong- Daily Express

Regulator of the banking industry, Bank of Ghana (BoG) has directed two of the 10 illegal financial service providers who were operating without license in the country, to submit a list of their depositors before they can start paying back the monies to their customers.

Bank of Ghana placed ban on all these companies and also freeze their accounts after they were identified operating as microfinance institutions without licenses.  

The two companies are Buoyant Investment Limited operating in Techiman and Jirapa, and the Little Drops Helping Hand Association operating in Ho, Techiman, Sunyani and Berekum.

According to the Governor of the central bank, Dr. Henry Kofi Wampah the central bank will lift the ban on the account of these two companies after they have submitted the list of their depositors. He said this at the 66th regular monetary policy meetings (MPCs) with the media in Accra.

Dr. Wampah said already these two institutions have approached the central bank and are in the process of paying out the monies to the depositors.

However, Dr. Wampah said they are demanding the list of the depositors so that the central bank will supervise the payment to the depositors.

“I soon as we receive the list from these companies we will lift the ban on their accounts so that they can start paying their clients,” the Governor said.

He stated that with the remaining seven companies they are still monitoring their activities. “But we are really determine to stop the activities of such unlicensed institutions,” he added.

On the part of DKM, the central bank said by the close of this week or early next week the company will start operating again and the customers who want to withdraw their monies can do so.

“The process of lifting the ban on DKM’s account has already taken place and we hope to give them go ahead to start their work. They will be operating like the normal microfinance institution and there is no need for customers to rush taking their monies from the DKM,” he stated.

A few week ago, the central bank identified ten  (10) illegal financial service providers operating in the country without licenses contrary to section 4 of the Banking Act, 2004 (Act 673) as amended.

According to the central bank, these unlicensed financial institutions attract their clients by enticing them with very high and unsustainable interest rates but fold up within a short time due to their inability to meet depositors’ demands.

Mainly, these institutions operate in the Upper East, Upper West, Northern, Brong Ahafo and Western regions of the country.

The initial 10 identified unlicensed institutions mentioned were; Care for Humanity International operating in Wa, Sunyani and Techiman; Buoyant Investment Limited operating in Techiman and Jirapa; God is Love Fund Club, operating in Sunyani, Techiman and Nkoranza; Perfect Edge Group, operating Sunyani; and Perfect Business Fund Club operating in Sunyani.

The rest mentioned are L. P. M Eye Adom Fund Club in Sunyani; Creative Fund Club from Koforidua; Little Drops Helping Hand Association in HO, Techiman, Sunyani and Berekum; Financial Giants Fun Club from Bolgatanga, Wa and Sunyani; and Great Winners Fun Club from Kete Krachie and Dambai.


Bank of Ghana said the unlicensed institutions are promising unsustainable interest rates and other packages. They are offering rates as high as 30% to 55% every two months is not sustainable. 


Comments

Post a Comment

Popular posts from this blog

Vodafone sells 45% shares in Verizon for US$130 billion

Vodafone has sold its 45% stake in Verizon Wireless to US telecoms group Verizon Communications in one of the biggest deals in corporate history. The US$130 billion (£84bn) deal was announced by Vodafone after the close of trading on the London Stock Exchange. The company will return £54 billion to its shareholders, of which £22 billionn will go to shareholders in the UK. Vodafone will also invest money in its business, with funds earmarked for high speed mobile phone networks. It said that by 2017 its main five European markets would have almost complete 4G coverage. Possibly it would be wrong to carp and wring hands that Vodafone won't be paying a penny of tax to the British taxman” Vodafone group chairman Gerard Kleisterlee said: "The transaction will position Vodafone strongly to pursue our leadership strategy in mobile and unified communication services for consumers and enterprises, both in our developed markets and across our emerging markets businesses." The...
Post a Comment
Read more

Shortage of weighing cards hit major hospitals in Accra

By: Fred Yaw Sarpong- Daily Express There is scarcity of Child Health Records Book (weighing cards), in some major public hospitals in the capital, information reaching the Daily Express indicates. Checks by this paper revealed that while some of the hospitals have being encountering the shortage for about a year now, others started experiencing it six months ago. In place of the Child Health Record Book (weighing card), the nursing mothers are given a single card on which information of children are recorded on it. Those hospitals identified are the Korle Bu Teaching Hospital, Korle Bu Polyclinic, Kaneshie Polyclinic, Adabraka Polyclinic and the Ridge Hospital. At the Korle Bu Teaching Hospital, the nursing mothers are given yellow cards in place of the weighing cards. The Public Relations Secretariat at the Korle Bu Teaching Hospital said such information has not come to their notice and for that matter they cannot comment on it. “We do not have some ...
Post a Comment
Read more

ABL launches chibuku super in Bolgatanga

By: Fred Yaw Sarpong sarpong007@gmail.com Accra Brewery Limited (ABL) has officially launched the Chibuku Super drink at Bolgatanga in the Upper East region with the aim of reaching a lot of customers. Mr. Thomas Nii Ponku, Supervisor in charge of Chibuku Super at ABL told Daily Express that the management decided to launch the Chibuku Super drink in the Upper East region because they’ve realized it is similar to a traditional drink in the region. “Chibuku is like a well developed pito, a traditional drink made from fermented millet or sorghum in the Northern part of Ghana. So the idea is to provide them with similar drink,” he added. Mr. Nii Ponku disclosed this when members of the Institute of Finance and Economic Journalists (IFEJ) toured the facility of ABL to acquaint themselves with the expansion project at the factory. He mentioned that after a feasibility study, they realized there is a potential market for the product in the northern part of Ghana ...
Post a Comment
Read more