Defaulters of loan facilities from defunct microfinance companies risk name publication by receiver

Defaulters of loan facilities from defunct microfinance companies risk name publication by receiver

|Defaulting customers, individuals and institutions who took loan facilities from some defunct 347 Microfinance companies and some 23 Savings and Loans and Finance Houses, who had their licenses revoked by Bank of Ghana on May 31, 2019 and August 16, 2019, are being entreated by the receiver, Mr. Eric Nana Nipah to repay their loan facilities.

In a statement sighted by Vaultz News, the receiver urged defaulters of loan facilities to prioritize repayment of the loan facilities with immediate effect.


He said,“Borrowers are to note that, the Receiver will pursue all recalcitrant defaulters through all available means as permitted by the Act including, but not limited to, legal actions and publishing names of recalcitrant defaulters in national and international newspapers”.


In addition, Mr. Nipah further buttressed his resolve in ensuring the recoupment of monies owed the defunct companies by saying he “will soon publish the first list of recalcitrant defaulters and their respective addresses in the national dailies.

The Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) Section 127 (3) of the Act mandates the Receiver to realize all assets of the resolved companies, including outstanding loans and advances, for the benefit of creditors.

For those willing to make payment, attached to the release are 23 branches, account and mobile money numbers borrowers can make payment on.


He said,“customers may settle their outstanding obligations to the defunct companies through the respective MTN MoMo numbers and/or receivership bank accounts listed on their website”.


However, he cautioned “borrowers to cooperate with his authorized representatives/agents in this regard”.

Revocation of licenses by SEC

On November 8, 2019, the Securities and Exchange Commission (SEC) revoked the licenses of 53 Fund Management Companies. The companies include Black Shield Capital Management (formerly Gold Coast Fund Management Limited), Beige Capital Limited, Ideal Capital Partners Limited and Unisecurities Limited. The revocation of their licenses were premised on the government’s financial sector clean up.

According to SEC, the revocation of the licences were taken in pursuant to Section 122 (2) (b) of the Securities Industry Act, 2016, and had become necessary because they had largely failed to return client funds which remain locked up and in a number of cases, they have even folded up their operations.

However, on June 13, 2020, SEC restored the license of Monarch Capital while rejecting the plea of BlackShield Capital Management Limited.

Meanwhile, the Court has dismissed an appeal by the Bank of Ghana, which challenged the jurisdiction of the High Court in hearing the suit filed by GN Savings and Loans over the revocation of its license.