Receiver to pay Depositors Locked up Funds after 2nd level validation in May - Oppong Nkrumah

Receiver to pay Depositors Locked up Funds after 2nd level validation in May - Oppong Nkrumah

The government of Ghana has said the receiver of the defunct Microfinance companies and savings and loan firms is set to complete a second level of validation processes to pay all affected customers whose funds were locked up after the collapse of some banks and microfinance companies.

This was announced by the Information Minister, Kojo Oppong Nkrumah during a press briefing in Accra today.

The government has initially made a 1st level validation and payment of some 5 billion cedis to customers.

According to the Minister for Information, Kojo Oppong Nkrumah, the government intends to commence payment of locked up funds to customers after the second level of validation process is completed by the end of May.

“Now based on total cash payments to be made by the end of the depositor payment exercise, it is expected that a population of individual depositors numbering about 297,000 whose claims have been validated and accepted in the resolution of the aforementioned groups of companies and ultimately not less than 290,000, that is about 98% in number of individual payments, will be fully paid in cash,” he said.

“The remaining 2% of individual depositor claims will be paid by a combination of cash and bonds. So here are the next steps of payments. They are first of all concluding the depositor payments process and the key next step to be undertaken include the conclusion of the final second validation of that 340 million, and payments made accordingly. They expect that by the end of May we would be done with that one,” he added.

 

He further noted that there are some organizations whose books and records still have challenges, and so there are processing rules for some further investigations.

The Bank of Ghana has revoked the licenses of some of nine universal banks, 347 microfinance companies, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, two non-bank financial institutions, and 53 Fund Management firms as part of measures to clean the financial sector under the president Akufo-Addo administration.

Subsequently, the government appointed Eric Nana Nipah as a receiver to see to it that customers’ deposits are paid fully.

President Nana Akufo-Addo assured depositors whose funds were locked up in the collapsed microfinance institutions that they will have their monies paid back to them.

Background

The president during his fourth state of the nation address announced that an amount of GHS5 billion has been given to the receiver Eric Nana Nipah to be disbursed to customers whose funds are locked up in the defunct savings and loans companies and microfinance institutions.

“I am informed that the Receiver of the Savings and Loans and the Microfinance institutions will begin on Monday 24th February [2020], making payments to their customers, [with] these monies totaling GH¢5 billion being in addition to the GH¢13 billion being paid to the customers of the failed banks,” Akufo-Addo said