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The Receiver of the 347 defunct microfinance companies, 23 savings and loan houses and finance houses, faced a deficit of 4 billion Ghc in the asset base of the defunct companies that he hoped to recover.
Speaking on Citi TV’s The Point of View, Eric Nana Nipah explained that the firms cumulatively said they had an approval base of roughly 6 billion GHS.
But further checks, after securing the companies’ books and records, as well as their assets, revealed the disparities.
Mr. Nipah said that the assessment of the situation to determine the situation of the companies he led had a “regrettable” result.
“What I found was quite sad; unfortunate in terms of the fact that although the balance sheets of these companies indicated that they had an asset base in excess of GHS 6 billion, actually, based on my assessment, I don’t think they reach GHS 2 billion, “he said . explained.
According to the controls, “many of these assets that were supposedly there were not actually there. When we did our examination, we also noticed that many of them had been diverted. ”
Due to the “serious deviations”, the Receiver had to contact the Office of Economic and Organized Crime “to assist with asset tracing.”
EOCO has recovered assets worth approximately GHS 500 million, according to an update from the Receiver in July.
The Receiver came into action after May 31, 2019, when the Bank of Ghana revoked the license of the 347 microfinance companies as part of the cleanup of the financial sector.
The Bank of Ghana, on August 16, 2019, also revoked the licenses of 23 insolvent Savings and Loan companies and Finance Houses.
These actions were in line with Section 123 (1) of the Banks and Specialized Deposit Receiving Institutions Act 2016 (Act 930), which requires the Bank of Ghana to revoke the license of a bank or specialized institution receiving deposits. deposits (SDI). where the Bank of Ghana determines that the institution is insolvent.
Depositors affected by this action have submitted claims of up to GHS 8.25 billion.
The government has cleared GHS 6.5 billion of this figure after validation.
— citinewsroom
