Bank of Ghana Beware of network marketing scammers in Volta Region- BOG

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The Bank of Ghana says the 200 financial institutions that allegedly defrauded customers in the Volta Region are not microfinance companies.

According to the Head of Other Financial Institutions at the Bank of Ghana, Kofi Amoa-Awuah referred to the entities as network marketing clubs and not microfinance companies.

Network Marketing involves marketing based on referrals, where individual invest in a company or a product, ensuring that their deposits increase as their number of referrals increase.

READ MORE: Microfinance Crisis BoG 'concerned' about microfinance scam in Volta Region

Narrating the circumstances under which the companies absconded with the deposits of the clients, Mr Kofi Amoa-Awuah said the companies, between the year 2014 and 2015, took deposits from clients promising them huge deposits, only to abscond with the monies.

Mr Amoa-Awuah added that given that the companies are not microfinance companies they do not fall under the direct control of the Bank of Ghana. They are however working with the police to bring the perpetrators of the scam to book.

"We met the demonstrators, about 200 of them, last Friday to clarify that these are not microfinance institutions but network companies. Our regional administration is collaborating with them, and if they can present evidence of contributions to these institutions, they can assist with where these eight companies are for them to make arrests.

"So, we are putting on record that this has nothing to do with BoG, the institutions involved are not under our control, and therefore, we have nothing to do with them," Mr Amoa-Awuah explained.

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