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Microfinance Bank of Ghana complicit in DKM saga - Minority leader

He suggested the BoG is complicit in the matter because they failed to act timely in an interview with Starr FM.

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Governor of the Bank of Ghana Henry Kofi Wampah play

Governor of the Bank of Ghana Henry Kofi Wampah

(File Photo)
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Some officials from the Bank of Ghana encouraged people to invest in DKM microfinance, the Minority Leader Osei Kyei Mensah Bonsu has said.

He suggested the BoG is complicit in the matter because they failed to act timely in an interview with Starr FM.

He described the incident as a "tragedy" which should be treated as a "national emergency."

He said, “This is a tragedy that has befallen us as a nation. This is a national emergency to some of us and it should be treated as such.”

“Is it the case that we should always be lamenting and leave people who are responsible for it? We were told some officials of the Bank of Ghana went to the enclave to encourage people to invest. Bank of Ghana failed to act even when huge monies were being withdrawn and converted into foreign currencies.” he added.

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The finance minister Seth Terkper told Parliament yesterday that DKM, diverted GHS77 million of investors' deposits into personal businesses and subsidiaries belonging to the firm's managers.

According to the finance minister, DKM was registered as a savings and loans company in 2013 but breached the Bank of Ghana's regulations concerning the operations of microfinance companies, a situation that forced the Central Bank to close down the company.

The finance minister could not give details on what the GHS77 million cedis was used for.

The Bank of Ghana in October 2015 froze accounts of DKM after placing a 120 day moratorium on the company for flouting the Banking Act.

An audit report by the Bank of Ghana released to the Brong Ahafo Regional Security Council (REGSEC) established that DKM has no investment in the country and beyond after it collected huge amounts of money from numerous customers.

DKM, contrary to Bank of Ghana (BoG) regulation, set up subsidiary companies and lent people’s money to themselves, the report said.

About fifty persons were said to have committed suicide in the Brong Ahafo Region after several months of failed efforts to get back their monies.

The BoG revoked the licenses of some 70 microfinance and lending companies for failure to meet conditions precedent to the issuance of a final license last month.

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