Microfinance PWC to liquidate DKM assets - BoG

The governor was summoned to parliament yesterday to answer questions on the state of DKM and affected victims.

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Dr Henry Kofi Wampah addressing parliament yesterday. play

Dr Henry Kofi Wampah addressing parliament yesterday.

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PriceWaterhouse Coopers is to liquidate the assets of troubled microfinance company, DKM, to raise money to payback depositors whose monies were locked up with the company, the Governor of the Bank of Ghana said Tuesday.

The governor was summoned to parliament yesterday to answer questions on the state of DKM and affected victims.

“We have met the Registrar General and a firm that will be doing the liquidation is PWC and the process has started but first we have to ascertain the total assets of the institution including those of related companies and the liabilities and that of other companies,” Wampah said

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Wampah also disclosed that 500 microfinance companies have been licensed, adding that the BoG has increased its capacity to manage them.

"We have increased capacity to manage them—including computerizing their operations. The first batch of 50 will be automated soon".

In a similar invitation to parliament, Finance Minister Seth Terkper told law makers last month 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 Microfinance after the central bank placed 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.

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