The Venture Capital Trust Fund (VCTF) in Ghana was established in 2004 through an Act of Parliament (VCTF Act 680) to provide low-cost financing to Small and Medium Enterprises.
The Daily Guide newspaper indicated that the Development Assistance Fund (DAF) and the Special Purpose Vehicle (SPV) created under the VCTF to give funding access to Small and Medium Scale Enterprises (SMEs) were allegedly used as an avenue to steal state funds.
The government between 2010 and 2015 invested GHȻ18.26 million. It has currently retrieved on 7% with an outstanding of GHȻ32 million.
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An internal investigation traced the alleged fraudulent activities to the former CEO and his cronies and as a result, one Osman Suleman, on the instructions of the Board of Trustees, has invited the BNI to thoroughly look into the matter.
About 205 SMEs are said to have benefitted from the DAF and SPV schemes of the VTCF.
Meanwhile, some existing and former employees, particularly the immediate past Chief Executive Officer, Daniel Kofi Duku, have been accused of directly or indirectly engaging in “fraudulent activities” during the disbursement of the DAF and SPV loans.
The Venture Capital Trust Fund (VCTF) in Ghana was established in 2004 through an Act of Parliament (VCTF Act 680).
The Fund was set-up to provide low-cost financing to Small and Medium Enterprises for their businesses to grow and for them to create more employment.