BOG intensifies sanctions on DKM finance

The Bank of Ghana has intensified sanctions on microfinance company, DKM Financial Services.

Customers of the company have been picketing at the Sunyani premises of the company to drive home demands for their investments to be released after the Bank of Ghana placed a 90- day moratorium on operations and accounts of the company.

Just as the agitations of the customers seem to reach its crescendo, the Bank of Ghana has extended DKM Finance’s moratorium to 30 more days, and increased the requirements the company has to meet for the moratorium to be lifted.

in addition to a capital injection of GHC50 million, the central bank is asking DKM to reconstitute its board amongst other requirements.

In an exclusive interview with pulse.com.gh, the head of Banking Supervision in charge of other financial institutions at the Bank of Ghana, Raymond Amanfo said “ We have extended the moratorium to 30 more days because we have given management of the company new stipulations to meet. It is a completely legal process. They must also restructure their board.”

The central bank placed an initial 90-day moratorium on the operations and accounts of DKM Financial Services after an audit report revealed that the company did not have enough assets to back its liabilities to its customers.

DKM’s customers across the country have been up in arms agitating for the release of the maturing investments, but the Bank of Ghana will not budge.