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Microfinance crisis Four microfinance institutions under BNI probe

The DKM boss Martin Delle turned himself in yesterday after hearing that he was on the run whilst the other three have already been put before court.

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Four Microfinance Company operators in the Brong Ahafo Region are in the custody of the Bureau of National Investigations (BNI) over their alleged roles in swindling peoples of their monies.

The arrested people were Martin Delle, Managing Director of DKM Financial Services; Noel Nortey, Nkoranza Branch Manager of God Is Love Fun Club; Charles Asum, Managing Director of Jastar Group of Compa­nies and Monica Afriyie popularly called Maame Korkor, Managing Director of God Is Love.

The DKM boss Martin Delle turned himself in yesterday after hearing that he was on the run whilst the other three have already been put before court.

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.

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, early this month.

Subsequently, the bank is seeking more powers to effectively deal with the current crisis that has hit the microfinance sector.

In an interview with JOY Business, Outgoing Head of Other Financial Institutions at BoG, Raymond Amanfo said depositors funds will be better protected if the central bank is also empowered to take certain actions in the approval process.

 

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