MPs bemoan high rates of illegal microfinance companies in BA

According to the MPs, the situation has brought untold hardships on residents who have their monies deposited in these microfinance companies.

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New Patriotic Party Members of Parliament ( MP) in the Brong Ahafo region have raised concerns over the failure of some microfinance companies in the region to meet their financial obligations to its customers in a press briefing today.

To this end, the MPs said they fear an economic meltdown in the region is eminent.

Dates made by the Chief of Staff, Julius Debrah and the deputy Local Government minister also MP for Nkoranza south, Emmanuel Kwadwo Agyekum to ensure the release of the frozen accounts have expired while the situation remains unchanged, the   MPs said.

The MPs further accused the government of showing no interest in the predicament the customers have had to go through after their accounts were frozen by the Bank of Ghana.

The Bank of Ghana in May froze the accounts of  'DKM' and 'God is Love' all in the Brong Ahafo region for failure to comply with the terms and conditions stipulated in its license as stated in section 13 (b) of Act 673.

Holding insufficient assets to meet its liabilities to depositors [section 13 (1)(e) of Act 673].

Carrying on operations in a manner which appears to the Bank of Ghana to be contrary or detrimental to the interest of its depositors or the public [section 13 (1)(f) of Act 673].

Violations of restrictions on exposures [section 43 (1) of Act 673].

Three persons who have their monies deposited with these banks have reportedly died over the incident because they can’t access their funds.

In a separate interview with JOYNEWS after the press briefing, the MP for Sunyani East, Kwasi Ameyaw-Chremeh said residents have lost up to 200 million cedis to the microfinance crisis in the region.

"It is millions. All of them put together will be more than 200 million of cedis," he said, adding, already there is economic slowdown in Sunyani and Brong Ahafo in general.

According to him maize farmers in Nkoranza are the hardest hit, leaving most of them unable to farm this year.

"The whole of this year people did not farm," he said, adding their investments were locked up in the financial deal.

"We will be starving next year. People who were doing businesses, or buy and sell have also been affected."

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