Staff of defunct microfinance companies storm ICU offices to demand outstanding salaries

Some former employees of the insolvent microfinance companies have besieged the offices of the Industrial and Commercial Workers Union (ICU) in Accra to mount pressure on the Receiver for the collapsed 347 microfinance institutions, to pay them their allowances for work done.

Receiver, Eric Nana Nipah

The Receiver of the microfinance companies said an agreement has been reached with the Bank of Ghana to pay the outstanding salaries as well as negotiated and exit packages of former employees of the affected institutions.

The move is to alleviate the economic impact of the resolution exercise on former employees of the affected companies particularly as the economic impact of the COVID-19 pandemic is having a toll on individuals and businesses.

A statement issued by the Receiver, Eric Nana Nipah, said consultations with authorized representatives of the former employees to agree on processes of payment will begin effective today, Monday, July 13, 2020.

"To ameliorate the economic impact of the resolution exercise on former employees of these affected companies particularly in these times of COVID, Bank of Ghana has agreed to pre-finance the full settlement of employee-related claims which otherwise rank as unsecured claims in the receiverships of these companies.


"The Receiver will in the week commencing Monday, 13 July 2020 engage with the authorized representatives of the ex-staff to agree on modalities for the payment of outstanding salaries and exit packages to ex-staff of these resolved institutions," the statement said.

He further noted that he will only fully settle outstanding salaries and exit packages of former employees which have been duly validated, agreed, and in the resolution process.

But the ex-workers on Monday morning stormed the offices of ICU as they held placards to get them to force the Receiver to act with promptness.

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