Customers of DKM other defunct Savings & Loans and Microfinance to receive full payments

Ghana’s Vice President, Dr. Mahamudu Bawumia, has said that all customers of defunct savings and loans and microfinance companies will be paid their locked up funds in full.

Vice President Bawumia

Speaking at a town hall meeting at Kumasi in the Ashanti Region dubbed “Demonstrating Fulfillment of Our Promises”, Dr Bawumia said this includes customers of DKM who were affected in 2015.

Dr Bawumia is the second person in a high government office giving this assurance after President Akufo-Addo directed the Bank of Ghana (BoG) and the Ministry of Finance, to provide money for the customers to be paid.

“Government has already spent over GHC 13 billion paying depositors of banks and other financial institutions. To add to that, President Nana Akufo Addo gave the assurance in his last Christmas message that no depositor of a Savings and Loans or a Microfinance institution will lose any of their deposits. In line with fairness, we would be doing what we have done for depositors of banks to depositors of Savings and Loans or a Microfinance institutions. Everyone will get 100% of their deposits back. I would also like to add that this refund will also extend to customers of DKM who have not as yet received the full refund of their deposits. We are therefore cleaning up the mess the NDC created in the financial sector.”

Customers of the defunct financial institutions especially DKM clients will be happy. The challenges with DKM financial services happened under the previous National Democratic Congress. Customers at the time lost part of their investments following a suspension of the company’s operations by the Bank of Ghana in 2015.

The Vice President also indicated that the decision to clean-up the banking sector was not taken in a hurry since it was carefully planned.

He explained that the nine indigenous banks had challenges that threatened the overall health of the banking sector. He added that the affected banks had indulged in fraudulent acts and poor corporate governance practices.

Dr Bawumia said BoG’s decision protected the deposits of about 5 million depositors. He said jobs were also protected because of the creation of the Consolidated Bank to merge seven of the nine banks.

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