Collapsed Microfinance Receiver Forced To Set July 2020 As Pay Day.

Amidst suspicion that the Receiver of the collapsed microfinance companies is making a windfall from the continuous failure to release funds to stranded investors, the Receiver Eric Nana Nipah has been forced to say locked up investments will be paid by the end of this month.

After accusations of deception by investors whose funds have been locked up in the financial institution, Mr. Nipa claims some GHC 5.4 billion of these funds are scheduled to be paid back to investors.

 “For depositors, we have come a very long way and I have been able to determine that the depositor base in the three receiverships is in the region of GHS 5.4 billion by value of valid depositor claims…and out of that, I have been able to pay close to 96% of these claims,” he said.

Mr. Nana Nipah added that about 98% of the claims will be paid in cash while the remaining two per cent will be paid through a combination of cash and bond.

“I am on course to fully pay 98% of all depositor claims by way of cash…The two per cent that remains is being paid through a combination of cash and commercial paper which we commonly refer to as bonds…Through the very effective and robust validation mechanism that I have put in place, I have been able to save the nation close to a billion cedis by way of robust and resilient validation processes,” he added.

In November 2019, the Bank of Ghana (BoG) and the Finance Ministry had caused the collapse of approximately 347 microfinance companies, 39 micro-credit institutions 53 Fund Managers and 23 savings and loans companies, for what was described as liquidity and bankruptcy issues.

During the latter part of 2019, the Securities and Exchange Commission revoked the licenses and closed down 53 Fund Managers. This was in addition to the closure of 347 Micro Finance Institutions and 23 Savings and Loans previously closed down by the Bank of Ghana in August of 2019.

Bernard Osei Tutu, the CEO of Dusk Capital told Ghana Means Business how arbitrary the repayment is being made by the receivers. For instance, he claims, out of the GHC 4 million locked up, the receivers are planning to pay his stranded investors a paltry GHC 10,000.

“…that is what we all don’t understand as we find ourselves in this situation. These are depositors money-investors who brought in in their money and gave us these monies. These monies are locked up in all of these institutions and we can’t get it for them,” he narrated his ordeal.

According to him, angry investors have taken his company to court on countless occasions, as the government-appointed receivers drag their feet.