BOG directs DKM Finance to raise GHC50 million or face liquidation

The Bank of Ghana has directed DKM Financial Services to inject a capital of GHC50 million into the company before a 90-day moratorium on company is lifted.

The Central Bank, in May 2015, place a 90-day moratorium on the operations of DKM financial Services when its attention was drawn, through an audit report, to the fact that the company did not have enough in assets to cover transactions and liabilities to its customers- a contravention of the Banking Act.

Though management of the company swiftly rebutted the claims, the Financial Intelligence Centre (FIC) froze

five accounts of the company, directing an immediate freeze of all debit transactions on any of the five accounts.

In a statement released by the Central Bank, DKM is being given a 90 day period to inject a total sum of GHC50 million into the company's accounts or have its assets liquidated by the central bank.

The financial company is also to show appropriate documentation for the injection.

Meanwhile, customer of DKM are appealing to the bank of Ghana to lift the 90-day moratorium, or make their accrued interest available to them in the meantime.

Speaking at a press conference in Bolgatanga over the week, some of the customers from the Upper East, Upper West, Northern and Brong Ahafo regions complained that their monies have been unduly locked up.

They, therefore, appealed to authorities to lessen the sanctions on the company.

“Taking cognizance of the consequences that this moratorium may have on innocent Ghanaians and promising Ghanaian enterprises, we as affected customers of the DKM Diamond Microfinance company would wish to appeal passionately to the good conscience of the powers that be at the Bank of Ghana and the leaders of our dear nation to avert a looming national disaster by tempering justice with mercy and relaxing the stance that the bank of Ghana has taken.

The customer added, "We appeal that a more lenient stance be adopted in amicably resolving the DKM-BoG fallout.”

The Bank of Ghana, however in the press release, declined the request.