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DKM assets to be liquidated —Prez Mahama

January 12, 2016 3:27 PM

The microfinance sector is going through some crisis after the Bank of Ghana in October 2015 froze accounts of DKM Microfinance for flouting the Banking Act.

President John Mahama has said assets of DKM microfinanace and other companies will be seized and liquidated to raise some capital to pay back customers whose monies are locked with the companies.

He was speaking at a press briefing today at the Flagstaff House to commemorate his third year in office.

He said: “The properties of DKM Microfinance and other companies involved in the situation will be seized and liquidated to pay off its customers; I have asked the BNI to look out for all the properties of the company and seize them.”

The BoG also revoked the licenses of some70 microfinance and lendingcompanies for failure to meet conditions precedent to the issuance of a final license, early this month.

Subsequently, the bank is seeking more powers to effectively deal with the current crisis that has hit the microfinance sector.

Outgoing Head of Other Financial Institutions at BoG, Raymond Amanfo said depositors funds will be better protected if the central bank is also empowered to take certain actions in the approval process.