BoG confirms refunds to DKM customers end of September

The Bank of Ghana(BoG) has confirmed that customers of DKM Microfinance whose monies were locked up will be receiving their investments by the end of this month.

According to the central bank, the Official Liquidator is however expected to outline the modalities for refunds on the 12^th of this month.

Over 70,000 customers have so far been validated to receive their locked up cash.

Also, two local banks have been contracted to make the payments to customers from September ending.

Millions of cash deposited by customers DKM were locked up, following the Bank of Ghana's move in 2015, to stop the company from operating; over concerns that it was violating the microfinance regulations.

The Communications Manager of the Bank of Ghana, Bernard Otabil explained to Citi Business News the official liquidator will bring a relief to the affected customers.

“The issue is that the official liquidator will make it quite clear and very simple for all those who have monies with DKM. The process that will be engaged in this regard will be the approach whereby banks will be appointed to do that particular work on behalf of the official liquidator,” he explained.

Meanwhile, Bernard Otabil says the Official Liquidator may seek financial support where necessary, to refund to customers whose monies have been locked up.

This follows earlier concerns by the Official Liquidator(OL) over difficulty in accessing some official documents belonging to DKM to facilitate the assessment of the company's assets.

“I'd presume that whichever process that is adopted by the OL will follow due process that is outline in the law and therefore we cannot circumvent what the law actually says. The Official Liquidation Act will give the details as to the provisions if there are options for any other support that needs to be brought in,” Mr. Otabil added.

The balance sheet of DKM as at May 11, 2015 showed its net liability stood at negative 21 million cedis.

A number of customers of the company are reported to have lost their lives over the development which had been described as one of the biggest mcrofinance disaster in the history of the industry.

DKM was incorporated on April 3rd, 2013 and was licensed by the Bank of Ghana as a tier two microfinance company on 25th October, 2013.

The company at the time its license was revoked by the BoG on 29th February, 2016 had 10 branches and two agency offices and six subsidiaries.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana