Microfinance Customers Accuse DCE Of Fraud

THE MICROFINANCE scam that hit the country in 2015 and 2016 is far from over, as customers of the defunct ComAid Microfinance Company Limited, based in the Upper East Region, have accused the District Chief Executive for Builsa South of defrauding them of millions of Ghana Cedis in the form of investments, savings, daily 'susu' and education funds.

Daniel Kwame Gariba, Director of ComAid and now DCE for Builsa South in the Upper East Region was said to have told his customers he invested their money with 'God is Love' Microfinance Company in Sunyani, but the money was locked up because 'God is Love' was closed down.

The aggrieved customers, at a news conference in Bolgatanga on Tuesday, said they did not believe the claims of Mr. Gariba because the Bank of Ghana suspended the operations of 'God is Love', DKM Microfinance and Diamond Winner in May 2015, before they invested in ComAid, and so ComAid could not have invested their money with a company whose operations were suspended.

John Dawu, the leader of the aggrieved ComAid customers, told journalists in Bolgatanga that in November 2015, customers whose principal investments matured with an agreed interest of 15% for three months were not paid, because the management of ComAid had told them the company had an issue in court, litigating over the interest rate with its investment client – God is Love.

He said the company pleaded with them to hold on until the final determination of the matter before the court.

According to him, their checks later revealed that as of May 2015 that the company invested their money, it defaulted in payment, as it continued to carry out adverts on radio to collect more deposits from customers, up to December 2015 and beyond.

He also said the amount in litigation before the court, per their checks, was

GHC 222,000 which was far below the deposits collected from them.

He, therefore, suggested that, all deposits collected after May 2015 to January 2016 and beyond, when the company was already in court could not have been part of the litigation before the court, as the company claimed.

The aggrieved customers also said Mr. Gariba has not declared his company bankrupt to the Central Bank and the Bank of Ghana, which was the regulator and the government to liquidate his assets to pay off the customers he owed.

According to Mr. Dawu, an individual took ComAid to court in Bolgtanga and the court ruled against the company and asked the company to pay, but the company was yet to make any payment.

“We were getting the cooperation of the State Attorney in retrieving the money, but ever since Mr. Gariba became the DCE of Builsa District, the State Attorney's interest in the case has reduced so drastically.

We suspect strongly that Mr. Gariba is using his current position as a DCE to twist the hand of justice by getting the State Attorney to act in his favour, which is unfortunate. But just recently, the State Attorney told us that our case could not be heard until next year.” he lamented.

“We, the ComAid defrauded customers, have decided to come together now and work collectively to retrieve our money. This is our first step of resolving this case and we will not relent on our efforts until we retrieve every pesewa of our investment and savings with him.

“The outcome of this step will determine our next line of action. We are, therefore, using this medium to make a passionate appeal to His Excellency the president to direct Mr. Daniel Kwame Gariba, who is now the DCE of Builsa South to pay us our money,” the aggrieved customers stated strongly.

When contacted, Mr. Gariba confirmed the aggrieved customers invested with his company but was emphatic the company did not defraud its customers.

He explained that the investments of the customers were also invested with God is Love, a Sunyani-based microfinance company, which operation the Bank of Ghana suspended.

According to him, his company took a civil case against God is Love and secured a judgment that ordered God is Love to pay ComAid its investment.

However, before God is Love could pay ComAid, an individual who also invested with God is Love sensed danger that, if God is Love paid ComAid all its investments, he would not get his money.

The individual subsequently took God is Love to court and secured a court order restraining the company from paying ComAid, thus the delay in ComAid paying its customers.

Mr. Gariba also told this paper that one of the aggrieved customers took the matter to the Bolgatanga High Court where the court acquitted and discharged the company because there was enough to produce by ComAid to justify all its efforts in retrieving its investments with God is Love with the intension to pay its customers.

On the accusation that he might have used his current position as DCE to influence the State Attorney to relax in handling the issue, the Director said that was absolute unfounded.

Rather, he explained that the State Attorney was a professional in his own right and knew the court had acquitted and discharged ComAid, which made the their case weak. As a result, there was little he could do.

Mr. Gariba assured the aggrieved customers the company will pay them their investments as soon as all the court cases are settled.

Pouring out their frustrations since their investments got locked up with the company, some of the customers said life was extremely difficult for them to cope with.

James Daud-Abangos, a pensoneer, said he invested GHC 15,000 and could not even claim his principal.

This has made it difficult for him to pay his children's schools fees and also attend to other family issues.

Another customer, Augustine Atia, a business woman, said she invested GHC 30,000 and this has brought her business to its knees.

A student of Zuarungu Nurses Training College, Nancy Yeboah, who invested

GHC 2,000 also lamented how it was difficult for her to pay her school fees.

From William Nlanjerbor Jalulah, Bolgatanga