Today,11th February 2020, as part of the two-day Government Townhall Meeting and Results Fair in Kumasi, Ashanti Region, the Vice President Dr. Alhaji Mahamudu Bawumia has assured the customers of defunct financial institutions that they will be paid in full their locked-up funds including the customers of DKM which collapsed in 2015.
DKM microfinance was located in the Brong Ahafo region then and woefully failed to meet the financial obligations to its depositors because there were no funds due to mismanagement and other distressing factors. This made the Bank of Ghana revoke their license in 2015. The collapse of the DKM brought hardship, deaths, broken homes and medical conditions to the depositors just as it is happening to depositors of defunct financial institutions whose licenses were revoked in 2019.
DKM Microfinance Company invested depositors fund in its subsidiary companies; DKM Airlines Company, DKM Fuel Station, DKM Transport, DKM Shea Butter Company, and DKM Mining Company, etc. Unfortunately, the subsidiaries companies could not give substantial returns to compensate for the interest rates purported for depositors of DKM Microfinance company because the interest rates were very huge.
Additionally, Vice President Bawumia in his speech added that NDC failed to clean up the mess they created in the financial sector especially with DKM and when he was in opposition he hinted them of 8 weak financial institutions that needed attention, but NDC turned deaf ears to him.
Dr. Bawumia reiterated that President Akufo Addo’s government shares the pain of the depositors and assures a 100% refund and had asked the receiver to work with amazing rapidity for validation and payment. It is when validation is done that payments could be effected to depositors.
He, however, blamed the recent failure of financial institutions on the past NDC government saying they left the financial sector weak and fragile owing to poor licensing, non-existent capital, weak corporate governance characterized by related party transactions, political influence peddling, cronyism, etc.
What Ghanaians expect is that these depositors receive their funds in full in as soon as possible. Until depositors receive payments they will still be in doubts as they have waited for far too long.