We Didn’t Promise To Pay DKM Customers Their Cash – Finance Minister Designate

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The dreams of thousands of embattled customers of botched Brong Ahafo based DKM Micro-finance Company Limited to get all their locked up capital seems to be fading following a comment by the Minister Designate of Finance and Economic Planning, Mr Ken Ofori-Atta.

The renowned investment banker in answering a question posed by a member of the committee on the fate of DKM customers whose investments were locked up, when he appeared before the Parliamentary Appointment Committee was emphatic by saying the NPP’s manifesto did not contain any promise on the fate of these customers.

“It’s not in our manifesto to pay God is Love and DKM. I know that there are certain processes going on which I’m privy to…and then I think we are also introducing some protection of deposits which will go structurally to change that problem.

“Ponzi schemes and schemes like that are as a result of when there is lack of legislation and also too [many] licences approved making it impossible for the regulatory authority to monitor and manage.

“The central bank will need to strengthen the supervisory unit but clearly there are too many licences out there.”

The answer by the calm looking investment banker came as a surprise coming at the backdrop that, Nana Akufo-Addo at the heat of the campaign towards the 2016 elections accused the government of not doing enough and promised to pay the customers in full instead of the part payment that was been offered at the time.

The answer has raised questions as to whether the Finance Minister-designate actually followed the issues that affected their party’s fortunes in the Brong Ahafo region as far as issues relating to DKM are concerned.

Background

The Bank of Ghana in May 2015 placed a 90-day moratorium on the operations of DKM Microfinance in accordance with section 65 of the banking Act after the Central Bank accused the company of consistently flouting the guidelines and regulations or rules for operating.

The company at the time of the moratorium had a net liability of negative 21 million cedis, a situation that forced the Bank of Ghana to suspend their operations and commissioned an audit into their operations to determine the assets to liabilities ratio of the company.

The Bank of Ghana (BOG)  after resolving all outstanding bottlenecks with the company lifted the sanctions in September 2016 after four long months.

But the company upon resumption still encountered serious problems in relation reimbursing customers their investments so the Central Bank was forced to initiate a liquidation process by appointing an official liquidator. The process has since seen over 70,000 validated customers being paid part of their investments.

Promise by the NPP

The flagbearer of the NPP, at heat of the DKM saga, accused the then Mahama government of negligence and complicity and promised to look into the matter and retrieve all investments due customers if elected as the President.

“If voted as President, I will do everything in my power to get your monies back to you …it’s been promises galore by President Mahama.”