Depositors of Collapsed Microfinance Companies to Receive Payments Today

Bank of Ghana’s appointed Receiver for the 347 insolvent and dormant microfinance companies, Eric Nana Nipah, will Friday start paying depositors of the companies.

A statement sanctioned by the Receiver, however, clarified that only depositors whose claims have been validated and agreed will be paid.

The move follows the release of funds by the government to the Receiver.

“The Receiver has deployed over 420 personnel across the country to validate and agree claims and to start making payments to depositors whose claims have been validated and agreed, without delay.

“Payments to depositors will be made at designated branches of CBG, following notifications to these Depositors from the office of the Receiver,” the statement said.

Depositors whose claims have been validated and agreed will also receive phone calls from the Receiver’s representatives confirming the amounts due to them, and directing them to the designated CBG branches for the processing and payment of their claims to the extent possible.

Depositors will be required to provide valid ID documentation.

These can either be passports, NHIS cards, Voters ID and Drivers Licenses.

In accordance with the order of ranking provided in the relevant sections of the Banks and Specialised Deposit-Taking Institutions Act, 2016, Act 930, all other Creditors will be paid their claims depending on the quantum and timing of asset realisations in the receivership of the affected microfinance companies.

Mr Nipah has therefore called on all depositors of the Microfinance companies to exercise patience as the government has made available funds to pay each and every depositor whose claim(s) have been validated and agreed, to the extent possible.

The Bank of Ghana on May 31, 2019 revoked the license of 347 Microfinance Institutions and in accordance with Section 123(2) of Act 930 appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers (Ghana) Limited (“PwC”) as Receiver for the purposes of winding down the affairs of the affected microfinance companies.

The main duties of the Receiver are:

(i) to recover and maximise asset realisations for the benefit of Creditors including mainly Depositors and

(ii) distribute realisations in accordance with the relevant provisions of Act 930, to satisfy the indebtedness of these institutions to their body of Creditors, to the extent possible.