Collapsed microfinance firms: Receiver caps claim payments at ¢10,000 per depositor

Collapsed microfinance firms: Receiver caps claim payments at ¢10,000 per depositor

Receiver for the 347 microfinance companies whose licenses were revoked by the Bank of Ghana in May 2019, Eric Nana Nipah has put a GH¢10,000 cap on claim payments.

He said the decision to place a cap on the amount to be paid customers was based on findings from a preliminary assessment of the situation of the collapsed finance institutions.

Speaking on the on Monday, Mr. Nipah said, “Yes, there is an initial cap of GH¢10,000.”

He said his team had noticed several cases of underreporting in the books of the microfinance companies which called for a thorough audit that could take several months, however, the team decided to balance the audit process and to speed up the payments.

“When I took over and I started work, one of the key things I did was to conduct a situational assessment to ascertain the state of affairs of these companies as at the 31st of May and the finding so far is revealing. We have noted a considerable amount of underreporting and therefore the integrity of the financial statements raises quite a number of issues,” he said.

He added that, “a lot of the deposits were underreported… So based on a preliminary assessment of what we were seeing on the ground, we have decided in ensuring a balance between timeliness and effective payment and ensuring scrutiny and accuracy of validation, we decided that we will initially put in a cap of GH¢10,000.”

Rather than wait to thoroughly undertake forensic examination which will take several months to complete before we have a complete picture, we would prudently and speed being of essence start by putting a cap of GH¢10,000 and making payment of claims of up to GH¢10,000. That way we have been able to douse to some extent all the pressures of people queuing, and people agitating,” Mr. Nipah further stated.

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