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Business News Mon, 10 Jun 2019

Customers of collapsed microcredit companies to receive funds in 3 months — Liquidator

The office of the Registrar-General has commenced processes to officially take over the 39 microcredit companies that had their operational licenses revoked by the central bank last month.

A press release issued by the Registrar-General, Jemima Mamaa Oware, who was appointed Official Liquidator according to the Bodies Corporate (Official Liquidations) Act 1963 (Act 180), said the winding up of the affected companies commenced on May 31, 2019.

The statement explained the main duties of the official liquidator is to recover and maximise assets for the benefit of creditors, as well as pay whatever is recovered to other creditors of the collapsed institutions as far it is possible.

According to the official liquidator, in order to determine the total amount of monies owed by these companies as well as in what ranking, it is putting place a credit administration process.

The process will require the submission of proof of debt forms, which must be filled and supported by relevant documentation on the amount owed.

The liquidator will then independently verify and reconcile the claims to determine validity. However, fixed investment customers of these microcredit companies will, however, be paid with funds provided by the government, the release said.

Other creditors, will, however, be paid from the sale of assets recovered from the liquidation process.

It is estimated that this particular assessment by the liquidator will be completed in the next three weeks. The process of validating the claims sent by all creditors is expected to last another two months.

After validation and approval, the fixed investment customers will receive their monies at designated Consolidated Bank branches.

Clean-up

The Bank of Ghana on May 31, 2019, announced that it has taken a decision to revoke licenses of 347 microfinance companies as well as 39 microcredit companies, otherwise known as money lending organisations.

The central bank also appointed Eric Nana Nipah of PwC as the receiver for the collapsed microfinance companies in accordance with the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

List of 39 affected microcredit companies

Allied Wealth Money Lending Limited Bennet Money Lending Limited Bremco Money Lending Company Limited Calmad Money Lending Company Limited Catamount Finance Money Lending Limited Citizens Money Lending Limited Divine Announcement Money Lending Fountain Money Lending Services Limited GDFS Money Lending Limited GFI Capital Management Money Lending Limited Great Africa Money Lending Limited Hatmag Money Lending Limited Haubins Money Lending Limited Index Money Lending Limited KAF Investment Money Lending Limited KBN Money Lending Limited KYC Money Lending Limited McOttley Money Lending Limited N & J Money Lending Limited Obrapa Money Lending Limited One2One Money Lending Services Limited Orbit Money Lending Co. Limited Pitsea Ways Money Lenders Limited P-Mag Investment Money Lending Services Limited Sat Finance Money Lending Limited Shammah Capital Money Lending Limited SNJ Money Lending Limited Uni-focus Money Lending Limited Zeta Money Lending Limited Boafo Yena Money Lending Limited CFI Money Lending Limited CIF Money Lending First Assurance Money Lending Services Limited Global Point Investment and Money Lending Services Limited Intelligent Money Lending Company Limited Kan Money Lending Company Limited PD PAG Money Lending Limited P.I.C. Money Lending Services Limited TCP Money Lending Limited

Source: citinewsroom.com
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