M/DISECs to monitor operations of micro-finance

Municipal and District Security Councils (M/DISECs) in the Brong-Ahafo Region are to monitor the operations of microfinance companies and fun clubs and take the necessary measures to prevent the unregistered ones from operating.

Mr Eric Opoku, the Regional Minister, gave the directive on Wednesday in Sunyani at a Regional Security Council (REGSEC) meeting, following a security report received by the Council on the operations of microfinance companies and fun clubs in the region.

The meeting was attended by some ministers of state, traditional rulers, stakeholders, management of six micro-finance companies and fun clubs whose operations have created financial problems to their customers, and municipal and district chief executives (MDCEs) whose areas such companies are operating.

The companies are DKM Diamond Micro-finance, God is Love Fun Club, Jastar Motors and Investments Company Limited, Little Drops Association, Care for Humanity and Eye Adom Fun Club.

The meeting enabled the managements of those companies to brief the REGSEC on issues that had been raised by the Bank of Ghana (BoG) and the subsequent public outcry by their customers.

Mr Opoku appealed to the media to be cautious not to publicise the activities of unregistered financial institutions but ensure that such institution possess all the necessary documents governing their establishment and operations.

A media house that would inaccurately publicise the activities of those illegal financial institutions could be jointly and severally held responsible with such companies to face the law, he said.

Mr Opoku said DKM Diamond Micro-finance had been given up to September 11, 2015 by the BoG to strengthen their staff base with personnel with the requisite qualifications, constitute a competent Board of Directors and also inject 50 million Ghana cedis into their operations to enable the BoG to lift the moratorium placed on the company.

He said if DKM was unable to meet the conditions, BoG would take the next line of action to protect the interest of customers.

The Regional Minister said God is Love Fun Club had also been asked to submit the list of its members with their contributions to the BoG, so as to defreeze its accounts for payments to customers by September 16, 2015.

He said JASTAR Motors and investment Company Limited is to start payment to its customers next week with the assistant of the police while Little Drops Association was also to resubmit the list of its customers which included beneficiaries from Abesim and Kenyase for the lifting of the ban on it for continuous payment to clients.

Mr Opoku, therefore, appealed to the BoG to reconsider de-freezing the accounts of all associations, clubs and financial institutions after they had met the necessary legal requirements of operations due to the security implications, economical, emotional and psychologically effects on their clients and the general public.