RGD out of funds to pay DKM customers

The Registrar General’s Department (RGD) which is the official liquidator for DKM Microfinance says it has run out of funds to continue paying claims by customers of the defunct microfinance company.

The Department said 80 per cent of customers have been cleared and the remaining 20 per cent whose investment is above GHS10,000 will receive their claims as soon as funds are made available.

“When the department became the liquidator, there was virtually no money; we had to borrow to pay them. However, we have run out of funds, so, as soon as we are able to get enough funds [we’ll pay]…about 80 per cent of clients with monies below GHS10,000 have been cleared. The 20 per cent are the people with the higher amount of money but the department has no funds now and as soon as funds are made available, we’ll continue with the process,” the Public Relations Officer (PRO) of the Registrar General’s Department, Constance Adoma Takyi told Accra-based Citi FM.

The Registrar General’s Department was engaged by the Bank of Ghana to handle the liquidation processes of DKM after thousands of customers lost millions of cedis after the microfinance company run into financial challenges.

The company was alleged to have invested millions of its customers’ deposits in its subsidiary companies – DKM Airlines Company, DKM Fuel Station, DKM Transport, DKM Shea Butter Company and DKM Mining Company, among others.

Millions of cash deposited by the customers were locked up, following the Bank of Ghana’s decision to stop the company from operating in 2015 over concerns of violating the microfinance regulations.