Savings and loans customers raise doubts about govt payment plan

Customers of defunct savings and loans companies have cast doubt on government’s ability to pay their locked-up funds in full.

This comes in the wake of President Nana Addo Dankwa Akufo-Addo’s announcement in his State of Nation Address that payment will begin Monday, February 24.

The president indicated that it will disburse some GH¢13.5 billion for the over 4 million customers, who have been affected in the financial sector clean-up.

The Bank of Ghana revoked the licences of nine universal banks, 347 microfinance companies, 39 microcredit companies/money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions which had already ceased operations.

The customers think they have received many assurances from government on the payment of their funds.

The Greater Accra Region representative of affected customers, Mubarak Iddrisu, said they don’t have confidence in this timeline

“This is not welcoming news to us at all. We have heard these promises over and over and this time, we will follow up on the receiver to see whether what government is saying is true, though we are in doubt,” he said.

Mubarak Iddrisu is worried about the communication discrepancies between the receiver and government spokespersons and he is advocating for swift process for the release of the funds.

But the Association of Savings and Loans Companies has charged the customers to remain calm while the set date for payment approaches.

Executive Secretary of the Association Tweneboa Koduah advised customers to allow the process to run.

He said customers of savings and loans should be treated fairly as was done to the customers of the commercial banks.

“All customers of the commercial banks got their funds in full and we are expecting our members to also be paid in full, to buttress the point that all customers are important.”