We used tax payers money to pay DKM customers – Ken Ofori-Atta

Wondering where government had the funds to pay customers of the defunct DKM Microfinance Limited? – Well, Finance Minister Ken Ofori-Atta has said government had no other alternative than to use tax payers’ money to pay the aggrieved customers.

He justified that by saying “It was a registered company under Bank of Ghana.”

The NPP whiles in opposition vowed to pay victims of the DKM scandal when the then presidential candidate, Nana Addo Dankwa Akufo-Addo asserted that “I will pay you back in full when I become president".

The promise has been fulfilled nearly two-years of Nana Addo’s tenure as president – his finance minister, Mr Ken Ofori-Atta on Thursday, 15 November told parliament that 90% of the victims have been paid but his government is hoping to settle almost all claims of DKM customers.

“Mr Speaker, you would recall that DKM Diamond Microfinance Limited had its license revoked in February 2016 with considerable suffering imposed on depositors, without any meaningful response from the previous government. That has significantly changed.”

“The official liquidator received 99,858 claims and the validated claims amounted to GHS502 million.

“I would like to inform the country that out of the 99,858 claims, 79,708 (80 per cent) have been settled and depositors have been paid.

“The government has set aside funds at the Bank of Ghana to pay the remaining 20 per cent of depositors upon validation.

“An additional 12,612 claims have been fully provided for, but the customers have not as yet been able to show proof of deposit.” Ken Ofori-Atta told parliament when he delivered the 2019 budge

Many have raised concerns as to where government had the funds to pay the victims since it does not own the company.

In response to that, Finance Minister Ken Ofori-Atta in an exclusive interview on PEACE FM’s flagship morning show ‘Kokrokoo’ said government used tax payers’ money to settle the sum unpaid.

“Kwami, hmmm, we have to use our tax payers’ money. This is a part of clean-up exercise undertaken in the banking sector by the Bank of Ghana”

Confirmation of payments

Some customers of DKM Microfinance Limited have confirmed claims by the government that they have been paid a chunk of their investments that got locked up in the financial institution.

Spokesperson for the affected customers, Alexander Obeng told the media that although there still remains a backlog to be cleared, the government has paid a huge portion of their investments.

“Under the previous NDC government, the liquidator paid everybody GHS3, 500 across the board irrespective of the amount a victim had invested with the firm. When the NPP took over, the liquidator raised the amount from GHS3,500 to GHS10,000.”

He added: “So, it is true as the Finance Minister said yesterday in parliament that some of the monies have been paid. We, however, want the government to also pay the customers of the other companies. The issue is not only about DKM.”