General News of Mon, 23 Jul 20181

Midland: BOG begins probe amidst reports of liquidity challenges

The Bank of Ghana will this morning (Monday) commence investigations into occurrences at the Midland Savings and Loans Company to enable it establish what led to the assault on a customer and whether the company is actually facing liquidity challenges.

A policeman who had been stationed at the Shiashie branch of the company last Thursday assaulted a nursing mother who demanded her deposit.

There has been public outrage and condemnation from President Akufo Addo and a large section of Ghanaians after a footage of the said Police officer in uniform beating to pulp the helpless nursing mother emerged on social media platforms.

The 1:26 seconds amateur video shows the officer, who had a gun with him, hitting the woman on the head repeatedly and slapping her at a point, despite a desperate attempt by an unidentified man to separate them.

According to Joy News, sources say the investigations is intended to establish what actually happened and whether the all the laid down protocols were followed in dealing with the situation.

The investigations will also try to establish whether there is any truth in reports that the company is seriously facing liquidity challenges making it difficult for the company to meet the demands of its customers.

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The investigative team which will be led by the Financial Stability Department of the Bank of Ghana is expected to present its interim report to management of the Bank of Ghana for the necessary actions to be taken against company.

Some believe that reports of liquidity challenges facing Midland Savings and Loans Company has been strengthened following a statement by internet provider K-Net that the problems experienced by the company cannot be attributed to an internet challenge which made it difficult for the company to dispense cash to the depositors.

According to K-Net there was no point in time that a complaint was made to them that Midland was having challenge with their internet.

There are fears that the development will cause a run or what some may call massive withdrawals from the Savings and Loans Company.

The Midland issue brings to five companies said to be facing serious liquidity problems making it difficult for the customers to get their deposits.

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