Customers of Evergreen microfinance demand locked up funds

Hundreds of customers of Evergreen Microfinance in Suhum in the Eastern region have thronged the office premises to demand their locked up funds.

Evergreen microfinance is one of the financial institutions declared insolvent by the Governor of the Bank of Ghana on Friday, May 31, 2019.

The customers include traders, drivers, and businessmen who invested their funds with the microfinance company.

Some of the customers who spoke to Starr News are threatening to commit suicide over their locked up cash.

“This is the third time I have lost my money with this microfinance companies…I lost my money with First Allied and now Evergreen. The government must think of the customers before they close down companies, they just can’t shut down companies and ask people to go home…now I need my money what should I do.”

The BoG has revoked the licences of 347 insolvent microfinance companies due to liquidity challenges.

Out of the number, 192 were insolvent but in operation, while 155 that were insolvent had ceased operations.

The latest action by the BoG has left the country with 137 microfinance companies standing, from the about 566 previously.

In addition to the collapse of the microfinance companies, the licences of 39 micro-credit companies, also known as money lenders, have been revoked.

They are made up of 10 companies that were insolvent and had ceased operations and 29 other insolvent ones.

The BoG consequently appointed Mr Nipah as receiver for the specified institutions, in line with Section 123 (2) of Act 930.