The Economic and Organised Crimes Office (EOCO) is instituting investigations into directors of over 65 of the collapsed Microfinance Institutions in receivership.
The directors are to be investigated on their individual roles in the use of depositor funds.
According to Citi FM's report, records of many of the companies cannot be traced while many of the directors cannot also be located.
In line with the Banking sector reforms, the Central Bank in May revoked the licenses of 347 insolvent microfinance institutions.
The Receivers have subsequently taken steps to begin repayment of depositors’ funds. EOCO is assisting the Receiver to locate, interrogate and conduct investigations into the conduct of directors of these companies.
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Background
The Bank of Ghana in May revoked the licences of some 192 insolvent microfinance companies.
In addition, licences of another 155 insolvent microfinance companies that have ceased operations have been revoked.
BoG in a statement said these actions were taken pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a bank or Specialised Deposit-taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent or is likely to become insolvent within the next 60 days. Consequently, the Bank of Ghana has appointed Mr. Eric Nipah as Receiver for the specified institutions in line with section 123 (2) of Act 930.
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