IN THE MATTER OF THE BANKS AND SPECIALISED DEPOSIT-TAKING INSTITUTIONS ACT, 2016 (ACT 930)

IN THE MATTER OF THE RECEIVERSHIPS OF THE RESOLVED 347 MICROFINANCE COMPANIES AND THE 23 SAVINGS AND LOANS AND FINANCE HOUSE COMPANIES

NOTICE OF FULL PAYMENT OF OUTSTANDING SALARIES AND NEGOTIATED AND AGREED EXIT PACKAGES TO EX-STAFF OF THE RESOLVED MICROFINANCE AND SAVINGS & LOANS AND FINANCE HOUSE COMPANIES

In accordance with Section 123 of Act 930 Bank of Ghana (BoG) appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers (Ghana) Limited (PwC) as Receiver for the purposes of winding down the affairs of 347 Micro Finance Companies (“MFCs”) as well as 23 Savings and Loans and Finance House Companies (“S&Ls”) whose licenses were revoked on 31 May 2019 and 16 August 2019 respectively.

The main duties of the Receiver are;

  • To recover and maximise asset realisations for the benefit of Creditors, including employee claims; and
  • Distribute realisations in accordance with the relevant provisions of Act 930, to satisfy the indebtedness of these institutions to their body of Creditors, to the extent possible.

As you may be aware, the Asset Realisations phase, a key component of the receiverships is currently underway albeit at a relatively slow pace due mainly to the following reasons:

  • Poor quality of assets of some of these institutions
  • Asset diversion
  • Misstatement of a significant number of assets of some of these companies in the financial records of these resolved companies,

Accordingly, the Receiver is compelled to undertake a detailed assets tracing and forensics exercise in collaboration with the Economic and Organised Crime Organisation (“EOCO”) to locate and recover these assets. The consequence in pursuing this recovery route is that creditor claims including employee related claims in the resolution of the affected MFCs and S&Ls are not likely to be settled any time soon.

To ameliorate the economic impact of the resolution exercise on former employees of these affected companies particularly in these times of COVID, Bank of Ghana has agreed to pre-finance the full settlement of employee related claims which otherwise rank as Unsecured claims in the receiverships of these companies. The Receiver will in the week commencing Monday, 13 July 2020 engage with the authorised representatives of the ex-staff to agree on modalities for the payment of outstanding salaries and exit packages to ex-staff of these resolved institutions. In line with the hierarchy of creditor claims set out under Act 930, other creditors of the failed institutions will be settled by the Receiver upon validation of their claims and to the extent that the Receiver is able to realise value from the remaining assets of these institutions. Please note that the Receiver will only fully settle outstanding salaries and exit packages of ex-staff which have been duly validated agreed and in the resolution process.

Stakeholders may direct all concerns on the above receiverships to the Receiver, Eric Nana Nipah, at No 25 B Manet Tower B, Airport City, Accra, or on telephone +233 (0) 242 439 441, or visit www.ghreceiverships.com for more information.

SGD

ERIC NANA NIPAH