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

AND

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

NOTICE TO THE GENERAL PUBLIC

Pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) (“the Act”), Bank of Ghana (“BoG”) on 31 May 2019 and 16 August 2019 revoked the operating licenses of 347 Microfinance Companies and 23 Savings and Loans and Finance House Companies respectively, and in accordance with Section 123(2) of the Act appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers Ghana Limited (“PwC”) as the Receiver for the purposes of winding down the affairs of these Companies.

As you may be aware, the mandate of the Receiver under Section 127(3) of Act 930 is to maximise asset realisations for the benefit of Creditors including Depositors, as well as settle the obligations of the company to its body of creditors to the extent possible.

In carrying out his duties and as part of his Day 1 activities, the Receiver took control over the premises of these resolved companies and in the process, secured the assets and liabilities of these companies, as well as their books and records to the extent possible.

A summary of the operational status of the resolved companies as at the date of revocation is set out below:

Details

Number of Resolved Companies

Number of Operational Companies

Number of Non-operational Companies

Resolved Microfinance Companies

347

192

155

Resolved Savings & Loans and Finance House Companies

23

21

2

Total

370

213

157

Based on the above table, out of a total of 370 entities in resolution, 157 were non-operational with some of these companies having ceased operations long before BoG revoked their licenses.

In the conduct of the resolution of these companies, a major challenge the Receiver has faced with some of the non-operational companies has been in the area of securing the books and records of these companies both manual and electronic. At the commencement of the resolution process, there were 157 non-operational companies whose books and records we were not able to locate and secure. Based on the collaborative arrangement we have with the Economic and Organised Crime Office (“EOCO”) which includes assets tracing and investigations, over time, we have been able to retrieve books and records from 131 resolved entities which were not operational at the commencement of the resolution of these companies, thereby making it possible for us to be able to validate creditor claims on these institutions.

Currently there are 35 resolved companies with depositor claims worth approximately GHS252m which have no books or records available to us, to enable us to validate and settle these claims under the Depositor Payment Scheme. We are working with EOCO to locate and retrieve these companies records in order to be able to validate and settle depositor claims made on these companies. Attached at Appendix 1 is a list of the 35 resolved companies the Receiver is yet to obtain books and records on, to enable the validation of creditor claims including depositor claims to be undertaken in the resolution exercise.

 The Receiver,

No 54 Olusegun Obasanjo Highway

Opposite Accra Girls High School

Accra, Ghana

www.ghreceiverships.com

SGD

ERIC NANA NIPAH

 

Appendix

a)      Microfinance and Microcredit Companies Without Records

     

No

Name of Resolved Institution

Date of Closure

No. of Claims

 Value of Claims
(GHS’000)

1

ABIS PLUS MICROFINANCE LIMITED

Sept, 2014

31

24

2

AFRICAN TRUST MICROFINANCE LIMITED

Dec, 2015

122

481

3

AG MICROFINANCE LIMITED

May, 2017

2

4

4

BEDEL

May, 2019

2

988

5

BENGAY MICROFINANCE LIMITED

Dec, 2017

3

59

6

BIG DREAMS MICROFINANCE LIMITED

Sept, 2013

1

1

7

BOIN MICROFINANCE COMPANY LIMITED

May, 2019

4164

2,974

8

COMMON CAPITAL MICROFINANCE LIMITED

Mar, 2016

2

1,283

9

CROWN CAPITAL MICROFINANCE LIMITED

May, 2019

2

29

10

D-VANC MICROFINANCE LIMITED

May, 2019

1

1

11

DWETIRE MICROFINANCE LIMITED

May, 2019

5

10

12

ELITE MICROFINANCE LIMITED

Jun, 2017

2

858

13

ERA MICROFINANCE SERVICES LIMITED

Oct, 2013

23

943

14

GMET MICROFINANCE LIMITED

Dec, 2016

1

659

15

GODIGO MICROFINANCE LIMITED

Sept, 2013

10

8

16

GOLDEN TRUST MICROFINANCE CO. LIMITED

Jun, 2017

3

2,451

17

HALAL MICROFINANCE LIMITED

2013

1

1

18

HIGH PRESTIGE MICROFINANCE SERVICES LIMITED

Aug, 2016

5

188

19

ICS MICROFINANCE LIMITED

Mar, 2015

1

6

20

JADA MICROFINANCE LIMITED

Apr, 2014

1

13

21

JOPAT MICROFINANCE COMPANY LIMITED

Jul, 2012

1

17

22

JOY HELP MICROFINANCE LIMITED

Sept, 2016

5

17

23

KAPITAL EXPRESS MICROFINANCE COMPANY LIMITED

Dec, 2018

1

6

24

KINGDOM TRUST MICROFINANCE LIMITED

Oct, 2014

13

68

25

LIBERTY DAILY

May, 2019

1

5

26

MAN CAPITAL MICROFINANCE COMPANY

Apr, 2017

388

67,235

27

NOBLE DREAM MICROFINANCE LIMITED

Mar, 2014

9,427

122,171

28

RESTORE MICROFINANCE COMPANY LIMITED

Jul, 2012

1

20

29

ROYAL FUTURE MICROFINANCE LIMITED

Oct, 2012

3

30

30

SAVANNAH MICROFINANCE LIMITED

May, 2019

1

22

31

STAR PLUS MICROFINANCE LIMITED

Sept, 2014

208

202

32

STARLING MICROFINANCE SERVICES LIMITED

May, 2019

14

88

33

UNIQUE-MAS MICROFINANCE COMPANY LIMITED

May, 2019

2

549

34

*GREAT AFRICA MICRO CREDIT COMPANY

Jan, 2017

1

116

Total

 

14,448

201,527

*Great Africa Microcredit is under Official Liquidation

     

a)    Savings & Loans and Finance House Companies Without Records

No

Name of Resolved Institution

Date of Closure

No. of Claims

 Value of Claims
(GHS’000)

1

CREST SAVINGS AND LOANS

November 2015

28

47,980

2

STERLING SAVINGS AND LOANS

January 2011

3

2,735

Total

 

31

50,715