The receiver is set to pay GH₵151.8 million to 5,637 former staff of 209 defunct Specialised Deposit Taking Institutions (SDIs) as outstanding salary arrears and compensation due them before the end of this month.

This follows the Bank of Ghana (BoG) making available funds to the receiver and official liquidator to fully settle employee-related claims which otherwise rank as unsecured claims in the receiverships/liquidation of the affected companies.

GH₵144.3m compensation, GH₵7.5m salary arrears
The amount is made up of GH₵144.3 million in compensation due the former employees and GH₵ 7.5million in salary arrears.

GH₵24.6m for 2,036 staff of 177 Microfinance Companies
A total of 2,036 staff of 177 Microfinance Companies (MFCs) will receive GH₵24.6 million for outstanding salary arrears and other related claims.

GH₵20.3m compensation, GH₵4.3m salary arrears

It comprises GH₵20.3 million compensation and GH₵4.3 million salary arrears.

GH₵125.8m for 3,547 ex-staff of 21 Savings & Loans companies
In addition, 3,547 former employees of 21 Savings & Loans (S&Ls) and Finance House Companies will also be paid GH₵125.8 million.

GH₵122.7m compensation, GH₵3.1m salary arrears
It is made up of GH₵122.7 million compensation and GH₵3.1 million salary arrears.

GH₵1.4m for 54 ex-staff of 11 Microcredit Companies
For 11 microcredit companies (MCCs), 54 ex-staff will also receive GH₵1.4 million for outstanding salaries and compensations.

GH₵1.35m compensation, GH₵0.05m salary arrears
The compensation is GH₵1.35 million while the salary arrears is GH₵0.05 million.
Full payment of all outstanding salaries post-receivership

The Receiver, Mr Eric Nana Nipah, told journalists in Accra that the negotiated settlement includes full payment of all outstanding salaries post-receivership.

Details of the compensation package
He said the compensation includes three-month basic salary per each year of service, accrued outstanding leave days for 2019 to be commuted to cash, and option of first right of refusal to purchase official cars assigned to staff prior to receivership.

He added that the rest are medical insurance for 2019 allowed to run till expiry; validation and payment of outstanding medical bills as at receivership date; and 30% discount on all outstanding loans.

Challenges of poor records keeping
On challenges, he cited availability and access to employee data for verification and computation of exit packages as one of them.

No employee records of 155 microfinance companies
According to him, 155 MFCs had ceased operations prior to the receivership date and there are currently no employee records available for these MFCs.

Negotiations with employees of 15 microfinance companies ongoing
Mr Nipah explained that negotiations and computations were currently ongoing with employees of 15 MFCs.

2 Savings and loans companies folded up prior to receivership
He noted that two savings and loans companies had ceased operations and closed prior to receivership.

28 Microcredit companies folded up prior to receivership
He also stated that there were no employee records for 28 microcredit companies that had ceased operations prior to revocation date.

Receiver initially retained all staff willing to work
The receiver said he inherited all staff willing to work with them for an initial period of five months for MFCs and three-and-half months for S&Ls.

Receiver inherited GH₵13.1 monthly payroll
The monthly payroll inherited by the receiver was approximately GH₵13.1 million for the over 5,000 staff retained.

Receiver reduced monthly payroll to approximately GH₵5 million
Mr Nipah said following a gradual phasing out process, the current staff strength of the receiver is approximately 2,000 with a monthly payroll of approximately GH₵5 million.

The resolved companies are 347 microfinance companies, 23 savings & loans and finance house companies, and 39 microcredit companies in official liquidation.