Receiver, EOCO pursue GH¢252m ‘untraceable’ depositor claims

Photo: Receiver, Eric Nana Nipah.

The Receiver has said it is working closely with the Economic and Organised Crime Office (EOCO) to locate and retrieve company records or books on some 35 resolved entities in order to validate depositors’ claims estimated to be GH¢252 million.

The validation will also enable the Receiver to pay the claims made on these 35 resolved companies, under the Depositor Payment Scheme.

These companies are among the 157 non-operational companies, with some documented to have ceased operations, prior to the withdrawal of their licenses by the Bank of Ghana (BoG), according to a statement issued and signed by the Receiver, Eric Nana Nipah.

Two of the resolved entities, which have no records with the Receiver, with huge depositor claims include Noble Dream Microfinance Limited and Man Capital Microfinance Company with combined claims of 9,815 worth GH¢189.4 million.

While Noble Dream Microfinance Limited closed down in March 2014, has a total of 9,427 claims worth GH¢122.2 million made on the company, Man Capital Microfinance Company, closed down in April 2017, also has claims of 388 worth GH¢67.2 million.

Mr. Nipah said a major challenge 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.

He disclosed that “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,” out of a total of 370 entities.

However, based on the collaborative arrangement with EOCO which includes assets tracing and investigations, some books and records have been obtained from 131 resolved entities, which were not operational at the commencement of the resolution of these companies.

He acknowledged that this made “it possible for us to be able to validate creditor claims on these institutions.”

It would be recalled that, pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) (the Act), Bank of Ghana (BoG) on May 31, 2019, and August 16, 2019, revoked the operating licenses of 347 Microfinance Companies and 23 Savings and Loans and Finance House Companies respectively,

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.

The Receiver, under Section 127(3) of Act 930 is mandated 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.

Leave a Reply