DKM customers agitate over savings
A combined military cum police team has been placed on the premises of the Bank of Ghana (BoG) in Sunyani following continued subtle agitation by some customers of Diamond Microfinance Company (DKM) whose investments have been frozen by the BoG.
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The 90-day moratorium placed on the operations of DKM, with effect from May 11, 2015, ended yesterday, with the customers besieging the premises of the company to see whether they could get any information on their investments.
When the Daily Graphic visited the office of the company, pockets of its clients were seen standing in groups discussing their fate.
BOG office
On the BoG premises, about 20 military and police personnel on high alert were on standby to quell any attempt by the clients of DKM to enter the offices.
Bystanders told the Daily Graphic that earlier, the clients had besieged the premises but had gone away without hearing anything about their investments.
There were rumours in town that the BoG would make a pronouncement on the matter, one of the clients who pleaded anonymity told the Daily Graphic, adding that that had heightened the attention of those whose money had been locked up by the financial regulator.
DKM Office
Some of the customers who besieged the DKM office expressed worry over the lack of information on the situation.
“We want to know how far the issue has gone. We are frustrated and we want our money,” one said.
Regional Police Commander
Speaking on a local FM station, the Brong Ahafo Regional Police Commander, Deputy Commissioner of Police (DCOP) Mr Maxwell Atingane, confirmed that leaders of the customers of the DKM had approached the Regional Police Command about their intention to demonstrate.
He said he had educated them on the Public Order Act and asked them to advise the other customers to be patient and wait for a pronouncement from the BoG before embarking on their intended demonstration.
God is Love
In another development, members of the God is Love Fun Club in Sunyani have started agitating for their money which has been locked up as a result of the decision of the BoG to freeze the account of the club.
A member of the club who gave her name only as Comfort told the Daily Graphic that even though her investment had matured, the office of the club had been locked up without any information.
Background
On May 11, 2015, the BoG placed a 90-day moratorium on the operations of DKM Microfinance Company.
A notice posted in front of the microfinance company reads: “The Bank of Ghana, in accordance with the provisions of the Banking Act 2004 (Act 673) as amended, Section 65 (1), wishes to inform all banks, Non-Bank Financial Institutions (NBFI) and the general public of its placement of a 90-day moratorium on the operations of Diamond Microfinance Company Limited with effect from Monday, May 11, 2015”.
According to the notice, the BOG’s action was due to the failure of the company to comply with the terms and conditions stipulated in its licence (Section 113) (b) of Act 673.
In addition, the notice stated that the company was “holding insufficient assets to meet its liabilities to depositors” as stipulated in Section 13 (1) (e) of Act 673.
Again, the company is “carrying on operations in a manner which appears to the Bank of Ghana to be detrimental to the interest of its depositors or the general public”, Section 13 (1) (f) of Act 673.