Registrar General’s Department runs out of funds to pay DKM creditors
The Registrar General's Department (RGD) has halted payments to creditors of DKM Microfinance after it run out of funds.
According to the Public Relations Officer of the RGD, Madam Constance Adomah Takyi the process would be resumed once the Department (official liquidator of DKM) is able to sell-off assets of the micro-finance company.
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"However, those with the issues about not getting all their money... Well the department only became the liquidator then there virtually was no money, we had to borrow to pay them," Madam Takyi said in an interview with Citi FM.
"However, we have run out of funds, so as soon as we are able to get enough funds, we will see to those who have the larger amounts".
The ongoing liquidation process of DKM Microfinance has established that 87,000 customers of the defunct company are entitled to receive GH¢352 million.
This was after financial consultant to the official liquidator, PricewaterhouseCoopers (PwC), validated the company’s liability of GH¢605 million to 87,000 depositors.
Under the Depositor Transfer Scheme (DTS), the official liquidator has started making payments to about 74,000 depositors whose balances with the company were up to GH¢10,000; they will receive 100 percent of their validated claims.
However, 13,000 depositors, whose balances were above GH¢10,000, will receive in addition to the initial GH¢10, 000 a negotiated top-up payment ranging between 10 percent and 35 percent of their outstanding balances.
Madam Takyi disclosed that about 80% of DKM clients had deposits with the company totalling under GHC 10,000 and have all received their monies with the remaining 20% yet to receive their deposits.
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She said: "However, we have also been able to pay majority of the people whose funds were below GH¢ 10,000. About 80% of the clients had deposits below GH¢ 10,000, the 20% are the people with the higher amounts of money that are yet to get any other payments.
"But, he departments doesn't have any funds now but as soon as funds are made available we would consider with the process".
Background
Customers lost their investments running into millions of cedis after the central bank in 2015 suspended the operations of the company for violating the Banking Act, Act 2004 (Act 673).
The Bank of Ghana (BoG) then confiscated the assets of the company and appointed the Registrar General’s Department to commence liquidation process on March 29, 2016 to refund customers of the company.