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92% of DKM claims paid – Finance Minister

From left, Martin Delle, Managing Director of DKM Financial Services; Noel Nortey, Nkoranza Branch Manager of God Is Love Fun Club; Charles Asum, Managing Director of Jastar Group of Compa­nies and Monica Afriyie popularly called Maame Korkor, Managing Director of God Is Love.

BY MUNTALLA INUSAH

muntalla.inusah@dailyheritage.com.gh

GOVERNMENT OF Ghana through the Minister of Finance has taken measures to repay deposits of all customers of the defunct DKM Microfinance Company.

According to the Finance Minister, Ken Ofori Atta, who said this during the presentation of the 2019 budget Thursday on the floor of Parliament, over 90% of customers’ deposits at DKM has been paid by the State.

“Mr. Speaker, you would recall that DKM Diamond Microfinance Limited had its licence revoked in February 2016 with considerable suffering imposed on depositors, without any meaningful response from the previous government. That has significantly changed.

“The official liquidator received 99,858 claims and the validated claims amounted to GH¢502 million. I would like to inform the country that out of the 99,858 claims, 79,708 (80 percent) have been settled and depositors have been paid. The Government has set aside funds at the Bank of Ghana to pay the remaining 20 percent of depositors upon validation.

“An additional 12,612 claims have been fully provided for but the customers have not as yet been able to show proof of deposit. This means that 92 percent of DKM claims from depositors have been paid or provided for. Depositors for the remaining 7,568 claims of above GH¢10,000 are yet to reach agreement with the liquidators,” Ofori Atta said.

Background

DKM was incorporated on April 3, 2013 and was licensed by the Bank of Ghana as a tier two microfinance company on October 25, 2013.

The balance sheet of DKM, as of May 11, 2015, showed its net liability stood at negative 21 million cedis.

The company at the time its license was revoked by the BoG on February 29, 2016 had 10 branches with two agency offices and six subsidiaries.

Though the central bank subsequently lifted the ban on the company’s operations, DKM was unable to pay its customers their locked up cash leading to the liquidation of the financial company.

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