The Member of Parliament for New Juaben South, Dr. Mark Assibey Yeboah has backed calls for the Bank of Ghana to release some token towards the relief of customers of under pressure financial institution DKM Diamond Microfinance Company Limited.
He explained the predicaments of customers of the rogue Microfinance company is attributed to the gross failure of the Bank of Ghana to do due diligence in the issuance of license and effective monitoring of the company.
Finance Minister, Seth Terkper, Tuesday, told Parliament that the collapse of DKM Diamond Micro Finance Company Limited (DKMDML) was due to unsustainable products and services that were run by the bunco finance company.
“Mr. Speaker, the audit revealed that total deposit liabilities of DKM amounted to GH₵115.24 million as against a total cash of GH₵10.8 million. An amount of GH₵77.26 million was diverted to DKMDML’s subsidiary companies.”
“The audit also confirmed weaknesses such as misreporting to BoG, mismatches of assets and liabilities, weak governance structures among others. DKM has made several promises to pay its customers but these have not materialized”.
However Dr. Assibey believes the havoc caused by DKM has put a strain in the economy of the Brong Ahafo region, worsening the living conditions of the people, and hence government must step in to extend support to the poor customers.
“By extension government is responsible to resuscitate the lives of customers affected in the DKM issue. Bank of Ghana is solely responsible for issuing license for all banks, and non-bank financial institutions as well as the monitoring and regulation of their operations, and since government works through the BOG, it must find the need to meet poor customers halfway.
“This is more of a national disaster and customers were ripped off in that scheme because BOG did not live up to their responsibility of safeguarding the interest of the customers” he told host Fiifi Banson on Anopa Kasapa on Kasapa 102.3 FM.
