Minority Leader of Ghana’s Parliament, Osei Kyei-Mensah-Bonsu, has warned that if immediate steps are not taken to bailout depositors in the DKM Diamond Microfinance Company fiasco, the country may experience food shortage in the coming months.
Governor of the Bank of Ghana (BoG), Henry Kofi Wampah, Tuesday, told Parliament that the Central Bank has no bailout package for victims of DKM Diamond Microfinance Company fiasco because they did not invest wisely.
He further told the August House that although DKM’s 50% interest on deposits for two months was unsustainable, customers could have done better with their investment if they had conducted due diligence into the operations of the company.
“When you have a million Cedis and you place the funds in a very risky institution, you can only get what is guaranteed”.
“To be able to do due diligence and know where to place your funds is necessary. They (depositors) were expected to have to known better and invested wisely” he said when addressing the House over the circumstances that lead to the closure of DKM and whether it was possible to offer depositors a bailout package.
But the Minority Leader in swift response warned that the decision of the central bank could trigger famine in the country, calling on the Bank of Ghana to rescind its decision and offer some rescue package to the depositors affected the Ponzi scheme.
He told the August that since majority of the victims are farmers, and especially, come from the food basket communities in the country; the earlier a bailout package is offered to them the better.
“Mr. Speaker, this whole issue affects the entire northern sector of the country even though Brong Ahafo is the epicenter. There some areas in the Northern, Upper East and Upper West Region that were also affected. As far as the production of legumes, cereals and tubers are concerned, that portion of this country indeed is where the production belt is”.
“And so, I am afraid of the security into 2016. As many of the people involved are farmers. Already there are some predictions that we are going to have some shortages in the production of cereals and if this should add to it, it is really going to disturb the national radar and affects food security negatively into 2016”.
“I can foretell that 2016 will be a difficult year for us as a nation. That is why it is important for the Bank of Ghana to do whatever they can to rescue the farmers”, he said.
