Business

BoG tightens surveillance to ‘whip’ unlicensed investment clubs

Bank of Ghana
Communications Director at the bank, Benjamin Otabil, says the companies especially licensed banking and non-banking institutions will be expected to give a constant report about their operation to the bank.
They will be also required to provide detail information regarding their loan arrangements for scrutiny by the bank.
These measures, he said are aimed at ensuring the safety of customers, integrity, and transparency of the banking institution in the country.
A total of at least 40,000 people lost their investment in Ho, the capital of Volta Region in what has been described as second major investment scam in the country.
Clubs such as JODEQ, Clear Image Investment, Devine Rain, Little Drop Investment Club, Prosperity and Good Health, Royal Foundation, and Royal Care among others are alleged to have swindled their customers.
They promised the customers that anybody who invests between GH₵380 – 450 will reap a return in the range of GH₵5,000 to 6,000 depending on the duration of one’s investment.
This comes a few months away from a major microfinance scam in which more than a million Ghanaians were duped by some microfinance companies with branches across the country.
DKM Microfinance company and four others such as God is Love Fun Club, Jaster Motors and Investment Limited, Care for Humanity Fun Club and Little Drops Financial Services took deposits from clients for investment and bolted with their money.
Not even the promise of the government and Bank of Ghana to retrieve the money for customers has yielded any fruit.
Speaking to Joynews, Benjamin Otabil said he shares the sentiment of the customers who have lost their investments.
Even though banking supervision is a core part of the work that the Bank of Ghana is expected to do, many people start organisations without prior approval which he believes is going against the bank’s efforts.
He appealed to Ghanaians to volunteer information regarding the operation of some of these institutions for the necessary punitive measures to be applied.
Source: myjoyonline.com

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