BoG report implicates Alpha Capital Savings and Loans; deposits locked

A savings and loans company, Alpha Capital Savings and Loans, has been implicated by the Bank of Ghana in over 20 financial irregularities while its customers continue to cry for help to retrieve their investments. Earlier this year, Alpha Capital Savings and Loans with its head office at Adabraka in Accra was in the news as some disgruntled customers raised alarm about their investments and deposits, which had been allegedly locked up with the company. Pressure from the customers forced management of the company to start paying their monies while renegotiating maturity dates for customers who had investments worth over GH¢1 million. Six months down the line, Alpha Savings and Loans Company has closed its doors without any notice to the public and its management cannot be found. A confidential report from the Banking Supervision Department of the Bank of Ghana sighted by shows that the Company among other things misreported their financials, engaged in unlawful outsourcing and inaccurate submission of financials as well as connected lending and established subsidiaries without following due process   On the issues of connected lending, the company was found to have given a loan of GH¢2 million to Sametro Company Ltd, whose Managing Director is a Shareholder/Director of Alpha Capital, a transaction which contravenes Section 53 of the Banking Act 2004. The company was again found to have established a subsidiary – Alpha Securities – with the Securities and Exchange Commission without the prior approval of the Bank of Ghana, an act which is in breach of Section 46 (1) of the Banking Act of 2004, Act 673.

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The Bank of Ghana also found out that contrary to law, Alpha Savings and Loans outsourced its loans recovery to UT Collections and the hosting of its data center to Comsys Ghana Limited without the prior approval of the BoG. [caption id="attachment_96974" align="aligncenter" width="600"] ?[/caption] In all 22 cited cases of irregularities, the BoG prescribed solutions and instructed the Company to immediately correct the anomalies but as it stands, the offices of the company remain locked. Day-in, day-out customers still visit the company to see if they can retrieve their investments and deposits. Source:|Ghana]]>