30 directors, shareholders under investigation for microfinance companies insolvency – BoG

Head of financial institutions and supervision department of the Bank of Ghana, Joseph Amoa-Awuah, says about 30 directors and shareholders of microfinance companies whose licenses have been revoked for being insolvent are being investigated. According to him, there is an ongoing audit of all the companies that have been closed down. The BoG last week announced the revocation of the licences of 386 microfinance companies citing insolvency and dormancy. Meanwhile, the central bank has said it will investigate the causes and bring to book those who have contributed to the collapse of the companies. Speaking on TV3’s Business Focus programme hosted by Paa Kwasi Asare, Mr. Amoa-Awuah said initial investigations conducted by the bank revealed related party transactions, under-capitalization and breaches to the Bank of Ghana Act as some of the offences committed by the microfinance companies. Of the 30 under investigations, he disclosed about five of them are currently standing trial for various offences. He also noted that the BoG has not given any new licences to any microfinance companies since 2016. Source: 3news.com | Ghana]]>