Finance Minister, Seth Terkper has disclosed that embattled Sunyani-based DKM Diamond Microfinance Ltd diverted about ₵77 million of customers’ deposits into its other subsidiaries.
The Minister made this known when he briefed Parliament on the microfinance scam which shook the banking industry last year.
Mr Terkper in his presentation said DKM was granted the licence to operate as a savings and loans company in 2013 but violated all rules regulating the sector.
An investigation by the Financial Intelligence Centre revealed that the company collected ₵115.2 million from customers but had only ₵10.8 million in its accounts at the time of investigations.
The money is suspected to have been diverted into affiliate companies; DKM Mining Ltd, DKM Transport Ltd, DKM Shea Butter Ltd, DKM Gas Filling Station and DKM Cement Depot Ltd.
The microfinance company was found by the Bank of Ghana (BoG) last year to have flouted the regulations of the sector.
Its operations were suspended resulting in legal actions, alleged vandalism and an attempted acid attack by some angry customers who were not given reasonable explanations as to why they could not withdraw their savings.
Managers of the company who were dragged to court on the matter have been released on bail.
Joy News’ Parliamentary correspondent Elton Brobbey reports that although the Minister could not give details on what exactly the ₵77 million cedis was used for, he said officials of the BoG will meet Members of Parliament later in camera with details on the issue.
According to Mr Terkper, steps have been taken to retrieve properties belonging to DKM microfinance.
The BoG is, however, unable to account for the other companies like Jaster Motors and God is Love since they were not properly registered with the bank, Elton said.
Management of these companies is currently before court answering questions related to fraud.