President Slams BoG Over DKM Scam

dr kofi wampah

Dr Henry Wampah, BoG Governor

President John Mahama yesterday blamed the Bank of Ghana (BoG) for failing to supervise the activities of micro-finance companies in the country.

According to him, the proliferation of micro finance companies in the country over the last five years and the inability of the Central Bank to supervise them have resulted in breach of laws that regulate them, creating a pyramid scheme that has crashed down.

He, however, said the Governor of the Bank of Ghana (BoG), Dr. Kofi Wampah could not be fired for inefficiency because the Bank was recently made autonomous through the Bank of Ghana Act.

In the case of DKM Limited, President Mahama said it offered between 50 and 55 percent interests to customers, and in the process ended up mismanaging invested funds to the tune of GH¢77 million.

He pleaded with the BoG to ensure that small depositors got their capital back after the liquidation.

According to him, the Bank of Ghana has started the liquidation of assets of the company.

The essence is to make sure small depositors who had lost their life savings in the company receive their monies back, he stated.

He said government would come up with a bill soon to be laid before Parliament to be able to control the microfinance sub-sector to improve supervision by government.


“Parliament has a role to play to make sure future depositors are protected,” he mentioned.

Meanwhile, BUSINESS GUIDE’s investigations revealed that courts in the Sunyani Municipality have started placing orders of Fi fa on DKM assets as a result of suits filed against the company by customers.

The Sunyani Court ‘B’ for instance has so far placed Fi Fa orders on 20 buses of the company and has invited a valuer to value them.

After a valuation report, the property would be auctioned and proceeds distributed to customers.

The Registrar, Eric Appiah, was unable to tell this paper the difference between what the courts were doing and the action being taken by the Bank of Ghana.

Mr. Appiah said so far there has not been any communication between the court and the BoG,’ stressing that once those assets fall under the custody of the court, there was nothing anybody could do because the court had custodia legis.

Regional Manager of BoG, Ntiful Peter, speaking on the liquidation process, said the Bank of Ghana was not happy with what the courts were doing but he did not explain further.

He said the head office had directed him to identify all assets of DKM for liquidation, adding that any further enquiries should be directed to the Banking Supervision Department of BoG and not him because he had no jurisdiction over the matters.

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FROM Daniel Y Dayee, Sunyani