General News of Tuesday, 20 August 2019
A Deputy Communications Minister and Member of Parliament for La Dadekotopon Constituency, Vincent Sowah Odotei, whose money has been locked up at Global Access Savings and Loans Company following the revocation of the company’s license is urging other customers to be calm.
Mr. Odotei said he is hopeful that the Bank of Ghana will work to pay customers like him, their locked-up funds.
The MP, who turned up at a branch of Global Access on Monday to fill a form for the processing for payment of his locked up cash, urged customers to go through the process.
“Global Access is one of my banks I deal with and definitely with the news that have come out and the predicament, all those of us who bank with them are here to make sure that we follow the due process as has been properly laid by the Bank of Ghana and the receiver Mr. Nipah. I came here to fill my forms. Listening to the Bank of Ghana, arrangements have been put in place to ensure that all those who made legitimate and proper claims will be vetted and validated.”
The Bank of Ghana last Friday revoked the license of the Global Access Savings and Loans company together with 14 other savings and loans companies because they were declared insolvent.
The Central Bank in giving details about the decision to revoke the company’s license said, “the institution continues to record accumulated losses mainlyd due to high rent expenses paid to the majority shareholder for the use of its premises.”
“The institution failed to keep accounting records in a manner that gives an accurate and reliable account of its transactions constitutes unsafe and unsound banking practice.”
The central bank also stated that the company assumed the liability of a loan contracted by the majority shareholder amounting GH¢2.91 million.
“The loan amount was injected into the institution as equity capital. The liability was however concealed as a suspense account in the books of Global Access Savings and Loans Limited,” the Bank of ghana added.