A Bank of Ghana audit report has revealed, managers of DKM microfinance invested depositors’ money totalling GH₵113 million in their personal businesses.
The investigative report showed the company amassed GH₵113million in deposits but only GH₵10.7 million was left in its account after the regulator began checking their books.
Investing depositors’ funds in the managers' personal businesses is in clear breach of the central bank’s regulations.
The current development places the Sunyani-based financial institution in a difficult position to pay back monies collected from depositors.
Agitations to pressurise the company to pay back the monies started September 2015, but DKM has been unable to raise the funds as directed by the Bank of Ghana.
A frustrated client, Latif Dagama, at the prospect of getting 50% returns in his deposits, made a decision to work with DKM.
“I have benefited GH2, 500 cedis from the deposit of GH5, 000. I was expecting to get another fifty percent interest for my fees but since then, I have not received anything,” the sentiments of a frustrated tertiary student.
Brong Ahafo regional minister, Eric Opoku told Joy News’ Elton Brobbey, the Regional Security Council (REGSEC) has held several meetings with DKM officials, leaders of depositors and Bank of Ghana officials to find a solution to the crisis.
After it was found that less than 10% of deposits remained, DKM clinched an agreement to raise GH₵50million in one month.
“If they are able to provide the GH₵50m, BoG will clear them and this time around guide them to do their business,” the minister said.
But after one month DKM pleaded for an extension by another month. The company failed to raise the money and REGSEC was forced to take them to court. But DKM lawyers secured bail for their client.
The Brong Ahafo Regional Minister has expressed fears depositors may never get their monies back.
"If we are not careful, our people will not get the money," he said.