Aggrieved customers of the distressed finance houses and savings & loans companies have served notice that it will intensify its series of actions should the Ministry of Finance fail to act on their demands by the end of this month.
The group which calls themselves Lock-up Investment Holders Forum has been on an agenda to get the Bank of Ghana to revoke the licenses of four financial institutions that from all indications have become insolvent. These distressed institutions are NDK Financial Services, SIC Life Savings and Loans, Bond Savings & Loans, and SDC Financial Services.
The convener of the forum, Dr. Adu Anane Antwi explains that per the law, the licenses of these insolvent institutions must be revoked by the Bank of Ghana before the Ministry of Finance can make provisions for a bailout for investors.
The forum has been on periodic picketing at the Ministry of Finance for months which led to the Ministry writing to the Bank of Ghana to demand a report on these financial institutions.
In an interview with The High Street Journal, Dr. Adu Anane Antwi revealed that the Central Bank only responded to the Ministry of Finance’s demand for a report on these four financial institutions after they had threatened to protest at BoG premises.
“It took some time. Bank of Ghana wasn’t responding and so we planned, and informed the police that we were going to march to the Bank of Ghana. Fortunately, the Bank of Ghana didn’t want that to happen and so immediately, they submitted a report and then we canceled the protest march to the Bank of Ghana,” the convener of the forum narrated.
Even though a comprehensive report was submitted to the Ministry of Finance, the forum says it’s facing another hurdle. Over a month following the report from the Bank of Ghana to the Finance Ministry, the Ministry has not acted on the document.
According to Dr. Adu Anane Antwi, their checks from the Ministry tell that the head of the Division who’s to act on the report has traveled out of town hence the delay.
“We are told the letter is now with the Financial Sector Division, who also tells us an officer there who is in charge of banking and non-banking units, that it has been given to them to review and advise so that a decision can be taken. But the head of the division is not in town. They are waiting for him to return on the 28th so that a decision can be taken,” he said.
He further added “We said we don’t agree to that because this is an organization. So we have written a letter to the Ministry that, look, we find this is just to buy time because this modern time, people are running organizations from outside the country.”
With this development, Dr. Adu Anane Antwi noted that they have given the Ministry up to the end of this month to act. According to the convener, they plan to visit the Ministry next week to ascertain the decision of the Ministry.
“We are giving them up to the end of the month to come out with a decision. A delegation is going to the Ministry on the 2nd, which is coming Monday, to find out what the Minister and his team have done and the concrete steps they have taken to get our money back to us,” he told The High Street Journal in an interview on Wednesday.
He further said that upon the failure on the part of the Ministry to give them a concrete response, the forum will meet and decide on the next line of action.
