Allegations of fraud and embezzlement have surfaced against roughly 30 microfinance institutions (MFIs) in Ghana. A preliminary investigation performed by the country’s Securities and Exchange Commission and the Economic and Organized Crime Office has found that the MFIs’ officers and shareholders have diverted clients’ funds to other ventures. For the duration of the investigation, officials have withheld the names of the MFIs under scrutiny, but the institutions have been blocked from collecting new deposits.
Although the amount of money that is missing has not been released, the Bank of Ghana (BoG), the country’s central bank, reportedly has argued customers will not lose any of their deposits. An estimated 4,000 customers, including multiple providers of insurance and other financial services, are affected. BoG is working to secure those deposits still held by the MFIs, recover the misappropriated funds and hold the responsible parties accountable.
By Erik McDonald, Research Associate
Sources and Additional Resources
Modern Ghana News Article
https://www.modernghana.com/news/876956/eoco-opens-fire-on-30-microfinance-institutions.html
Bank of Ghana
https://www.bog.gov.gh
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Money Transfer Firms Suspend Fees for Payments to Libya, Morocco in Response to Disasters
- MICROCAPITAL BRIEF: Impact Asset Management’s Dual Return Vision Microfinance Funds Issue Loans to MFIs in Ecuador, Georgia, Kyrgyzstan, Paraguay
- MICROCAPITAL BRIEF: Baobab+ Borrows $1.3m from Oikocredit to Boost Household Access to Technology, Solar Energy in Rural Côte d’Ivoire
- MICROCAPITAL BRIEF: Araratbank of Armenia, FMO Ink $10m Risk-sharing Facility to Boost MSMEs
- MICROCAPITAL BRIEF: First Consult, Mastercard Foundation, Seek to Create 400k Jobs in Ethiopia via Access to Finance, Wraparound Support for MSMEs, Entrepreneurs
