Bank of Ghana

Microfinance scam: Police bemoan lack of cooperation in investigations

The Police in the Volta Region has told Citi Business News the lack of cooperation by victims of a recent investment scam in the region is impacting their investigations.

The Hohoe Municipal Police Commander, Superintendent Stephen Boadu says it would be difficult for the Police to apprehend the operators of such illegitimate ‘businesses’ unless the victims cooperate with the service.

“They’ve made the networks so tight in such a way that even if you are a victim, you are not prepared to share information with anybody because you are not willing to disclose what decisions you have taken that have not been successful,” he remarked.

Hundreds of people have had their monies running into millions of cedis, locked up in some fake microfinance institutions in the Volta region.

The victims have since resorted to various means to seek a refund of their investments.

But speaking at a press conference in Hohoe on measures to curb such occurrences, Superintendent Stephen Boadu urged for stronger collaboration to bring the perpetrators to book.

“The Police cannot go searching for people who claim they are undertaking financial activities and cross check whether or not they are complying with the directive from the Bank of Ghana.”

The Bank of Ghana in a response to the issue at the time indicated that it has not licensed the institutions in question.

The central bank however assured that it is liaising with the security agencies to apprehend the defaulting companies.

However speaking at the same event in Hohoe, the Public Relations Officer of the Bank of Ghana, Bernard Otabil reiterated the BoG’s position that it cannot be held liable for the loss of investments made with unlicensed financial companies.

“All licensed microfinance companies by the BoG will bear “Microfinance” in their registered names as such deposits made at unlicensed institutions are at the risk of the depositor and as such the government or the BoG will not be responsible for such deposits,” he stressed.

Mr. Otabil also cautioned the general public to “Be cautious of institutions offering abnormally high interests on their deposits. Any savings interest rate above the treasury bill rate should be a signal that the potential risk is high.”

Meanwhile the regulator, the Bank of Ghana has urged the media and other advertising agencies not to engage institutions that are not accredited by the Central Bank.

By: King Norbert Akpablie/Pius Amihere Eduku/citibusinessnews.com/Ghana