Defunct Microfinance, S&L customers with huge sums unhappy with payment in bonds

Some customers of the defunct microfinance and savings & loans companies, who visited the head office of the Consolidated Bank Ghana on Thursday, February 27, to retrieve their locked up capital, have decried the mode of payment by the Receiver.

The customers, who received their notification messages, say they have been told by the bank that those who have funds beyond GHS70,000, will receive GHc50, 000 in cash, and the rest will be issued in a bond in 5 years.

A retired soldier who is part of the angry customers told Citi Business News his GHS 602,000 is to be in invested as a bond, although he has no documentation to that effect.

“The message I received said that they are paying me GHS 50,000 of the GHS 602,000, while the rest will be issued in bonds. I asked how much interest and for how long, but I was only told that it will be held for five years. All of this is by word of mouth. Although I demanded for a written agreement between the government or the bank and I, they are not responding to that. I think the whole thing is being done in secrecy,” he opined.

Another customer, whose GHS 320, 000 has been placed in a bond, bemoaned the potential impact on his business as a farmer.

“They have given me about 50,000 cedis and the remainder I am told will be issued in a bond. I asked whether this bond is a tradable one or not, but they were not able to tell me. All that I am being told is that I should return within five years’ time to redeem my money which I do not know whether it will attract interest. I kept insisting from the CBG officers that they outline the modalities and they also say as at now, they cannot tell me anything concrete.”

Other customers who spoke to Citi Business News on condition of anonymity, called on the receiver to review the modalities.

Meanwhile, the Consolidated Bank of Ghana says the process of payment for customers of the defunct microfinance companies, finance house and savings and loans companies has been smooth.

According to the bank, as at Tuesday February 26, 2020; 6,446 individual customers had been fully paid.

The bank also says 449 customers who are social and welfare organizations have equally been paid.