Youth in Upper West region plead with BoG to lift moratorium on DKM Microfinance
The coalition of youth, traders, farmers and students groups in the Upper West Region on Tuesday appealed to the Bank of Ghana (BoG) to rescind its decision to place a moratorium on the operations of DKM Diamond Micro-Finance Company Limited.
The BoG on May 11 placed a moratorium notice on DKM Micro Finance Company Limited in accordance with the Banking Act, 2004, Act 673 as amended in section 65 (1).
The BoG imposed sanctions for failure to comply with the terms and conditions stipulated in its licence (section 13 (b) of Act 2673 and, having insufficient capital to meet its liabilities to depositors (section 13 (i) e of Act 673.
Others are carrying out its operations in a manner which appears to the BoG to be contrary or detrimental to the interest of its depositors or the public (section 13 (i) of Act 673, violation of restrictions on exposures; (section 43 (i) of Act 673 and violation of restrictions on the establishment of subsidiary companies (section 46 of Act 673.
The youth, at a press conference in Wa, stated that they did not want to stand in contention with BoG on its locus to carry out its mandate, neither were they challenging the merit of the issues raised.
The coalition, however, said it was appealing to the conscience of the relevant powers of BoG to apply a human face to the efforts to clear all ambiguities about the operations of DKM Micro Finance Company
It said since the inception of the BKM Micro Finance Company Limited, it had become the anchor of countless small and medium-scale enterprises in the Upper West, Upper East, Northern and Brong-Ahafo Regions.
“BKM Finance Company Limited has been the pivot the explosive growth of many more new enterprises. It has enhanced many livelihoods and proffered operational solutions that have significantly addressed the aged long pervasive poverty in the three regions of the north and Brong-Ahafo Region”, the coalition explained.
The youth said the DKM Micro Finance Company Limited had provided direct employment to 2,000 Ghanaians, while nine million individuals depended on it to improve their businesses.
The coalition said it considered the BoG and DKM fallout as a crucial issue with diverse catastrophic dimensions, as it would disrupt agricultural production this season, which would bring about famine in their regions of operation, if the 90 days freeze of operations placed on DKM Micro Finance was allowed to work.
The coalition said the BoG’s action would have a negative toll on farming, as many of the customers who are farmers would not have access to their monies to enable them expand their acreages during upcoming the farming season.
The youth noted that several business entities and trading outlets would also collapse if the moratorium was allowed to hold because businesses had deposited a greater chunk of their capital with DKM with the hope of growing their capital base to expand their businesses.
The youth expressed concern and worry about the implementation of the 90 days moratorium would not only translate into serious repercussions on the survival of the company, but it would also cause immeasurable psychological damage on customers, which could lead to deaths.
The coalition urged BoG to withdraw the moratorium, whilst negotiations were allowed to take place between the two bodies and allow customers to withdraw their monies.
Source: GNA