Outstanding claims of defunct finance companies’ employees to be paid

Mr Eric Nipah, the Receiver of defunct microfinance companies and savings and loans, will from July 13, 2020, commence payment of outstanding debts of former employees of affected financial companies.

A statement from the Receiver to the Ghana News Agency in Accra on Monday said: “The Receiver will, in the week commencing Monday, July 13, 2020, engage with the authorised representatives of the ex-staff to agree on modalities for the payment of outstanding salaries and exit packages to ex-staff of those dissolved institutions.”

“In line with the hierarchy of creditor claims set out under Act 930, other creditors of the failed institutions will be settled by the Receiver upon validation of their claims and to the extent that the Receiver is able to raise value from the remaining assets of these institutions.”

This comes after the Bank of Ghana agreed to pre-finance the full settlement of employee related claims, which otherwise ranked as unsecured claims in the receiverships of these companies.

The statement, however, said the Receiver would undertake a detailed assets tracing and forensics exercise in collaboration with the Economic and Organised Crime Organisation to locate and recover those assets.

“The Receiver will only fully settle outstanding salaries and exit packages of ex-staff, which have been duly validated, agreed, and in the resolution process.”

The move as, the statement said, was to alleviate the economic impact of the resolution exercise on former employees of these affected companies, particularly in these COVID-19 times.

Source: GNA