The Bank of Ghana (BoG) says it has referred some 20 microfinance and savings and loans companies to the Attorney-General for possible prosecution.
This comes after the central bank cited a number of potentially criminal actions on the part of these institutions and their shareholders, directors, or management, as the case may be, in its public notices in 2019 announcing the revocation of licences of certain defunct Savings and Loans Companies, Finance Houses, and Microfinance institutions.
These cases were brought to the Economic and Organised Crime Office (EOCO) for advice after the Receivers appointed by BoG conducted additional investigations into the failure of these organisations.
The Savings and Loans Companies are Ideal Finance, GN Savings and Loans, CDH Savings and Loans, Midland Savings and Loans, Legacy Capital Savings and Loans, FirsTrust Savings and Loans, Express Savings and Loans, IFS Savings and Loans, UniCredit Savings and Loans and Dream Finance Co Ltd.
The Microfinance Companies are Goldman Capital Microfinance, Dwadifo Adanfo Microfinance, CIG Microfinance, Noble Dream Microfinance, Adom Sika Microfinance, Nationwide Microfinance, Cypress Microfinance, Jorbies Microfinance, DPF Microfinance and FTS Capital Microfinance.
EOCO- AG cooperation
A statement from BoG indicates that EOCO continues to cooperate with the Attorney General’s Office to ensure that those accused of being complicit in the failures of these institutions will be prosecuted quickly.
According to the central bank, “EOCO has seized and/or impounded some of these individuals’ assets to aid in the compensation of claimants of the dissolved institutions.”
To assist promote financial integrity, trust, and confidence in the banking system, “BoG continues to enhance its partnership with EOCO and other law enforcement agencies across the country.”
Suspected financial claims
Portions of the statement further indicated that BoG had asked EOCO to investigate specific cases of suspicious requests to the bank for payment of large sums of inward remittances, which it had apparently withheld.
It explained that as confirmation of BoG’s reception and preservation of their monies, these claimants frequently attached papers purporting to be messages from the SWIFT international funds transfer system.
BoG has sent such matters to EOCO for additional examination after preliminary inquiries revealed that these assertions are false.
“Following an emerging trend observed by the BoG over the last few years, BoG has since October 2020 submitted five separate requests to EOCO for investigations into claims of persons (individuals, businesses, and law firms acting on behalf of clients) who have persistently made claims on the BoG to the effect that certain large sums of money purportedly remitted to them by foreign counterparties through the banking system have been withheld by BoG,” it explained.
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