The government has paid substantial amounts owed persons who lost their investments to Diamond Microfinance Limited (DKM), Finance, in what many considered a scam.
That’s according to the Finance Minister, Ken Ofori-Atta.
The Minister, who made this known while presenting the 2019 Budget Statement and Economic Policy in Parliament today [Thursday], said about 80 percent of funds owed DKM customers had already been settled.
“Mr. Speaker, you would recall that DKM Diamond Microfinance Limited had its license revoked in February 2016 with considerable suffering imposed on depositors, without any meaningful response from the previous government. That has significantly changed. The official liquidator received 99,858 claims and the validated claims amounted to GH¢502 million. I would like to inform the country that out of the 99,858 claims, 79,708 (80 percent) have been settled and depositors have been paid,” the Minister said.
Mr. Ofori-Atta indicated that government had set aside funds at the Bank of Ghana to pay the remaining 20 percent of the arrears upon validation.
“An additional 12,612 claims have been fully provided for, but the customers have not as yet been able to show proof of deposit. This means that 92 percent of DKM claims from depositors have been paid or provided for. Depositors for the remaining 7,568 claims of above GH¢10,000 are yet to reach agreement with the liquidators,” Mr. Ofori Atta added.
‘Pay DKM customers as promised’ – Mahama to Nana Addo
Former President John Dramani Mahama, had recently challenged President Nana Addo to fulfill his promise of paying monies owed victims of DKM, although the incident happened under his regime.
Speaking at Wamfie in the Dormaa East Constituency of the Brong Ahafo Region a few weeks ago, Mr. Mahama taunted the government, daring them to retrieve the loss in the scam.
“When we were in office, the NPP lied that DKM belonged to my wife and I. Today, you are in power, you know who DKM belongs to. You promised that you will collect the people’s money for them when you come into power. Please collect their DKM money and give it back to them.”
I’ll investigate and retrieve DKM monies – Akufo-Addo
The then Presidential Candidate of the New Patriotic Party (NPP) , Nana Addo, had said government will launch an investigation into circumstances surrounding the scandal if voted into office during the 2016 election campaign.
He said it was clear that the governing National Democratic Congress (NDC) administration led by the then President Mahama had failed to adequately deal with the matter, leading to thousands of Ghanaians losing their monies.
“I will investigate government’s inability to pay the monies owed as well as investigate the DKM scandal and to ensure that there would be total restoration to all affected in both scandals.”
Woes of DKM customers
Thousands of customers of DKM Microfinance Company lost their investments running into millions of cedis after the central bank in 2015 suspended the operations of DKM for violating the Banking Act.
Though the central bank subsequently lifted the ban on the company’s operations, DKM was unable to pay its customers their locked up cash.
The Bank of Ghana confiscated the assets of the company and appointed the Registrar General’s Department to commence liquidation processes to refund customers of the company.
This is the third budget present under the Nana Addo government in accordance with Article 175 of the constitution.
By: Marian Ansah| citinewsroom.com| Ghana