The Chief Executive Officer of Dalex Finance, Kenneth Thompson has said the reasons given by the Bank of Ghana for the revocation of licenses of savings and loans companies and financial institutions are not surprising because most of the companies exhibited gross mismanagement.
According to him, some managers of the now-defunct financial institutions invested depositors’ funds in unrealistic ventures.
The Central Bank in its latest crackdown revoked the licenses of 23 savings and loans companies as well finance houses as part of its cleanup of the financial sector.
Speaking on Citi TV’s current affairs program, The Point of View, Kenneth Thompson said most industry players were aware of the ill management of deposits by some of the financial institutions affected.
“There is nobody who is in the industry that didn’t know this was going on. There are some institutions where loans were given to related parties, their friends and families. How are you going to collect money from your family. It was not surprising. We knew this was coming,” he said.
Meanwhile, the Executive Secretary of the Ghana Association of Savings and Loans Companies Tweneboah Koduah Boagye said, managers who are found culpable in contravening banking sector regulations should be dealt with according to law.
The Bank of Ghana last Friday revoked the license of the Global Access Savings and Loans company together with 14 other savings and loans companies because they were declared insolvent.