30 Microfinance Companies Dragged to EOCO

30 microfinance companies have found themselves in the Economic and Organized Crime Office (EOCO) where they were being investigated for alleged embezzlement and fraud and later face prosecution when found guilty. The directions for the investigations were given by the Bank of Ghana who has chosen to hold the names of the companies for security reasons. The anti-graft agency will further conduct probes on how GH¢90 which belonged to depositors was utilized. According to an anonymous source, the unstable condition of the microfinance companies places more than 4,500 customers at risk of losing their life savings. In the last few months, many microfinance companies have shut down from the inability to raise money for the funding of withdrawals. A report from the Daily Graphic that conducted checks on the operation of the microfinance companies, 319 out of 347 licensed companies was in a position to fund their operations. The tests indicated a considerable gap between deposits and assets which was an indication that most of the funds were diverted to other businesses.
Bank of Ghana (BoG) was overwhelmed by the huge challenges facing the microfinance sectors. The bank took note of the challenges and has embarked on strategies handle the challenges. The bank has been monitoring micro-finance institutions through offsite surveillance and onsite examination.

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