GHASALC cautions against capping payment of claims after latest cleanup

The Ghana Association of Savings & Loans Companies (GHASALC) has cautioned the Receiver of the collapsed Savings and Loans companies and Finance Houses against capping the claim payments to affected depositors.

Tweneboah Koduah, the GHASALC Executive Secretary, said placing a cap could present further problems.

“I don’t think the regulator will want to use the GHc10,000 cap in the finance houses and the savings and loans. Otherwise, you have set [out] to collapse the sector and I don’t think the Receiver has that in mind.”

The Receiver, Eric Nipah of PriceWaterhouseCoopers, has already indicated that a GH¢10,000 cap was put on claim payments for the 347 microfinance companies whose licenses were revoked by the Bank of Ghana in May 2019.

The Receiver explained that the decision to place a cap on the amount to be paid customers was based on initial findings that revealed some levels of malfeasance.

But rather than halt the payment of claims, the Receiver opted to relieve the pressure by offering some relief to claimants ahead of a forensic examination of the collapsed microfinance companies.

Consider firms with locked up cash

Mr. Koduah also urged the Receiver to favour the Savings and Loans Companies which had money placed with the collapsed banks also swept up by the BoG.

“It’s because some of the financial institutions are suffering because their funds are locked up so deal with those institutions and free up the money,” Mr. Kodua said.

Some of the affected companies include GN Savings and Loans Ltd, Ideal Finance Ltd, Unicredit Savings and Loans Ltd, Global Access Savings and Loans Company Ltd, Accent Financial Services Ltd, Midland Savings and Loans Company Ltd, First Allied Savings and Loans Co. Ltd.

Source: Citi Newsroom

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