The Bank of Ghana (BoG) has extended the 90-day moratorium it gave DKM Diamond Microfinance Company Limited by an additional 30 days to expire on September 11, 2015.
The extension is to enable the microfinance company, whose licence was suspended about three months ago for violating the Banking Act of 2004 (Act 673), to fully complete conditions to become compliant with the act.
A public notice issued by the BoG and published in the national dailies said in part that “the extension of the moratorium period is to enable DKMDL to complete the fulfilment of the conditions precedent to the resumption of operations of the company”.
The suspension action brought on the company by the BoG in May also led to the freezing of the accounts of the microfinance company. The account names are DKM Mining, Transport, Shea Butter, Cement Depot and DKM Gas Filling Station, all limited liability companies under the DKM Group. The Financial Intelligence Centre (FIC) of the BoG froze the five accounts.
The company’s suspension was as a result of what the BoG described as its failure to comply with the terms and conditions stipulated in its licence, including not maintaining an appreciable capital adequacy ratio to meet or underwrite the volume and value of liabilities on its books.
The Daily Graphic has learnt that DKMDL will be required to shore up its capital base with an additional GH¢50 million during the extended moratorium period. This is after an audit exercise conducted by Messrs MGI Lobban Hyde, chartered accountants, recommended the injection of the said fresh capital into the group’s operations.
Background.
The BoG in a notice signed by its Secretary, Mrs Caroline Otoo, and circulated to all banks and non-bank financial institutions and the general public, placed the initial 90-day moratorium on DKM Diamond Microfinance Company Ltd with effect from Monday, May 11, 2015, which ended on August 11, 2015.
As of August 10, continued agitation by some customers of the company whose investments had been frozen by the BoG necessitated the placement of a combined team of military and policemen on the premises of the BoG in Sunyani following the expiration of the first moratorium a couple of days ago.
