Ghanaian News

Receiver to settle 97% of MFI, S&L depositors in cash, others to be paid in bonds

About 97.6 percent of validated depositors of the collapsed Microfinance companies and Savings and Loans and Finance Houses will be paid in cash, the Receiver, Eric Nana Nipah, has said.

An announcement by PwC made available to the B&FT said modalities for payment of the outstanding depositor obligations will begin effective today, Monday 24 February 2020 – adding that a total of GH¢5billion has been made available by government comprising a combination of cash and bonds.

“A combination of cash and bonds will be used to settle depositor claims. It is expected that with the above funding arrangement comprising part cash and bonds, about 97.6 percent of individual claimants in number will be fully settled in cash. Other categories of depositors, including corporates, will be fully settled through a combination of cash and bonds,” the statement read.

Although the payment process is taking effect today, the Receiver said it will fully settle all outstanding depositor claims once they have been validated and the agreed resolution process met.

“Please note further that the Receiver continues to validate depositor claims not yet validated and agreed in the receiverships, and will communicate the status of depositor claims submitted within the claim deadline period as and when they have been validated and agreed in the receiverships of the above resolved companies.”

Per the requirements for settling depositors, the statement noted that Consolidated Bank Ghana (CBG) will open new accounts for all depositors whose claim(s) have been validated and agreed in the receiverships, based on information to be provided by the Receiver.

Additionally, SMSs from the Receiver will be sent to depositors due for payment, setting out the Account number and Cash amount due the depositor.

Meanwhile, to access funds depositors will be required to present either a drivers’ licence, voters’ identity card, or passport at any CBG branch.


In accordance with Section 123 of Act 930 Bank of Ghana (BoG), Eric Nana Nipah – a director of PricewaterhouseCoopers (Ghana) Limited (PwC), was appointed as Receiver for the purposes of winding down the affairs of 347 Micro Finance companies as well as 23 Savings and Loans and Finance House companies whose licences were revoked on 31 May 2019 and 16 August 2019 respectively.

The main duties of the Receiver are to recover and maximise asset realisations for the benefit of creditors, including mainly depositors; and to distribute realisations in accordance with the relevant provisions of Act 930 to satisfy the indebtedness of these institutions to their body of creditors, to the extent possible.

As of August 2019, the Receiver said he had paid close to about GH?30million worth of claims to affected depositors.

Mr. Nipah said that he received close to 152,000 depositor claims worth about GH?1.4billion, and about 80,000 of those claims which amounted to about GH?600million have been authenticated.

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