80% of DKM depositors paid GH₵502m - Finance Minister

The Minister of Finance, Ken Ofori-Atta has disclosed that the deposits of 80% of the customers of the liquidated deposit-taking institution, DKM Diamond Microfinance Limited have been repaid.

Presenting the 2019 Budget and Economic Policy in Parliament today, Thursday, 15 November 2018, Mr Ofori-Atta said the official liquidator (the Registrar General’s Department) received 99,858 claims out of which it validated 79,708 and paid out GH₵502million.

He said: "...Government has also taken steps to settle all claims of DKM customers. Mr Speaker, you would recall that DKM Diamond Microfinance Limited had its license revoked in February 2016 with considerable suffering imposed on depositors without any meaningful response from the previous government, that has significantly changed, Mr Speaker

"The official liquidator received 99,858 claims and the validated claims amounted to 502 million Ghana cedis. I will like to inform the country that, out of the 99,858 claims 79,708 - 80% have been settled and depositors have been paid."

According to Mr Ofori-Atta, the liquidator has made provision for 90 per cent of DKM claims but is yet to reach an agreement with some 7,568 claimants who have deposits above GH₵10,000.

"The government has set aside funds at the Bank of Ghana to pay the remaining 20 per cent of depositors upon validation, an additional 12,612 claims have been fully provided for but the customers have not as yet been able to show proof of deposit.

"This means that 90 per cent of DKM claims from depositors have been paid or provided for. Depositors for the remaining 7,568 claims of above GH₵10,000 are yet to reach agreement with the liquidators".

Background

Customers of DKM lost their investments running into millions of cedis after the central bank in 2015 suspended the operations of the company for violating the Banking Act, Act 2004 (Act 673).

The Bank of Ghana (BoG) then confiscated the assets of the company and appointed the Registrar General’s Department to commence the liquidation process on March 29, 2016, to refund customers of the company.