[ 2021-02-24 ]

BoG erred in revoking my microfinance company’s licence – Minister-designate
The Public Enterprises Minister-designate has
refuted claims that his microfinance company,
Daily Capital Microfinance Ltd, did not meet the
minimum capital requirement by the Bank Of Ghana
(BoG).

Joseph Cudjoe told Parliament’s Appointments
Committee Tuesday, that the development which led
to the revocation of the company’s license came
to him as a shock.

He said to the best of his knowledge, the company
met the central bank’s minimum capital
requirement hence the company had not breached the
new statutory demands.

“When we saw the company’s name in the list
among those whose licenses have been revoked I was
shocked to the bone,” the Minister-designate
revealed.




The minimum capital requirement demanded by the
Bank of Ghana was raised from ¢300,000 to ¢2
million and was to be met by February 28, 2020.

The central bank in 2019 engaged in a clean up of
the financial space as part of its measures to
sanitise the sector.

The central bank on May 31, 2019, announced that
it had revoked the licenses of some 347
microfinance institutions in the country in which
the Daily Capital Microfinance was affected.

A statement from the central bank said some of the
institutions were insolvent while others had been
out of operation for some time now.

The nominee in answering the question posed by a
member of the appointment committee, Samuel
Okudzeto Ablakwa on whether his challenging
private sector experience will not affect the
confidence installed in him as the Minister for
Public Enterprises.

In his response, Mr Cudjoe who was the managing
director of Daily Capital Microfinance and an 80%
shareholder, insisted that the company had gained
a reputation in the financial sector.

He further added that the revocation of his
microfinance license was a mere accident.

“It was an accident that occurred, an accident
in the sense that the Bank of Ghana itself has
failed to update its records of reinvestment that
the company had done and registered that
investment.”



The nominee revealed that he was advised to write
a petition for a reinstallation of the company’s
license after he went to the banking supervision
department to address his distress.

“I went to the Bank of Ghana and went straight
to the banking supervision department and asked
why Daily Capital Microfinance was part of that
list and they were also surprised and they said
they will engage BoG to see if they will be able
to reinstate it so they went ahead.

“They then advised that they will not willingly
reinstate it so I should write a petition which I
did,” he said.

However, he indicated that the petition to get
Daily Capital Microfinance’s license to be
restored was dismissed.

Source - Joyfm

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