Don’t rush to branches of collapsed S&L companies, allow receiver to validate your claims-GHASALC

The Executive Secretary of the Ghana Association of Savings and Loans Companies (GHASALC), Mr. Tweneboah Kodua Boakye, has appealed customers of the collapsed savings and loans companies not to rush the various branches demanding an immediate release of their deposits.

Speaking in an interview with Kwabena Agyapong on Frontline on Rainbow Radio 87.5Fm, he said the receiver appointed must first go through a process of validation before they would be able to get their deposits hence the need to exercise patience and allow the process to go on smoothly.

The Bank of Ghana (BoG) on Friday August, 16 2019 revoked the licences of 23 insolvent savings and loans companies and finance house companies.

Some of the affected institutions include GN Savings and Loans Company, which belongs to businessman and politician Dr Papa Kwesi Nduom, Unicredit Savings and Loans, Adom Savings and Loans, Midland Savings and Loans, Ideal Finance and Dream Finance Company.

The others are Accent Financial Services Limited, All Time Finance Limited, Alpha Capital Savings and Loans, ASN Financial Services Limited, CDH Savings and Loans Limited, Commerz Savings and Loans, Crest Finance House Limited, Dream Finance Company Limited, Express Savings and Loans Company, First African Savings and Loans Company, First Allied Savings, First Ghana Savings and Loans Company, First Trust Savings and Loans, Global Access Savings and Loans Company Limited, IFS Financial Services, Legacy Capital Savings and Loans Limited, Sterling Financial Services, Women’s World Banking Savings and Company Limited.

This move, according to the central bank, is to restore confidence in the banking and specialised deposit-taking sectors.

The BoG said in a statement that: “These actions were taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent. The Bank of Ghana has also appointed Mr. Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.

“The revocation of the licences of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency. It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors. 

“In line with the Government’s commitment to protect depositors’ funds, the Government has made funds available to enable the Receiver pay depositors after their claims are validated. The Receiver will in due course make an announcement with regards to when and where payments will be made. The Receiver will also indicate documents required from depositors to facilitate the validation of claims and orderly payment of validated deposits. Other creditors of the failed institutions will be settled by the Receiver upon validation of their claims and to the extent that the Receiver is able to realise value from the remaining assets of these institutions.” 

Following the decision by the BoG, some customers rushed to the various branches of the affect institutions demanding for an immediate release of their deposits.

But Tweneboah Kodua Boakye says the receiver must be allowed to validate all the claims before payments are issued.

He has therefore stressed on the need for affected customers to support the process and allow it go on smoothly without any hitches.

He encouraged Ghanaians to continue doing business with the remaining 25 savings and loans companies in good standing.

He said the remaining companies will continue to serve their interest hence the need for continue saving with them.

Below are the Savings and Loans companies that are currently in good standing, according to the BoG

ABii National Savings and Loans Ltd

Adehyeman Savings and Loans Company Ltd.

Advans Ghana Savings and Loans Ltd.

Asa Savings and Loans Company Ltd.

Assurance Savings and Loans Ltd.

Bond Savings and Loans Ltd.

Best Point Savings and Loans Ltd.

Bayport Savings and Loans Plc.

Direct Savings and Loans Ltd.

Equity Savings and Loans Ltd.

Golden Link Savings & Loans Ltd.

Golden Pride Savings and Loans Ltd.

Izwe Savings and Loans Ltd.

Jins Savings and Loans Ltd.

Letshego Ghana Savings and Loans Plc

Multi Credit Savings & Loans Co. Ltd.

Opportunity International Savings and Loans Co. Ltd.

Pacific Savings & Loans Co. Ltd.

Pan-African Savings and Loans Company Ltd.

Progress Savings and Loans Ltd.

Services Integrity Savings and Loans Ltd.

SIC Life Savings and Loans Ltd.

Sinapi Aba Savings and Loans Company Ltd.

The Seed Funds Savings and Loans Ltd.

Utrak Savings and Loans Ltd.

By: Rashid Obodai Provencal

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