We will involve the enforcement agencies if the need arises – Bernard Otabil

Bank of Ghana has reiterated its commitment to sanitize the financial industry. His comment comes after the Bank of Ghana (BoG) dragged the directors of 30 microfinance companies to the Economic and Organized Crime Office (EOCO) for investigations and prosecution for alleged embezzlement and fraud.

Among other things, the anti-graft agency will investigate how more than GH¢90 million belonging to depositors was utilized by the microfinance companies. Speaking in an interview with eezy news, director of communications at the Bank of Ghana Bernard Otabil says they will continue to monitor the operations of microfinance companies.

“The department that is responsible for the supervision of the microfinance sector undertakes both online examination and offline surveillance. What it means is that, because we are responsible for the activities of the microfinance institution by way of ensuring that they operate in accordance to the rules.”  He added

Apparently overwhelmed by the magnitude of the challenges in the microfinance sector, the Governor of the BoG, Dr Ernest Addison, said the bank had taken note of the challenges and was taking steps to address them.

In response to an email enquiry by the Daily Graphic, Dr Addison said: “The BoG has held a number of meetings with the shareholders and the management of the affected institutions to find a way forward.

“We have been monitoring microfinance institutions (MFIs) through offsite surveillance and onsite examination and, together with the government, are working on a comprehensive reform programme to address the challenges in the sector and strengthen regulatory and supervisory oversight.”

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Source: Ghana|raylizaonline.com