Ex-staff of savings and loans companies to be paid outstanding salaries, related claims

Government is set to pay the outstanding salaries as well as negotiated and exit packages of former employees of the defunct 347 microfinance companies and 23 savings and loans companies.

This was disclosed in a statement by the Receiver, Eric Nana Nipah, who doubles as a Director of PricewaterhouseCoopers (Ghana) Limited (PwC).

According to the Receiver, this is to alleviate the economic impact of the resolution exercise on former employees of the affected companies particularly as the economic impact of the COVID-19 pandemic is having a toll on individuals and businesses.

The Receiver also stated that consultations with authorized representatives of the former employees to agree on processes of payment will begin effective today, Monday 13th July, 2020.

He further noted that he will only fully settle outstanding salaries and exit packages of former employees which have been duly validated, agreed and in the resolution process.

It will be recalled that following the revocation of the licences of the 347 microfinance companies, the Securities and Exchange Commission (SEC) on November 18, 2019, began the validation process for the affected customers of the solvent companies to recover funds.

Accordingly, the Receiver is compelled to undertake a detailed assets tracing and forensics exercise in collaboration with the Economic and Organised Crime Organisation (“EOCO”) to locate and recover these assets.

But the receiver in the statement explains that though they are at the asset realisation stage of the receiverships, “poor quality of assets of some of these institutions, asset diversion and misstatement of a significant number of assets of some of these companies in the financial records of these resolved companies are slowing the pace of recovery.

On a number of occasions, the Receiver has also appealed to individuals, groups and institutions who took loan facilities from the microfinance firms to repay the loans immediately to aid in the recovery process.




Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *