Mr. Wilberforce Ofori, Chairman of the Micro-credit Association of Ghana has promised the Bank of Ghana and Ghanaians that his outfit will put in place salient measures to ensure that members of the Association are subjected to strict supervision.
According to Mr. Ofori, members of the Association are expected to conduct their business operations in line with the regulations of the Association.
This, the Chairman disclosed, would help the micro-credit institutions from falling into the temptation of unlawfully engaging in any practice which does not align with their mode of operation (modus operandi).
“We would like to assure the Bank of Ghana that market surveillance will be intensified in order to crack down on unlawful operators.
“We will also endeavour to strengthen inspection and supervision of member institutions and ensure that members comply with the regulations.”
Mr. Wilberforce Ofori
Mr. Wilberforce Ofori made this disclosure in his address at the 12th Annual General meeting of the Micro-credit Association of Ghana, as he admonished members to desist from taking deposits and engaging in investment practices – a role meant for specialized institutions.
“Let us remember, deposit taking, and investment are breaches of the regulation. Micro-credit though exacting, it is very rewarding. Our checks have revealed that fraud and labour turnover are rising.
“I urge all members to put in place robust systems and adequate control mechanisms to deal with fraudulent activities by employees.”
Mr. Wilberforce Ofori
Micro credit performance
It is with no doubt that the novel coronavirus has challenged the status quo, as businesses and corporations are continuing to explore more witty ways of advancing the course of their operations.
Speaking at the annual meeting, Mr. Ebenezer Quartey, the Executive Secretary of the Micro-credit Association of Ghana, admitted that the advent of the Covid-19 pandemic has tried and tested the operational capabilities of micro-credit institutions.
“Our resilience has been tested, our limit stretched, and sustainability challenged by the global pandemic.
“The experience has undoubtedly examined our pledge to financial inclusion and social development, of which I am happy to report that we, as a collective, have demonstrated tenacity and commitment to good conscience.”
Mr. Ebenezer Quartey
Highlighting similar ordeals that has challenged the fate of the association, Mr. Quartey said, “in the recent past before the onslaught of the Covid-19, we pulled through a similar test – the banking and financial crisis. Even though we lost 39 of our Tier 3 institutions, we generally emerged stronger on the other side”.
However, the Executive Secretary of the Association expressed his optimism about the future of his outfit, saying that he believes micro-credit institutions have the ability to get back on their feet.
This, Mr. Quartey iterated, will help the institutions to contribute their quota to support development, create jobs and help government achieve its financial inclusion agenda.
“We are then fulfilled because there is glimmer of hope and optimism for the MSMEs and the economically active but poor people.”
Mr. Ebenezer Quartey
In the meantime, Mr. Quartey used the opportunity to urge the Metropolitan, Municipal and District Assemblies to refrain from issuing permits to individuals who do not have the requisite license from the Bank of Ghana to operate micro-credit business in the country.
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