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BoG erred in revoking license of my microfinance company, says Joseph Cudjoe

In May 2019, the Bank of Ghana (BoG) revoked the licenses of 347 insolvent microfinance companies in the country

Joseph Cudjoe, Minister-designate of Public Enterprises says the assertion that his microfinance company, Daily Capital Microfinance, did not meet the Bank of Ghana’s (BoG’s) minimum capital requirement was incorrect. 

Cudjoe said the decision by the BoG to revoke the operating license of his microfinance came to him as a shock.

Speaking during his vetting by the Appointments Committee of Parliament, he said to the best of his knowledge, the company met the minimum capital requirement.

Cudjoe said, “When we saw the company’s name in the list among those whose licenses have been revoked I was shocked to the bone.” 

The Effia Member of Parliament was answering a question from Samuel Okudzeto Ablakwa on whether his challenging private sector experience will not affect the confidence bestowed on him as the Minister of Public Enterprises.

But Cudjoe said 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.

“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.

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

He added that the petition to get the company’s license restored was dismissed.

In May 2019, the Bank of Ghana (BoG) revoked the licenses of 347 insolvent microfinance companies in the country.

The licenses of 192 of them were revoked in addition to that of another 155 that have ceased operations. 

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