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Ex-staff of all 347 defunct microfinance companies will soon be paid their outstanding salaries in full.
This news was announced by the receiver of the collapsed institutions, Eric Nana Nipah. He added that negotiations are ongoing to arrange for the former employees also to benefit from their previous exit packages.
This is to help cushion the staff and alleviate the impact on their lives of the COVID-19 pandemic.
BoG to pre-finance payments
A statement by the receiver said that consultations with authorised representatives of the former employees are ongoing which will allow the payment to be effected.
He added that the Bank of Ghana (BoG) has agreed to pre-finance the settlement of claims to the creditors.
“To ameliorate the economic impact of the resolution exercise on former employees of these affected companies, particularly in these times of COVID, Bank of Ghana has agreed to pre-finance the full settlement of employee-related claims which otherwise rank as unsecured claims in the receiverships of these companies,” the statement said.
“The Receiver will in the week commencing Monday, 13 July 2020 engage with the authorised representatives of the ex-staff to agree on modalities for the payment of outstanding salaries and exit packages to ex-staff of these resolved institutions.”
Only validated ex-employees eligible
However, the receiver also stressed that only those who have been duly validated will be paid their outstanding salaries and exit packages.
The central bank revoked the licences of over 400 microfinance institutions and savings and loans companies between 2017 and 2019.
These institutions, the BoG said, had violated various regulations guiding their operations or were insolvent.
Many employees of the collapsed institutions have been left without a job, and many are also owed salary arrears.
Nipah however assured creditors that all claims will be settled once they have been validated.
“In line with the hierarchy of creditor claims set out under Act 930, 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,” the statement said.
E A Alanore
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