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30 Microfinance dragged to EOCO for embezzlement and fraud

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The fate of thousands of customers whose lifetime savings are locked up remains uncertain, as some directors of the distressed companies are said to have gone into hiding.

Out of 347 licensed companies, only 319 were in good standing, having fully complied with BoG regulations.
There are currently about 50 microfinance companies that are struggling to meet their liabilities to depositors.

Checks confirm that several assets management and insurance companies had heavily invested in those distressed microfinance companies, a situation which had triggered the Securities and Exchange Commission (SEC) to initiate investigations.
Meanwhile, the BoG has ordered some of the microfinance companies to shut down, while others have been asked to cease taking deposits from customers.

There are yet others that have been requested by the bank to reduce the number of their offices, while the highly distressed ones have been referred to EOCO for further investigations and prosecution.

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