News of the Central Bank’s revoke of licenses of twenty-three (23) insolvent savings and loans companies and finance houses with immediate effect has undoubtedly shaken the nation barely three months after some 386 microfinances suffered the same fate.
It however does appear it was revealed to controversial and outspoken founder and leader of True Word Fire Prophetic Ministries (TWFPM) Prophet Nigel Gaisie as he predicted the misfortune.
In a Facebook post weeks ago, Prophet Gaisie cautioned customers of some savings and loans companies to “do the needful” as danger looms.
“Before the end of this month, most of it will be collapsed,” a portion of the post read.
Out of the twenty (20) companies he mentioned, twelve (12) were part of the affected institutions.
They are: GN Savings and Loans, Adom Savings and Loans, Alpha Capital Savings and Loans, Commerz Savings and Loans, First African Savings and Loans, First Ghana Savings and Loans, Idle Finance, Midland Savings and Loans, Unicredit Savings and Loans, Women’s World Banking Savings and Loans, AllTime Finance Ltd and Legacy Capital Savings and Loans Ltd.
According to a statement from BoG, “The revocation of the licences of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.”
The statement added, “It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors.”
The action was taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the license of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.”