Customers of Boin Microfinance Limited located in the Western Region have blamed the Bank of Ghana (BoG) for their frustration over their inability to access funds from the company.

Boin Microfinance Limited, one of the companies affected in the exercise carried out this year has over two thousand clients and operates at Aiyinasi, Tikobo No.1, Esiama, Dadieso, Wassa Akropong, Boinso and Elubo.

The company has not been able to operate following concerns of the Bank of Ghana's inability to join them to Ghana Arbitration Centre (GAC) for a redress of outstanding issues emerging out of ongoing reforms in the financial sector.

It would be recalled that on 31st May 2019, the Bank of Ghana revoked licenses of over 300 Microfinance institutions in the country over insolvency.

Following the revocation the company's license, the Directors and Shareholders initiated a court action against Bank of Ghana and Eric Nipa, the Receiver on the 3rd June 2019.

However, legal representatives of Bank of Ghana filed a motion on June 24, 2019 and moved it on the 8th of July, 2019 that the matter must be struck out of court since Boin Microfinance Limited should have sought redress at Arbitration, based on the mandatory provisions of Act 930 under the rules of the Alternative Dispute Resolution Act, 2010 (Act 798).

In a document sighted by this reporter dated June 19, 2019, the Bank of Ghana in a motion of notice to strike out the writ of summons and statement of claim for want of jurisdiction admitted, "That I am advised and verily believe same to be true that pursuant to the mandatory provisions of Act 930, any party aggrieved by the decision of the Applicant on issues involving revocation of license of a Bank or specialised deposit institution and appointment of a receiver, shall resort to arbitration under the Rules of the Alternative Dispute Resolution Centre established under the Alternative Dispute Resolution Act, 2010 (Act 798)".

Based on this, the High Court in Sekondi, under her Ladyship Sedina referred the matter for arbitration and the case was sent to Ghana Arbitration Centre.

Furthermore, the directors and shareholders of Boin Microfinance Limited filed their Notice of Claim at the Ghana Arbitration Centre and same was served on Bank of Ghana and Eric Nipa the Receiver on the 1st of August 2019, to bring their response or defence within fourteen (14) days.

The 1st and 2nd defendants (Bank of Ghana and Eric Nipa) did not acknowledge receipt of the said Notice of Claim, let alone bringing their response.

However, on the 23rd August 2019, a reminder, dated 22nd August, from the Ghana Arbitration Centre was again served on both 1st and 2nd defendants also to be responded within 14 days.

On the 28th August 2019, Frank Davies Esq. of Messrs Davies and Davis filed appearance as legal counsel for the 1st respondent (Bank of Ghana). As of Thursday, September 6, 2019, the expiring date of the reminder from the Ghana Arbitration Centre, Frank Davies had not submitted a defence or response on the Notice of Claim to the Ghana Arbitration Centre.

Speaking to some aggrieved customers of Boin Microfinance Limited in the Region over the inability to get their deposits, they blamed the Bank of Ghana.

They said the Bank of Ghana brought a Receiver to pay their deposits to them but they disclosed that since then they have not received a penny.

In this situation, some customers said they were dying in poverty.

Some said they don't have money to take good care of their families. Others said their wives were leaving them.

They are, therefore, seizing this opportunity to appeal to the Bank of Ghana to speed up the process and pay their deposits.

According to the Bank of Ghana definition of insolvent from Act 930 section 123, sub-section 4 of the Institution Act, 2016, it states that "the inability of a Bank or specialised deposit-taking institution to pay its obligations as they fall due or the circumstance where the value of the liabilities of a bank or specialised deposit-taking institution exceeds the value of its assets".

However, another document this Reporter sighted from the Boin Microfinance Limited which was copied to the Bank of Ghana, indicates that on Friday, May 31, 2019, the Bank of Ghana closed the offices of the company, the Boin Microfinance Limited advanced a total of Two Hundred Thousand Ghana Cedis (GHC200,000) loans to its clients who had applied for loans and had gone through proper assessment and approval.

According to Daniel Kaku's check, the Boin Microfinance Limited's primary reserve as of May 31, 2019, stood at GHC1.392.734.00 representing 9.0 per cent instead of 10 per cent and the Secondary Reserve stood at GHC6.952.696.31 representing 45.7 per cent instead of 20 per cent.

Boin Microfinance Limited's Stated Capital per this Reporter's check, stood at GHC2,017,854.00.