The receiver is set to pay GH¢151.8 million to 5,637 former staff of 209 defunct Specialised Deposit Taking Institutions (SDIs) as outstanding salary arrears and compensation due them before the end of this month.

This follows the Bank of Ghana (BoG) making available funds to the receiver and official liquidator to fully settle employee-related claims which otherwise rank as unsecured claims in the receiverships/liquidation of the affected companies.

The amount is made up of GH¢144.3 million in compensation due the former employees and GH¢7.5million in salary arrears.

A total of 2,036 staff of 177 microfinance companies (MFCs) will receive GH¢24.6 million for outstanding salary arrears and other related claims.

It comprises GH¢20.3 million compensation and GH¢4.3 million salary arrears.

In addition, 3,547 former employees of 21 savings & loans (S&Ls) and finance house companies will also be paid GH¢125.8 million.

It is made up of GH¢122.7 million compensation and GH?3.1 million salary arrears.

For 11 microcredit companies (MCCs), 54 ex-staff will also receive GH¢1.4 million for outstanding salaries and compensations.

The compensation is GH¢1.35 million while the salary arrears is GH¢0.05 million.

The receiver, Mr Eric Nana Nipah, told journalists in Accra that the negotiated settlement includes full payment of all outstanding salaries post-receivership.

Details of the compensation package

He said the compensation includes three-month basic salary per each year of service, accrued outstanding leave days for 2019 to be commuted to cash, and the option of first right of refusal to purchase official cars assigned to staff prior to receivership.

He added that the rest are medical insurance for 2019 allowed to run till expiry; validation and payment of outstanding medical bills as at receivership date; and 30% discount on all outstanding loans.

On challenges, he cited availability and access to employee data for verification and computation of exit packages as one of them.

According to him, 155 MFCs had ceased operations prior to the receivership date and there are currently no employee records available for these MFCs.

Mr Nipah explained that negotiations and computations were currently ongoing with employees of 15 MFCs.

He noted that two savings and loans companies had ceased operations and closed prior to receivership.

He also stated that there were no employee records for 28 microcredit companies that had ceased operations prior to the revocation date.

The receiver said he inherited all staff willing to work with them for an initial period of five months for MFCs and three-and-half months for S&Ls.

The monthly payroll inherited by the receiver was approximately GH¢13.1 million for the over 5,000 staff retained.

Mr Nipah said following a gradual phasing out process, the current staff strength of the receiver is approximately 2,000 with a monthly payroll of approximately GH¢5 million.

The resolved companies are 347 microfinance companies, 23 savings & loans and finance house companies, and 39 microcredit companies in official liquidation.