The Bank of Ghana (BoG) says it would clamp down on activities of microfinance institutions, popularly called ‘Susu’ that are operating without licenses.
The proliferation of Susu institutions in the country, some of whom are not legally registered, has given regulators cause for concern.
Dr. Yaw Gyimah-Larbi, Head Microfinance Unit at BoG told BUSINESS GUIDE after a press conference by the Ghana Co-operative Susu Collectors’ Association (GCSCA) in Accra that Susu companies operating illegally should brace themselves up for sanctions.
“Any Susu operator without a license will be forced to close down and prosecuted where necessary,” he said.
He said some Susu operators had engaged in fraudulent activities to the detriment of their customers and the country’s economy.
He stated that “the elaborate procedures for licensing in the Susu industry will go a long way to build confidence within the system. Therefore any Susu institution or collector who does not take advantage of the licensing would be forced to shut down.”
He announced that the BoG would from this week give the first batch of licenses to about 55 micro finance institutions and publish their names in the media.
Emmanuel Elvis Abougye – Manuh, National President GCSCA, in a speech read on his behalf said, “Since the publication of the Rules and Guidelines by BoG, the association has conducted a series of sensitization exercises across the country to educate both registered and non-registered Susu operators as well as clients.
“It also initiated the registration of all susu operators in the country.”
The initiative, he said, yielded some positive results as it identified and registered over 450 Susu operators.
Due diligence was conducted on the registered members and 246 were recommended to BoG for licensing.
He also urged all unregistered and unlicensed operators to regularize their activities with the Association as soon as possible to avoid arrest and prosecution.
Mr. Abougye-Manuh noted that the Association will issue identification cards to all licensed operators.
“Again in an effort to standardize their operations, we will introduce uniform documentation materials in the form of passbooks to the collectors to be issued to their clients. This will sensitize the clients on credible and trustworthy operators to lodge their funds with,” he added.
He emphasized that flouting any of such provisions will
warrant various sanctions and penalties depending on the offense.
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