Beware of lotto microfinance companies - Prof. Yiadom

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Professor Edward Marfo Yiadom, UCC

The Dean of the School of Business of the University of Cape Coast (UCC), Professor Edward Marfo Yiadom, has urged Ghanaians to be wary of microfinance institutions operating as “chacha” and “lotto” companies.

That, he explained, would save them the agony of losing their hard earned monies.


“With lotto you can easily lose 100 per cent investment and that is what some of these financial institutions have become,” he said.

He was contributing to a discussion on “The Current State of Microfinance Institutions in Ghana” organised by the School of Business of UCC with support from the Institute of Chartered Accountants in Cape Coast last Thursday.

Streamlining operations

Prof. Yiadom further urged the Bank of Ghana (BoG) to work harder to streamline the operations of the microfinance institutions to protect the investment of the public.

He expressed surprised at the BOG’s inability to effectively monitor and clamp down on dubious microfinance institutions.

He said the BoG must work harder to properly regulate and supervise the activities of those financial institutions to ensure clients did not lose their investments.

More danger

Dr James Atta-Preprah, Co-ordinator, Microfinance Unit of the UCC, said the country should expect more fall outs of the microfinance institutions if the BoG did not ensure proper scrutiny and regulation of their activities.
Mr Kwabena Nkansah Darffor a Senior Lecturer of the Department of Economics of UCC, said the recurring swindling of Ghanaians by microfinance institutions was worrying.

He called for professionalised apex associations and bodies to help regulate the activities of those institutions.
He further called for capacity building and quality standards in the operations to help protect clients.

Source: Graphic.com.gh

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