Micro-credit institutions have been cautioned to work within the confines of the law and avoid engaging in non-permissible activities.

This is due to rising fraud and labour turnover within the industry.

Speaking at the 12th Annual General Meeting of the association, Chairman of the Micro-credit Association of Ghana, Wilberforce Ofori, admonished members of the association to refrain from investment and deposit-taking, which is in contravention of the law.

“Let’s remember, deposit taking and investment are breaches of the regulation. Micro-credit through exacting, it is very rewarding. Our checks have revealed that fraud and labour turnover are rising. I urge all members to put in place robust systems and adequate control mechanisms to deal with fraudulent activities by employees.”

“We would like to assure the Bank of Ghana that market surveillance will be intensified in order to crack down on unlawful operators. We will also endeavor to strengthen inspection and supervision of member institutions and ensure that members comply with the regulations.”

As of the close of the year 2020, total assets of the association stood at ¢1.844 million and total liability of ¢352,485.

The Executive Secretary of the Micro-credit Association, Ebenezer Quartey, said the Covid-19 pandemic has tested its resilience and stretched its limit as well.

“Our resilience has been tested, our limit stretched and sustainability challenged by the global pandemic. The experience has undoubtedly examined our pledge to financial inclusion and social development, of which I am happy to report that we, as a collective, have demonstrated tenacity and commitment to good conscience”.

“In the recent past before the onslaught of the Covid-19, we pulled through a similar test – the banking and financial crisis. Even though we lost 39 of our Tier 3 institutions, we generally emerged stronger on the other side”, he explained.

Mr. Quartey expressed optimism about the future and believe in the ability of the microcredit institution to bounce back and play its role effectively in contributing to the nation’s Gross Domestic Product, sustainable job creation and also to the financial inclusion agenda.

“We are then fulfilled because there is glimmer of hope and optimism for the MSMEs and the economically active but poor people”, he added.

He appealed to the Metropolitan, Municipal and District Assemblies to desist from issuing permits to individuals who do not have the requisite license from the Bank of Ghana to do micro-credit business.

Over 400 plus members of the Micro-credit Association are in good standing