TouchStone MFB Threatened by Liquidation
- By Saka Khaliq
- Published July 2nd, 2009
- News
- Unrated
DEPOSITORS of Touchstone Microfinance Bank may forfeit their deposit or may have to wait for a longer time before their deposits are paid as the bank is on its way to liquidation, BusinessWorld can now reveal.
The problem, which started from its branch office in Daleko market, Mushin, few weeks, has extended to its head office in Ilupeju as the office is under lock and key while the workers of the bank cannot be located.
BusinessWorld Intelligence gathered that the problem started when some traders of Daleko market, who are depositors with the bank, got to the bank to withdraw their money but were disappointed as the bank claimed it is facing some financial problems.
This, it was later gathered, led to protest by these depositors which led to the shut down of the bank’s branch in Daleko. When BusinessWorld Intelligence visited the bank’s branch recently, it was under lock and key while the bank’s signpost had been totally removed.
The removal of the signpost has made it difficult for customers to locate the bank as the officials of the bank have equally vacated the place.
Sensing that their deposits may not be retrieved in the bank, depositors besieged the bank’s head office in Ilupeju demanding for their savings.
This prompted the head office to shut down for business. When BusinessWorld Intelligence visited the head office last week, it was revealed that the bank has closed down for quite a long time and at such workers can no longer be located. All effort to be speak with an authority in the bank prove abortive because they were no where to be found.
However, one of depositors of the bank who is a commercial motorcyclist disclosed to BusinessWorld that he had lost close to N50,000, a proceed from his business, in the bank. He also disclosed that some of his colleagues have up to N200,000 and N500,000 in the bank, adding that, they(depositors) will not hesitate to take law into their hands if they find out that their deposits cannot be paid.
Consequently, it was learnt that the bank gave out loans indiscriminately to loan seekers in a bid to build more customer base. It later faced problems in recovering the loan as some of the customers could not pay back. The loan requirement processes, it was gathered, were not adequately followed, more so that no collateral was involved. Also, a chunk of the bank’s money was said to have been invested in the capital market.
The bank is expected to cough-out several millions of naira to depositors whose money was trapped in the bank. Touchstone microfinance bank was formerly known as Ifesowopo community bank.
It would be recalled that KFC Microfinance Bank in Maryland, Lagos state, faced similar situation few months ago. Its protesting customers were subsequently put under scheduled payment that ranges between January and May, this year. BusinessWorld can reveal that the bank has paid over N30 million to about 1,500 customers who have signified interest to withdraw their money.
Mr. Olutayo Adenekan, chairman, Lagos State Association of Microfinance Banks, said defaulters are threatening the operations of microfinance banks in the country.
Adenekan said the preponderance of loan defaulters has attained frightening state and may cause many operators to close shop.
According to him, about 30 per cent of MFBs in Lagos state have been affected by this development.
The problem, which started from its branch office in Daleko market, Mushin, few weeks, has extended to its head office in Ilupeju as the office is under lock and key while the workers of the bank cannot be located.
BusinessWorld Intelligence gathered that the problem started when some traders of Daleko market, who are depositors with the bank, got to the bank to withdraw their money but were disappointed as the bank claimed it is facing some financial problems.
This, it was later gathered, led to protest by these depositors which led to the shut down of the bank’s branch in Daleko. When BusinessWorld Intelligence visited the bank’s branch recently, it was under lock and key while the bank’s signpost had been totally removed.
The removal of the signpost has made it difficult for customers to locate the bank as the officials of the bank have equally vacated the place.
Sensing that their deposits may not be retrieved in the bank, depositors besieged the bank’s head office in Ilupeju demanding for their savings.
This prompted the head office to shut down for business. When BusinessWorld Intelligence visited the head office last week, it was revealed that the bank has closed down for quite a long time and at such workers can no longer be located. All effort to be speak with an authority in the bank prove abortive because they were no where to be found.
However, one of depositors of the bank who is a commercial motorcyclist disclosed to BusinessWorld that he had lost close to N50,000, a proceed from his business, in the bank. He also disclosed that some of his colleagues have up to N200,000 and N500,000 in the bank, adding that, they(depositors) will not hesitate to take law into their hands if they find out that their deposits cannot be paid.
Consequently, it was learnt that the bank gave out loans indiscriminately to loan seekers in a bid to build more customer base. It later faced problems in recovering the loan as some of the customers could not pay back. The loan requirement processes, it was gathered, were not adequately followed, more so that no collateral was involved. Also, a chunk of the bank’s money was said to have been invested in the capital market.
The bank is expected to cough-out several millions of naira to depositors whose money was trapped in the bank. Touchstone microfinance bank was formerly known as Ifesowopo community bank.
It would be recalled that KFC Microfinance Bank in Maryland, Lagos state, faced similar situation few months ago. Its protesting customers were subsequently put under scheduled payment that ranges between January and May, this year. BusinessWorld can reveal that the bank has paid over N30 million to about 1,500 customers who have signified interest to withdraw their money.
Mr. Olutayo Adenekan, chairman, Lagos State Association of Microfinance Banks, said defaulters are threatening the operations of microfinance banks in the country.
Adenekan said the preponderance of loan defaulters has attained frightening state and may cause many operators to close shop.
According to him, about 30 per cent of MFBs in Lagos state have been affected by this development.
