The Securities and Exchange Commission (SEC) has been explaining the delay in the payment of bailout funds to customers of Blackshield Fund Management Ltd, formerly Gold Coast Fund Management.
According to SEC, the delay is not due to the Ministry of Finance refusing to provide funds, but rather due to legal action taken by Blackshield/Gold Coast contesting the liquidation petition brought by the SEC.
The SEC assures the public that they will continue to support the Official Liquidator in pursuing the liquidation petition in court.
The SEC provides background information on the revocation of licenses for 53 Fund Management Companies (FMCs) in November 2019, due to regulatory breaches and an inability to return clients’ funds estimated at GHS 8 billion.
“The SEC took actions to protect investors, including notifying the Registrar of Companies to petition for the official liquidation of the FMCs, securing a bailout package from the government under certain conditions, and appointing an agent to validate claims from clients,” a statement released by SEC on October 12 stated.
The SEC addresses the recent picketing by Blackshield/Gold Coast customers at the Ministry of Finance, clarifying that a partial bailout has already been paid to affected clients, totaling GHS 4.6 billion.
However, the full bailout for Blackshield/Gold Coast clients is still pending due to litigation issues initiated by the company.
The SEC emphasizes that a winding-up order from the court is required for the full disbursement of bailout funds, and the ongoing court process between the Official Liquidator and Blackshield/Gold Coast is stalling the government’s ability to roll out the full program.
The SEC appeals for calm and urges affected clients to rely on information provided by the SEC and the Official Liquidator. Any inquiries can be directed to the SEC or the office of the Official Liquidator.
This press release is issued in accordance with the Securities Industry Act.
By Vincent Kubi