Rev Daniel Ogbarmey Tetteh, Director General, SEC
GOVERNMENT HAS authorized a partial bailout of up to GH¢50,000 to all customers of the remaining affected fund management companies while the court process on the liquidation petition and other matters continues.
The Securities and Exchange Commission (SEC), which disclosed this, said the decision to make the partial payment was predicated on government’s commitment to protect its citizenry and its sensitivity to the plight of affected clients compounded by the disruptive impact of the Covid-19 pandemic.
Also, it follows an agreed social and humanitarian intervention between SEC and government for all remaining customers of the failed fund management companies.
“Furthermore, this intervention has become necessary at this stage because liquidation petitions for the remaining affected fund management companies are currently at different stages.
“In addition, some affected fund management companies like Gold Coast Fund Management Limited (now Blackshield Fund Management Company Limited) are contesting the liquidation petition and as a result, have filed a Stay of Proceedings until its application for judicial review of the decision of the Administrative Hearings Committee has been heard.
“There is the possibility for these legal processes to take some time and, therefore, extend the pain and suffering of the affected investors, hence, this decision by the government. This compassionate move by government for a partial bailout will cover all clients of the failed fund management companies whose licences were revoked but are yet to come under official liquidation including customers of Blackshield Fund Management Company Limited,” SEC noted.
It said this partial bailout would cover a total of 92,460 claims filed against the remaining 27 fund management companies, out of which Blackshield Fund Management Company Limited accounts for a total of 84,656 (92%) claims. Claims filed by individuals (including pensioners) is 86,506, with Gold Coast Fund Management Limited (now Blackshield Fund Management Company Limited) accounting for 80,018 (92.5%) of these claims.
“Based on the validated claims, the partial bailout being offered would result in 89% and 82% of affected individuals and pensioners being fully settled respectively. Validated claims in excess of this partial payout amount will be covered after the liquidation proceedings in court, in line with the terms being applied under the bailout package for the clients of the fund management companies currently under official liquidation.
“The partial bailout will be channeled through the Amalgamated Fund Ghana Limited, the same special purpose vehicle (SPV) being used to pay the clients of the fund management companies currently under official liquidation. Amalgamated Fund Ghana Limited is managed by GCB Capital Limited, a subsidiary of GCB Limited. The SEC’s agent for receiving and validating claims is PwC,” it added.
BY Samuel Boadi