Gov’t authorises partial payment to remaining customers of collapsed Fund Management Companies

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Rev. Daniel Ogbarmey-Tetteh

Government has authorised a partial payment of up to GHS50,000 to all customers of the remaining collapsed Fund Management Companies whose monies were locked up.

This follows an earlier directive by government to pay customers whose claims were validated.

A statement issued by the Securities and Exchange Commission (SEC) said the customers will paid while the court process on the liquidation petition and other matters continue.

“The decision to make this partial payment is 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,” the statement said.

Below is the full statement

FOR IMMEDIATE RELEASE

THE SECURITIES AND EXCHANGE COMMISSION PRESS RELEASE
SEC/PR/003/11/2020
GOVERNMENT AUTHORIZES PARTIAL BAILOUT FOR ALL REMAINING CUSTOMERS
OF REVOKED FUND MANAGEMENT COMPANIES PENDING THE OUTCOME OF
LIQUIDATION PETITIONS
The Securities and Exchange Commission (SEC), acting within its mandate of protecting
investors and the integrity of the market, wishes to announce the outcome of its deliberations with Government regarding an agreed social and humanitarian intervention for all remaining customers of the failed Fund Management Companies.

The Commission hereby announces that Government has authorized a partial bailout which
involves a partial payment of up to Fifty Thousand Ghana Cedis (GHS50,000) to all
customers of the remaining affected Fund Management Companies while the court process
on the liquidation petition and other matters continue.

The decision to make this partial payment is 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.

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 of a partial bailout would cover all clients of the
failed Fund Management Companies whose licenses were revoked but are yet to come under
official liquidation including customers of Blackshield Fund Management Company Limited.
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 shall 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 shall 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 Bank Limited. The SEC’s agent for
receiving and validating claims is PwC.

Requests for further information can be made by calling the dedicated bailout call center
number on 0242-439453 or visiting www.bailout.rgd.gov.gh for the latest updates on the
bailout situation. Steps to access the partial bailout are detailed below. This Press Release is issued pursuant to section 208(c) of the Securities Industry Act, 2016 (Act 929).
By Order of the
SECURITIES AND EXCHANGE COMMISSION
DATED: 18th November, 2020

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