GHS 1.5Bn Bailout: Finance Ministry Approves GHS 700 Million Payment to Customers of Defunct Fund Management Companies
Finance Minister, Dr. Mohammed Amin Adam, has announced the government’s approval of a GHS 700 million payout to customers of fund management companies affected by the recent financial sector clean-up.
The approved disbursement is the first tranche of a GHS 1.5 billion fund sanctioned by the Cabinet to address the losses incurred by investors, including those linked to Blackshield Fund Management Company.
In a press briefing on Thursday, Dr. Amin Adam disclosed that the Ministry of Finance has processed the release of the funds to the Securities and Exchange Commission (SEC), which will oversee the payments.
The move follows commitments outlined in the 2024 Mid-Year Fiscal Policy Review presented in July.
According to the Finance Minister, the GHS 1.5 billion fund will be released in three phases, with this initial allocation expected to settle 92% of claims by Blackshield investors and 78% for those with other affected fund management companies.
In total, some 94,165 investors representing 90% of the validated claims, will be fully compensated under the bailout scheme.
Dr. Amin Adam emphasized that the government’s decision to proceed with these payments despite a challenging fiscal environment underscores its commitment to providing relief to the defunct asset management companies’ investors, with a particular focus on pensioners.
“I am glad to inform you that the Ministry of Finance has processed the release for the first tranche of GHS 700 million of the additional GH¢ 1.5 billion for SEC to further bailout the remaining AMCs including Blackshield Fund Mgt Ltd. Yesterday, I instructed the Controller and Accountant-General to release the funds to mitigate the stress on affected persons”, he averred at the Ministry’s 5th Edition of the Monthly Economic Update.
“This would bring the total number of investors fully settled under the bailout scheme to 94,165 (representing 90%) out of the total validated claims of 105,178. 28. This intervention is being done despite the tight fiscal space, evident of Government’s commitment to providing relief to investors of the defunct AMCs, especially the pensioners,” he added.
