A partial bailout for the remaining 21 collapsed Fund Management Companies (FMCs) has been authorized by the Government.
This follows a bailout package already granted to 22 FMCs months ago.
The partial bailout involves payments of up to Ghs 50,000 to all affected customers.
According to the Securities and Exchange Commission (SEC), the partial bailout comes on the back of deliberations with Government regarding an agreed social and humanitarian intervention for all remaining customers of the failed FMCs.
“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,” SEC said in a statement.
“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,” it added.
The statement continued stating, “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 partial bailout would cover a total of 92,460 claims filed against the remaining 21 FMCs, out of which Blackshield Fund Management Company Limited accounts for a total of 84,656 (92 per cent) claims.
Claims made include that of pensioners.
Based on the validated claims, the partial bailout being offered would result in 89 per cent and 82 per cent 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 FMCs 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 FMCs currently under official liquidation.
The Amalgamated Fund Ghana Limited is managed by GCB Capital Limited, a subsidiary of GCB Bank Limited.
SEC in the statement concluded that requests for further information by clients of the FMCs can be made by calling the assigned bailout call center number 0242-439453 or visit www.bailout.rgd.gov.gh for the latest updates on the bailout situation.
Bailout Press Release 18.11.29 v. Absolute Final by Fuaad Dodoo on Scribd
