Government has authorized partial payment of up to GH¢50,000 to customers of the remaining affected Fund Management Companies as a bailout.
The bailout followed deliberations with the Government regarding an agreed social and humanitarian intervention for all remaining customers of the failed Fund Management Companies.
A statement by the Securities and Exchange Commission (SEC) in Accra said the partial payment formed part of measures to reduce the burden on the customers while the court process on the liquidation petition and other matters continue.
It added that the decision to make the partial payment was predicated on Government’s commitment to protecting its citizenry, sensitivity to the plight of affected clients and the disruptive impact of the COVID-19 pandemic.
According to the statement, the intervention was necessary at this stage because liquidation petitions for the remaining affected Fund Management Companies were currently at different stages.
It said, besides, some affected Fund Management Companies, including Gold Coast Fund Management Limited (now Blackshield Fund Management Company Limited) were contesting the liquidation petition.
As a result, they have filed a Stay of Proceedings until its application for judicial review of the decision of the Administrative Hearings Committee has been heard.
The statement said these legal processes could take some time and could extend the pain and suffering of the affected investors, hence, the decision by the Government.
“This compassionate move by Government of a partial bailout will cover all clients of the failed Fund Management Companies, whose licenses are revoked but are yet to come under official liquidation including customers of Blackshield Fund Management Company Limited,” it added.
It said the 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 per cent) 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 per cent) of these claims.
It said 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.
The statement said validated claims above the partial payout amount would 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 channelled 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.