The government has authorised a partial bailout 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 the government’s commitment to protecting its citizenry, and its sensitivity to the plight of affected clients compounded by the disruptive impact of the Covid-19 pandemic.
This was contained in a detailed statement signed and issued by the Securities and Exchange Commission (SEC), which quoted GH¢50,000 as being the amount involved in the partial payment.
The statement partly read that the SEC “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 authorised a partial bailout which involves a partial payment of up to Fifty Thousand Ghana Cedis (GH¢50,000) to all customers of the remaining affected Fund Management Companies while the court process on the liquidation petition and other matters continue,” it added.
According to the statement, this intervention had become necessary at this stage, because liquidation petitions for the remaining affected Fund Management Companies were 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.
The company, according to the SEC, has filed a Stay of Proceedings until its application for a judicial review of the decision of the Administrative Hearings Committee had been heard.
The SEC, therefore, envisaged the possibility of these legal processes taking some time, which would 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,” the statement said.
The statement indicated that 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%) 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,” the statement added.
Based on the validated claims, the partial bailout being offered would result in 89% and 82% of the 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.
Channel
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.
The post Hurray! Govt bails out all customers of revoked fund management companies appeared first on The Chronicle Online.
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