The Securities and Exchange Commission (SEC) has intimated that payments are still ongoing for the governments’ bailout package and currently the aggregate value of total outlays made to aggrieved customers stands at Gh₵322.75 million.
This amount according to the Commission, translates to over 2,802 clients of the failed fund management companies who have accessed either full or partial payment of their investments under the governments’ package for the industry.
Giving further insights into the difference between the full and partial bailout packages, SEC revealed that the full bailout package involves a special arrangement whereby the government will pay customers of defunct fund management companies whose liquidation process is complete and has been approved by the court.
Such investors will access their monies from two different funds namely Tier 1 and Tier 2 and the full amount of their investments can be withdrawn from third year of the fund.
Whereas all individuals and other claimants below 60 years will get up to 20% of their validated claims in Tier 1, all pensioners of 60 years and over as well as schools, faith-based organizations and hospitals shall get all their validated claims in Tier 1.
For Financial institutions, Associations, Welfare Institutions, Credit Unions and Unions, they will receive 50% of their validated claims in Tier 1.
“Regarding the full bailout, investors will have to subscribe to the overall bailout scheme. Claimants who do not subscribe to the bailout scheme will have to wait for a proportional liquidation dividend from the Official Liquidator,” SEC cautioned.
Conversely, the partial bailout involves the payment of a flat amount of money worth Fifty Thousand Cedis (Gh₵50,000) in cash into the bank accounts that would be opened at GCB Bank for each client of the defunct fund management companies whose liquidation processes are still pending thus, awaiting final approval from the court.
“The partial bailout is therefore an interim measure brought about after several engagements with the Ministry of Finance (MoF) taking into consideration investor’s plight of waiting for a long time while these court processes are still ongoing”.
Affected investors who have more than Gh₵50,000.00 to claim will receive their additional funds, in line with the bailout formula, “after liquidation orders have been secured,” SEC mentioned.
The regulator further asserted that the partial bailout being offered would result in 89 percent and 82 percent of affected individuals and pensioners, respectively being fully covered.
The partial bailout is being channelled through Amalgamated Fund Ghana Limited, the same special purpose vehicle (SPV) being used to pay clients of fund management companies currently under official liquidation.
The SEC, finally cautions all affected clients who opt for the partial bailout package to patiently follow through with all the processes and rely only on information provided by the Commission on the process.
“Clients with requests relating to non-receipt of Claim ID to access the bailout platform are to kindly note that it is an ongoing process, and you will receive an SMS in due course.
“The Government is committed to following through with its bailout package for all validated claims”.
