The customers of Legacy Capital savings and loans have called on government and other stakeholders to help ensure that they receive the remaining payments of their locked-up funds since the first instalment was received last year.

This development comes barely a year after the Securities and Exchange Commission (SEC) restored the licence of the savings and loans company.

However, customers have raised concerns in relation to the lack of commitment on the part of the company to refunds to them, since it resumed operations.

The spokesperson of the aggrieved customers of the savings and loans company, Mr. Clement Adjetey Kumah has requested the quick intervention of stakeholders to help retrieve their funds.

“It’s been over a year since we received payment from Legacy Capital. After SEC restored their licence, they have paid us only once, in October last year. Since then, the management of the company has not communicated to us on the date we can receive our next payments. We are struggling.”
Mr. Clement Adjetey Kumah

Meanwhile, committed efforts to get in touch with authorities such as the SEC and the management of Legacy Capital Savings and Loans have ended up on the rock, as the authorities are reluctant to act on the matter.

Sometime in November 2019, the Securities and Exchange Commission legally revoked the operating licence of some 53 fund management companies of which Legacy Capital was among the companies. This was on the grounds of numerous operational breaches including non-payment of customers funds amounting to GH¢ 8 billion.

The legal action by SEC adversely impacted customers whose investments were locked up with the various fund management companies as at the time of the licence revocation.

Restoration of operational licence

Reverend Daniel Ogbarmey Tetteh, the Director-General of the Security and Exchange Commission, disclosed that as “per the Securities Industry ACT 929, 2016 market operators are allowed to file appeals through the administrative hearing committee”.

This revelation inspired eight (8) out of the 53 fund management companies whose licences were revoked to apply possible redemption.

The SEC in its quest to rectify the situation, promote growth, protect investors, and maintain the integrity of the securities market, in September last year, restored the licences of three (3) out of the 8 companies who applied for redemption.

Reverend Ogbarmey Tetteh announced that “three companies are now excluded from the bailout package and can access their funds directly from the various institutions”.

Among the beneficiaries of this grace were Monarch Capital, Legacy Capital, and Integrity Fund Management.

In the meantime, some other aggrieved customers of the defunct gold dealership firm, Menzgold Company Limited have called on stakeholders to help retrieve their funds after the company collapsed in 2018.

Management of the said gold dealer company has promised to pay customers their due which has been in arrears since the last three years.

Meanwhile, customers of Menzgold Company Limited are optimistic and believe stakeholders will intervene to help retrieve their outstanding funds.