Jemima Oware, the Registrar General, has disclosed that investors of some Liquidated Fund Management Firms will receive a fraction of their funds placed in bonds starting from the second week of this month, November 2021.
This will represent a second tranche of payment for those who were not allowed to withdraw all their funds in the first disbursement. According to the Registrar General, those investors whose funds were placed in bonds will get 20 percent of their funds in November, 2021.
“They are now going to access 20% of their investment in bonds, in cash. Notices will come out from GCB Capital on how they can access it.”
Jemima Oware
Mrs. Oware noted the fund management firms have so far, been reduced to 47. She added that out of the 47 companies, the Registrar General Department has gotten liquidation orders for 43.
“Initially, it was 53 and has been reduced to 47. Of the 47, we’ve currently gotten liquidation orders for 43. By that, we have held a creditor and class meeting for these 43. Once we were able to hold that meeting, all those investors who chose the bailout option went for that …funds were made available to pay.”
Jemima Oware
According to Registrar General, the Bank of Ghana made available funds to settle 80% of 39 microcredit companies, adding that the remaining 20% had issues.
“80% of the 39 microcredit have been settled and about 20%, you can’t find some of the directors. You can’t get some of the statements, so that’s not so good”.
Jemima Oware
Mrs. Oware revealed that Black Shield Capital and other three companies are the outstanding companies which have not received orders of liquidation so far, due to the issues surrounding their investments. She added that the liquidation order of these four companies is currently undergoing court processes.
Revocation of Licenses
The Securities and Exchange Commission in November 2019, revoked the licenses of 53 fund management firms for not operating in conformity with the industry’s best practices and standards, among others.
The revocation came at a time where some fund management firms were struggling to settle their investors’ claims due to liquidity challenges.
The Securities and Exchange Commission (SEC) began discussions with the government to find an appropriate bailout programme for the investors whose funds were locked-up.
The Registrar General was subsequently appointed as the Official Liquidator of the defunct Fund Management Companies.
The Registrar General’s Department has so far paid 85% of the GH¢1.2 billion bailout cash meant for investors of Liquidated Fund Management firms.
The total number of people or institutions that had invested in the defunct investment firms were 8,228.
It can be recalled that Mrs Jemima Oware, in one of her engagements, noted that investors, who are pensioners have been paid all their investment funds.
“As of the 26th of June, 2021, we had total sign ups of GH¢1.2 billion for the Tier 1. You know we had two tiers – Tier 1 is cash and Tier Two is a fund like a bond, so the total signups for the Tier 1 is GH¢1.2 billion and the total sign up for the Tier 2 is GH¢1.0 billion and the total paid so far is 85% of the Tier 1. 15% of the Tier One is being retained and is in an investment fund.
“The total number of people paid so far, is 8,228 in all. I’m talking of 7,380 individuals and 848 corporate bodies have been paid in full for Tier 1. And now, 5,515 claimants have received all their funds in Tier 2 and then nothing outstanding in Tier 2. So basically, you know we did also a partial bailout”.
Jemima Oware
READ ALSO: Court Orders Arrest of Trader with Counterfeit Cedi Notes
