Coalition of Aggrieved Customers urges government to focus on the majority of affected clients of collapsed banks

The Coalition of Aggrieved Customers of Collapsed Fund Management Companies have appealed to government to reimburse the greater number of people by the collapse of some financial institutions.

According to the group, the decision of government to pay clients of the twenty-two (22) companies currently under official liquidation kicks the greater number of affected customers to the curb.

Speaking in an interview, Joseph Aryeetey, the Secretary of the Coalition for the aggrieved customers of the 53 collapsed fund management companies, rather appealed to government to focus on the majority of customers to reimburse funds.

“You see, what we are saying is that, if the government intends to pay and they genuinely want to pay, they should come up with a plan on how to pay all the customers. We are not saying that they shouldn’t pay those they intend to pay. But you see, when you have a situation where Gold Coast Fund Management holds majority in all that is going on, it is just fair that their focus should be on the majority because like I am pointing out to you, those 22 companies they said they are going to pay from next month, they don’t even form more than 5% of the total customer base.”

Government to announce bailout package for clients of collapsed financial institutions

Over the week, the Securities and Exchange Commission revealed that government will announce a bailout package for clients of the 53 defunct Fund Management Companies (FMCs).

According to SEC, the payment will be conducted in phases, with the first phase covering clients of the twenty-two (22) companies currently under official liquidation.

The statement issued by Securities and Exchanges Commission (SEC) further noted that the Official Liquidator, the Registrar General, will communicate details of the payment process to affected clients starting in September 2020.

“Prior to the Official Liquidator realizing value from assets, the Government, mindful of the plight of Investors, has reiterated its commitment to a bailout package for clients of the FMCs in the form of a social intervention similar to what was done for depositors of the failed SDIs and MFIs.

“The first phase will cover clients of the twenty-two (22) companies currently under official liquidation per Court orders, based on their validated claims. The Official Liquidator will communicate details of the payment process to affected clients starting in September. The second phase would cover clients of the remaining companies after the liquidation orders are secured,” the statement noted.