The Progressive People’s Party (PPP) has called on government and the Securities and Exchange Commission (SEC) to pay all affected customers of the BlackShield/Gold Coast Fund Management Company with immediate effect.
According to the party, it is shocking that after three years of the revocation, government has refused to pay the affected customers. It noted that there are continuous agitations in the country due to the “severe impact this unfriendly decision by government has brought on the customers”.
Contained in a statement signed by the Director of Communications for the party, Felix Mantey, he indicated that there were no conditions attached to the bailout for the payment of the affected customers.
“We are also curious, and asking government the whereabout of the 3.1 billion Ghana Cedis and 5.5 billion Ghana Cedis funds approved by parliament in the 2020 and 2021 budgets respectively for the payment of customers of all affected fund management companies as bailout.”
Progressive People’s Party
The PPP recounted that the Director General of the Securities and Exchange Commission (SEC), Rev. Daniel Ogbarmey Tetteh, on September 2, 2020, stated categorically that there is no plan to exclude any group of customers, and “the rollout of the government’s bailout will be done in phases”. Owing to this, it demanded explanations to what has happened to the arrangement.
“We believe the customers deserve better in this arrangement. So, government should urgently fulfil its pledge by paying the affected customers because, our taxes has been collected for this purpose.”
Progressive People’s Party
Liquidation of Gold Coast/BlackShield assets
Additionally, the party highlighted that there is no excuse for government to wait for a liquidation order for BlackShield/Gold Coast assets to be issued before making payments to customers. This, it explained, is because under a different arrangement with banks affected in the same financial sector clean-up exercise, “owners of these financial institutions are in court challenging the decision of the Bank of Ghana and the Receiver for the revocation of their licenses”, yet, customers are being paid.
“Besides, agreement signed by customers of affected fund management companies whose funds have been validated shows they are no longer customers of GCFM/BlackShield but are customers of a different fund manager approved by the Securities & Exchange Commission (SEC), called the Amalgamated Fund, managed by Ghana Commercial Bank Ltd which guarantees payment for the affected customers. What then is the reason for the delay in paying the customers?”
Progressive People’s Party
Subsequently, the party described as worrying, the general acceptance and public declaration by the President, the Vice President, the Minister of Finance, the Minister of Works and Housing and Roads and Highways Minister that, indigenous Ghanaian contractors who acquired loans from the affected fund management companies are owed significant sums of money. It however, emphasized that the Ministry of Finance and Economic Planning led by Mr. Ken Ofori-Atta, has been selective in determining which contractors are paid and which ones should not be paid.
The PPP stated that the ministry is directing funds to financial institutions to “pay some contractors bypassing the original lenders with impunity”.
“This has the potential of denying the original lenders funds due them and likely to cause huge judgement debts and financial loss to the state. The PPP therefore demand that government does the needful by paying investors their monies and save the suffering of the affected customers of these fund management companies.”
Progressive People’s Party
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