GHS768 million paid to over 6,000 clients of defunct FMCs – SEC
The Securities and Exchange Commission (SEC) has stated that about GHS768 million has been credited to the accounts of some 6,916 clients of the 53 defunct Fund Management Companies, who signed up for the government’s full bailout programme.
According to the Commission, actual payments also made under the Partial Bailout Programme as of March 31, 2021, amount to GHS995 million, representing 81% of total claims and 83% of the total corresponding partial bailout value.
This update comes months after the government announced a bailout package for clients of the 53 defunct Fund Management Companies (FMCs).
Speaking at a media briefing in Accra on Friday, April 30, 2021, Director-General of the SEC, Rev. Daniel Ogbarmey Tetteh explained that the full bailout programme has so far been executed in three phases.
“Out of the total claimants who have signed up for the full Bailout Programme, a total amount of GHS 768.26 million has been paid as at the 31st of March 2021. This represents a total of 83% of total claimants paid out of total sign-ups done and 78% of the total value paid of examined claims. The number of claimants who have been fully settled under this programme amounts to a total of 6,916 clients as of the 31st of March 2021,” he said.
“Actual payments made under the Partial Bailout Programme as of the 31st of March 2021 amounts to GHS 995 million to 52,264 claimants. This represents 81% of total claimants and 83% of the total corresponding partial bailout value. The number of clients who have been fully settled under this programme amounts to a total of 42,945 claimants as at 31st March 2021,” he added.
Reverend Daniel Ogbarmey Tetteh further noted that the Commission also is set to complete the asset management bailout programme, following the approval of GHS5.5 billion by Parliament.
“This provision further demonstrates government’s profound commitment to strengthen the Ghanaian securities market to realize its full potential as an essential driver for economic growth and development and making it an attractive investment hub for domestic and international observers,” he said.
Validation of claims
As at the 31st March 2021, the SEC said, out of a total of 100,898 claims received against forty-seven (47) companies valued at GHS 11.70 billion, a total of 100,700 claims valued at GHS8.314 billion have so far been validated.
This means that an estimated 99.8% of the total claims filed have been validated with almost 30% found to be unwarranted.
Mr. Ogbarmey Tetteh further urged claimants who disagree with validated amounts to engage the agent of the SEC for further examination.
Update of liquidation orders
As of 31st March 2021, the courts had granted 37 liquidation orders to the Official Liquidator, out of the forty-seven (47) fund management companies with claims from investors after the revocation.
Virtual Creditor and Class meetings have been held by the Official Liquidator for clients of thirty-four (34) of these companies.
However, companies with liquidation orders yet to have Creditors & Class Meetings include Firstbanc Financial Services, Procap Finance Company, Strategic Hedge Capital Limited.
The remaining ten companies that have their liquidation petitions currently pending before the High Court for hearing are Apex Capital Partners Ltd, Beige Capital Asset Management Ltd., Blackshield Capital Management (formerly Gold Coast Fund Management Ltd)., Dowjays Investment Ltd., Frontline Capital Advisors Ltd., Kron Capital Ltd., Liberty Asset Management Ltd., Omega Capital Ltd., Universal Capital Mgt. Ltd. and Wealth Vision Financial Services Ltd.