Government authorizes partial bailout for remaining affected Fund Management Firms

Government has authorised a partial payment of up to GHS50,000 to all customers of the remaining defunct Fund Management Companies whose monies were locked up.

This follows an earlier directive by government to pay customers whose claims were validated.

A statement issued by the Securities and Exchange Commission (SEC) on Wednesday, November 18, 2020, said the customers will be paid while the court process on the liquidation petition and other matters continue.

“The decision to make this partial payment is predicated on Government’s commitment to protect its citizenry and its sensitivity to the plight of affected clients compounded by the disruptive impact of the Covid-19 pandemic,” the statement said.

“The Securities and Exchange Commission (SEC), acting within its mandate of protecting investors and the integrity of the market, wishes to announce the outcome of its deliberations with Government regarding an agreed social and humanitarian intervention for all remaining customers of the failed Fund Management Companies.”

The Commission hereby announces that Government has authorized a partial bailout which involves a partial payment of up to Fifty Thousand Ghana Cedis (GHS50,000) to all customers of the remaining affected Fund Management Companies while the court process on the liquidation petition and other matters continue,” the statement added.

Meanwhile, it clarified that “they will receive their balances after court processes are concluded.”

No one will be left out in bailout for clients of defunct fund managers

The Commission had earlier assured customers that no one will be excluded from the government’s bailout package.

“We wish to assure all affected clients that the Government bailout package is all-inclusive, provided claims have been validated and liquidation orders secured. The SEC reiterates the fact that there is no plan to exclude any group of customers and as indicated in our last press release, the roll-out of the Government bailout will be done in phases,” SEC said in a statement.

SEC also explained that the agreement it had with Government was for the bailout to be effected phases only after validation of claims and liquidation orders are secured.

Source: citinewsroom.com

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