GH₵700m Released To SEC
– To pay customers of collapsed fund management companies
Government of Ghana has processed and released GH₵700 million to the Securities and Exchange Commission (SEC) as part of efforts to compensate customers who lost their investments during the financial sector clean-up exercise.
This payment is the first tranche of a GH₵1.5 billion fund approved by Cabinet to settle the claims of affected customers, including those of Blackshield Fund Management Company.
Finance Minister Dr. Mohammed Amin Adam announced the release during a monthly media briefing in Accra, noting that the GH₵1.5 billion would be disbursed in three phases.
The remaining GH₵800 million will be released in two subsequent tranches.
“I am glad to inform you that the Ministry of Finance has processed the release for the first tranche of GH₵700 million of the additional GH₵1.5 billion for SEC to further bailout the remaining Asset Management Companies (AMCs), including Blackshield Fund Management Ltd.
“Yesterday, I instructed the Controller and Accountant-General to release the funds to mitigate the stress on affected persons,” Dr. Amin Adam stated.
The Finance Minister highlighted that this payment process was outlined in the 2024 Mid-Year Review of Fiscal Policy presented in July 2024, where Cabinet granted approval for the disbursement.
“The GH₵700 million will enable the SEC to settle the claims of 82,096 investors under Blackshield, representing 92% of the total affected.
“Additionally, 12,069 investors, or 78% of those associated with other fund management companies (FMCs), will also be compensated.
Overall, this intervention will bring the total number of investors fully settled under the bailout scheme to 94,165, representing 90% of the total validated claims of 105,178. Despite the government’s tight fiscal situation.
Dr. Amin Adam emphasized the administration’s commitment to providing relief to investors of the defunct AMCs, especially pensioners.
This latest action is part of the government’s broader efforts to address the fallout from the financial sector clean-up and restore confidence in the investment environment.
The subsequent tranches of the GH₵1.5 billion fund are expected to continue this progress, ensuring that all affected investors receive their due compensation.
He said virtual creditor and class meetings had been held by the official liquidator for clients of 34 of the companies.
SEC indicated that out of 100,898 claims received against the 47 companies valued at GH₵11.70 billion, a total of 100,700 claims valued at GH₵8.31 billion were validated as of March 31, 2021.
