Gov’t orders ‘partial payment’ of locked-up funds of Gold Coast customers, others

All customers of Gold Coast Fund Management (Blackshield) as well as others who were not covered by an earlier bailout package, are to now enjoy partial payment of their locked-up funds up to GHS50,000, the Securities and Exchange Commission (SEC) has announced in a statement dated Wednesday, 18 November 2020.

It said “acting within its mandate of protecting investors and the integrity of the market”, its wishes to announce the outcome of its deliberations with the government “regarding an agreed social and humanitarian intervention for all remaining customers of the failed fund management companies”.

“The Commission hereby announces that the government has authorised a partial bailout which involves a partial payment of up to 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 said.

It noted that: “The decision to make this partial payment is predicated on the government’s commitment to protecting its citizenry and its sensitivity to the plight of affected clients compounded by the disruptive impact of the Covid-19 pandemic”.

It added that: “Furthermore, this intervention has become necessary at this stage because liquidation petitions for the remaining affected Fund Management Companies are currently at different stages.

“In addition, some affected fund management companies like Gold Coast Fund Management Limited (now Blackshield Fund Management Company Limited) are contesting the liquidation petition and as a result, have filed a stay of proceedings until its application for judicial review of the decision of the Administrative Hearings Committee has been heard.

“There is the possibility for these legal processes to take some time and, therefore, extend the pain and suffering of the affected investors hence this decision by the government”,  SEC explained.

It noted that: “This compassionate move by the government of a partial bailout would cover all clients of the failed fund management companies whose licenses were revoked but are yet to come under official liquidation including customers of Blackshield Fund Management Company Limited”.

“This partial bailout would cover a total of 92,460 claims filed against the remaining 27 fund management companies, out of which Blackshield Fund Management Company Limited accounts for a total of 84,656 (92%) claims.

“Claims filed by individuals (including pensioners) is 86,506 with Gold Coast Fund Management Limited (now Blackshield Fund Management Company Limited) accounting for 80,018 (92.5%) of these claims.

“Based on the validated claims, the partial bailout being offered would result in 89% and 82% of affected individuals and pensioners being fully settled respectively. Validated claims in excess of this partial payout amount shall be covered after the liquidation proceedings in Court, in line with the terms being applied under the bailout package for the clients of the Fund Management Companies currently under official liquidation.

“The partial bailout shall be channeled through the Amalgamated Fund Ghana Limited, the same Special Purpose Vehicle (SPV) being used to pay the clients of the Fund Management Companies currently under official liquidation. Amalgamated Fund Ghana Limited is managed by GCB Capital Limited, a subsidiary of GCB Bank Limited. The SEC’s agent for receiving and validating claims is PwC”, the statement noted.

SEC added that requests for further information can be made by calling the dedicated bailout call centre number on 0242-439453 or visiting www.bailout.rgd.gov.gh for the latest updates on the bailout situation.

Source:Classfmonline