The Securities and Exchange Commission (SEC) has announced that Receivers of the defunct fund management companies are about fifty percent complete with the validation process of customers whose monies have been locked up in such institutions.
According to the Commission, the disruption caused by the outbreak of the novel Coronavirus in the country slowed down the process.
Speaking on the Citi Breakfast Show on Tuesday, Director-General of the SEC, Rev. Daniel Ogbamey Tetteh stated that they are still receiving claims, though the period for receiving claims is over.
“In February [2020], we announced that we had officially come to the end of the receiving of the claims even though as I said it is still coming through. From that period, we engaged the agent to begin the process. But as you know, with COVID-19, there was a bit of disruption along the line. But we are putting pressure on them and they are actually working around the clock to expedite the process.”
“But they have basically covered a little over fifty percent in terms of the recent report they gave to us. It is a work in progress,” he added.
He also explained that the customers will have their cash refunded after the validation process as government needs the exact number to be determined before payment can begin.
It will be recalled that the Securities and Exchange Commission revoked the licenses of 53 Asset Management Companies with an estimated fiscal cost to protect investors of GH¢1.5 billion.
“We are looking at a very comprehensive solution. You recall that when we made the announcement, one of the things we said was that, the government had indicated to provide some capped amount. So, the question is what should be that cap and if we are going to be beyond that cap, then they need to have a view so that if they [government] are making this move, we know we are paying just the cap or we are going the 100%,” he said.
Over GHS2 billion claims not credible
Rev Ogbamey further noted that though the validation hasn’t been completed, so far, it has shown that over GHS2 billion of the claims is not credible.
“The original value of GHs12.5 billion has now shrunk to GHS10 billion within the validation process. So it’s ongoing and we can’t tell what the exact position is until they have completed the process,” he said.
Revocation and validation
The Securities and Exchange Commission (SEC) in November 2019 revoked the licenses of 53 Fund Management Companies.
On the back of this, SEC selected branches of Consolidated Bank Ghana Limited (CBG) to receive claims from the clients who have their funds locked up at the affected companies.
The banks were tasked to accept relevant documents for the validation of the investment claims.
According to SEC, the said branches serving as agents were authorized “to ascertain and validate details of investors and their investments with these institutions at the time of the revocation to facilitate the administration of the Government payout of a capped amount to affected investors.”
